INDUSTRIAL ENGINEERING AND MANAGEMENT With an Appendix introducing ‘ISO 9000 Quality Systems’ Dr. O.P. Khanna B.Sc. Engg., M.E. (Hons.), Ph.D. Professor & Head (Retd.), Mechanical Engineering Department YMCA Institute of Engineering Faridabad, Haryana A. SARUP M. Com. REVISED & ENLARGED EDITION @ DHANPAT RAI PUBLICATIONS (P) LTD. FIRST FLOOR, 67/4 MADRAS HOUSE, DARYAGANJ, NEW DELHI - 110 002 PHONES : 327 4073, 325 8319PREFACE ————————$ In a society, which is producing more technically qualified persons, newer materials, complex products and more information than ever before, Systematic and Organised Approach in every discipline, is indispensable to meet the challenge of coimplexity. A large industry or business organization cannot rely on ‘Rules of Thumb’ or “Trial and Error’ methods of judgement. The optimum operation of any Industrial organisation demands its staff to share the Administrative and Technical responsibilities efficiently and effectively. Keeping the above facts in view, the book covers various topics of Industrial Engineering and Management with special emphasis on comparatively latest techniques, ie. Systems Concept, Value Analysis, Operations Research, Network Analysis, Work Study, Computers, Business and Environment, Professional and Business Ethics, Management Information Systems, Group Technology, etc. This revised edition of the book with its 39 chapters covers almost the complete syllabus of subjects such as industrial Engineering, Production Management, Management Science etc., being taught in various Universities and Engineering Institutes. As such, this book will be of considerable value to both Practising Engineers and the Engineering Students. New Year Dr. OP. Khanna Jan 1, 1999 Faridabad PUBLISHER’S NOTE If this book does not cover any portion of your syllabus, please write to the Publisher/ Author. ;Other useful books by Dr. Khanna PRODUCTION TECHNOLOGY — Vol. I Contents: (1) Introduction (2) Engineering Metals and Alloys (3) Heat Treatment Processes (4) Testing of Materials (5) Surface Cleaning (6) Finishes and Coatings (7) Painting (8) Plastics (9) Wood Working Machines (10) Foundry (11) Welding (12) Fasteners (13) Adhesive Bonding (14) Powder Metallurgy (15) Mechanical Working of Metals (16) Smithy and Forging (17) Metai Spinning (18) Fundamentals of Metal Forming (19) Metal Forming Processes (20) Press Work (21) Rolling (22) Extrusion (23) Drawing of Rods, Wires and Tubes (24) High Velocity Forming of Metals (25) Pipe and Tube Manufacture (26) Typical Examination Problems. PRODUCTION TECHNOLOGY — Vol. II Contents: (1) Introduction to Machine Tools (2) Kinematics of Machine ‘Tools (3) Metal Sawing (4) Lathe (5) Turret, Capstan and Automatic Lathes (6) Shaping Machine (7) Slotting Machine (8) Planning Machine (9) Drilling and Reaming (10) Boring (11) Milling Machine (12) Gear Manufacturing (13) Broaching (14) Grinding Machine (15) Surface Finishing Processes (16) Metrology (17) Jigs and Fixtures (18) Newer Machining Processes (19) Automation and Transfer Machines (20) Numerical Control of Machine Tools (21) CAD/CAM, FMS and CIMS (22) Robotics (23) Testing of Machine Tools (24) Installation of Machine Tools (25) Machine Tool Vibrations (26) Machining of Plastics and Ceramics (27) Thread Manufacturing (28) Tool Making and Die-Sinking Machines (29) Automatics (30) Theory of Metal Cutting (31) Tool Wear and Machinability (32) Press Too! Design (33) Cutting Tool Design (34) Machine Tool Design (35) Machine Tool Maintenance (36) Repair of Machine Tools (37) Advanced Manufacturing Systems (38) Economics of Machining. ENGINEERING MATERIALS & MATERIAL SCIENCE Contents: (1) General (2) Structure of Metals and their deformation (3) Ferrous Materials (4) Non-ferrous Materials (5) Metallurgical Considerations (6) Identification of Metals and Alloys (7) Testing of Metals and Alloys (8) Selection, Specification, Forms and Availability of Materials. (9) Fundamentals of Heat Treatment (10) Plastic Materials (11) Insulating Materials (12) Ceramic Materials (13) Miscellaneous Materials. ‘WORK STUDY Contents: (1) Introduction (2) Method Study (3) Work Measurement (4) Production and Work Study (5) Engonomics (6) Health and Occupational Safety (7) Job Evaluation and Merit Rating (8) Wage Payment Plans for Direct and Indirect Workers (9) Plant Layout (10) Material Handling (11) Organisation and Training of Work Study Department and its Place in the Organisation of an Enterprise (12) Work Content of a Job and Management Techniques to Reduce Work Content and Inefficient Time. (13) The Human Content of Work Study (14) Statistical Aids to Work Study (15) Measurement of Indirect Work (16) Value Analysis and Value Engineering (17) © & M (18) Question Bank.CONTENTS AT A GLANCE CHAPTERS Page Nos. 1. INDUSTRIAL ENGINEERING AND MANAGEMENT hae 1.1-L13 2. PRODUCTION AND PRODUCTIVITY ...... wee 24-211 3. ORGANISATION. ............00- 7 3.1-3.57 4 PLANT LOCATION, LAYOUT AND LINE BALANCING 41-435 5. PRODUCT DESIGN, PLANNING AND DEVELOPMENT . . . 5.1-5.25 6. PROCESS PLANNING AND GROUP TECHNOLOGY ... . . - 6.1-6.24 7. PRODUCTION, PLANNING AND CONTROL 71-752 8. INSPECTION AND QUALITY CONTROL 8.1-8.48 9 WORKSTUDY .... 6 tous ew. 9.1-9.51 10. NETWORK ANALYSIS . Hee, - + 10,1-10.22, 11, OPERATIONS RESEARCH anes fee, 7 11.1-11.39 12. SYSTEMS CONCEPT & VALUE ANALYSIS... ........ 12,1-12.6 13, PLANTMAINTENANCE ....-.... he eo 131-1316 14. REPLACEMENT ANALYSIS . . . . . es 141-1416 15. MANAGEMENT CONCEPT . foe “ + 15,1-15.38 16 INDUSTRIAL OWNERSHIP . on 7 ss 161-1610 17, SUPERVISORY AND LEADERSHIP se ee ee 171-176 18. DECISIONMAKING ......... ee es 18,1-18,33, 19, INDUSTRIAL PSYCHOLOGY we ~ 2 19.1-19.14 20. PERSONNEL MANAGEMENT wh. . - 20.1-20.44 21, UNION AND INDUSTRIAL (LABOUR) RELATIONS ... - .. . 21.1-21.14 22, INDUSTRIAL (LABOUR) LEGISLATION .... . sees 22,1-22.22 23, MATERIALS, PURCHASE AND STORES MANAGEMENT . 23.1+23.22 24, INVENTORY CONTROL AND MANAGEMENT - - - 24,1-24.1621. 28. 29. 31. 32. 33. 34. 35. 36. 37. 38. 39. CONTENTS MATERIAL HANDLING 6c ee 25.4625.14 FINANCIAL MANAGEMENT ©. 002 ee ey 26.1-26.49 COST ACCOUNTING ANDCONTROL .--- 1.5 5--. 21.1-27.35 BUDGET AND BUDGETARY CONTROL -.-..-. 5... + 281-2814 JOB EVALUATION AND MERIT RATING ........- ss 29,1-29.8 WAGE PAYMENT PLANS .. 0... 07 02s vee 301-3012 SALES AND MARKETING MANAGEMENT . - . se. 3113136 SMALL SCALE INDUSTRIES AND ENTREPRENEURSHIP»... . 32.1-32.15 ENVIRONMENTAL POLLUTION ©... 2.5 = 33.1-33.13 MANAGEMENT BY OBJECTIVES 34,1-34.3 ENGINEERING ECONOMICS .. . 21S GAR Sow. 850-8550 COMPUTERS... .......5 05-55 5 Sean ee 36,1-36.69 BUSINESS AND ENVIRONMENT... 0-2-2, 0-0-0 37.1-37.23 PROFESSIONAL AND BUSINESS ETHICS... 0... 5s 38.1-38.11 MANAGEMENT INFORMATION SYSTEMS ©». 0) sss 39,1-39.13 QUESTION BANK 25. + .QB-1-QB-20 APPENDIK os 3 hose ew a, + Add to 429CONTENTS 1. INDUSTRIAL ENGINEERING AND MANAGEMENT SCIENCE 11-113 1.1 Concept of Industrial Engineering .. 0.0.02. 06 Sere Caencl 1.2 History and Development of Industrial Ene = 1 1.3. Roles of Industrial Engineer ....... 13 1.4 Applications of Industrial Engineering . 14 1.5 Production Management 14 1.6 Production Management Versus Industrial Eagiesing 16 1,7 Operations Management ......... X 16 118 Management Science — Its Historical Development 16 19 The Tools of Management Science... .......- 1-8 1.10 Managerial Economics rs 1-10 1.11 Managerial Accounting 12 2,_ PRODUCTION AND PRODUCTIVITY 21-211 (2.1 Production... .« 21 2.2 Production Function 21 2.3 Production System . é 22 2.4 — Input Output Model . 24 25 25 — Micro-Economics, Applied to Plants and Industral Undenaking 2.6 Productivity... . 27 28 29 Productivity Measures 3. ORGANISATION 3.1 Concept of Organisation ......-.. 4. 3.2 Importance of Organisation... . 3.3 Characteristics of Organisation... . 3.4 Elements of Organisation . . 3.5 The Process of Organisation 3.6 Organisation Theory . we 3.6.1 Classical Organisation Theory . . 3.6.2 Neo-Classical Organisation Theory - 3.6.3 Modem Organisation Theory - - : . -3.7 Principles of Organisation... .-.-.... oan ree. 310 3.8 Organisational Structure . . settee eee see. BIS 3.9 Design of Organisation Structure oe oe sae ae 516 3.10 Organisation Chart... . 2... sates Z wee : 3-17 3.10.1 Organisation Manual . | ae . . .- 320 3.11 Types of Organisation (Formal) . _ - 2 ail 3.11.1 Line, Military or Scalar Organisation Bee ses 3-22 3.11.2 Functional Organisation . . . wee wea. A 3-23 3.11.3 Line and Staff eee . + . 3-24 3.12 Committees...... . bree 3-26 3.13 Project Organisation . . . : ae 327 3.14 Matrix Organisation... ... « ‘i 3.29 3.15 The Informal Organisation tae 3-30 3.16 Organisation Structure and its Compt TB to Management Obes 3-31 3.17 Departmentation . 0. 2-6 ee ee ce eee 3:33 3.18 Matching People to Jobs . . see . - 335 3.19 Authority... 2.2... . . 338 3.20 Delegation of Authority . + . res 339 3.21 Delegation of Authority vis fiseenisatiniion settee ee . «3642 3.22 Co-Equality of Authority and Responsibility . 342 3.23 Delegation of Authority, Level and Span of Control . 3443 3.24 Group Dynamics........... wees BMS 3.25 Organisational Change (Dynamics oF Chang) ware svete Foie 46 3.26 Organisational Development 7 F aa Sate 3.27 Organisational Conflict... . . vs 3.28 Managerial Leadership. ..... . 3.29 Communication Systems... . 3.30 The Dynamics of Organisation . . . PLANT LOCATION, LAYOUT AND LINE BALANCING 41-435 4.1 Concept and Factors Governing Plant Location 41 4.2 Locational Economics . . . . ae 42 43 Rural V/S Urban Plant Sites. i 44 44° Plant Layout . . . 45 45 ProcessLayout............. 5 46 4.6 — Product Layout . oe 4-7 4.7 Combination Layout . . . A SH 48 4.8 Fixed Position Layout. . . Bee 49 4.9 — Flow Pattem . . = sozauecs igo 49 4.10 Work Station Design .. . e 411 4.11 Methods of Plant and Factory Layous 4-12 4.12 Storage Space Requirements. . 418 4.13 Plant Layout Procedure... . . 419 4.14 Factory Building : 4-22CONTENTS 4.15 4.16 417 4.18 5. PRODUCT DESIGN, PLANNING AND DEVELOPMENT 5.1 5.2 5.3 S54 a) 56 37 5.8 5.9 5.10 5.1L 5.12 5.13 5.14 6. PROCESS PLANNING AND GROUP TECHNOLOGY Introduction and Concept... ..- 620020005 6.1 6.2 6.3 64 65 66 67 6.8 6.9 6.10 611 6.12 6.13 6.14 6.15 6.16 6.17 6:18 6.19 Consideration in Building Design ‘Types of Factory Buildings... . . Types of Building Construction . . Heuristic and Other Methods of Line Balancing . Introduction to Product Design . . Effect of Design on Cost.....-... ; Requirements (g¢ considerations) of a Good Product De Factors Affecting Product Design Design by Imitation........- Pan Specification and Drawings. Ren Specifications (Bill of Material or Parts tis) Product Planning . . Product Classification - Product Development - Standardization - - Simplification. Specialization ..- . - Diversification . Interchangeability . . Process Planning Organisation Information Required to do Process wee Process Planning Procedure . Working Drawing . Make or Buy Decision . . . Process Selection . Machine Capacity . Process and Equipment Seloction Procedure . Selection of Material, ace etc... Process Analysis . estes car Symbcie nt ee Outline (operation) Process Chart Flow Process Charts... .... erate fanart see a Manual Process Planning... - . Automated Process Planning Generative Process Planning - 4-22 4.27 4-29 431 5.1-5.25 6-10 6-11 6-11 6-12 6-12 6-12 612 615 615 6-166.20 6.21 6.22 6.23 6.24 6.25 6.26 PRODUCTION, PLANNING AND CONTROL. Group Technology... . . Functional and Group/Cell Layouts . : Defining and Constructing a Component Family ee Classification and Coding Systems . :. . : Formation of Component Family . Establishment of Component Family... ...- . Collection of Production Data. ........ ; Tl Introduction ©... 0... eee ee . 7.2 Continuous and Intermittent Production oe a 7.3 Job Shop, Open Job Shop, Closed Job Shop... . . 74 One Time Large Projects ........... 7.5 Forecasting (Introduction, Purpose, Elements and Techniques) 7.6 Technological Forecasting... ............ 7.7 Planning to Meet Seasonal Sales or Demands . . 78 — Techniques for peas Fluctuations in Demand . 79 — Process Planning... .. . 7.10 Economic Batch Quantity . ' pees De x 7.11 Tool Control... 22... . 7.12 Loading.......... 7.13 Scheduling and Control of Production 7.14 Scheduling ........ TAS Manufacturing Schedule . . 7.16 Scheduling and the Computer . ; 7.17 Control of Production . . 7.18 Dispatching . . 7.19 Routing...... . 7.20 Progress Control... . . 7.21 Flow Control of Material, Component atts and Sub-” assemblies to Match those of Final Product .... 2... 4.04.0 7-47 7.22 Line of Balance 66.6... cece eee sete era 7-48 INSPECTION AND QUALITY CONTROL 8.1-8.48 81 Definition and Concept... 2.2.55 0 ee eee BL 8.2 Purposes or Objectives of Inspection . i= Fray wate a een SL 8.3 Kinds of Inspection ......... rock (ll 8.4 Inspection of Incoming Materials, [Raw or Rocgived Wastestaré 8-2 85. Inprocess Inspection 8-2 8.6 Inspection of Finished Goods . . . 8-3 8.7 Statistical Quality Control (Definition and Concept) - . 8-3 8.8 Statistical Quality Control (Basic Fundamentals) . : 8-4 8.9 Probability Concept... 0.00. e ee pean! 85CONTENTS » 8.10 8.11 8.12 8.13 8.14 B15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 ‘The Poisson Distribution Normal Distribution... -- - + Distribution Pattern . Confidence Limits... . Measures of Central Tendency - - - - . - Process and Machine ete) =o Estimation . . . - Significance Testing . Analysis of Variance . Sampling Inspection . Sampling Plans .. - Control Charts and Their Applications Life Testing . Reliability and Reliability Prediction . Monte-Carlo Simulation. . . . . - a a ‘The Zero Detect Concept Quality Circle . WORK STUDY OL 9.2 93 o4 OS 96 97 98 9.9 9.10 OAL 912 9.13 9.14 9.15 9.16 917 9.18 9.19 9.20 9.21 9.22 9,23 Definition and Concept Need for Work Study...» ‘Advantages of Work Study . . Objectives of Method Study . . - - . Objectives of Work Measurement . Method Study Procedure Process Charts Symbols Flow Process Charts . . Flow Diagram . String Diagram. Multiple Activity ‘Chart - Operation Analysis . . - Analysis of Motion . . Principles of Motion Economy Design of Work Place Layout - Therbligs S.LM.O. Chart . + Collecting Time Study Data Stop Watch Procedure fo (Including Performance ane and ara Standard Data Analytical Estimating . Predetermined Motion Time System (P-M.T.S. ) Mothod-Time-Measarement (M- T-M) . ‘Work Factor . xi 8-6 8-8 8-10 8-13 8-14 8-16 8-19 8-20 8-22 8-24 8-28 8-32 8-40 8-40 8-42 8-45 847 91-951 9-1 9-1 9-2 9-2 9-2 9-2 9-4 o4 9-6 9-8 9-9 9-10 9-12 9-13 9-14 9-15 9-17 9-1810. st 2 CONTENTS 9.24 Work Sampling . . 9-39 9.25 Synthesis of Work Study Data. , 9-44, 9.26 Use of Time Study Data in Wage Incentive and Collective Dare 9-44 9.27 Comparison of Work Measurement Bes ae 9-47 9.28 Ergonomics . . 9-48 NETWORK ANALYSIS 10.1-10.22 10.1 Introduction ...-.... Pontes) vse Moke = wis 10-1 10.2 Network Techniques . . . . ioe iste 10-1 10.3 Terms Related to Network Planning Methods - : ae Cod) 10.4 Programme Evaluation Review eae ce ep Sense 105 10.5 Critical Path Method (C.P.M) . - 10-10 10.6 Smoothing en, 10-19 10.7 Applications of Network Techniques, . sete » 10-21 OPERATIONS RESEARCH 11.1-11.39 11.1 Concept of Optimization . 5 It 11.2 Operations Research»... 2. . il 11.3 Methods of Operations Research . 11:3 114 Linear Programming. ......... 11-35 11.5 Graphical Method 14 11.6 ‘Transportation Problem-Vogel's Method and N.W. Comer Method ... 11-6 11.7 Degeneracy... 2.2... eee . 11-18 11.8 Fundamentals of Simplex Procedure . : 11-20 119 Waiting Line BES) Tale » 11-27 11.10 . ii - 11-38 dl 11-36 11.12 Dynamic Programming 11:37 11.13 Difference between Linear aor and a Progamming 11-39 11.14 Nonlinear Programming .......... P 11-39 SYSTEMS CONCEPT & VALUE ANALYSIS 12.1-12.6 12.1 Systems Concept . . veces Wel 12.2. Systems Analysis. eercat) 12 12.3 Systems Engineering . . ne aa. 122 12.4 Techniques in Systems Analysis . . . 2. 123 12.5 Applications of Systems Engincering . o5GoG 1H 12.6° Value an eee ee: mn, ~asneras. 123 12.7 Value Analysis . + EGsle 2554" tom Sess Seareesre tos « | Iz PLANT MAINTENANCE 13.1-13.16 FIN Iaith ere iee esters ees ee ‘i +. 13 313.2 Maintenance... - 2.2... 0000. : easy 13-1CONTENTS 14. 15. 13.3 Objectives of Plant Maintenance oO SAN a Pot 13-1 13.4 Importance of Plant Maintenance 13.5 Duties, Functions and Responsibilities of Plant Maintenance Department 13-2 13.6 irene ee 5 Wavsue 13-3 13.7 Types of Maintenance . 7 135 138 Breakdown Maintenance. . : spss 135 13.9 Scheduled Maintenance’ . - 13-6 13.10 Preventive Maintenance . - - 5 13-6 13.11 Predictive Maintenance .--.--- eueiia 13-12 13.12 Plant Maintenance Schedule . . 13-12 13,13 Standard Data for Maintenance . 9 EDL 1314. Some Recent Developments in Plant Malntenance /-16370/<1 cs ces 13-16 REPLACEMENT ANALYSIS 14.1-14.16 14.1 Introduction .. 6... 4: wasn ese. Teel 14.2 Reasons for Replacement . . 14-2 143 Factors for Replacing Equipments 143 14.4 Methods used in Selection of Alternatives. 143 ‘Total life average method. 144 Annual cost method . 145 Present worth method . 147 Rate of return method 149 MAPI method . = Sra 14-10 ‘Approximate MAPI polution .,0). sf. set 5 So ilare arson aad MANAGEMENT CONCEPT 15.1-15.38 15.1 Management... .. . . 15-1 15.2 Administration... . - . 15-1 15.3 Organisation... . - ee eens 154 Difforence and Relationship between Management, .........-- 152 ‘Administration and Organisation 15.5 Importance of Management . . - , 15-3 15.6 Characteristics of Management . , 15-3 15.7 Managerial Skills... ....- ++ 15-3 15.8 Managerial Objectives... . 6. 1555 15.9 Harmonization of Objectives .. . . 15-5 15.10 Hierarchy of Objectives . 15-6 15.11 Difference between Policies, Goals and Objectives . 15-6 15.12 Evolution and Development of Management Tho 5 15-8 45.13 Origins of Principles of Management . . weit. 22% 15-10 15.14 The Beginning of Scientific Management yee coe. See 1ST 15.15 Contributions of F.W. Taylor... - aden rie) ieee eS 15.16 ScientificManagement ...-. +. 2-2 000 sess cena eee ee 151215.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15,33 Contributions of Henri Fayol . . . Contributions of Elton Mayo... . . Contributions of Gilbreth . Contributions of Gantt . Review of Different Schools of Thou: Principles of Management. . . . . - Principle of Exception . . - - . Process of Management , Fanctions of Management Levels of Management... . . Industrial Management . . . . F ‘Types of Management... -.-... 4.5 Management Chart 2.66) 2s us Need and Usefulness of Management Theory - Management Development . . . Project Management... ... Management Information Systems . 16 INDUSTRIAL OWNERSHIP Introduction... .. Types of Ownership . Single Ownership . . 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 Joint Stock Company Cooperative Societies 17. SUPERVISORY AND LEADERSHIP 171 17.2 913 174 } 175 \17.6 bi Qualifications of a Foreman . Qualities of a Foreman... Leadership Styles. . 18. DECISION MAKING 18.1 18.2 18.3 18.4 18.5 18.6 Introduction and Definition... ....., Importance of Decision Making . . Decision Making and Problem cee Types of Decisions ....... ‘ Theories of Decision Making . . - Techniques of Decision Making . es of a Foreman/The Supervisor's Job | as ‘CONTENTS 15-13 15-14 15-14 15-15 » 15-15 » 15-20 + 15-22 15-23 15-24 15.27 15-29 ~ 15-29 - 15-30 » 1831 » 15-31 15.34 «18.36 16.1-16.10 16-1 16-1 16-1 16-2 16-4 16-6CONTENTS xv 18.7 Decision Making Process... - - i see. 184 188 The Scientific Approach to the Decision Process |. += uuc-= e189 18.19 Guidelines for Effective Decision Making - : sone 189 18.10 Quantitative Methods in Decision pam sas > 18-10 18.11 Mathematical Programming . ssi 18-11 18.12 Mathematical Models . ae 18-11 18.13 Cost Analysis for Decision Maxis 18-13 Tate Coes eaercalany 18-14 18.15 Operations Research . 18-14 18.16 Linear Programming 18-15 18.17 Capital Budgeting . ‘i : 18-15 18.18 Capital Investment Analysis =... - : 18-15 18.19 Methods for Comparing Alternative Investments . 18-16 18.20 Inventory Management . . . - 18-18 18.21 Expected Value F 18-19 18.22 Decision Tree . 18-19 18.23 Simulation . . . : 18-20 18.24 Queuing or Waiting Line Theory 18-20 18.25 Game Theory . ' ; 18-21 18.26 Game Models»... 4.5 6+ , 18-22 18.27 Information Theory... +. « 18-22 18.28 Utility Theory... 505+. aie «mtorat 1822 18.29 Heuristic Programming . . . . < ateie wine. 18-23 18.30 Markov Analysis. . os 18-23, 18.31 Decision Theory . 18-26 1832 Decision Making Under Certainty - 18-27 18.33 Decision Making Under Risk... . - 18-28 1834 Decision Making Under Uncertainty . 18-29 18.35 Cost Effectiveness Analysis 18-30 19. ANDUSTRIAL PSYCHOLOGY 19.1-19.14 19.1 Definition and Concept . . - . veins cone ee 1941 i9e2) racial Pryeiclogy Vie Parvensel WCanegemcat Co 19-1 19.3 Aims and Objectives of Industrial geht) ; 19-1 19.4 Scope of Industrial Psychology . 19-1 19.5 Individual and Group : 19-2 19.6 Individual Differences in Behaviour . ceratcl: 19-2 fiat i 571) eau eee i a 19-4 (198 case 19-6 19.9 . 19-6 19.10 19-7 19.11 sil: cs eat 19-10 19.12 Conditions eons ys 19-12xvi , CONTENTS [19-13 Industrial Fatigue _ _Serdiametatvan iitin sees 19413 20, PERSONNEL MANAGEMENT 20,1-20.44 20.1 Definition and Concept Fille 20-1 20.2 Pee Objectives or Fuinctions o oe enone Management Ea)=2 emo) 20.3 Ee 20.4 vis oe 204 < 205 n a ing. = peste ees 20122 20.6 Safety eer r Receeezoc 20.7 Accider : : vee 20024 20.8 Good-Housekeeping . ees as . 20a 20.9 Labour Welfare. . 25 niga Ware it 20832 20.10 Communication in Industry |...-..-- 0... 20-34 20.11 Suggestion System . een = + 20-36 30.12 Discipline in Industry . eee es 20638 ~20.13- Promotion, Transfer, Lay-off and Discharge - ni. i). 8 he 20°39 (20:14 Labour Tumover.... 1... epee eee ees 1 ye 20-42) 21. UNION AND INDUSTRIAL (LABOUR) RELATIONS 21.1-21.14 21.1 Introduction . 2-1 21.2 ‘Trade Unions . 21-2 21.3. Industrial pineal aes 21-4 214 Swikes ..... 21-5 215 Lock-out . See ois 8 21-7 216 Picketing ...--..--.--- 21-7 21.7 Gtierao . . - ce 21-7 21.8 — Settlement of Industrial Disputes dis pita erste eee 2B 21,9 Collective Bargaining ...... Fe enna 2110 Handling of Worker's Grievances and Grievance Procedure... 21-10 21.11 Worker's Participation in Management... . . wavit vie 2112) 21.12 Union-Management Relations... . . . See nial wise eee Meld 22, INDUSTRIAL (LABOUR) LEGISLATION 221-2222 7221 Introduction»... eee 22-1 22.2 221 22.3 at 22-1 } 22.4 erent 22-1 J 22.5 : 22-2 “| 226 22.9 \ 22.7 22-11 \ 22 8 n’s Compensation ‘Act, 1923 22-13 , 22.9 ‘The Industrial Dispute Act, 1947-2. . mites cei = . 22-15 | 22.10 The Employee's State insiranice OPE rg aS gms Ur NIK,CONTENTS. xvii 23, MATERIALS, PURCHASE AND STORES MANAGEMENT 23.1. Materials Management . . 23.2. Purchasing or Procurement 23.3 Purchase Organisation. . . 23.4 Buying Techniques. 23.5 Quantity and Quality Standards. - 23.6 The Purchasing Procedure. 3.7 Accounting... 2.2... 23.8 — Stores and Material Control . 23.9 Receipts and Issue of Materials. . 23.10 Store Records ......... a git ait oe 23.11 Codification of Materials ...-. 2-0 2-2-6 0 -e 23.12 Physical Verification of Stores 24. INVENTORY CONTROL AND MANAGEMENT 24.1 Inventory 24.2 Inventory Control... « 24,3 Inventory Classification 24.4 Inventory Management .. - . 5 24,5 Objectives of Inventory Control. . 24.6 Functions of Inventories 24.7 Economic Order Quantity - 248 Inventory Models... . 249 ABC Analysis... . : 24.10 Material Requirements Planning . 24.11 Manufacturing Resource cas Pee 24.12 Operating Cycle... .. . Spats a. tee 25. MATERIAL HANDLING 25.1 Introduction and Definition . . . - 25.2 Function and Principles of Material Hnaing 25.3 Engineering and Economic Factors . 254 Relationship to Plant Layout ......... 25.5 Selection of Material Handling Equipment 25.6 Maintenance of Material Handling Equipment 25.7 Types of Material Handling Equipments. . . . 25.8 Concept of Containerization and Palletization . 26, FINANCIAL MANAGEMENT 26.1 Concept and Definition... 2.6.0 eee tee eee ee eens 26.2 Purpose of Investment 26.3 Types of Capital . . 26.4 — Working Capital26.5 Sources of Finance. . - " 26-3 26.6 , 26-8 26.7 26-8 . wees. 269 a S.52-. 269 26.10 wees. 26-10 26.11 ; A > +. 26-11 26.12 Liabilities . . w= + 26-12 26.13 The Journal and the Lag 26-13 eee ‘ial Balance . 26-14 16.15 ‘Trading Account . . - 26-16 16 ial Statement 26-17 (26.17 Financial Ratios . . 26-19 26.18 Sources of Finance : + 26-21 26.19 Capital : : - 26-32 26.20 Working Capital . - - » 26-33 26.21 Capitalisatis +. 26-35 26.22 Capital Structure . += 26-38 2623 Difference between Capital, Capitalisation and Copia Stmoture va bs 2643 26.24 Capital Gearing ......------0- 0200s = » 26-43 26.25. Factors affecting Requirements for Working re Wes sss 2644 26.26 Return on Investment .....-..+> 7 «26-45 26.27 International Financial Management --.. . + 26-46 ost ACCOUNTING.AND CONTROL 27.1-27.35 27.1 Introduction . . ‘ es » 27 27.2 Elements of Cost Y + 27-2 27.3 Prime Cost . - + 274 27.4 Overheads . . 27-5 27.5 Factory Cost . . 27-6 27.6 Total Cost . - . 276 27.7 _Selling Price . . » 276 27.8 Nature of Cost .. 277 27.9 Types of Cost . . - 27-8 27.10 Process Cost and Cost ci Production a 7 * c 6 279 27.11 Allocation of Overhead ...... as ~ 27-12 27.12 Control and Accounting of Material, Labour fal Overhead. . ~ 27-17 27.13 Depreciation .....-.-+- 7 we . 27-19 27.14 Breakeven Analysis . - 7 2S VS gee hE vee 27-29 27.15 Breakeven Chart... - - thew ee nee wey Sam = a= 27-30 28. BUDGET AND BUDGETARY CONTROL 28.1-28.14 28.1 Budget, Definition and Condept... =~. 2-6-2560 e sees s 281CONTENTS xix 28.2 Budgeting . . 28-1 28.3 Budgetary Control wes taes 282 28.4 Objectives of Budgets, ageectal ‘ani Budgetary Control teens neamnae™D 28.5 Advantages of Budget, Budgeting and Budgetary Control . - 028-3) 28.6 Limitations of Budget ' wees 28-3 28.7 Types of Budgets... . . denne sone. 2s ne eRe) 28.8 Preparation of Budget . eee ees 211 28.9 Budget as a Means of Planni 1g, “Control and (Coorainetiea| sete ~. 28-13 28.10 Operation (Working) of Budgetary Control... -- . cee ees 2813 3, 408 EVALUATION AND MERIT RATING 29.1-29.8 29.1 Job Evaluati : sete ees 21 Gntroduction, Definition and Concept, Objectives, Procedure and Methods) 29.2 Merit Rating... 2... 0... 2. eee ee Fe eet eee 29-6 caaiesacaect Definition, Objectives and Methods) 30, WAGE PAYMENT PLANS 30.1-30.12 30.1 Introduction... 6... ee ee ee ee sae 301 +_36.2 Classification of Wage? sonal Plans . 30-1 30.3 30-1 30.4 a . 30-2 lan, Bedaux 30.5 30-10 30.6 “Profit Sharing or 30-11 31. SALES AND MARKETING MANAGEMENT 31.1-31.36 31.1 Introduction... . . 4 311 31.2 Sales Management. e s. 34 31.3 Sales Organisation . SEneesuty 314 Functions of Sales Department . . B13 31.5 Duties of Sales Manager. . . -. 313 31.6 Duties of Salesman/Sales Engineer tee se 34 31.7 The Selling Concept v/s Marketing Concept. +... - oe BL4 $318 Marketing, Definition, Principle and Functions .... . - ve 31-5 31.9 Marketing Manasement and its Functions... ..... + 316 31.10 Marketing Research - vee . 31-7 31.11 Sales Forecasting .....--. 0 j B19 31.12 ‘The Marketing Mix - Sacre ws 31-10 31.13 sit a Stell 31.14 Sa 31-14. 31.15 Chi - 31-15 31.16 . 31-1631.17 31.18 31.19 31.20 31.21 31.22 31.23 32." SMALL SCALE INDUSTRIES AND ENTREPRENEURSHIP S301 32.2 323 324 325 32.6 32.7 328 329 32410 32.1 32.12 32.13 32.14 32.15 32.16 A217 32.18 32.19 32.21 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 Pricing 0. noida Fe aa The Market Product Mix Price Mix . . Promotion Mix Distribution Mix - Intemational Marketing Introduction Procedure for Registration of Small Scale Industries Role and Scope of Small Scale Industries... 2... - ‘Concept of Small Scale and Ancillary Industrial Undertakings . How to start a Small Scale Industry»... .. 2... -- CONTENTS » 3-17 31-19 31-24 31-26 31-28 ~ 31-32 31-34 32.1-32.15 32-1 32-2 32-2 32-2 32-3 List of Items Reserved for Exclusive Manufacture in Small Scale Sector 32-4 Financial Assistance ............ . Other Assistance Provided to Small Units . . Special Incentives... 0-2... Assistance to Educated Unemployed . , ‘A Model Scheme to Start a Sail Seale = reas ! Entrepreneurship... . . , of Ei Profile of an Entrepreneur. . . Entrepreneurial Philosophy Functions of an Entrepreneur Qualities of an Entrepreneur Entrepreneurial Faihere —--~. Entrepreneurial Development ENVIRONMENTAL POLLUTION Jntroduction Ecology . 5 Factors Causing Pollution. _ . Bee Effects of Pollution on Human Wealth Air Pollution and Control Water Pollution and Control Solid Waste Management . Noise and its Control. . 34. MANAGEMENT BY OBJECTIVES 34.1 Definition and Concept. 32-5 32-7 327 += 328 += 328 - 32-11 w= 3211 ++ 3212 ++ 32-12 == 3212 ~ + 32-13 32-13, a+ 32-14 «+ 32-15 ~ 32-15 33.1-33.13 33-1 33-1 33-1 33-2 33-2 33-6 33-10 33-12 341-343CONTENTS 34.2 34.3 34.4 34.5 35. ENGINEERING ECONOMICS 35.1 35.2 353 35.4 35.5 35.6 35.7 35.8 “59 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 Objectives ©. 5-265 a, Steps in Setting Up MBO. - 3 utig | eee [aivaneage ct MRO x= Des Sats ws» HOD Gas SHO GEASS) Limitations of MBO... 5 - =~. =~ a 34-3 Definition and Concept . Importance of Economics far Basics Wealth . Value and Price . . . Capital . Demand and Supply « Demand .. . i The Law of Substitution . . ae - Factors of Production Large Scale Production... . - Localization of Industries .. - - Decentralization of Industries Laws of Returns . Distribution . . Rent... Interest . (35.28 Banks 35.29 35.30 4 35.31 35.32 35.33 35.34 35.35 35.36 35.37 The State Bank of India Exchange Banks . Central Banks... =. ‘The Reserve Bank of India . Money Market35.38 35,39 (3540 35.41 35.42 35.43, } 35.44 “. 35.45 35.46 35.47 48, Concept, of Insurance. - 35.49 35.50 35.51 35.52 36. COMPUTERS 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 Speculation — Bull and Bear . Principles of Taxation . ‘and Protection - Foreign Exchange . . on Mechanisin of Foreign Exchange . Foreign Exchange Control. . Life Insurance»... . +» Fire Insurance 6... ss eevee Machinery Insurance... . . » “to Marine Insurance... 2... -- =~. 5 Introduction .... . History of Computers Generations of Computers . Difference between a Calculator and Computer . Characteristics of Compatecs . Limitations of Computers . Classification of Comptes C Digital Computers . . Analog Computers . Hybrid Computers . . Computer Structure . Computer System ... « Organisation of Digital Compute Computer Peripherals a Input Devices... . Output Devices Input/Output Devices Storage Devices .. . Main Storage Devices Backing Storage Devices... « Problem Solving by Se : Number Systems . Binary Arithmetic . . Bit, Byte and Words . Computer Languages... . ‘Computer Operating Systems . .‘CONTENTS: 36.27 Applications of Computers : . 36-65 (Scientific Research, Business ‘Applications, Data Processing and Industrial Applications) 37." BUSINESS AND ENVIRONMENT 37.1-37.23 “37.1 Meaning of Business es. one see OE, he . 3d 37.2 Earlier Business Objectives . . . Sees. S 37-1 37.3. Changing Concept and Objectives of fBasinees seen sone 37-2 37.4 Professionalisation a 37-3 37.5 Business Ethics .......- - 37-3 37.6 Social Responsibility of Business . - 37-4 37.7 The Indian Situation... .. : 37-6 37.8 Meaning of Environment . * ui . 3 37-8 37.9 Business Firm and its Environment : . . 37-8 37.10 Relationship Between Business Firm and 5 Capital Eatin 37-9 37.11 Constituents of Business Environment - 37-9 37.12 Suppliers . . . - ike 37-10 37.13. Customers - 37-11 37.14 Competitors . 37-11 37.15 Public ... . 37-12 37.16 Marketing eerie 1 37-12 37.17 Economic Environment . - - - 37-12 37.18 Technological Environment . . 37-15 37.19 Political Environment - . . er 37-18 37.20 Social Environment... 60-00 ees 550s 37-20 37.21 Legal Environment ..-. +++ ++ menor 37-21 38 PROFESSIONAL AND BUSINESS ETHICS 38.1-38.11 38.1 Concept of Profesional Professionali . BB 38.2 Concept of Ethics... - . , 2 BRI 38.3 Ethics andMorals . . . wee 38S 38.4 Business Ethics . - oe . . ++ 38-3 38.5 Professional Ethics . i, w tence 384 38.6 Need for Professional and Business Bthics -+ 384 38.7 Importance of Ethics ...... wee BRS 38.8 Need for Business to be Ethical 38-5 38.9 Ethical Dilemmas . . 7 tne . mT 38-6 38.10 Ethical Problems in Business . we ebee - ae 38-6 38.11 Ethics Issues - 38-6 38.12 How to Make Business Bthical . oe . 38-8 38.13 Codes of Business and Professional Ethics 38-9 38.14 Chief Provisions of a Professional Code. . - . 38-9 38.15 Ethics Training Programs - - . - - - . 38-10