Introduction to Industrial Engineering and Productivity Definition and Role of Industrial Engineering, Functions of management. Measurement of productivity : Factors affecting the productivity, Productivity Models and Index (Numerical), Productivity improvement techniques. Note : Productivity improvement techniques viz. 58, Kaizen, TPS, KANBAN, JIT, etc. shall be discussed at the end of this Unit. 1.1_Introduction to Industri Engineering Industrial engineering has evolved over the last century as a broad profession concerned with designing effective systems and, developing the best processes with purpose of integrating the people, machine and material resqGpes for improvement in effectiveness of the organization, while delivering the best products to customers within stipulated time period Industrial engineering is the approach to the detailed analysis of the use and cost of the resources of an organization. ‘The resources of any organization include men, money, ‘materials, equipment and machinery. ‘The industrial engineer carries out such analysis in order to achieve the objectives of increasing mea or GOs, sting wp (oie) of an organization, Industrial engineering is associated with organization Problems and at the same time he has to correlate cfficiency of the system and working group. ~The objectives of industrial engineering are.to establish the methods for improving ‘Types of production systems and organization structure, develop the programs which will drastically reduce the operating costs. Industrial engineering provides specialized services to production department and few cases they handle head Projects. ‘While the term originally applied to manufacturing, the ‘use of “industrial” in “industrial engineering” can be somewhat misiédting, since it has grown to encompass any methodical oF quantitative approach to optimizing how a process, system, or organization operates. Industrial engineering is a branch of engineering which deals with the (Sptimization of complex processes or systems. er It is concemed with the development, improvement, and implementation of integrated systems of people, materials, analysis and synthesis, as well as the ‘mathematical, physical and social sciences together with the principles and methods of engineering design to specify, predict, and evaluate the results 10 be chained from such systems or processes(SPPU-8" Sem-Mech) _ Syllabus Topic : Definition of Industrial Engineering 1.1.1 Definition of Industrial Engineering > (SPPU- Dec. 11, May 15, Dec. 17) Q. Define and explain what do you understand by industrial engineering ? What is Its importance ? wdustrial Engineering can be defined in various ways ae hninetl) ope ae The branch of engineering that deals mn and tof systems that i people, nt Industrial engineering is concemed with the design, improvement, and installation of integrated systems of people, rte infomation equipment, and enerey, It uses specialized knowledge and skills from different field and apply the principles and methods of ‘engineering analysis and design to specify, predict, and evaluate the results to be obtained from such systems. } | / jas stated below : materi It is concemed with efficient production, design ‘methods, not machinery and jobs include plant layout, analysis and planning of workers’ jobs, economical handling of raw materials, their flow through the production process, and the efficient control of the inventory 6f finished prod ‘The American Institute of Industrial Engineers (AITE) has defined the special field of industrial ‘engineering as “Concemed with the design, improvement and installation of integrated systems of People, materials, equipment and energy It draws upon specialized knowledge and skill in mathematical, physical and social sciences together” with the principles and methods of engineering analysis_ and design to specify, predict and evaluate the results to be Syllabus Topic : Role of Industrial Engineering 4.2 Role/Objectives of Industrial Engineering ‘The American Institute of Industrial Engineers (ATE) | has stated following major roles of Industrial Engineering are as follows, Selection of manufacturing process and assembling procedures. —_. {ae 1 Selection of tools and equipment and designing them in case of specialized requirements. Facility design which includes, plant location and) layout, machines, material handling systems, raw i ished goods iti ‘materials and finished goods storage facilities. Establishing production planning and control systems, inventory and quality system for smooth functioning of an organization. 1 Promoting cost control system-through budgetary control, cost analysis and standard costing. Developing time standards, joy Sahation an mest rating through applicable installation oo wages iv schemes. Promoting operational research including mathematical and statistical analysis for projet fesSTBIDY- Iisalai o Yohei eee Standards of a system, Besides manufacturing department, other departments such as Marketing, Purchase, Industrial’ Relations, and Customer Relations Management (CRM) also work in lineJob evaluation and Merit rating Deciding organisation structure and method frequently assigned functions : 1) Project management and support, Cost estimation and control, Inventory control, (4) Production control, | (5) Tools and equipment selection, (©) Preventive maintenance program, (9) Process comol studies. Less frequently assigned functions (1) Project feasibility, isi ©) Sai eeen caste | 2) Internal audits, = (4) Organisation and business consultancy, + (S) Performance reviews, - (©) Training programs. | — ‘Syllabus Topic : Types of production systems 1.2.1 Types of production systems Three main factors generally determine types of production systems : ; (Type of production i.e., quantities of finished 1. The quality involved is small and ng ofthe product will take place as ‘specifications given by the customer. This system may be further classified as. (The Job produced on onde : Here the ciistomer visit the firm and book his order ‘After the completion of the product, he takes Aelivery of the product and leaves the firm, He may not visit the firm to book the order forthe samé product. The firm has to plan for material, process and manpower_only er receiving the order from the customer. ‘The firms have no’ scope for pre-planning the production ofthe product (i) The job produced at intervals = Here the customer visits the firm to place orders for the same-type of the product at iegular intervals. The firm will not bave any idea of customer’s_visit. Here also planing for materials, process _ and manpower will start only after taking the order from the customer. In case the firm maintains the record of the Jobs Produced by it, it can refer to the previous plans, when the customer arrives at the firm to book the order. (iii) The Jobs Produced periodically at regular intervals : In this system, the customer arrives at the firm to place orders for the same ype of product at regular intervals. Here firm knows very well that the customer visits at regular intervals, W can plan for materials, and process and ‘manpower and have them in a master file. As soon as the customer visits and books the esas te fica rt UN LO ‘volume of the order is considerably large. and the number of regularly visting ‘customers are large in number,-the Job Production system slowly transform intojon is the (b) Batch Production : Batch manufacture of nuniber oCidentical products either to meet the specific onder or to satisfy the, demand. ‘When the Production of plant ‘and equipment _is terminated, the plant and equipment-can-be.used for producing similar produets~This system also can be classified under three categories, @ A batch produced only once + Here customer places order with the firm for the product of his specification. The size of the order is greater than that of job production ‘order. The firm has to plan for the resources after taking the order from the customer. (i) A Batch produced at irregular intervals as per Customer ordeF or when the need arises : As the frequency is irregular, the firm can maintain a file of its detailed plans and it can refer to its previous files and start production. (il) A Batch Produced periodically at known Intervals : Here the firm either receives order from the customer at regular intervals or it may produce the product to satisfy the demand. It can have well designed file of its plans, material requirement and instructions for the ready reference. It ean also purchase ‘materials required in bulk in advance. As the product is produced to meet the demand of, ‘an assembly line or the market. This system needs good planning for material, process, maintenance of machines and instruction to operators. Purchases of materials in_ bulk ‘quantities is advisable. ji) Flow Production : The difference between Mass and Flow Production is the type of ‘product and its relation to the.plant~in Mass Production identical products are produced in large numbers. If the demand falls or ceases, the machinery and equipment, after slight modification be used for ‘manufacturing products of similar nature. In flow production, the plant and equipment is designed for a fiance iftd the demand falls for the product or ceases, the plant cannot be used for manufacturing other pt Itis to be scraped. >& ‘The examples for the above discussed ‘system are F (Job Production Shop: Tailors shop; cycle : ee Se ‘Workshops. PS. i) Batch Production Shop: Tyre Production Sho Readymade dress ‘manufacturing companies..ete— (ii) Mans Preietiaa ak industrial products, arr (iv) Flow Production : Cement Factory, factory, Oil refineries...ete. "8 upon the nature and demand of the pAf the products are made to be sold in market, then hese are produced to stock, and then sent to ‘warehouses and distribution centres, hence, these ‘products are produced continuously and their quantity depends upon market requirement conditions and ‘capacity of the plant. Even when the products are ‘produced continuously, in the assembly sections, the parts and sub-assemblies are prodiced intermittently, in Datches. In some cases, industies like sugar industries, chemical industries, are primarily designed for a specific product only and then they produce the same product continuously. Thus, the types of production are classified as Job Production, Batch production, Mass production and Flow production. It is not necessary that an industry Producing a product has to follow only one type of production, ~The strategies to be adopted for production planning, facilities, layouts, material management and processes {0 be adopted and so on, would vary with the types of Production. The comparative analysis of different ‘manufacturing systems is given in a tabular format (Refer Table 1.2.1) ‘Table 1.2.1 : Comparison of Manufacturing System — oe 6 fsarng (SPPU-8" Sem-Mech,)__ po Sr | Characteristics | Job production | Batch production | Mass production as ®| @ ® ® £) \a Process Different process for | Process is set for each | Process is continuous | Process is continuous different product. batch. With required | and change in and high changeover modification one Process is costly. costs, process may be changeover to new process for new batch. 4, | Production Usually small in Based on optimum —_| Large quantity. Large quantity, quantity numbers. i.e,, economic batch size, S. | Production Planning is tobe done | Planning is done for | Extensive efforts are | Extensive and planning and | for each order whereas | each batch. required during detailed planning is control control is more on Application of group | initial stages before | essential and expediting the order. | technology would Start of production. | controlling is easier, simplify the planning {| Control is simpler for change over of | and comparatively | set-up for new more effective. \ | batches. Periodicity Mostly Based on scheduling | Continuously all the once/intermittently. decisions and time products may be | time. / ‘economic batch size | switched from | for a specific period. | existing to new one ‘depends upon ‘management decision. 7. | Scheduling, Depends upon Mdoes not need any | Fixed type of ‘quantity per batch and | elaborate and scheduling dependsIndustrial Engineering (SPPU-8" Sem.-Mech.) Job production @ & co) ) © Flexibility Should be highly Flexibility required to | Upto some extent | Almost inflexible. requirements. | flexible. switch for new flexibility is required Bs products with less setup time requirements, Type of Use of general purpose | Usually production | Highly specialized | Equipments and | equipments equipments. Jigs and | machines with jigs | machines and plants are designed used. fixtures should be used | and modular fixtures | equipments, with | for the process for specific task alone. | which are capable of | advanced involved. switch over to mechanization and production of similar | tooling. Robots can cor other products. | be applied. 1. | Material General purpose trucks, | MHS should be fairly | Elaborate material | Fixed MHS which is handling Cranes can be used. flexible. handling is required. | governed by the system (MHS) process 12. | Inventory Itshould be highly | Depends upon make | EOQ and fixed order | Same as that of Mass management | sensitive to cor buy decision and _ | system can be production. requirements of the calls for higher co. _| adopted. Advantage situations. Expediting | ordination with of bulk purchases can ‘of special items are | production and be obtained. 13. | Plant layout | Process layout Mostly combination | Product layout Product layout zy ‘ype 14, | Examples ‘Models and prototype | Foreign, foundry | Automobile- Food processing (Type of ‘development. industries, glassware | industries. industries, paper mills industries and | Industries involved _| manufacturing, chemical mills, etc. products only in research, ‘components, spare 7 ‘special purpose parts manufacturing machinery and industries. ‘equipments like boiler, generators, ship, etc. : ~The production system can also be classified by the flow characteristics of materials and products going through the system, ‘In serial production’, the product passes along an assembly line from one operator to another so that atthe end of the line it is a completed unit. ‘Parallel Systems usually used for smaller production runs, are less structured, less ‘automatic, less dependent upon past and future operations on the part. But in practice there aré numerous situation we ‘came across where system involving both serial and parallel systems,Introduction to Industrial Engineering and, [EP industriat Engineering (SPPU-8" Sem-Mech = On the basis of quantities to be produced the production systems can be classified as follows. (Refer Fig. 1.2.1). Pow ) Staffing (4) Directing \ ye (5) Contoting % \ Topeee ord a. aes Fig. CLA : Functions of Fig. 1.2.1 : Production quantity Vs Product variety ig management ma | | roan, eb) produoton Produation quantly —e ete emeneetnenemr |e ‘Syllabus Topic : Functions of Management DUP cing ee — loping 1.2.2 Functions of Management business mission’ and-qbjectives and determining ho they will be lished. Planning includes both t > (SPPU - May 11, Dec. 11, May 12, Dec. 12, broadest view of the organization, ¢.g., its os » is mission, am K\ May 13, May 14, May 15) i eg;'s KE pe w) Foe aed = — / | @ Explain in brief concept and functions _ fea management. : > @ Organizing @. Define the management functions in business or organization of your choice, coordination, and control of tasks and the flow_ a a information within the organization. It is in — Management is universal only if the manager has liar with the specific situation in which it Production technology, customer characteristics and the culture of the industry are examples of specifies that managers need to learn-to-be-| effective in ir generic nse I intended result is the use of an organization's Ervin Williams has summarized the various managerial functions developed over the period of time. All the above functions can be categorized into four basicral Engineering (SPPU-8" Sem.-Mech purpose of directing isto channel the behaviour of | personne! to accomplish the organization’ mission d_ objectives while simultaneously_belping. them smplish their owen career objectives. D> (SPPU- Dec. 10) Cin the function Controlling of management with help of suitable examp Ee Controlling is a four-step process of establishing performance standanls based on the firm's objectives, Be suring ijuad) reporting achialiperfarmanes, comparing the two, and taking corrective or preventive action as necessary. Each of these functions involves Geeativ®) problem solv ing, (Creative problem solving is broader_ than problem Sinding. choice making or decision-makin, It extends from-analysis of the environment within which the business is functioning to evaluation of the outcomes from the alternative implemented. ‘Thése functions / activities of an industrial enterprise cane grorein cea: (i) technical (production), — (buying. selling and exchange), (iii) financial (search for and optimum use of capital), “| = Ao FF (iv) security (protection of property and persons), y Principles of Management bas been developed by Henri Fayol applicable to management of all Kinds of iaiaeed Principles of Management 7. Principle of Authority and Responsibility are Related a Fig. C1.2: Principles of management > 1. Principle of Authority and Responsibility are Related Fayol held that authority flows from responsibility. ‘Managers who exercise authority over others should assume responsibility for decisions as well as for results. He regarded authority as a corollary to responsibility. ‘Authority is official as well as personal. Official authority is “derived from the managers position in ‘organizational hierarchy and personal authority is compounded of intelligence, experience, moral worth, ‘past services, etc. _ ‘A corollary of the principle that no manager should be given autfiority unless he assumes responsibility is that those who have responsibility should also have commensurate authority in order to enable them to initiate action on others and command resources for the of their functions.\ This is essential for the “unity of action, coordination between responsibility and India where sher echelons of ‘This aspect of relationship authority is particularly relevant in authority tends to be concentrated in hi] ‘management. 12. Principe of Unity of Command This principle holds that one employee should have only one boss and receive instructions from him only. Fayol observed that if this principle is violated authority will be undermined, discipline will be jeopardy, order will be disturbed and stability will be threatened. Dual command is a permanent source of conflict. ‘Therefore, in every organization, each subordinate should have one superior whose command he has to obey. 3. Principle of Unity of Direction This means that all managerial and operational activities which relate a distinct group with the same objective should be directed by “one head and one plan. According to Fayol, there should be, “one head and one plan for a group of activities having the same objective”. It, however, does not” mean that all 12. Principle of Stability of Tenure of Personnel ‘The managerial policies should provide a sense of reasonable job security. The hiring and firing of Personnel should depend not on the whims of the superiors but on the well-conceived personne! policies. ‘He points out that it takes time for an employee to learn his job; if they quit or are discharged within a short time, the learning time has been wasted. ‘At the same time those found unsuitable should be removed and those who are found to be competent should be promoted. However, "a mediocre manager who stays is infinitely preferable to outstanding managers who come and go”. 13, Principle of Initiative It focuses on the ability, attitude and resourcefulness to ‘act without prompting from others. Managers must create an environment which encourages ° their subordinates to take initiative and responsibilty. Since it provides a sense of great satisfaction to inelligent employees, managers should sacrifice their ‘personal vanity in order to encourage their subordinates to show initiative. It should, however, be limited, according to Fayol, by respect for authority and discipline. 14, Principle of Esprit de Corps Cohesiveness and team spirit should be encouraged among employees. Itis one of the chief characteristics ‘of organized activity that a number of people work together in close co-operation for the achievement of ‘common goals. ‘An environment should be created in the organization ‘which will induce people to contribute to each other's efforts in such a way that the combined effort of all together promotes the achievement of the overall ‘objectives of enterprise, Fayol wams against two enemies of esprit de coms, viz. (i) divide and rule, and (ii) abuse of written ‘communication. It may work to the benefit of the= They should rather be welded in cobesive and highly interacting work-groups. Overreliance on written ‘communication also tends to disrupt team spirit. Written communication, where necessary, should ‘always be supplemented by oral communication because face-to-face contacts tend to promote speed, clarity and harmony. The other important principles of management as developed by pioneer thinkers on the subject are: (a) Separation of planning and execution of business operations. Scientific approach to business problems. ‘Adoption of technological changes. Economizing production costs and avoiding the ‘wastage of resources. Faller utilization of the operational capacity and emphasis on higher productivity. Standardization of tools, machines, materials, ‘methods, timings and products. ©) © @ © o (g) Evaluation of results according to criteria of standard levels of performance, Understanding and co-operation among the members of the organization set-up. o Syllabus Topic : Organization structure 1.2.3 Organization structure ‘Organisation is the f¢ which the whole recur of mage SU eae ae with developing a frame work where the total work is 1 ‘Thus, organisation is the structure or mechanism (machinery) that enables living things to work together. In a static sense, an organisation is a structure or | ‘machinery manned by group of individuals-who- are ‘Working together towards a common goal. ‘The main characteristics or features of organisation ar 1. Outlining the Objectives 2. Identifying Enumerating the Activities, 3. Assigning the 4, Defining and Granting the Authority, 5. Cr ‘Authority Relationship. 1.3 Requirements of Organizational structure Organizational structure design is engaged managers develop ot change an organization's structure, Organizational Design is a process that involves decision about the following six key elements Work Specialization : Describes the degree to whi tasks in an organization are divided into separate job ‘The main idea of this organizational design is that entire job is not done by one individual. It is brokea down into steps, and a different person completes step. Individual employees specialize in doing part an activity rather than the entire activity. Departmentalization : Itis the basis by which jobs are ‘grouped together. For instance every organization its own specific way of classifying and grouping activities. There are five common forms epartmentalization: (Functional Departmentalization : As shown the Fig. 1.3.1, it groups jobs by performed. It can be used in all kinds ‘organizations; it depends on the goals each ti1.32: Product Departmentalization example (Source: Bombardier Annual Report) (iii) Geographical Departmentalization : It groups {Jobs on the basis of territory or geography. 4 Authority : Refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it. Responsibility: assigned duties. ‘The obligation to perform any Unity of command : The management principle that ‘each person should report to only one manager. Span of Control : It is important to a large degree because it determines the number of levels and ‘managers an organization has. Also, determines the ‘umber of employees a manager can efficiently and effectively manage. 133: Cop cinesakaion a Gv) Process Departmentalization : It groups on the basis of product or customer flow. Fig. 1.35 : Customer Departmentalization example Different aspects on this type of departinentalization: Chain of command : It is defined as a continuous line ‘of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to Whom. There are three important concepts attached to this theory: 5. Centralization and Decentralization = Environment is stable | Environment is — Lowerlevel managers | complex, uncertain. fare not as capable or | Lower-level managers experienced at making | are capable and ecisions as upper-| experienced at making level managers. decisions. =. Lower-level managers | ~_Lower-level managers do not want to have | want avoice in say in decisions decisions. = Decisions are = Decisions are significant. relatively minor. = Organization is facing | -~ Corporate culture is a crisis o the risk of | open to allowing company failure, managers to have a say = Company is large. panes heroeae - Effective — Company is implementation of ‘geographically company strategies eee depends on managers |- Effective retaining say over implementation of, ‘what happens. ‘company strategies 2 Staff or Functional Authority Organisational Structure’ aes The jobs or positions in an organisation can be command that is responsible for the achievement of an organisation's goals. (ii) Staff position : A position intended to provide Positions. a - The line officers or managers have the direct authority (known as line authority) to be exercised by them to achieve the organisational goals. ~The staff officers or managers have staff authority (ie., authority to advice the line) over the line. This is also known as authority” ~ An organisation where staff departments have authority over line personnel in narrow areas of specialization is ‘known as functional authority organisation, Exhibit in Fig. 1.4.2 illustrates a staff or functional authority neeTn the tine organisation, the line managers cannot be experts in all the functions they are required to perform. But in the functional authority organisation, staff Personnel who are specialists in some fields are given functional authority (The right of staff specialists to n designated areas). issue orders in their own nam The principle of unity of command is violated when functional authority exists ie., a worker or a group of workers may have to receive instructions or orders st from the line supervisor as well as the staff speci which may result in confusion and the conflicting corders from multiple sources may lead to increased ineffectiveness. the disadvantages of a pure line structure, it has some major disadvantages: ‘They are : (i) the potential conflicts result violation of principle of unity of command and tendency to keep authority centralized at in the organisation.‘Some staffs perform only one of these functions but ‘some may. ‘two or all the three functions. The primary advantage is the use of expertise of staff. specialists by the line personnel. The span of control of line managers can be. Gi) Line managers may not like staff personne! them what to do: recognize orcas Gy Some staff people have diffi aunting tote Line and staff have direct vertical relationship between different levels. Staff specialists are responsible for advising and assisting line managersofficers in specialized areas. 3. These types of specialized staff are (a) Advisory, (b) Service-(e}Control e.g., 7 Advantages (Use of expertise of staff specialists. (i) Span of control can be inereased (ii) Relieves line authorities of routine and specialized decisions. (iv) No need for all round executives. el © Disadvantages wifi (@ Conflict between line and staff may still arise. Gi) Staff officers may resent their lack of autority. (ii) Co-ordination between line and staff may become cs —Committee Organisational Structure Features Formed for managing certain problems/situations ‘Are temporary decision. ‘Advantages Committee decisions are better than individual decisions Better interaction between committee members leads t0 better co-ordination of activities ‘Committee members can be motivated to participate in group decision making, Group discussion may lead to creative thinking. Fig. 1.4.4 illustrates organizational structures formed based on the above basis of departmentation.. 1. Committees may delay decisions, consume more ti and hence more expensive. 2. Group action may lead to compromise and indecisio “Buck passing’ may result. > 4. Divisional Organisational Structure In this type of structure, the organisation can different basis on which departments are formed) They (i) Function, “ (i) Product, —/ Gil) Geographic territory, (iv) Project and Combination approach. M.D. - Managing DirectorEEF industrial Enginoorng (SPPU-8" Som-Mech) 19___ Introduction to Industrial Engineering and Prod er iS = DP 5. Project Organisational Structure ex a ‘A project organisation is a temporary organisation [The tine, tine and staff and functional authority Organisational structures facilitate establishment_and. istribution of authority for vertical coordination and {eontrot rather than horizontal relationshi 2 some projects (complex activity consisting of a Inumber of interdependent and independent activities) Work process may flow—horizontally, diagonally, Tupwards and downwards. = Tie direction of work flow depends on the distribution Of talents and abilities in the organisation and the need fo spply them to the problem that exists. The cope up ‘With such situations, project organisations and matrix ‘organisations have emerged. designed to achieve specific results by using te specialists from different functional areas in’ the organisation. The project team focuses all its energies, Tesources and results on the assigned project. Once the Project has been completed) the team members from various cross functional departments may go back to their previous positions or may be assigned to a new ‘Some of the examples of projects are: research and are ae eee ON _ Ceveopaeet, construction of a new plant, housing complex, shopping complex. bridge etc. Fig. 1.4.5 illustrates a project organisational structure. © Feature ‘aaporayorganistion designed acbieve specific esuts by sing teams pci fom dent function aes ‘in the organisation. © Importance of Project Organisational Structure Project organisational structure is most valuable when: o Works defied by a specific goal and getdate fa sompletion._ (Gi) Work is unique and unfamiliar to the organisation —iy Work is complex having independent actives and specialized skills are necessary for accomplishment. (iv) Work is critical in terms of possible gains oF losses. (¥) Work is not repetitive in nature Characteristics of project organisation 1, Personnel are assigned to a project from the existing tion and permanent organisation and are under the dre! control of the project manager. The project manager ffort is needed and when work will be specifies what e mnt manager performed whereas the concemed departmer executes the work using his resources. 3, The project manager gets the needed support from production, quality control, engineering ete. for ‘completion of the project 4, The authority over the project team members is shared by project manager and the respective functional managers in the permanent organisation. 5, The services of the specialists (project team members) are temporarily loaned to the project manager till the completion ofthe project. «6. There may be conflict between the project manager and the departmental manager on the issue of exercising authority over team members. 7. Since authority relationships are overlapping with possibilities of conflicts, informal _ relationships between project manager and departmental managers (functional managers) become more important than forma preseription of authority. 6. Full and free communication is essential among those working on the project, - > 6 Matrix 0 VP. (Research & Development) Manager |_ Mor. business a Fig. 1.4.6 : Matrix organization 7 Feature: Superiinposes a horizontal set of divisions and relationships onto a hierarchical functional structure. Advantages 1. Decentralised decision making. ‘Strong product/project co-ordination. Improved environmental monitoring. Fast response to change. Flexible use of resources. Efficient use of support systems. 2 3 4 5. 6. olindustrial Engineering (SPPU-8" Ser lech.) Product or business group managers are incharge of Ohe oF more products and are authorized to prepare Product stratcgies or business group strategies and cal {8 the various functional managers for the necessary resources. = The problem with this strcture is the negative effects Of dual authority similar to that of project organisation, The functional managers may lose some of their Authority because product managers are given the Dudgets to purchase intemal resources. In a matrix ‘organisation, the product or business group managers ‘and functional managers have somewhat equal power. There is possiblity of conflict and frustration but the ‘opportunity for prompt and efficient accomplishment is quite high, > 7. Hybrid Organisational Structure ve. flaw & (R&D) (Scence & Exema) Te .. GM V.P.AGM V.P.&GM (USA) (Noth (Asla) (Europe) Fig, 1.4.7(a) : Illustrates the hybrid organisational structure. ~ This type of structure is used by multinational companies operating in the global environment, for ‘example, Organizations doing International Business. ~ This kind of structure depends on factors such as ‘degree of international orientation and commitment. ‘offices in the country of origin and their international divisions established in various countries reporting to the CEO or president at the headquarters. Introduction to Industrial Engineering and Producti ~ The international divisions or foreign subsidiaries may be grouped into regions such as North America, Asia, Europe etc. and again each region may be subdivided {nto countries within each region. ~ While the focus is on. international geographic structures, companies may also choose functional or Process or product departmentation in addition to ‘eographic pattem while at the head quarter's the Aepartmentation may be based on function. Board of directors Managing commites SeVP. SVP. Sr.V.P. | Sr V.P. Sr. V.P. Se. V.P. (R&D) (R&D) (Finance) | (Mktg) (HRD) (0.C.) ve. VP. VP. VP. ve. (Southem) (Northern (Eastern (Western (Exiemal units)" —urits) units) units) Fig, 1.4.7(b) : Mustrates a combination structure 2. Functional expertise and efficiency, 3. Adaptability and flexibility in divisions. Disadvantages 1. Conflicts between corporate departments and units. 2. Excessive administration overhead. 3. Slow response to exceptional situations. © Uses Used in organisations that face considerable ‘environmental uncertainty that can be met through @ divisional structure and that also required functional expertise or efficiency +s ‘The Informal Organisation — An informal organisation is the set of evolving relationships and pattems of human interaction within an organisation which are not officially presented.relationships, they must be trained to cope with it> The informal organisation has the following ia Its members are joined together osaisy ther personal needs (needs for affiliation, friendship et.) @ We 4 continuously changing = The informal ‘organisation is djnamic. Gi) It involves members from various organisational levels. neck (ii) tis affected by relationship outsige the firm. (iv) It has a pecking order : certain people are - ‘importance than_others.by the a Industrial Engineering ieee ! || co Cn Productivity is generally referred as, industrial production to be measured by some el between outputs and ings ] ~The increase in productivity looked upon as the at all levels? It can also be termed as of s produced to what is required to produce it ‘The higher the Sati, the higher is the Originally, it was used only 10 rate the‘Sem.Mech.) Introduction to Industrial Engineering and Productivity plu re wo py | RNY Boley = Ta al a a Yerified by measuring productivity but there is no special a tmethod OF yard stick for measpring the. productivity due to rf umber of factors, such as boa}, itl etc. When we Compare output with man bour input or with capital input, | “> 3 Total productivity he results are different. With interpretation and purchased =~ It fs the ratio of total output to the sum of all input examination, we will be getting the following three basic factors, types of productivity (Total output ee <. Total factor productivity, = ‘Types of productivity 1. Partial productivity Total input Total output (product + service) Labour + material + a) + energy + other expenses ee Faas 2. Total factor productivity Syllabus Topic : Factors Affecting Productivi = Iti the rato of output to one typeof input eg. labour, capital and material productivity are the examples of partial productivity : fh ‘The various factors affecting productivity can be Be oar Output (total sedi) ad ‘grouped broadly into two categories : = Material productivity in manufacturing concem is a Vital factor in ensuring a high level of effectiveness and efficiency. Material productivity is best measured by os Fig. CLS : Factors affecting productivity C > @ External factors ~ (Material yield is the ight) of finished products accepted by customers whsircompared with weight of | 1+ National resources and their mobility. ~~ Al material sed for production press) 2 Availability ofcapita, > Capital productivity is frequently measured as the 3. Taxation. ‘Output of goods or services in a given number of 4. Government laws and restrictions concerning ‘machine hours, > business, 7 ome . or Copia productivity = Zar apat |S nent of mare competion. Sonam 6, ‘Technical and other training facilities availability > 2 Total factor productivity te, = ~ Ibis ratio of net output to the sum of associated labour | “> (11) Internal factors ‘0d capita inp. By net output we mean total output | os . Plant locaton and layout, ‘minus intermediate goods and services purchased. ‘ aa ie 5 Product design. waTechnology, machinery and equipment used. ‘According to this model, total productivit expressed as, S+C+MP-E ‘Work and method study implementations P= TwsB)]+[(kW+KF) (Fbxd] Material handling methods and equipments used. + Quality control. ¢ yo Net sales adjusted Management techniques used ete Inventory change (R/M, Finished goods) ‘Syllabus Topic : Productivity Model (Numerical) Manufacturing plant (Us equipment and machines) ~ Productivity Measuring Models Exclusions (purchased m and services +depreciation > (SPU - May 16, April 17(In Sem.)) buildings + plant + equipm @. Eiplain the Productivity ‘arty two in Industral Engineering. Q. Wiite short note on : Craig and Harris Model Following are some of the models developed for measuring the productivityIndustrial Engineering (SPP Si recent years, there has been an emphasis on onkideration of the physiological aspect of human Works especially in the determination of fatigue allowances. Also, there has been growing _concem — about PaYehological and sociological aspects of job design. SE Gonsideration of the two latter factors usually is related BD the disciplines of industrial psychology and Beeiology: they will become an important aspect of Bork measurement for the evaluation of productivity of be work system (may be automated also) under ‘information regarding the output produced and d for @ paiticular time period for a company Introduction to Industrial Engineer (©) Total productivicy ileal Total (Human 3: Material + Capital + Energy + Other Misc. Exp) Input 10000 3000 + 2000 + 3000 + 1000 + 500 = 1053 (7) Total Factor Productivity (TFP) = ee ‘Total ouput — (Material_and service purchased) (Labour + capita Input = 10000-= (2000 + 3000 + 1090 + 500} _ 3500 . 3000 + 3000 6000 TP = 0583 &. 1.72 ER ‘The following information available for a company given below x Dally working hrs = 8 (i) No. of working days in week = 6 Gl) No. of operators = 20 (iv) Std. Hours per unit production = 4 During a particular weekwt 2 Techniques 1.8 Productivity Improvement Techniques > (SPPU- May 11, Dec. 11, May 12, Dec. 12, May 14, May 15, Dec. 16, April 17(In Sem), April 18(In sem)) | @ What are the different techniques used for Productivity? ©. Enplainthe tem productviy. — ENTREES Q Define Productivity, Dec. 12, April 17(In Sem.), May 18 ©. Exgain productivity improvement methods for ‘organization, Explain riety the productivity 7g ‘ techniques afer World Wary =n a The (TS) commisss We owing atveivy improvements components, Toyota, «giant Japaneae automobile company was pioneer in d application of various productivity techniques under Toyota Production System/(TPS), TalichiOhno developed the Toyota Production System (PS) after World War I. Fi holistic view of freductivity cone, 6 od Introduction to Industrial Engineering Fig, 1.8.1 ; Japanese Holistic View of Productivity Concept (Source: Shivalingsiah B.K., “Labour Produc through Method study’, A project report, Indus Engineering & Operations research, ITT Bombay, 1995) 1 Some of the selected Japanese A) moKa ‘idoka is a Toyota concept simed at describing the ‘man-machine interface'Suich in free to fidoka system shows faith in the ‘s on whic i ih ofan a asGaut ‘working consists of three principl (Do not make detects, (ii) Do not pass on defects, (ii) Do not accept defects.lindustrial Engineering (SPPU-8" Sem.-Mech.) = Ti incorporates the principles of line bafancingby Bilempting to equate workloads, leveling demand out Dy creating an inventory buffer and replenishing that ibiffer It believes in providing even wark load foe a employees. = = Hejonka nas the capediliy of xing lead Jimes by Minimizing time losses due to frequent process hangeovers > ©) KAIZEN Techniques Kaizen (Continuous improvement) is a management ‘Supported employee driven process where, employees make a great number of continuous improvement | — efforts. @ Fives =A structured approach to achieve clean and orderly ‘work place by fixing place for everything. = Five Sis an abbreviation for the Japanese words : Sei, Seiton, Seiso, Seiketsu and Shitsuke. It means: > Muda means “Waste”, Here muda elimination implies | ~ ‘an “on going” and systematic reduction ovelimination | __ of waste, There are seven kinds of major _ waste: Overproduction Muda, Stock Muda, Transport Muda, Defects Muda, Delay Muda, Motion Muda, — Over processing Muda. It helps to eliminate redundant processes or parts of processes, delete non-value added activities, simplify motions, minimize fatigue, reduce wait time, ete. 4-27 Introduction to Industrial Engineering and Productivit (ii) Poka-Yoke It is powerful and comprehensive method of “error proofing ‘A work process to eliminate inadvertent errors to ensure quality products and services. It helps in defect prevention and defect detection. SMED Itaffects a machinery setup for change over from job to another in less than 10 minutes expressed as a ingle if ‘It helps in reduced Work-in-progress, better average daily production, increased capacity and faster delivery {o ee TPM is keeping machines in good working condition through systematic maintenance of equipment so that Sa i ie they fail less_frequently and Process z nace. ree continues without interruption, © Seiso- Keeping work place scrupulously féan> aera ° Séik fone Jing and | (“) Jest-In-Time clearing out = IIT is a management philosophy aimed at eliminating a waste from e ‘of manufacturing and its ea eee acacia Tis leas IT refers w peodacing only Standards at agreed intervals what is when it is needed and in needed (W) Muda elimination quantity. ‘The aim of JT in a factory is to reduce lead tines, «| inimise(ia reduce the defect rate {9 zero apd accomplisiall of the above at minimum cost. There are three essential ingredients to effective manufacturing excellence through JIT: (i JIT manufacturing techniques that aims to promote a rapid response to customer demand ‘while minimising inventory Gi) a total quality culture to pursue excellence in both the product and every area of the business, including customer service, purchasing, order taking, accounting, maintenance, design ete; andg (SPPU-8" Sem-Mech) __1-28 Introduction to Industrial Engineering and Produe (iii) people or employee involvement in the ‘The key steps in implementing work standards are (j development of the organisation through its identify the key issues in the current process (ii) m culture and its manufacturing and other business the process (iii) improve the process (iv) implement tf processes. sand (¥) sustain the process. (ol) Kanban ( PDCA/SDCA Cycle — Kanban is a manual production aia i. PDCA (Pan Do-Creck Act) eyes an i a controlled by a process of machine operator. Kanban t cycle which demands oe t ek Plans (establish a target for impro\ ‘means ard)in Japanese, ia attached to given number of parts or products in the production line instructing the ; eS (monitor and evaluate effects) Acts (Standardises procedures or set goals fo improvemen delivery of given quantity. every process is initially unstable, it must be — The kanban card after all parts/products have been used. using DCA (Standardise-do-check-act) eycle. up is returned by the operator to its origip. Production is controlled through demand originating from external cs pmet, ‘oe at Thus, a SDCA cycle must precede every PDCA. to consolidate gains into current process before rais the standard threshold. (vii) Process Oriented Management (POM) ~ Traditiotal management focuses mainly on results and individuals on their ultimate achievement. Kaizen of achieving the (ai) Statistical Process Control (SPC) — Statistical Process Control is the application, 0 ‘atistical techniques to control a process and eliminate, Process variations due to assignable causes. Statistical process. c < ‘Rroaly Managers in POM are judged by people centered skills 4s time management, education and training, inter-teamPP hrcwsriat Enginozing (SPPU3" Som-Mech) 1-09 = To improve efficiency of production it needs effective Uilization of plant, equipment and labor. This can be ‘achieved by using Ccneta studies method and evaluate the performance. It divides work into smaller elements, studies it, « , and rearranges it to. get same or greater efficiency at reduced cost. |} International Labor Organization (ILO) defines work study as the technique of method study and work ‘measurement employed to ensure the best possible use of human and material resources in carying out a specified activity. It is also a management service based on method study and work measurement used in examination of human work leading to investigation of all the resources that effect efficiency and economy of situation to affect improvement, Further ILO states that, work study is to minimize cost citer by designing the work for high productivity or by improving productivity in existing work _through improvements in current methods by reducing ineffective and wasted time. : Therefore, it can be said that it is a direct;means of raising the prC@betivity. Jt is most frequently used to increase the amount of production_from_a_given quantity of resources with little or no further capital ‘investment and hence work study has direct relation to From this definition we can say that, work study is direct means of rising or improving the productivity as Work study is used to examine human work that affects ficiency which in tun affects improvement. ‘The relationship of work study and productivity improvement can also be understood from _the objectives of the work study. All objectives of the work Study indicate that there is positive (direct) relationship Serie wort a nSoeree Introduction to Industrial Engineering and Productivity ‘The objectives of the work study are as follows : ()_Afalysis dt existing method (ii) Finding wedfnesy in existing production process it) Most effective ee or proposed report and resources (iv) Setting and measurfog pefformance standard (¥) Use of performance sffindés} to pay incentives Ar (vi) Stéfdétdize method, material and equipments used in the production process Work study therefore has direct relationship with the productivity. These methods (studies) are (eet Study : The technique of method stay and work measurement employed to ensure the best possible use of human and material resources in carying out the specific activity. ‘Motion Study : It isthe detailed study of manual ‘and/or body motions used in a work task or at one ‘work area, often involving comparative analysis of iaicand ethand motos if) Motion Economy : This (study) method uses the «, “basic principles of the manner in witich body ‘motions are performed to simplify and reduce the es Work Simplification : With the help of this ‘method, improvements in work methods or work flow initiated and developed by superiors or the Workers on the ob as a result of methads training economic incentives. i ———— tyres tee coreet of ealarging or troadoning the Scope, variety and responsibility of a job in onder to improve personal job satisfaction and increase ‘output quality and: quantity, ‘The purpose of these methods is to determine the best ‘or most effective method of accomplishing a necessary ‘operation ‘The criteria for best could be an increase in job satisfaction and personnel moral; gedction i Physiological fatigue; decrease in the number ofBP incustriat Engineering (SPPU-8" Sem.-Mech.) accidents and personal injuries; minimization of ‘material usage, tool breakage, or usage of consumable supplies; increase in productivity by reduction of performance time, etc. Work study plays major role to improve the productivity. Following summary of actions can be considered to improve the productivity 1. Improve the basic processes by /fesearéh, and development. Provide more and improved physical means to motivate the workers. ‘Simplify and improve the product and reduce the variety ie. standardize the product. Improve thé methods of operation. Improve the organization's production planning and control procedure. 5. Details of use of Method study is discussed in Unit-2 and Unit-3. Improve manpower efficiency at all levels. Moreover, all operation research techniques like Simplex Method, Transporation Method, Queuing ‘Theory, ec. can be used as and when required to optimize the resources being used and operation ‘management methods used to manage the procedures for sing firm's resoures in optimum way. 1 Define and explain the scope of Industrial Engineering. Discuss objectives of Industrial Engineering. ais 14 15 Introduction to Industrial Engineering and Differentiation between Centralization and Decentralization. Enlist different types of organizational explain any one in detail. Explain Line Organization / Military/Scalar Organisation and Line and Staff Structure. Explain the concept of Organisation Chart. Explain the concept of Authority and Re Define terms : Authority, Responsibility, Span Control, Delegation of Authority Define term : Productivity and explain factors affecting productivity. Discuss productivity improvement methods for organizations. Enlist Productivity Improvement Methods and ‘explain any two in deta. Explain how Industrial Engineering can improve Productivity? Write short note on: - (Concept of Organisation i) Characteristics / Features of Organisation (i) Functions of Management (iv) Project Organisational Structure (v)_ Matrix Organisational Structure (vi) Delegation of Authority (vil) Partial productivity “(vil Measurement of Productivity (x) Fredrick W Taylor's Contribution a fitig (SPPU-8" Sem.-Mech.) or 25 days in a month. Is there increase in labor productivity 7 What will be the increase in labor "productivity if company increases quantity to 10,000 [products without hiring additional workers ? (4 Marks) No. of hrs / day =8 o. of days / month = 25 Total no. of working hrs/ month = 50 x 8 x 25, = 10,000 man hour's Labor productivity when 8000 units are produced = SS ~08 unitsiman hour When 10 workers are added ‘Total no. of man hours = 60 x 8 x 25 = 12000 man Labor productivity when 9600 units are produced @.2{a) Discuss the scope and any four objectives of Industrial engineering. (Ans. : Refer Section 1.2) @..2{0) A company produces 1500 kg of tablets by ‘consuming 2000 kg mix of raw material for a particular period. For the next period, the output is 8200 kg by consuming 4265 kg of the raw material ‘and for the third period, the output is increased to 9500 kg by consuming 4200 kg of raw material Comment on increase or decrease of productivity {for second and third period. (4 Marks) Ans. : Given: ‘Weight of tablets produced = 1500 kg ‘Raw material used = 2000 kg + Material productivity = 3209 x 100 = 75 % (4 Marks) Now when 3200 kg tablets are produced using 4265 kg raw material hours | Material productivity = 3320 x 100 = 75.02 % ‘No significant increase in productivity. uc ‘kg tablets are produced using 4200 kg of rw A ‘Material productivity = $5 100 = 83.33 % ‘There is increase of 8 % in rodoctvity