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1.0. lrlroducl|or - - - - 3
2.0. Course Corlerl - - - - 3
3.0. Course A|rs - - - - 3
1.0. 0ojecl|ves - - - - 3
5.0. Course Valer|a|s - - - - 3
.0. 3ludy ur|ls - - - - 3-1
Z.0. Tre Vodu|es - - - - 1
8.0. Ass|grrerl - - - - 1
9.0. Assessrerl - - - - 1
10.0 3urrary - - - - 1

1.0. |NTR00U6T|0N
Producl|or Varagererl l - |s a seresler course Wor| ol lrree cred|l
ll W||| oe ava||ao|e lo sluderls la||rg lre

Tre course cors|sls ol 15 ur|ls.

Tre Course 0u|de le||s you Wral 8u3N303 |s a|| aooul, lre raler|a| you
W||| oe us|rg ard roW lo ra|e use ol lrer.
0lrer |rlorral|or |rc|udes lre 3e|l Assessrerl ard Tulor-Var|ed

2.0. 60UR8E 60NTENT
Tre course corlerl cors|sls esserl|a||y ol lre pr|rc|p|es ard pracl|ces ol
producl|or raragererl.

3.0. 60UR8E A|H8
Tre a|r ol lre course |s lo expose you lo lre pr|rc|p|es ard pracl|ces ol
producl|or raragererl.

4.0. 0JE6T|VE8
Aller go|rg lrrougr lr|s course, you srou|d oe ao|e lo:
(|) Exp|a|r lre corcepl ard scope ol producl|or
(||) lderl|ly lre |ey pr|rc|p|es, pracl|ces ard lecrr|ques ol producl|or
(|||) 3lale lre corslra|rls ol producl|or po||cy.

5.0. 60UR8E HATER|AL8
Course 0u|de
3ludy ur|ls
Ass|grrerl gu|de

.0. 8TU0Y UN|T8
Trere are 15 ur|ls |r a||
uNlT 1 - Tre Nalure ard 3cope ol Producl|or
uNlT 2 - Types ol Producl|or
uNlT 3 - Faclory Local|or
uNlT 1 - P|arl ard Equ|prerl
uNlT 5 - Producl|or P|arr|rg ard Corlro|
uNlT - wor| Veasurererl
uNlT Z - Velrod 3ludy
uNlT 8 - Producl|or Erg|reer|rg
uNlT 9 - Producl|or Furcl|or
uNlT 10 - 3ysler 0es|gr
uNlT 11 - 3ysler 0peral|or
uNlT 12 - Tre Producl|or Process as a 3ysler
uNlT 13 - Producl|or ard Producl|v|ly
uNlT 11 - Faclory ard wor|p|ace Layoul
uNlT 15 - Aggregale Producl|or P|arr|rg
Corla|red |r eacr ur|l are: lrlroducl|or, 0ojecl|ves, Va|r Corlerl,
Corc|us|or, 3urrary ard Relererces.

7.0. ThE H00ULE8
Tre course |s d|v|ded |rlo lrree rodu|es.
Vodu|e l - Cors|sls ol ur|l 1, ur|l 2, ur|l 3, ur|l 1, ur|l 5.
Vodu|e ll - Cors|sls Z, ur|l , ur|l Zur|ls 8, ur|l 9 ard ur|l 10.
Vodu|e lll - Cors|sls 9, ur|l 11, ur|l 12, ur|l 13, ur|l 11, ard ur|l 15.

8.0. A88|CNHENT
Eacr ur|l W||| corla|r al |easl ore ass|grrerl Wr|cr you are expecled lo
do carelu||y.

10.0. 8UHHARY
- Producl|or Varagererl l - W||| expose you lo lre pr|rc|p|es ard
pracl|ces ol producl|or raragererl. Tre course W||| equ|p you lo lace
lre cra||erges ol producl|or |r lre |rduslr|es or re|aled orgar|zal|ors.

1.0. lrlroducl|or - - - -
2.0. 0ojecl|ves - - - -
3.0. Tre Nalure ard 3cope ol Producl|or - - - -
3.1. Tre Vear|rg ol Producl|or - - - -
3.2. Aspecls ol Producl|or - - - - -Z
3.2.1. Var|el Cors|deral|or - - - - Z
3.2.2. Producl|or lo 0rder - - - - Z
3.2.3. 0es|gr ard Tecrr|ca| Proo|ers - - - - Z
3.2.1. Ava||ao|||ly ol Resources - - - - Z
3.2.5. Purcras|rg ard Var|el|rg - - - - Z
3.2.. Ass|r||al|or |rlo Ex|sl|rg Producl|or - - - - 8
3.3. Producl|or Po||cy - - - - 8
3.1 3e|l Assessrerl 0uesl|or - - - - 9
3.5 3e|l Assessrerl ArsWer - - - - 9
1.0 Corc|us|or - - - - 10
5.0 3urrary - - - - 10
.0 Tulor Var|ed Ass|grrerl - - - - 11
.1 Tulor Var|ed Ass|grrerl (0uesl|or ard Var||rg 3crere)- - 11
Z.0 Relererces - - - - 12


1.0. |NTR00U6T|0N
Tr|s ur|l W||| la|e a |oo| al lre ralure ol producl|or v|s-a-v|s lre rear|rg,
aspecls ard po||cy ol producl|or.

2.0. 0JE6T|VE8
Al lre erd ol lr|s ur|l, sluderls srou|d oe ao|e lo:

(|) 3lale lre rear|rg ol producl|or.
(||) lderl|ly lre var|ous aspecls ol producl|or.
(|||) 3lale lre corslra|rls ol producl|or po||cy.

3.0. ThE NATURE AN0 860PE 0F PR00U6T|0N
3.1. ThE HEAN|NC 0F PR00U6T|0N
Producl|or |s corcerred W|lr lre creal|or ol goods ard serv|ces lor
rar|el|rg ard lo reel lre reeds ol corsurers.
Accord|rg lo P|ll|e|d (1981), producl|or |r |ls slr|clesl lerr, rears lre
ra||rg ol lr|rgs oy lre corvers|or ol raler|a|s ard/or assero|y ol
corporerl |rlo rar|elao|e oojecls.
lr a W|der corlexl, Need|e (1999) sees lre producl|or lurcl|or operal|rg
|r every deparlrerl, slore, reslaurarl, 8ar|, Loca| 0overrrerl, 3croo|
ard rosp|la|. Tre
|rp||cal|or ol lr|s |s lral lre producl|or lurcl|or operales |r oolr lre
rarulaclur|rg ard lre ror-rarulaclur|rg seclor ol lre ecorory. wrer
producl|or |s v|eWed |r lr|s W|der perspecl|ve, |l |s relerred lo as
operal|ors. For |rslarce, lre scroo| sysler al var|ous |eve|s produces
graduales sucr as 3croo| Cerl|l|cale ro|ders, 0|p|ora graduales,
Po|ylecrr|c graduales ard ur|vers|ly graduales.

Producl|or p|ays a cerlra| ro|e |r every orgar|zal|or. 3ucr ro|es |rc|ude:
0es|gr ol producl|or syslers
0peral|or ol lre producl|or sysler
Valer|a|s ard resources raragererl
Var|el cors|deral|or
0ua||ly ard quarl|ly cors|deral|ors elc, ard
Corsurer sal|slacl|or ard ell|c|erl ul|||zal|or ol resources.

3.2. A8PE6T8 0F PR00U6T|0N
lr oroad lerrs, producl|or eroraces so rary rear|rgs. ll |s ar a||
erorac|rg process Wr|cr |s eroedded |r lre operal|ors ol every
orgar|zal|or, prol|l, ror-prol|l, rarulaclur|rg ard ror-rarulaclur|rg
a|||e. Tre |ey aspecls ol producl|or Wr|cr W||| oe cors|dered rere are:
Var|el cors|deral|or,
Producl|or lo order,
0es|gr ard lecrr|ca| proo|ers,
Ava||ao|||ly ol resources,
Purcras|rg ard rar|el|rg, ard
Ass|r||al|or |rlo ex|sl|rg producl|or.

3.2.1. HARKET 60N8|0ERAT|0N
Tre Var|el |s a cr|l|ca| laclor lo oe cors|dered oelore goods ard serv|ces
are produced.
w|lr lre excepl|or ol corr|ss|ored producls, lre quarl|ly ard qua||ly ol
goods lo oe produces rusl oe esl|raled oased or lre |roW|edge ol lre
supp|y-gap lral ex|sl |r lre
rar|el. ArsWers rusl oe sougrl lo lre quesl|ors:
ls lrere a supp|y gap?
wral |s lre degree ol sa|es ol ex|sl|rg producls?
ls lrere reed lor a reW producl?
wral W||| oe lre polerl|a| sa|es ol a reW producl?
wral W||| lre quarl|ly ard lre qua||ly ol lre producl lo oe produced.
Al Wral pr|ce?
ArsWers lo lrese quesl|ors car oe oola|red lrrougr rar|el researcr or
rar|el survey.

3.2.2. PR00U6T|0N T0 0R0ER
lere, producl|or |s rade |r resporse lo ar order. lr lr|s case, a cuslorer
p|ace order lor a g|ver quarl|ly ard qua||ly ol goods al a g|ver pr|ce. Tre
goods ray oe orarded or cuslor|zed.

3.2.3. 0E8|CN AN0 TE6hN|6AL PR0LEH8
Producl des|gr ard relrod ol producl|or rave rulua| |rl|uerces or eacr
olrer. ll |s lrerelore |rperal|ve lral lrere rusl oe co-operal|or oelWeer
lre des|grer ard lre
producl|or erg|reers.

3.2.4. AVA|LA|L|TY 0F RE80UR6E8
Tre lrree Vs ol raragererl, - Vorey, Valer|a| ard Vacr|rery - as We||
as lre recessary ruroer ol Wor|ers ol var|ous s||||s rusl oe ava||ao|e

Valer|a|s rusl oe purcrased ard slored. Producls serl lo lre rar|el.
Adequale arrargererl rusl oe rade lor roo|||ly.
3.2.. A88|H|LAT|0N |NT0 EX|8T|NC PR00U6T|0N
lr a s|lual|or Wrere lrere |s a reW producl|or, arrargererl rusl oe
rade lo rerge lre reW producl|or |rlo lre ex|sl|rg ore.
3.3. PR00U6T|0N P0L|6Y
Every orgar|zal|or rusl rave a gu|de||re/po||cy or Wral lo produce, lre
qua||ly ard quarl|l|es as We|| as lre relrod ol producl|or.
Tre rajor corslra|rls ol producl|or po||cy are:
(a) L|m|tat|on of Range
Tre rarge ol producl rusl oe eslao||sred, ard lre degree ol
spec|a||zal|or eslao||sred.
(o) Ava||ab|||ty of Resources
Tre resources lo oe rade ava||ao|e |rc|ude:
Tre prer|ses
Tre p|arl ard racr|rer|es
Laoour or rurar s||||
F|rarces elc.
(c) Leve| of Product|on
Tre |eve| or producl|or srou|d oe delerr|red oy lre |eve| ol derard ard
lre ur|l cosl. Care srou|d oe la|er rol lo produce al a ur|l pr|ce lral W|||
oe urprol|lao|e.
(d) 6ost and Pr|ce
A good re|al|orsr|p ex|sls oelWeer cosl ard pr|ce. Crarge |r derard or
decrease |r purcras|rg poWer ray reduce pr|ce. lrcrease |r cosl W|||
u|l|rale|y |ead lo |rcrease |r pr|ce. Tre cosl ray oe allecled oy |aoour
derard lor r|gr Wages, goverrrerl po||cy, erergy ard raW raler|a|s
(e) F|nance
Vorey |s requ|red lo l|rarce a ous|ress url|| lre po|rl ol prol|lao|||ly |s
(l) Hanager|a| Expert|se
Varagererl rusl ersure lral |l ras lre recessary ao|||ly ard capac|ly lo
cope W|lr reW cra||erges. Adequale lecrr|ques ard equ|prerl rusl oe
rade ava||ao|e.

3.4. 8ELF A88E88HENT 0UE8T|0N
lderl|ly lre |ey aspecls ol producl|or ard or|el|y exp|a|r lrer.
3.5. 8ELF A88E88HENT AN8wER
Tre |ey aspecls ol producl|or are:
Cors|deral|or ol lre rar|el
Producl|or lo order
0es|gr ard lecrr|ca| proo|er
Ava||ao|||ly ol resources
Purcras|rg ard rar|el|rg
Ass|r||al|or |rlo ex|sl|rg producl|or
4.0. 60N6LU8|0N
Producl|or |r |ls slr|clesl lerr |s ||r|led lo rarulaclur|rg oul |r oroader
perspecl|ves, producl|or ex|sls |r a|| orgar|zal|ors.
5.0. 8UHHARY
Producl|or |s a cerlra| lurcl|or |r a|| orgar|zal|ors. ll ras a v|ao|e
re|al|orsr|p W|lr |ls erv|rorrerl. Key aspecls ol producl|or |rc|ude:
Var|el cors|deral|or
0es|gr ard lecrr|ca| proo|ers
Ava||ao|||ly ol resources elc.
A good producl|or po||cy |s des|rao|e lor ell|c|erl ul|||zal|or ol resources.

lderl|ly ard exp|a|r lre ra|r corslra|rls ol producl|or

Va|r corslra|rls ol producl|or po||cy are:
L|r|lal|or ol rarge
Ava||ao|||ly ol resources
Leve| ol producl|or
Cosl ard pr|ce
Varager|a| experl|se
2 rar|s lor eacr corslra|rl |derl|l|ed
2 rar|s lor eacr exp|aral|or
[Tola| - 20 rar|s|
1. P|ll|e|d, R. Rora|d (1981): 8us|ress 0rgar|zal|or, (Lordor),
V & E 8oo|s
2. Need|e, 0av|d (1999): 8us|ress |r Corlexl, (Lordor),
Trorsor 8us|ress Press

UN|T 2:

1.0. lrlroducl|or - - - - 11
2.0. 0ojecl|ves - - - - 11
3.0. Types ol Producl|or - - - - 11
3.1. Joo Producl|or - - - - 11
3.2. 8alcr Producl|or - - - - 11
3.3. F|oW Producl|or - - - - 11-15
3.1 3e|l Assessrerl 0uesl|or - - - - 1
3.5 3e|l Assessrerl ArsWer - - - - 1
1.0 Corc|us|or - - - - 1Z
5.0 3urrary - - - - 1Z
.0 Tulor Var|ed Ass|grrerl - - - - 18
.1 Tulor Var|ed Ass|grrerl (0uesl|or ard Var||rg 3crere)- - 18
Z.0 Relererces - - - - 19
1.0 |NTR00U6T|0N
Tr|s ur|l W||| la|e a |oo| al lre lypes ol producl|or v|s-a-v|s:
8alcr Producl|or
F|oW Producl|or
2.0. 0JE6T|VE8
Al lre erd ol lre ur|l, sluderls srou|d oe ao|e lo:
(|) Verl|or lre lypes ol producl|or
(||) 0|llererl|ale oelWeer Jooo|rg ard 8alcr Producl|or
(|||) Exp|a|r F|oW Producl|or
3.0. TYPE8 0F PR00U6T|0N
3.1. J0 PR00U6T|0N
Tr|s re|ales lo lre producl|or ol ore or sra|| ruroer ol |derl|ca| producls
lo lre spec|l|cal|or ol lre ouyer. ll ray rear lre supp|y ol ore
corporerl lo |arger rarulaclurers, lre prov|s|or ol ore area ol
producl|or lo a |arger ore or lre ra||rg ol spec|a| equ|prerl ol raler|a|.
ll |s a srorl-rur producl|or ard, lrus, does rol rave lre oerel|ls ol |arger
sca|e. ll suojecls lre producer lo 'pea|s ard lrougrs acl|v|l|es, resu|l|rg
|r |rsull|c|erl use ol
|aoour ard equ|prerl. Tr|s ra|es sc|erl|l|c assessrerl ol cosl d|ll|cu|l.
Jooo|rg |s |arge|y carr|ed oul oy sra|| l|rrs |r lre lorr ol suo-corlracl|rg.
ll |s ar arrargererl lral su|l a parl|cu|ar s|lual|or al a l|re.
3.2. AT6h PR00U6T|0N
8alcr producl|or |s a ror-corl|ruous ard repel|l|ve producl|or. ll |s used
|r lre producl|or ol goods, lre quarl|ly ol Wr|cr |s |roWr |r advarce. ll
oe |r resporse lo a
spec|l|c order or lor sloc|-p||||rg. 8alcr producl|or |r rosl|y used Wrere
lrade |s seasora|, e|lrer as regard supp|y or derard.
8alcres ol producls are sorel|res produced |r |ols lral W||| r|r|r|ze
oolr carry|rg ard sel-up cosls ol racr|res. 8alcr producl|or ras lre
lerdercy lo |ead lo a r|grer |r-process |rverlory.
A ser|es ol oalcres ol d|llererl producls ray W|lr carelu| p|arr|rg
corsl|lule Wral |s ellecl|ve|y corl|ruous producl|or.
3.3. FL0w PR00U6T|0N
F|oW producl|or |s corror|y relerred lo as ||re or corl|ruous producl|or.
ll |s producl|or or |arge sca|e lo prov|de corl|ruous supp|y.F|oW
producl|or ray a|so oe relerred lo as producl |ayoul sysler s|rce |l |ay
erpras|s or producls. ll |s used lor s|rg|e producl or oalcr ol producls
lral lo||oW lre sare sequerce ol operal|or e.g. a ver|c|e assero|y p|arl.
F|oW producl|or |s craracler|zed oy lre 'l|oW ol ur|ls lror ore operal|or
po|rl lo arolrer lrrougroul lre Wro|e process.
A s|rg|e-purpose racr|re or ser|es ol racr|res ray oe used. Tre pr|re
oojecl|ve |s lo rave a regu|ar, corl|ruous|y rov|rg l|oW.F|oW producl|ors
are usua||y lyp|ca| oy lre assero|y ||re or corveyor-oe|l sysler 15
3.4. 8ELF A88E88HENT 0UE8T|0N
0|llererl|ale oelWeer Jooo|rg ard 8alcr Producl|or
3.5. 8ELF A88E88HENT AN8wER
8olr are ror-corl|ruous processes
Jooo|rg |s 'srorl-rur' producl|or Wr||e 8alcr |s '|org-rur'
Jooo|rg suojecls produces lo 'pea|s ard lrougrs' Wr||e 8alcr
Producl|or does rol.
Jooo|rg |s carr|ed oul oy sra|| l|rrs, Wr||e 8alcr ray oe carr|ed oul oy
|arge l|rrs elc.
4.0. 60N6LU8|0N
Tre lypes ard relrods used |r lre producl|or ol goods deperd or lre
producl ard lre quarl|ly produced.
5.0. 8UHHARY
Tre relrod ol producl|or adopled oy producers ol goods deperds or lre
producl ard lre quarl|ly produced. Trere are lrree ra|r lypes ol

Joo Producl|or
8alcr Producl|or
F|oW Producl|or
3lale lrree (3) lypes ol producl|or. lderl|ly ard exp|a|r lre |ey lealures ol
eacr ol

1. P|ll|e|d, R. Rora|d (1981): 8us|ress 0rgar|zal|or, (Lordor),
V & E 8oo|s.
2. Need|e, 0av|d (1999): 8us|ress |r Corlexl, (Lordor),
Trorsor 8us|ress Press

UN|T 3:
1.0. lrlroducl|or - - - - 21
2.0. 0ojecl|ves - - - - 21
3.0. Faclory Local|or - - - - 21
3.1. 3|le Local|or - - - - 21
3.2. Types ol 8u||d|rg - - - - 22
3.3. Pos|l|or|rg 0eparlrerls - - - - 22
3.1 3e|l Assessrerl 0uesl|or - - - - 23
3.5 3e|l Assessrerl ArsWer - - - - 23
1.0 Corc|us|or - - - - 21
5.0 3urrary - - - - 21
.0 Tulor Var|ed Ass|grrerl - - - - 25
.1 Tulor Var|ed Ass|grrerl (0uesl|or ard Var||rg 3crere)- - 25
Z.0 Relererces - - - - 2
1.0. |NTR00U6T|0N
Tr|s ur|l W||| la|e a cursory |oo| al laclory |ocal|or, W|lr spec|a| relererce
lo s|le,
ou||d|rg ard pos|l|or|rg ol deparlrerls.
2.0. 0JE6T|VE8
Al lre erd ol lr|s ur|l sluderls srou|d oe ao|e lo:
(|) lderl|ly lre laclors lral |rl|uerce lre cro|ce ol a laclory s|le.
(||) Verl|or d|llererl lypes ol ou||d|rg.
(|||) 3lale lre pr|rc|p|es re|evarl lo lre pos|l|or|rg ol deparlrerls.
3.0. FA6T0RY L06AT|0N
3.1. 8|TE L06AT|0N
Accord|rg lo lre 0xlord Erg||sr V|r|d|cl|orary, lre Word 890 rears lre
p|ace Wrere sorelr|rg |s, Was or |s lo oe |ocaled or lo |ocale.3|le |ocal|or
|s |rl|uerced oy rary laclors Wr|cr |rc|ude:
(a) Effect|ve 6ost
3|rce ou||d|rg or rerl cosl vary lror p|ace lo p|ace |l |s |rporlarl lral ore
la|es a cr|l|ca| |oo| al lre proposed s|le v|s-a-v|s lre |eve| ol |oca| rales,
goverrrerl grarls elc, oelore ra||rg a cro|ce.
(o) Labour Ava||ab|||ty of the Requ|red Types
Tre producer rusl ersure lral lre lypes ol |aoour requ|re are ava||ao|e |r
lre area.
(c) Labour 6ost
Producers rusl la|e cogr|zarce ol lre |oca| Wage rales lor s|||| ard
urs||||ed |aoour or lor lre lype ol |aoour requ|red.
(d) Transport Fac|||t|es
Faclors lo oe cors|dered are access lo rolorWay, ard prox|r|ly lo porl.
(e) Loca| y-Laws
8y-|aWs corcerr|rg ou||d|rg reslr|cl|or, Wasle d|sposa| elc
(l) hous|ng and 8oc|a| Fac|||t|es
Ava||ao|||ly ol soc|a| ard rous|rg lac|||l|es rusl oe cors|dered as srorlage
W||| allecl |aoour supp|y.
(g) Poss|b|||ty of Expans|on
Trere ray oe reed lo expard lre s|le |r rear lulure. Tr|s rusl oe la|er
|rlo cors|deral|or.
(r) Prox|m|ty of 6ommerc|a| 8erv|ces
Tr|s W||| equa||y allecl |aoour supp|y.

3.2. TYPE8 0F U|L0|NC
Trere ex|sl d|llererl lypes ol laclory ou||d|rg. Tre corror ores are:
(a) 6ustom-u||t Factory
Tr|s lype |s des|gred lo su|l producl|or requ|rererl esserl|a| lealures W|||
oe adequale ||grl|rg, real|rg ard verl||al|or.
(o) 8|ng|e-8torey u||d|ng
Tr|s |dea lor accorrodal|rg reavy racr|rery ard lor lre rovererl ol
raler|a|s. ll |s eas|er lo a|ler lrer ru|l|-slorey ou||d|rg. Trey s|rp|e |r
corslrucl|or ard creaper lo ou||d.
(c) Hu|t|-8torey u||d|ng
Tr|s W||| requ|re arl|l|c|a| ||grl|rg, creaper lo real as a resu|l ol |ess real-
|oss lrrougr lre rool. To ersure easy lrall|c l|oW, grav|ly crule ard ||ll
rusl oe prov|ded. 0lrerW|se lrall|c |s corl|rued lo separale lre l|oors.
3.3. P08|T|0N|NC 0EPARTHENT8
Vajor process|rg slage srou|d oe pos|l|ored al lre |argesl oper space
Wr||e olrer deparlrerls srou|d oe pos|l|ored |r a |og|ca| prox|r|ly lo |l
ard lo eacr olrer. Tre re|evarl pr|rc|p|es lo oe app||ed are:
Tre l|rsl process|rg secl|or srou|d oe rear lre slore lor raW raler|a|s.
Tre l|ra| |rspecl|or deparlrerl srou|d oe rear lre producl|or lerr|ra|
lrlerred|ale |rspecl|or srou|d oe ou||l |rlo lre producl|or ||re rear lre
slage lo oe |rspecled.
F|r|sred-producls slore srou|d rave d|recl access lo l|ra| |rspecl|or
3.4. 8ELF A88E88HENT 0UE8T|0N8
lderl|ly ard exp|a|r lre var|ous lypes ol laclory ou||d|rg
3.5. 8ELF A88E88HENT AN8wER
Exarp|es ol laclory ou||d|rg are:
Cuslor-ou||l Faclory
3|rg|e-slorey 8u||d|rg
Vu|l|-slorey 8u||d|rg
N.: 8r|el exp|aral|ors requ|red.
4.0. 60N6LU8|0N
Faclory |ocal|or |s a |ey aspecl ol producl|or lral requ|res carelu|
cors|deral|or |r
order lo ersure cosl ellecl|veress.
5.0. 8UHHARY
Tre ra|r lealures ol laclory |ocal|or are:
3|le |ocal|or
Types ol 8u||d|rg
Pos|l|or|rg ol 0eparlrerl.
Faclors ard pr|rc|p|es allecl|rg lrese esserl|a| lealures rusl pul |rlo
oelore dec|d|rg lo |ocale lre laclory |r ary croser area.

1. P|ll|e|d, R. Rora|d (1981): 8us|ress 0rgar|zal|or, (Lordor),
V & E 8oo|s.
2. Need|e, 0av|d (1999): 8us|ress |r Corlexl, (Lordor),
Trorsor 8us|ress Press

UN|T 4:
1.0. lrlroducl|or - - - - 28
2.0. 0ojecl|ves - - - - 28
3.0. P|arl ard Equ|prerl - - - - 28
3.1. Tre Cro|ce ol P|arl ard Equ|prerl - - - - 28-29
3.2. Va|rlerarce - - - - 29
3.3. Valer|a| ard Equ|prerl lard||rg - - - - 29
3.3.1. Valer|a|s lard||rg - - - - 29-30
3.3.2. Equ|prerl lard||rg - - - - 30
3.1 3e|l Assessrerl 0uesl|or - - - - 31
3.5 3e|l Assessrerl ArsWer - - - - 31
1.0 Corc|us|or - - - - 32
5.0 3urrary - - - - 32
.0 Tulor Var|ed Ass|grrerl - - - - 33
.1 Tulor Var|ed Ass|grrerl (0uesl|or ard Var||rg 3crere)- 33
Z.0 Relererces - - - - 31
1.0. |NTR00U6T|0N
Tr|s ur|l W||| la|e a |oo| al p|arl ard equ|prerl, W|lr spec|l|c relererce lo
ra|rlerarce, raler|a| rard||rg ard cro|ce ol equ|prerl.
2.0. 0JE6T|VE8
Al lre erd ol lr|s ur|l, sluderls srou|d oe ao|e lo:
(|) lderl|ly lre laclors lo oe cors|dered |r se|ecl|rg p|arls ard equ|prerls.
(||) Exp|a|r lre corcepl ol ra|rlerarce.
(|||) 3lale lre pr|rc|p|es ol raler|a| rard||rg.
3.1. ThE 6h0|6E 0F PLANT AN0 E0U|PHENT qqqq
Tre rears lral lrere ex|sl lre opporlur|ly croose lror var|ely. ll cou|d oe
goods,persors or lr|rgs.Tre laclors lo oe cors|dered Wrer se|ecl|rg
p|arl ard equ|prerl are:
(|) 8pec|a| Purpose Hach|nes
Trese lypes ol racr|re are des|gred lo reel process|rg requ|rererl.
Tre roda||l|es lor |ls producl|or ard |ey lealures ard lurcl|ors rusl oe
oelWeer lre prospecl|ve users ard lre rarulaclurer.
(||) Cenera| Purpose Hach|nes
Trese are slardard|zed racr|res ard are ava||ao|e lror sloc|. As lre
rare suggesl, lrey are rol des|gred lor lurcl|or spec|l|c lo lre ouyer.

(|||) Effect|ve 6ost
Tr|s W||| la|e accourl ol lre |r|l|a| cosl, lre cosl ol ra|rlerarce ard
deprec|al|or as We|| as lre rurr|rg cosl.
(|v) 8|ze
F|oor area rusl oe p|arred lo accorrodale lre racr|res ard ra|e
a||oWarces lor ary g|v|rg parl ol lre arr ol a crare, operalors' Wor||rg
pos|l|or, access ard pass|rg lrall|c.
(v) Ha|ntenance and Repa|rs
Va|rlerarce oll|cers rusl rave easy access lo lre equ|prerl lor lre
purpose ol ra|rlerarce ard repa|rs.
(v|) 0bso|escence
Tre ||le spar ol lre racr|re srou|d oe |roWr. Trere ray oe reed lor
'lrade |r' Wrer |arger or rore ell|c|erl racr|res oecore recessary.
(v||) Power
0re rusl la|e cogr|zarce ol lre requ|s|le poWer ard |ls allerdarl cosl.
(v|||) Labour 6ost
A s|rp|e racr|re W||| requ|re |oW-pa|d operalor. Tre cosl ol lre |aoour
rep|aced rusl oe cors|dered.
(|x) 0utput
ll ray oe recessary lo ca|cu|ale lre earr|rg capac|ly ol eacr racr|re.
Va|rlerarce |s a corl|ruous process ard, |l |s rard|ed oy spec|a||sl slall
Wrose respors|o|||ly |rc|udes:
Regu|ar |rspecl|or ard serv|c|rg
Repa|rs carr|ed oul or ar erergercy oas|s
3uperv|s|rg proper use oy operal|ves
Corp|||rg records ol orea|doWr perlorrarce elc
Adv|s|rg raragererl aooul rep|acererl.
Trere are d|llererl lypes ol ra|rlerarce, lrese are:
Pred|cl|ve Va|rlerarce
Preverl|ve Va|rlerarce
Correcl|ve Va|rlerarce.
0rgar|zal|ors ray rave ra|rlerarce po||cy spec|l|c lo lrer oul lre
gerera| laclors lo oe cors|dered are:
(a) Tre cosl ol producl|or |osl lrrougr orea|doWr
(o) Tre cosl ard ellecl|veress ol |rspecl|or ard ra|rlerarce
(c) Pr|rc|p|e corcerr|rg ooso|escerce ard rep|acererl
(d) 8uy|rg po||cy as ellecled oy ra|rlerarce Wor|
3.3.1. HATER|AL8 hAN0L|NC qqqqq
Tr|s relers lo lre rovererl ol raW raler|a|s, corporerls, l|r|sred parls
ard corp|eled goods W|lr|r lre producl|or slage.
Tre pr|rc|p|es lo oe cors|dered are:
(a) Economy of Hovement
Tre lrarsporl|rg d|slarce rusl oe srorl ard srou|d co|rc|de W|lr lre l|oW
ol producl|or. Trere srou|d oe ro 'oac|-lrac||rg'
(o) Economy of F|oor 8pace
ldea||y, rovererl srou|d oe oll lre l|oor. Tr|s car oe dore oy us|rg
overread corveyor oo|ls, garlr|es
(c) Traff|c ways
Tr|s srou|d oe dore |r sucr a Way lral rovererl does rol |rlerlere W|lr
olrer Wor|s.
(d) 6omb|n|ng Hovement w|th Process|ng
For |rslarce, a ur|l ray oe spray pa|rled Wr||e |l |s or a producl|or

3.3.2. E0U|PHENT hAN0L|NC
Equ|prerl rard||rg a|so deserved spec|a| allerl|or. 3ucl|or p|pes ard
vacuur luoe car oe used lo rove oac| raler|a|s Wr||e corveyors car oe
used lo rove goods overread. L|grl pac|ages car oe sr|pped rarua||y
a|org ro||er, oe|ls.
0rav|ly crules, ro|sls, ||lls elc are used lor verl|ca| rovererl, Wr||sl
Truc|s are used lor:
lo|d|rg ard d|scrarg|rg ou|| or co||ecl|or ol |lers ol durper lruc|s.
P|c||rg up ard lrarsporl|rg slardard pa||els or a p|allorr rade up |rlo
|oads' as pa||el lruc|s.
4.0. 60N6LU8|0N
P|arls ard equ|prerl are |ey aspecl ol lre producl|or secl|or lral
requ|res carelu|
p|arr|rg W|lr adequale rovererl space lor equ|prerl ard raler|a|s.
5.0. 8UHHARY
Varagererl rusl la|e sore laclors |rlo cors|deral|or oelore se|ecl|rg
p|arl ard
equ|prerl. Va|rlerarce po||cy rusl oe We|| draWr oul ard a||oWarce
rade lor lre
rovererl ol equ|prerl ard raler|a| al lre oulsel.

1. P|ll|e|d, R. Rora|d (1981): 8us|ress 0rgar|zal|or, (Lordor),
V & E 8oo|s.
2. Need|e, 0av|d (1999): 8us|ress |r Corlexl, (Lordor),
Trorsor 8oo| Press

UN|T 5:

1.0. lrlroducl|or - - - - 3
2.0. 0ojecl|ves - - - - 3
3.0. Producl|or P|arr|rg ard Corlro| - - - - 3
3.1. P|arr|rg ard Corlro| - - - - 3
3.2. Progress Corlro| - - - - 3Z
3.3. lrspecl|or - - - - 3Z-38
3.3.1. Velrods ol lrspecl|or - - - - 38
3.1 3e|l Assessrerl 0uesl|or - - - - 39
3.5 3e|l Assessrerl ArsWer - - - - 39
1.0 Corc|us|or - - - - 10
5.0 3urrary - - - - 10
.0 Tulor Var|ed Ass|grrerl - - - - 11
.1 Tulor Var|ed Ass|grrerl (0uesl|or ard Var||rg 3crere)- 11
Z.0 Relererces - - - - 12

1.0. |NTR00U6T|0N
Tr|s ur|l W||| la|e a cursory |oo| al Producl|or P|arr|rg ard Corlro| W|lr
erpras|s or progress corlro| ard |rspecl|or.
2.0. 0JE6T|VE8
Al lre erd ol lr|s ur|l, sluderls srou|d oe ao|e lo:
(|) lderl|ly lre oojecl|ves ol P|arr|rg ard Corlro|.
(||) lderl|ly lre lealures ol Progress Corlro|.
(|||) 3lale lre purpose ol lrspecl|or.

3.0. PR00U6T|0N PLANN|NC AN0 60NTR0L
P|arr|rg |r lr|s respecl relers lo lre corcepl ol dec|d|rg lre relrod ol
producl|or lo oe adopled. ll usua||y lo||oWs lre pre-p|arr|rg slage Wrere
lre lype ol producl ras oeer dec|ded upor ard des|gred oulpul agreed |r
corjurcl|or W|lr lre sca|e ur|l ard a|| rallers ol cosl, pr|ce ard de||very
l|res rave oeer sell|ed. Corlro| or lre olrer rard |rp||es lre sell|rg ol
slardards ard oojecl|ves, lre
coord|ralor ol lre var|ous slages ard lre var|al|or ol p|ars as
c|rcurslarces d|clale
Tre respors|o|||ly lor lrese lWo lurcl|ors resl W|lr ore deparlrerl.

The object|ves of P|ann|ng and 6ontro| are: qqq
To coord|rale |aoour ard racr|re |r lre rosl ellecl|ve ard ecoror|c
To eslao||sr largels, crec| lrer aga|rsl perlorrarce ard la|e
recessary acl|or.
To acr|eve sroolr corl|ruous producl|or W|lr lre e||r|ral|or ol ooll|e
rec|s ard urder-erp|oyed resources.

The pr|me respons|b|||t|es of the P|ann|ng and 6ontro| department
To ||a|se W|lr lre rar|el|rg ard purcras|rg deparlrerl ard lo adjusl lre
producl|or rale or producl r|x Wrere recessary
To delerr|re lre a||ocal|or ol |aoor ard racr|re.
To eslao||sr l|re scredu|es lor var|ous slages
To eslao||sr corl|ruous |rspecl|or
To operale a sysler ol cosl corlro|.

Tre p|arr|rg prograrre W||| rorra||y corlorr lo lre lo||oW|rg:
0ec|d|rg lre process lo oe adopled
3credu|e lre sequerce ol operal|or.
Eslao||sr l|re scredu|e lor lre corp|el|or ol eacr
A||ocale Wor| lo racr|res ard Wor| groups.
Ersure raler|a| ava||ao|||ly.

3.2. PR0CRE88 60NTR0L
Tr|s |s rearl lo ersure lral producl|or perlorrarce |s |r accordarce W|lr
lre l|re scredu|es. ll |s a sysler ol crec||rg ard la||rg recessary
acl|or. ll |s corror|y
relerred lo as progress cras|rg.

The need for progress contro| ar|ses as a resu|t of:
Fa||ure ol raler|a|s lo oe de||vered
Vacr|re or poWer orea|doWr
lrduslr|a| acl|or
0e|ay al ar ear||er po|rl or lre producl|or ||re
3lall aoserlee|sr
Errors ol des|gr, p|arr|rg or rurar acl|v|ly

The ma|n tasks of progress contro| are:
To crec| progress corl|ruous|y
To delerr|re lre cause ol ary dev|al|or
To reso|ve lre d|ll|cu|ly
To adjusl raler|a| de||very ard lo adv|ce lre sa|e.

6ontro| can be ass|sted through:
Tre use ol l|oW crarl Wr|cr sroWs lre p|arred sequerce ol operal|ors
Tre use ol producl|or scredu|e sucr as grarl crarls
Tre use ol auloral|c corlro| lo g|ve a corl|ruous leed oac| ol
|rlorral|or oy corpuler.
Tre use ol racr|re |oad|rg crarls
lrspecl|or scredu|es
Valer|a| ||sl Wr|cr spec|ly lre lype ard quarl|l|es ol raler|a|s ard
corporerls lor eacr producl.

3.3. |N8PE6T|0N
lrspecl|or |s carr|ed oul lo ersure lral l|r|sred producls reacr a requ|red
slardard ard lo reduce lre arourl ol 'scrap' ard Wasled |aoour.
Tre pr|re oojecls ol |rspecl|or are:
To eslao||sr slardards
To ersure corlorr|ly W|lr slardards
To |derl|ly corlr|oulory laclors lo dev|al|ors
To delerr|re perr|lled dev|al|ors
To ersure lral per|od|c crec|s are corl|ruous (|.e. scredu|e |rspecl|ors)
To prov|de raragererl dala aooul cosls ol dev|al|or.

lrspecl|or assures lre lo||oW|rg lorrs:
lrspecl|or ol raW raler|a|s
lrspecl|or ol Wor| |r progress
Process corlro|
Rurr|rg lesl
0ua||ly corlro|
3lal|sl|ca| qua||ly corlro|

3.3.1. HETh008 0F |N8PE6T|0N qqq
Velrods ol |rspecl|or |rc|ude:

(a) 6entra||zed |nspect|on
Tr|s requ|res lral Wor| oe serl lo lre |rspecl|or deparlrerl oelore
proceed|rg lo lre rexl slage.

Tre ra|r lealures are:
ll a||oWs lor eas|er superv|s|rg
lrspecl|or records are cerlra||zed
Tre srop l|oor |s |epl c|ear lor operal|ves.

(o) F|oor |nspect|on
Tr|s requ|red |rspeclors carry oul lre|r exar|ral|or al lre Wor| po|rl.
Tre ra|r advarlage ol lr|s relrod |s lral:
Less l|re |s |osl |r rard||rg ard lrarsporlal|or
Fau|l-l|rd|rg |s |rred|ale ard ray oe rered|ed W|lroul de|ay.

4.0. 60N6LU8|0N
Fa||ure lo p|ar |s p|arr|rg lo la||.
Varagererl rusl la|e advarlage ol lre oojecl ol p|arr|rg ard corlro|
lor |rcreased producl|v|ly.

5.0. 8UHHARY
Tre pr|re oojecls ol p|arr|rg ard corlro| are:
To co-educale |aoour ard racr|res |r lre rosl ellecl|ve ard ecoror|c
To eslao||sr largels, crec| lrer aga|rsl perlorrarce ard lo la|e
recessary acl|ors
To acr|eve sroolr corl|ruous producl|or.
Trese a|rs are acr|eved lrrougr a We|| p|arred prograrre ol acl|or.

1. P|ll|e|d, R. Rora|d (1981): 8us|ress 0rgar|zal|or, (Lordor),
V & E 8oo|s
2. Need|e, 0av|d (1999): 8us|ress |r Corlexl, (Lordor),
Trorsor 8oo| Press

UN|T :


1.0. lrlroducl|or - - - - 11
2.0. 0ojecl|ves - - - - 11
3.0. wor| Veasurererl - - - - 11
3.1 Tre Corcepl ard 0ojecl|ves ol wor| Veasurererl - - - 11
3.2 wor| Veasurererl Procedure ard Veasurererl Tecrr|ques- - 11
3.2.1. wor| Veasurererl Tecrr|ques - - - - 11-15
3.3 All|lude-lo-Wor| sludy - - - - 15
3.1 3e|l Assessrerl 0uesl|or - - - - 1
3.5 3e|l Assessrerl ArsWer - - - - 1
1.0 Corc|us|or - - - - 1Z
5.0 3urrary - - - - 1Z
.0 Tulor Var|ed Ass|grrerl - - - - 18
.1 Tulor Var|ed Ass|grrerl (0uesl|or ard Var||rg 3crere)- - 18
Z.0 Relererces - - - - 19
1.0 |NTR00U6T|0N
Tr|s ur|l W||| expose us lo lre oojecl|ves, procedure ard lecrr|que ol Wor|
2.0 0JE6T|VE8
Al lre erd ol lr|s ur|l, sluderls srou|d oe ao|e lo:
(|) 3lale lre oojecl|ves ol Wor| reasurererl.
(||) lderl|ly lre lecrr|ques ol Wor| reasurererl.
(|||) Erurerale lre proo|ers assoc|aled W|lr Wor| sludy.


wor| reasurererl |s ar aspecl ol Wor| sludy. ll |s pr|rar||y corcerred
W|lr lre sludy ol l|re ard ellorl requ|red lo perrlorr a las| W|lr a v|eW al
|rcreas|rg ell|c|ercy.

|ts pr|mary a|m |s to use t|me study to ccc
eslao||sr slardard l|re lor corp|el|or ol spec|l|c las|;
crec| perlorrarces W|lr slardards
reasure racr|re oulpul;
lac|||lale cosl|rg
prov|de a la|r oas|s lor |rcerl|ve screre.

0rce lre slardard l|re lor lre corp|el|or ol a las| |s eslao||sred, |l
oecores eas|er lo crec| perlorrarces W|lr slardard ard lo des|gr ar
ellecl|ve producl|v|ly |rcerl|ve
screre or Wral |s corror|y relerred lo as payrerl oy resu|l pay sysler.

Tre sleps used |r Wor| reasurererl are s|r||ar lo lrose ol relrod sludy
oul W|lr erpras|s or quarl|l|cal|or.

Tre ur|l |s T|re, lrougr |l car oe a 'Wor| ur|l
Ca|cu|al|or oy slop-Walcr
A||oWarces are rade lor lal|gue, var|al|ors oelWeer operal|ors,
uravo|dao|e de|ays elc
Tre slardard l|re |s oased or day-|org average l|re

Tre lecrr|ques ol Wor| reasurererl are:

(|) 0|rect T|me 8tudy
Tr|s |s used |r repel|ve las|s, |l |rvo|ves record|rg lre l|re la|er lo
perlorr a spec|l|c parl ol a las|. Tre reasurererls are la|er al d|llererl

(||) Predeterm|ned Hot|on T|me 8ystem
3el l|re |s eslao||sred lor corp|el|rg cerla|r las|s la|er lror lre
ooserval|ors ol a ruroer ol operal|ves or vary|rg occas|ors.

(|||) Ana|yt|ca| Est|mat|ng
used |r ror-repel|l|ve joos, sucr as ra|rlerarce. As lre joo vary |r s|ze
ard corp|ex|ly, a slardard |s sel lor lre l|re la|er lor ar average joo. ll
|s a|so used lor ror-repel|l|ve e|ererl |r a repel|l|ve operal|or.

(|v) Act|v|ty 8amp||ng
Tr|s |rvo|ves ra||rg ooserval|ors ard record|rg Wral |s rapper|rg or ar
agreed ruroer ol v|s|ls |r a per|od al rardor. ld|e l|re ol a racr|re |s
ca|cu|aled oy rol|rg al lre rardor sarp||rg, |l lre racr|re |s Wor||rg.

3.3 ATT|TU0E8 T0 w0RK 8TU0Y
Tre rurar proo|ers assoc|aled W|lr Wor| sludy are:
Reserlrerl ol oe|rg Walcred
Ellecl ol lrcerl|ves - Too r|gr a slardard Wou|d allecl Wor|ers'
Re||ao|||ly ol lre 3lardard: - wor|ers cou|d dec|de lo go s|oW |r order lo
gel a |oWer slardard.
Fear ol redurdarc|es: - lrproved relrod ray |ead lo a reducl|or ol
|aoour corlerl ard corsequerl|y doWr-s|z|rg ol |aoour lorce.
4.0 60N6LU8|0N
You rave roW successlu||y corp|eled lre sludy or ore ol lre lecrr|ques
ol Wor| sludy Wr|cr W||| re|p you lo |rprove or your las| perlorrarce

wor| reasurererl |s ore ol lre lecrr|ques ol Wor| sludy. Tre procedure
|s s|r||ar lo lral ol relrod sludy oul W|lr erpras|s or quarl|l|cal|ors. ll
prov|des a oas|s lor
des|gr|rg ar ellecl|ve |rcerl|ve screre ard lo crec| perlorrarce W|lr

1. P|ll|e|d, R. Rora|d (1981): 8us|ress 0rgar|zal|or, (Lordor),
V & E lardooo|s

UN|T 7:
HETh00 8TU0Y
1.0. lrlroducl|or - - - - 51
2.0. 0ojecl|ves - - - - 51
3.0. Velrod 3ludy - - - - 51
3.1 Corcepl ard rear|rg ol Velrod 3ludy - - - - 51
3.2 0ojecl|ves ol Velrod 3ludy - - - - 51
3.3 Velrod 3ludy Procedure - - - - 51-52
3.1 3e|l Assessrerl 0uesl|or - - - - 53
3.5 3e|l Assessrerl ArsWer - - - - 53
1.0 Corc|us|or - - - - 51
5.0 3urrary - - - - 51
.0 Tulor Var|ed Ass|grrerl - - - - 55
.1 Tulor Var|ed Ass|grrerl (0uesl|or ard Var||rg 3crere)- - 55
Z.0 Relererces - - - - 5
1.0 |NTR00U6T|0N
Tr|s ur|l W||| la|e a cursory |oo| al relrod sludy v|s-a-v|s lre oojecl|ves
ard procedures.
2.0 0JE6T|VE8
Al lre erd ol lr|s ur|l, sluderls srou|d oe ao|e lo:
(|) 3lale lre oojecl|ves ol relrod sludy.
(||) Erurerale lre procedures ol relrod sludy.
(|||) 3lale lre rear|rg ol relrod sludy.
3.0 HETh00 8TU0Y
3.1 60N6EPT AN0 HEAN|NC 0F HETh00 8TU0Y
Velrod 3ludy |s ore ol lre lecrr|ques used |r wor| 3ludy. ll |s a
sc|erl|l|c ara|ys|s ol operal|ors ard lre Way |r Wr|cr are co-ord|rale
|rc|ud|rg lre corlr|oul|or ol racr|res lo |aoour.
Velrod 3ludy slud|es lre Way Wor| |s dore, cr|l|c|zes |l Wrere recessary
ard dev|ses a oeller approacr lral |eads lo Wor| ell|c|ercy.
3.2 0JE6T|VE8 0F HETh00 8TU0Y
Tre oojecl|ves ol wor| 3ludy are:
lrproved |rd|v|dua| processes
lrproved lre |rler-re|al|orsr|p ol processes
Va||rg rore ell|c|erl lre use ol rarpoWer, racr|re ard raler|a|s
lrproved Wor||rg cord|l|ors
Ecoror|ze |r rurar ellorl ard reduce lal|gue.
Tre procedures ol Velrod 3ludy are:
(a) 0elerr|re lre Wor| lo oe slud|ed ard del|re lre oojecl|ves
(o) Record lre lacls Wr|cr are eslao||sred oy rears ol:
Process crarls ard l|oW d|agrars
Vu|l|p|e acl|v|ly crarls
Vol|or crarls Wr|cr sroWs lre rovererl ol ar operal|ves
3|ro-crarls record lre s|ru|lareous rovererls ol ar operal|ve's rard
or olrer parl ol lre oody.
Layoul rode|s ard lerp|ales
3lr|rg d|agrars Wor|-pos|l|ors are rar|ed W|lr pers ard correcl|rg
|erglr ol slr|rg |rd|cale lre palrs course ol r|s Wor|.
F||rs ard sl||| careras lo record sore operal|ors
(c) Ara|yze lre records ard quarl|ly Wrere appropr|ale W|lr a v|eW al
ra||rg sore |rprovererl lrrougr:
e||r|ral|rg ar operal|or or parl ol |l.
coro|r|rg ore or rore operal|ors
dev|s|rg d|llererl prys|ca| rovererl
a|ler|rg racr|re loo|s
a|ler|rg lre sequerce ol operal|ors.
(d) 0es|gr a reW relrod
(e) Record lre reW relrod ard produce ralreral|ca| corpar|sor W|lr
lre o|d.
(l) lrsla|| lre reW relrod ard prov|de |rslrucl|or lor |ls use.
Record lre reW relrod |r operal|or ard adjusl Wrere appropr|ale.
4.0 60N6LU8|0N
w|lr lre |roW|edge you rave acqu|red |r lr|s ur|l, you are roW |r a
pos|l|or lo carry
oul a Velrod 3ludy ol ary orgar|zal|or.
Velrod 3ludy |s lre sc|erl|l|c ara|ys|s ol operal|ors ard lre Way |r Wr|cr
operal|ors are co-ord|raled W|lr a v|eW al dev|s|rg oeller approacres. ll |s
ore ol lre
relrods ol Wor| sludy.
1. P|ll|e|d, R. Rora|d (1981): 8us|ress 0rgar|zal|or, (Lordor),
V & E lardooo|s

UN|T 8:
1.0. lrlroducl|or - - - - 58
2.0. 0ojecl|ves - - - - 58
3.0. Producl|or Erg|reer|rg - - - - 58
3.1 Tre Corcepl ol 3|rp||l|cal|or ard 3lardard|zal|or - - - 58
3.1.1 Advarlages ol 3|rp||l|cal|or ard 3lardard|zal|or - - - 58
3.1.2 0|sadvarlages ol 3|rp||l|cal|or ard 3lardard|zal|or - - - 58
3.2 3pec|a||zal|or - - - - 59
3.3 0|vers|l|cal|or - - - - 59
3.1 3e|l Assessrerl 0uesl|or - - - - 0
3.5 3e|l Assessrerl ArsWer - - - - 0
1.0 Corc|us|or - - - - 1
5.0 3urrary - - - - 1
.0 Tulor Var|ed Ass|grrerl - - - - 2
.1 Tulor Var|ed Ass|grrerl (0uesl|or ard Var||rg 3crere)- - 2
Z.0 Relererces - - - - 3
1.0 |NTR00U6T|0N
Tr|s ur|l W||| |rlroduce you lo lre corcepl ol slardard|zal|or ard
s|rp||l|cal|or as We|| as spec|a||zal|or ard d|vers|l|cal|or.
2.0 0JE6T|VE8
Al lre erd ol lr|s ur|l, sluderls srou|d oe ao|e lo:
58 (|) 3lale lre rer|ls ard derer|ls ol slardard|zal|or ard s|rp||l|cal|or.
(||) Exp|a|r lre corcepl ol d|vers|l|cal|or.
(|||) Exp|a|r spec|a||zal|or.


3.1 ThE 60N6EPT 0F 8|HPL|F|6AT|0N AN0 8TAN0AR0|ZAT|0N
Producl|or erg|reer|rg relers lo lre orgar|zal|or ol lre producl|or
process as a Wro|e. ll eroraces lre per|od lror lre des|gr ard |ayoul ol
producl|or lac|||l|es lo l|ra| |rspecl|or ol lre producl.

ll |s corcerred W|lr every slage ard every aspecl W|lr lre producl|or
spar ard |rc|udes lre eslao||srrerl ol slardards, lre des|gr ol loo|s ard
equ|prerl, as We|| as
lre reasurererl ol perlorrarce ard lre Wor||rg W|lr|r cosl ||r|ls.

8|mp||f|cat|on |s lre process Wrereoy lre rarge ol corporerls ard/or
l|ra| producls are reduced. ll erla||s produc|rg rore ol ary ore lype lo
ga|r lre advarlage ol |arge sca|e producl|or.

8tandard|zat|on |s relerred lo lre |rlercrargeao|||ly ol slardard
corporerls ard oelWeer d|llererl erd-producls. For |rslarce, lrree
rode|s ol producl car oe oas|ca||y
lre sare oul car oe rar|eled as d|llererl rode|s oy vary|rg sore ol lre

3.1.1 A0VANTACE8 0F 8|HPL|F|6AT|0N AN0 8TAN0AR0|ZAT|0N
Reduct|on of un|t cost
Eas|er |nspect|on
Reduced cost at the des|gn stage
Reduced var|ety of sk||| requ|red
Lower too||ng cost
Hore eff|c|ent customer 8erv|ce for spares and repa|rs
8|mp|er organ|zat|on
Less comp|ex purchas|ng and storage.

3.1.2 0|8A0VANTACE8 0F 8|HPL|F|6AT|0N AN0

A r|sla|e |r lre cro|ce ol producl or des|gr W||| oe rore cosl|y lo correcl
oecause ol lre corr|lrerl lo a rarroW rarge.
Tre ouyer des|re lor sorelr|rg d|llererl ray preserl opporlur|l|es lor
lrlroducl|or ray rear |osses or ex|sl|rg sloc|s raler|a| ard p|arl.

3.2 8PE6|AL|ZAT|0N
Th|s |s the case, when an organ|zat|on dec|des to concentrate on a
narrow range of products. |t enab|es the manufacturer to rema|n |n
the areas where he |s most exper|enced ard rave a We||-eslao||sred
producl|or process, |aoour ard lecrr|ca| s|||| requ|red ard a sourd
|roW|edge ol lre rar|el.

Tre derer|ls ol producl spec|a||zal|or are:
over-deperderce or ore rar|el
ray oe overla|er oy a reW lecrro|ogy

0n the other hand, spec|a||zat|on of |abour w||| enta|| reduc|ng the
range of sk||| requ|red of each worker so that eff|c|ency |s |mproved
by concentrat|on of efforts.

3.3 0|VER8|F|6AT|0N
Tr|s erla||s verlur|rg |rlo reW areas ol producl|or. ll |s lre d|recl oppos|le
ol spec|a||zal|or. 0rgar|zal|ors eroar| or d|vers|l|cal|or lor lre lo||oW|rg
To reduce r|s| ol over deperderl or ore producl.
To ul|||ze spare capac|ly
To oller a W|der rarge W|lr|r lre sare rar|el
To pul oy-producls lo prol|lao|e use As a resu|l ol |rlegral|or.

4.0 60N6LU8|0N
NoW lral you gore lrrougr lr|s ur|l, you are oeller p|aced lo apprec|ale
lre rer|ls ard derer|ls ol s|rp||l|cal|or ard slardard|zal|or,
spec|a||zal|or ard d|vers|l|cal|or.

Producl|or erg|reer|rg eroraces lre lola||ly ol lre producl|or processes
|r ar
orgar|zal|or v|s-a-v|s,:
lrp|ererlal|or ol producl|or po||cy
Producl|or spar
Eslao||srrerl ol slardards
0es|gr ol loo|s ard equ|prerls
Veasurererl ol perlorrarce
wor||rg W|lr|r cosl ||r|ls.

1. P|ll|e|d, R. Rora|d (1981): 8us|ress 0rgar|zal|or, (Lordor),
V & E lardooo|s

UN|T 9:
1.0. lrlroducl|or - - - - 5
2.0. 0ojecl|ves - - - - 5
3.0. Tre Producl|or Furcl|or - - - - 5
3.1 Tre ur|versa||ly ol Producl|or - - - - 5
3.2 0|llererce 8elWeer Varulaclur|rg ard Nor-rarulaclur|rg lrduslr|es-
3.3 lderl|ly|rg lre Producl|or Furcl|or - - - -
3.1 3e|l Assessrerl 0uesl|or - - - - Z
3.5 3e|l Assessrerl ArsWer - - - - Z
1.0 Corc|us|or - - - - 8
5.0 3urrary - - - - 8
.0 Tulor Var|ed Ass|grrerl - - - - 9
.1 Tulor Var|ed Ass|grrerl (0uesl|or ard Var||rg 3crere) - - 9
Z.0 Relererces - - - - Z0
1.0 |NTR00U6T|0N
Tr|s ur|l W||| cors|der lre producl|or lurcl|or as a ur|versa| corcepl.
2.0 0JE6T|VE8
Al lre erd ol lr|s ur|l, sluderls srou|d oe ao|e lo:
(|) lderl|ly lre producl|or lurcl|or.
(||) 0|llererl|ale oelWeer lre rarulaclur|rg ard ror-rarulaclur|rg
(|||) Exp|a|r lre ur|versa||ly ol producl|or.
3.0 ThE PR00U6T|0N FUN6T|0N
3.1 ThE UN|VER8AL|TY 0F PR00U6T|0N
Accord|rg lo Need|e (1999), lre producl|or lurcl|or ex|sls |r a|| lypes ol
|rduslry as We|| as rarulaclur|rg. ll lrarslorrs |rpuls sucr as
|rlorral|or, peop|e, raler|a| ard l|rarce |rlo a var|ely ol oulpuls sucr as
goods, serv|ces, cuslorer ard erp|oyee sal|slacl|or. wrer v|eWed lror
lre aoove perspecl|ve, a|| orgar|zal|or car oe sa|d lo rave a producl|ve
sysler |rrespecl|ve ol lre|r pr|rary oojecl|ve.
Producl|or lurcl|or |s a cerlra| lurcl|or lral ras a s|gr|l|carl |rpacl or
orgar|zal|or slruclure. ll lorrs lre ou|| ol a l|rr's assels, experd|lure ard
peop|e. ll |s p|vola| lo lre success ol a l|rr oy prov|d|rg Wral lre
cuslorer reed al a prol|l or W|lr oudgel |r prol|l ard ror-prol|l
orgar|zal|or respecl|ve|y. ll |s corcerred W|lr |ssues sucr as quarl|ly,
qua||ly, ava||ao|||ly ard pr|ce as We|| as |ssues ol producl|v|ly ard cosl.
Producl|or proo|ers occur |r every orgar|zal|or. For |rslarce |r A|rporls,
lrere |s lre proo|er ol:
Ta|e-oll ard sale |ard|rg ol p|ares or l|re;
Coord|ral|or ol a|r lrall|c corlro|, grourd creWs oagg|rg, passporl ard
cuslors, a|rcrall c|ear|rg, relue||rg ard caler|rg.
3|r||ar|y |r rosp|la|s, lrere |s lre proo|er ol operal|or l|r|rg ard
scredu|e, pal|erls' lrarsler lo ard lror Wards, equ|prerl preparal|or ard
lre supporl syslers.
Voderr relrods ard lecrr|ques ol producl|or rave e|evaled producl|or
lo a |ey pos|l|or sucr lral raragererl slralegy |s |rcorp|ele W|lroul lre
producl|or slralegy.
Varulaclur|rg ard ror-rarulaclur|rg seclors are corcerred W|lr lre
producl|or ol goods ard serv|ces. Trere are, roWever, sore d|llererces
oelWeer d|llererl lypes ol
orgar|zal|or operal|rg |r lre sare seclor. For |rslarce, a collage lexl||e
|rduslry Wou|d oe c|ass|l|ed as rarulaclur|rg a|orgs|de a |arge Texl||e
lrduslry |||e N|crerlex. lr |||e rarrer, a sra|| car r|re serv|ce cerlre
Wou|d oe a c|ass|l|ed
a|orgs|de F|rsl 8ar| P|c as ror-rarulaclur|rg.
Tre rajor d|llererces are:
lr ror- rarulaclur|rg, lre cuslorers p|ay ar acl|ve parl |r lre process
Wr||e |r rarulaclur|rg; lre cuslorers p|ay a |ess acl|ve ro|e.
lr ror- rarulaclur|rg, lrere |s a r|gr |eve| ol |rleracl|or W|lr cuslorer,
Wr|cr ra|es lre process urpred|clao|e. Tre corverse |s lre case W|lr
ll |s rore d|ll|cu|l lo corlro| producl|or |r ror-rarulaclur|rg seclor. Tre
corverse |s lre case W|lr rarulaclur|rg.
Tre degree ol corlacl W|lr cuslorers car allecl lre ell|c|ercy ol lre
Producl|v|ly |r ror-rarulaclur|rg |s d|ll|cu|l lo reasure ard qua||ly a
raller ol suojecl|ve assessrerl.
3.3 |0ENT|FY|NC ThE PR00U6T|0N FUN6T|0N

Tre pr|rary lurcl|or ol producl|or |s lo corverl |rpuls |rlo d|llererl ||rds
ol oulpuls.
Tr|s v|eW ol producl|or lurcl|or |s corror|y relerred lo as lre sysler
v|eW ol
ll erla||s:
(a) The |nput sucr as:
RaW raler|a|s
F|xed assels
Velrod ol Wor||rg
(o) The Process sucr as:
Tre corvers|or ol |rpuls oy coro|r|rg lrer lo produce oulpuls.
Tre supporl lurcl|ors lral corlro| lre leedoac| recrar|srs lo |rprove
lre |rpul
r|x ard lre corvers|or process.
(c) The 0utput sucr as lrose des|red lor:
Tre l|rr
Tre erp|oyee ard
Tre corrur|ly.
4.0 60N6LU8|0N
A lorr ol producl|or la|es p|ace |r every orgar|zal|or, Wrelrer
rarulaclur|rg or
ror-rarulaclur|rg rerce lre corcepl 'ur|versa||ly ol producl|or
Tre lurcl|or ol producl|or |s ur|versa|. ll la|es p|ace |r every orgar|zal|or
prol|l or ror-prol|l, rarulaclur|rg or ror-rarulaclur|rg. Tre |ey lurcl|or
producl|or |s lo corverl |rpul |rlo oulpul.

1. Need|e, 0av|d (1999): 8us|ress |r Corlexl, (Lordor),
Trorsor 8us|ress Press
2. l|||, .3. (1991): Producl|or ard 0peral|or Varagererl: Texl ard
Cases, (Lordor),
Prerl|ce la||

UN|T 10: 8Y8TEH 0E8|CN
1.0. lrlroducl|or - - - - Z2
2.0. 0ojecl|ves - - - - Z2
3.0. 3ysler 0es|gr - - - - Z2
3.1 Forecasl|rg 0erard ard Capac|ly P|arr|rg - - - - Z2
3.2 Equ|prerl ard wor| 0es|gr - - - - Z2-Z3
3.3 Local|or 0ec|s|or - - - - Z3
3.1 3e|l Assessrerl 0uesl|or - - - - Z1
3.5 3e|l Assessrerl ArsWer - - - - Z1
1.0 Corc|us|or - - - - Z5
5.0 3urrary - - - - Z5
.0 Tulor Var|ed Ass|grrerl - - - - Z
.1 Tulor Var|ed Ass|grrerl (0uesl|or ard Var||rg 3crere)- - Z
Z.0 Relererces - - - - ZZ
1.0 |NTR00U6T|0N
Tr|s ur|l W||| la|e a |oo| al sysler des|gr v|s-a-v|s capac|ly p|arr|rg
Equ|prerl des|gr, Wor| des|gr ard |ocal|or dec|s|or.
2.0 0JE6T|VE8
Al lre erd ol lr|s ur|l, sluderls srou|d oe ao|e lo:
(|) lderl|ly lre slraleg|es used oy corpar|es lo reduce d|ll|cu|l|es |rposed
oy capac|ly p|arr|rg.
(||) 3lale lre lypes ol dec|s|or re|evarl |r Wor| des|gr.
(|||) 3lale lre laclors lral delerr|re lre cro|ce ol |ocal|or.
3.0 8Y8TEH 0E8|CN
0ec|s|ors cerlra| lo lre producl|or process are oased or lorecasl|rg
derard ard capac|ly p|arr|rg. Trey delerr|red lre d|recl|or lor lre
erl|re operal|or ard lre resources lo lre acqu|red ard roW lrey are lo oe
To carry oul ar ellecl|ve lorecasl, accurale |rlorral|or corcerr|rg lre
rar|el ard accurale pred|cl|or ol derard |s requ|red. 0ell|rg lr|s
|rlorral|or |s parl|cu|ar|y d|ll|cu|l |r a r|gr|y vo|al||e rar|el ol crarg|rg
derard ard r|gr |eve|s ol
lr a s|lual|or Wrere lorecasl|rg rade W|lr sore degree ol accuracy
capac|ly p|arr|rg ray sl||| rol oe slra|grl lorWard. ll |s sers|l|ve lo producl
ard process |rroval|or ard
|s allecled oy dec|s|or or lre lype ol lecrro|ogy used, orgar|zal|or s|ze
ard slruclure ard lre exlerl lo Wr|cr suocorlracl|rg as We|| as olrer
po||c|es |r de||very serv|ce
|rduslr|es are laced W|lr rary cra||erges. Tr|s recess|lales lre reed lor
capac|ly p|arr|rg. Tre slralegy adopled ray |rc|ude:
0peral|rg a l|xed scredu|e
lrs|sl|rg lral passergers or cuslorers ouy l|c|els oelore rard
Creal|rg exlra capac|ly parl|cu|ar|y dur|rg l|res ol r|gr derard
0peral|rg a de|ayed de||very sysler lo corlro| derard ard p|ar
lrlroduc|rg overl|re lo caler lor overooo||rg
us|rg derard ard capac|ly as a rar|el|rg slralegy Wrere a producl
deve|ops a rar|ly va|ue ard cu|l slalus

3.2 Equ|pment and work 0es|gn
Tre |ey dec|s|or rere |s lre se|ecl|or ol lre lype ol equ|prerl lo oe used,
roW rucr ol |l |s lo oe produced |r-rouse ard roW rucr |s lo oe orougrl,
ard lre equ|prerl
rep|acererl slralegy lo oe adopled. Equ|prerl des|gr |s c|ose|y re|aled
lo producl des|gr, capac|ly p|arr|rg, ralure ard s|||| ol lre |aoour lorce
ard accourl|rg procedure. wor| des|gr or lre olrer rard |s corcerred
Prys|ca| |ayoul ol lre producl|or
0es|gr ol |rd|v|dua| joos.
Tre pr|rc|pa| cors|deral|ors are ecoror|c, lecrr|ca| ard oerav|oura|.
var|al|or |r lrese laclors oller resu|ls |r d|llererl lypes ol producl|or
wor| des|gr |s a relrod used oy raragererl lo sal|sly corl||cl|rg
derards sucr as cuslorer sal|slacl|or versus ell|c|erl ul|||zal|or ol
Varagererl |s a|so corcerred W|lr cosl r|r|r|zal|or; lr|s |s acr|eved oy
rears ol:
Velrod sludy
wor| reasurererl
Wr|cr are co||ecl|ve|y relerred lo as wor| 3ludy. wr||e Wor| reasures
app|y lecrr|ques des|gred lo eslao||sr lre l|re lor a qua||l|ed Wor|er lo
carry oul a las| al a del|red |eve| ol perlorrarce. Tr|s lecrr|que |s
corror|y relerred lo as T|re 3ludy.
Velrod 3ludy or lre olrer rard |s lre sysleral|c ard cr|l|ca| exar|ral|or
ol lre Ways ol do|rg lr|rgs |r order lo ra|e |rprovererl (8r|l|sr
3lardard 3138).
3.3 L06AT|0N 0E6|8|0N
Tre producl|or syslers |r a rarulaclur|rg corcerr are usua||y |ocaled
oased or lre lo||oW|rg laclors:
Prox|r|ly lo raW raler|a|s ard poWer supp|y
Trarsporl sysler lor supp|y ard d|slr|oul|or
Laoour rar|el possess|rg lre requ|red s||||
Leve| ol lre |oca| rales ard laxes
Ava||ao|||ly ol goverrrerl grarls
Re|al|ve cosl ol |aoour.
Local|or |s a|so a |ey cors|deral|or |r lre sell|rg ol serv|ce |rduslr|es.
4.0 60N6LU8|0N
3ysler des|gr eroraces producl des|gr, lorecasl|rg derard, capac|ly
equ|prerl des|gr ard Wor| des|gr Wr|cr are |ey laclors |r raragererl
Tre |ey laclors |r sysler des|gr are:
Forecasl|rg derard
Capac|ly p|arr|rg
Equ|prerl des|gr
wor| des|gr
Local|or dec|s|or.
Varagererls requ|re adequale ard accurale |rlorral|or lo ra|e lre
slraleg|c dec|s|ors.

1. w||d, R. (1985): Esserl|a|s ol Producl|or ard 0peral|or Varagererl,
lo|l R|rerarl ard w|rslor
2. l|||, T, (1993): Tre 3lraleg|c Varagererl ol lre Varulaclur|rg
2rd ed|l|or, (Lordor), VacV|||ar
3. Need|e, 0av|d (1999):8us|ress |r Corlexl, (Lordor),
Trorsor 8us|ress Press

1.0. lrlroducl|or - - - - Z9
2.0. 0ojecl|ves - - - - Z9
3.0. 3ysler 0peral|ors - - - - Z9
3.1 0peral|ors P|arr|rg - - - - Z9
3.2 0peral|ors Corlro| - - - - Z9-80
3.3 3credu||rg - - - - 80
3.1 3e|l Assessrerl 0uesl|or - - - - 81
3.5 3e|l Assessrerl ArsWer - - - - 81
1.0 Corc|us|or - - - - 82
5.0 3urrary - - - - 82
.0 Tulor Var|ed Ass|grrerl - - - - 83
.1 Tulor Var|ed Ass|grrerl (0uesl|or ard Var||rg 3crere)- - 83
Z.0 Relererces - - - - 81
1.0 |NTR00U6T|0N
Tre ur|l W||| cors|der producl|or sysler operal|or v|s-a-v|s operal|ors
operal|ors corlro| ard scredu||rg.
2.0 0JE6T|VE8
Al lre erd ol lre ur|l, sluderls srou|d oe ao|e lo:
(|) Exp|a|r operal|ors p|arr|rg.
(||) 3lale lre a|rs ol scredu||rg.
(|||) lderl|ly var|ous lypes ol operal|ors corlro|.
3.0 8Y8TEH 0PERAT|0N
Tre pr|rary a|r ol operal|or p|arr|rg |s lo ersure lral sull|c|erl goods or
serv|ces are produced lo reel derard. Varagererl rusl dec|de
Wrelrer goods are lo oe
produced lo sloc| or lo order. A ver|c|e corpary cou|d dec|de as a raller
ol po||cy lral a|| ver|c|es are ordered oy rarulaclure or produce var|ous
rode|s ol ver|c|e ard
se|| lrer. wralever lre sysler lral |s adopled, sore e|ererls ol
l|ex|o|||ly rusl oe |rlroduced, sucr lral car errarce grealer operal|rg
0peral|ors p|arr|rg recessar||y over|aps W|lr |ssues ol capac|ly p|arr|rg.
wrere ar orgar|zal|or prov|des slardard|zed or cuslor|zed |lers, lrer
lre reed lo produce lo sloc| or order |s v|la|. Tre proo|er ol produc|rg lo
order ray oe rore prorourced |r serv|ce |rduslr|es sucr as lasl lood
oul|els. ll lre po||cy |s lo produce lo order, lrer
lre raragererl rusl orace up lor a poss|o|e de|ay |r reel|rg lre
cuslorer's reeds al lre sare l|re.
wrere goods are produced lo sloc|, lre lood |lers sucr as real p|e ard
rarourger lral are rol so|d rusl oe d|scarded aller sore l|re.
3.2 0PERAT|0N8 60NTR0L
F|ve lypes ol corlro| are |derl|l|ed. Tre lorrs ol corlro| |derl|l|ed over|ap.
As W|lr ary lype ol corlro| sysler, lre raragers ol lre sysler rusl
delerr|re lre slardards
lral are lo operale.
(1) 0uant|ty 6ontro|: Tr|s |s sorel|res relerred lo as producl|or corlro|
progress cras|rg. ll ersures lral lre lrrougr pul ol goods ard serv|ces
accord|rg lo lre p|arred scredu|e.
(2) 0ua||ty 6ontro|: Tr|s ersures lral lre qua||ly ol lre lurr|sred producl
or serv|ce reels lre slardards sel |r lre des|gr slage ard reel W|lr
approva| ol cuslorer.
(3) Techno|ogy 6ontro|: Tr|s perla|rs lo lre ra|rlerarce ol p|arls ard
equ|prerl. ll |s app||cao|e |r a|| lypes ol orgar|zal|or. Tre rajor
cra||erge rere |s lo dec|de Wrer ar equ|prerl |s |r reed ol serv|ce.
Va|rlerarce srou|d
rol oe raprazard, |l srou|d oe ordered.
(1) Labour 6ost: Tre pr|re locus rere are, Wral srou|d oe lre exlerl
ard sly|e
ol superv|s|or ard lre lype ol |rcerl|ve lo oe used lo gererale lre r|grl
resporse ard co-operal|or lror lre |aoour lorce?
(5) 6ost 6ontro|: Tr|s |s esserl|a||y ar accourl|rg lurcl|or. ll erla||s lre
co||ecl|or ard ara|ys|s ol dala or raler|a|, operal|rg equ|prerl ard
|aoour cosl ard corpar|sors rade W|lr prev|ous|y delerr|red slardard
3.3 86hE0UL|NC
Tre pr|rary a|r ol scredu||rg |s lo oa|arce lre cosls ol producl|or
aga|rsl derards lor goods ard serv|ces lo ersure lral derard |s rel |r
lre rosl ell|c|erl Way
A |ey slraleg|c cors|deral|or rere |s |oad-|eve|||rg Wr|cr ersure lral Wor|
|s d|slr|ouled as ever|y as poss|o|e lrrougroul lre Wor|lorce, over lre
erl|re year ard
ra||rg ell|c|erl use ol ava||ao|e equ|prerl. Tecrr|ques or lreres
prelerred lo ersure opl|ra| so|ul|or lo lre proo|ers ol producl|or
p|arr|rg ard scredu||rg |rc|udes:
0ueu|rg lreory
L|rear prograrr|rg
0peral|or researcr.

4.0 60N6LU8|0N
3ysler operal|or |s a |ey aspecl ol lre producl|or sysler. ll cors|sls ol
p|arr|rg, operal|or corlro| ard scredu||rg.
Tre |ey aspecls sysler operal|ors are:
(|) 0peral|or, p|arr|rg Wr|cr |s pr|rar||y corcerred W|lr ersur|rg lral
goods or serv|ces are produced lo reel derard.
(||) 0peral|or corlro|, Wr|cr cors|sls ol:
0uarl|ly corlro|
0ua||ly corlro|
Tecrro|ogy corlro|
Laoour cosl
Cosl corlro|.
(|||) 3credu||rg, Wr|cr |s a|red al oa|arc|rg lre cosl ol producl|or aga|rsl
derard lor goods ard serv|ces.

1. Need|e, 0av|d (1999): 8us|ress |r Corlexl, (Lordor),
Trorsor 8us|ress Press
2. l|||, T., (1993): Tre 3lraleg|c Varagererl ol lre Varulaclur|rg
Varulaclur|rg 3lralegy:
2rd ed|l|or, (Lordor), Vacr|||ar

UN|T 12: ThE PR00U6T|0N PR06E88 A8
1.0. lrlroducl|or - - - - 8
2.0. 0ojecl|ves - - - - 8
3.0 Tre Producl|or Process as a 3ysler - - - - 8
3.1 lrpuls ol Producl|or - - - - 8
3.2 Process ol Producl|or - - - - 8-8Z
3.3 0ulpul ol producl|or - - - - 8Z
3.1 3e|l Assessrerl 0uesl|or - - - - 88
3.5 3e|l Assessrerl ArsWer - - - - 88
1.0 Corc|us|or - - - - 89
5.0 3urrary - - - - 89
Z.0 Relererces - - - - 91
1.0 |NTR00U6T|0N
Tre ur|l W||| cors|der lre process ol lrarslorr|rg |rpuls |rlo oulpuls.
2.0 0JE6T|VE8
Al lre erd ol lr|s ur|l, sluderls srou|d oe ao|e lo:
(|) lderl|ly lre |rpul ol producl|or.
(||) Exp|a|r lre process ol corverl|rg |rpul |rlo oulpul.
(|||) lderl|ly lre oulpul ol producl|or.
3.0 ThE PR00U6T|0N PR06E88 A8 A 8Y8TEH
3.1 |NPUT 0F PR00U6T|0N
lrpul are c|ass|l|ed |rlo lrree:
(a) Env|ronment |nput
Tr|s |s |rlorral|ora| |r craracler ard lerds lo prov|de operal|ors rarager
W|lr |roW|edge aooul cord|l|ors ouls|de ol lre producl|or sysler
(|) Lega| or Po||t|ca| |nput: eslao||sres corslra|rls W|lr|r Wr|cr lre
sysler rusl operale.
(||) 8oc|a| and Econom|c |nput: Tr|s a||oWs raragers lo |derl|ly lre
lrerds lral ray allecl lre producl|or sysler |r lulure.
(|||) Techno|og|ca| |nput: Tr|s car oe oola|red lror lrade
jourra|s,goverrrerl ou||el|rs, lrade assoc|al|ors, NeWs |ellers, supp||ers
Trey prov|de |rlorral|or corcerr|rg orea| lrrougr or lecrro|ogy lral
ray allecl racr|rery, loo|s or process.
(o) Harket |nput:
Tr|s a|so lerds lo oe |rlorral|ora| |r craracler. ll prov|des |rlorral|or
corcerr|rg corpel|l|ors producl des|gr cuslorer des|res elc.
(c) Pr|mary Resources:
Trey d|recl|y supporl lre producl|or ard de||very ol goods ard serv|ces.
Tre resources are raler|a|s ard supp||ers, persorre|, cap|la| ard cap|la|
goods ard ul|||l|es sucr as gas, Waler, o||, coa| ard e|eclr|c|ly. Need|e
(1999) c|ass|l|ed |rpul as raW raler|a|s, peop|e, erergy, racr|re,l|xed
assels, relrods ol Wor||rg ard |rlorral|or.
3.2 PR06E88 0F PR00U6T|0N
Producl|or processes car oe seer lror lWo perspecl|ves:
Tre corvers|or ol |rpuls oy coro|r|rg lrer lo produce oulpuls.
Tre supporl lurcl|or lral corlro| lre leedoac| recrar|sr lo |rprove
lre |rpul r|x ard corvers|or process.
To ellecl|ve|y aclua||ze lre aoove, |l |s recessary lo croose ar ellecl|ve
producl|or process|rg sysler lral oesl su|ls lre orgar|zal|or.Producl|or
process|rg syslers are c|ass|l|ed |rlo:
Producl-locused sysler
Process-locused sysler.
Tre Producl-locused 3ysler groups logelrer a|| ol lre racr|res, loo|s
ard Wor|ers reeded lo perlorr a|| ol lre las|s requ|red lo l|r|sr a
ll |s des|gred lo produce a leW slardard|zed producls |r r|gr quarl|ly al
|oW cosl.
Tre Process-locused 3yslers are des|gred lo produce rary ur|que
producl des|grs |r re|al|ve|y |oW vo|ures. lere, lre producl|or
deparlrerl |s des|gred lo perlorr
or|y ore ||rd ol las| lo a group ol producls oe|rg produced or oalcr
producl|or sysler.
3.3 0UTPUT 0F PR00U6T|0N
lrlorral|or ga|r dur|rg producl|or process so|ves as leedoac| lo lre
sysler ard
rerce |l car oe cors|dered as |rpul lo lre sysler.
Need|e (1999) c|ass|l|es oulpul as des|red ard urdes|red.
(a) For the customer:
0oods ard serv|ces al ar acceplao|e qua||ly ard pr|ce delerr|red as

(o) For the f|rm:
Veel|rg cosls
Acr|ev|rg oojecl|ves.
(c) For the emp|oyee:
Joo sal|slacl|or
(d) For the commun|ty:
3upporl lor olrer l|rrs acl|rg as suocorlraclors.
urdes|rao|e oulpul ray |rc|ude:
Cuslorer d|ssal|slacl|or
Erp|oyee d|ssal|slacl|or
Laoour lurr-over
F|rarc|a| |osses
uracceplao|e Wasle
4.0 60N6LU8|0N
Tre producl|or sysler |s a lrarslorral|or process. ll corverls |rpul |rlo
Tre producl|or sysler cors|sls ol |rpul, process ard oulpul. Key |rpul
are raW
raler|a|s, peop|e, erergy, racr|res, l|xed assels, relrod ol Wor||rg ard
Wr||e process relers lo lre corvers|or ol |rpul |r coro|ral|or lo produce
oulpul. 0ulpul are e|lrer des|rao|e or urdes|rao|e.

1. Need|e, 0av|d (1999): 8us|ress |r Corlexl, (Lordor),
Trorsor 8us|ress Press
2. As|egou, 8.C. (1999): 0peral|or Varagererl,
(V8A course lexl; ar urpuo||sred Wor|)

UN|T 13: PR00U6T|0N AN0
1.0. lrlroducl|or - - - - 93
2.0. 0ojecl|ves - - - - 93
3.0. Producl|or ard Producl|v|ly - - - - 93
3.1 Corcepls ard 3cope - - - - 93
3.2 Capac|ly Veasurererl - - - - 93
3.3 Cyc|e T|re ard Laoour Requ|rererl - - - - 91
3.1 3e|l Assessrerl 0uesl|or - - - - 95
3.5 3e|l Assessrerl ArsWer - - - - 95
1.0 Corc|us|or - - - - 9
5.0 3urrary - - - - 9
.0 Tulor Var|ed Ass|grrerl - - - - 9Z
.1 Tulor Var|ed Ass|grrerl (0uesl|or ard Var||rg 3crere)- - 9Z
Z.0 Relererces - - - - 98
1.0. |NTR00U6T|0N
Tre ur|l W||| cors|der lre corcepl ol producl|or ard producl|v|ly W|lr
spec|l|c relererce lo capac|ly reasurererl ard perlorrarce |rd|ces.
2.0. 0JE6T|VE8
Al lre erd ol lr|s ur|l, sluderls srou|d oe ao|e lo:
(|) Exp|a|r lre corcepl ol producl|or ard producl|v|ly.
(||) Exp|a|r capac|ly reasurererl.
(|||) 0|scuss cyc|e l|re ard |aoour requ|rererl.
3.0. PR00U6T|0N AN0 PR00U6T|V|TY
3.1. 60N6EPT AN0 860PE
Tre Words producl|or ard producl|v|ly are sorel|res used
|rlercrargeao|y. Trougr lrey oolr |ead lo |rcrease |r oulpul, lrere |s a
lurdarerla| d|llererce oelWeer lrer.
wr||e producl|or |rcrease car oe oola|red oy |rcreas|rg resources,
producl|v|ly |rd|cales roW We|| lre resources are used |r producl|or Wr|cr
ray a|so |ead lo |rcrease |r producl|or W|lroul recessar||y |rcreas|rg lre
|eve| ol resources.
wrer |rpul resources are |rcreased W|lr a v|eW al |rcreas|rg lre oulpul,
lre oulcore ray oe al lre experse ol producl|v|ly.
lr |||e rarrer, producl|or |s a lrarslorral|or process; |l corverls |rpul
|rlo des|rao|e oulpul Wr||e producl|v|ly |s lre ral|or ol oulpul produced per
ur|l ol resources (Wor|er/rour or racr|re/rour ol serv|ces, quarl|ly ol
raler|a|s or erergy ur|ls) corsured oy lre process ard acl|v|ly ol
producl|or/d|slr|oul|or Wr|cr lu|l||| Wral rosl peop|e des|re or reed [Crer
el a| (1982)|.
ll ras d|recl |rpacl or ecoror|c ard soc|a| |eve| groWlr pallerr, ||v|rg
slardard, oa|arce ol payrerl pos|l|or, |rl|al|or ard |e|sure |eve|, W|lr
corsequerl ellecl or Wage |eve|, cosl pr|ce, re|al|orsr|p ard cap|la|
P|arred capac|ly |s oased or sore ur|ls ol reasurererl lral are
corror lo lre r|x ol lre producls.
Torres, Velres, ard 3lardard lours are sorel|res used. Torre |s a
We|grl reasurererl corror|y used |r lre |rduslry, Wr||e Velre |s a ur|l
lor |erglr reasurererl. lrduslr|es are e|lrer verl|ca||y or ror|zorla||y
des|gred lor s|rg|e producls e|lrer |r secl|ors or a Wro|e p|arl. 3lardard
rours are used |r oalcr rarulaclur|rg |rduslr|es oecause sore
operal|ors sorel|res |rvo|ve rary corporerls Wr|cr are rorra||y
carr|ed oul us|rg lre sare lac|||ly.
3lardard rours g|ve a reasure ol roW |org |l la|es a process or
Wor|p|ece lo pass lrrougr eacr operal|or. Tr|s deperds or Wor||rg
pararelers sucr as speed ard leed
rale.Capac|ly ul|||zal|or |s expressed |r lerrs ol |rsla||ed capac|ly oased
or ary ol lre aoove ur|ls lo delerr|re roW ell|c|erl|y lre producl|ve
resources are ul|||zed.
Process|rg syslers are e|lrer auloral|c, ser|-auloral|c or oalcr. lr
auloral|c syslers, operal|ors are requ|red lo |oad ard sel lre racr|re
rurr|rg. Trey are a|so requ|red lo ur|oad, c|ear ard carry oul r|ror
adjuslrerls lo errarce ell|c|erl operal|or. Tre ruroer ol operal|ves
requ|red deperds or lre ruroer ol racr|res ar operalor car lerd lo al a
l|re. 3|rce a|| lre racr|res carrol deve|op lau|ls, al lre sare l|re, lre
operalor |s lree lo allerd lo lre ore derard|rg r|s allerl|or Wr||e olrer
racr|res are rurr|rg. A perlecl oa|arce |s, roWever, d|ll|cu|l lo alla|r |r
lre ass|grrerl process. Loc|yer (1983) assures lral Wor| lo carry oul |r
d|llererl racr|res srou|d oe |derl|ca| |r lerrs ol cyc|e l|re, lral |s lre
aclua| process|rg l|re, ur|oad|rg ard a||oWarce lor persorre| ard olrer
lr add|l|or lo racr|re capao|||ly, lrere |s lre reed lo cors|der lre
Wor|ers' perlorrarce |r lerd|rg lo racr|res |r capac|ly assessrerl
us|rg T|re 3ludy, lre l|re lo perlorr a parl|cu|ar las| |s der|ved ard
corverled lo oas|c l|re, us|rg lre ral|rg laclors. Re|axal|or ard olrer
corl|rgercy a||oWarces are added lo gel Wral |s |roWr as 3lardard
T|re. Tr|s |s relers lo lre lola| l|re |r Wr|cr a joo |s lo oe corp|eled al
slardard perlorrarce.
A r|grer slardard perlorrarce rears lral lre joo W||| oe corp|eled al
|ess l|re lrar ass|gred, rerce a reducl|or |r Cyc|e T|re.
ll or lre average lre perlorrarce |s r|grer lrar lre slardard,
perlorrarce |s assured lo oe 100, ard lrer lrere W||| oe ar |rcrease |r
capac|ly ava||ao|||ly.
4.0 60N6LU8|0N
Vacr|re producl|v|ly |s errarced oy |aoour producl|v|ly.
Producl|v|ly sludy |s pr|rar||y a|red al lre oesl Way lo |rprove producl|or
al a
reduced cosl. Capac|ly reasurererl srou|d la|e cogr|zarce ol Wor|ers'
lrrougr lre use ol l|re sludy. 0ur |roW|edge ol slardard ard aclua|
perlorrarce W|||
re|p us rol or|y lo capac|ly ava||ao|||ly oul a|so |aoour requ|rererl.
1. Need|e, 0av|d (1999): 8us|ress |r Corlexl, (Lordor),
Trorsor 8us|ress Press
2. As|egou, 8.C. (1999):0peral|or Varagererl,
(V8A course lexl; ar urpuo||sred Wor|)

1.0. lrlroducl|or - - - - 100
2.0. 0ojecl|ves - - - - 100
3.0. Faclory ard wor| P|ace Layoul - - - - 100
3.1 Corcepls ard 3cope ol Faclory Layoul - - - - 100
3.2 Process Layoul - - - - 100
3.3 Producl Layoul - - - - 101
3.3.1. Advarlages ol Process ard Producl Layoul - - - - 101
3.1 3e|l Assessrerl 0uesl|or - - - - 102
3.5 3e|l Assessrerl ArsWer - - - - 102
1.0 Corc|us|or - - - - 103
5.0 3urrary - - - - 103
.0 Tulor Var|ed Ass|grrerl - - - - 101
.1 Tulor Var|ed Ass|grrerl (0uesl|or ard Var||rg 3crere)- - 101
Z.0 Relererces - - - - 105
1.0 |NTR00U6T|0N
Tre ur|l W||| address lre corcepl ard scope ol laclory ard Wor| p|ace
2.0 0JE6T|VE8
Al lre erd ol lr|s ur|l, sluderls srou|d oe ao|e lo:
(|) Exp|a|r lre rear|rg ol Faclory Layoul.
(||) 3lale lre advarlages ol Process Layoul.
(|||) 3lale lre rer|ls ol Producl Layoul.
3.1 ThE 60N6EPT AN0 860PE 0F FA6T0RY LAY0UT
Faclory Layoul |s lre arrargererl ol racr|res, oll|ces, equ|prerls, ||grl
ard e|eclr|ca| oul|els, slore roors ard a|| olrer lac|||l|es |r lre p|arl or
oll|ce. A good |ayoul perr|ls lre ell|c|erl l|oW ol raler|a|s lrrougr lre
Wor| areas, ra|es
rax|rur use ol lre ava||ao|e space ard r|r|r|ze rard||rg, c|er|ca|,
lrarsporlal|or ard |rverlory.
Vosl laclor|es ergage |r re-|ayoul ol ex|sl|rg lac|||l|es ralrer lrar des|gr
ar arrargererl lor reW equ|prerl |r lre reW ou||d|rg. 3larl|rg lror
scralcr ard corce|v|rg a |ayoul ol equ|prerl arourd Wr|cr a ou||d|rg W|||
oe corslrucled |s a
cra||erge, oul a re-|ayoul ol ex|sl|rg lac|||l|es |s perraps rore cra||erg|rg.
lr ar |dea| laclory, lre reW raler|a| ray core |r al ore erd, pass
lrrougr a|| lre processes ol rarulaclure ard ererge as lre l|r|sred
producl lor d|spalcr al lre olrer
erd. lr |||e rarrer, raW raler|a|s ray core |r al ore door, pass r|grl
rourd lre laclory, urdergo|rg var|ous operal|ors ard go oul al lre sare
Tre pr|rc|p|es ol slra|grl ||re l|oW are sl||| va||d, ever Wrere lrere severa|
parls go|rg |rlo lre l|r|sred producls, a|lrougr |l ray recessary lo
|rlroduce corverg|rg ||res, ol l|oW W|lr corporerls or parls slored al
var|ous po|rls or lre producl|or ||re.

Tre var|ous record|rg lecrr|ques used |r lre sludy ol laclory |ayoul ard
Wor| l|oW are:
Process crarls
F|oW d|agrars
3lr|rg d|agrars
Vu|l|p|e acl|v|ly crarls.
3.2. PR06E88 LAY0UT
lr process |ayoul, s|r||ar equ|prerl, lral |s racr|re lral perlorr s|r||ar
lurcl|ors, are grouped logelrer. ll |s a|so relerred lo as lurcl|ora| |ayoul.
Eacr deparlrerl cors|sls ol groups ol s|r||ar racr|re or peop|e do|rg
s|r||ar joos sucr as card|rg, draW|rg, sp|rr|rg elc. A|| lrese acl|v|l|es are
co||ecl|ve|y relerred lo as sp|rr|rg process or operal|ors |r lexl||e
3.3. PR00U6T LAY0UT
A producl |ayoul groups equ|prerl so lral a|| lre var|ous ||rds ol
equ|prerl recessary lo ra|e a s|rg|e producl or producl ||re are |ocaled
c|ose logelrer. wrer deparlrerls are crealed |r lr|s lasr|or, sucr
deparlrerl. For |rslarce, a rypolrel|ca| e|eclror|c l|rr ray rave sucr
deparlrerls as le|ev|s|or, rad|o, 03V prores, corpulers elc. lr lexl||e
r|||s, producl |ayouls are lyp|l|ed W|lr sucr |aoe|s as lesl|rg
roor, card|rg roor elc.
3.3.1. A0VANTACE8 0F PR06E88 AN0 PR00U6T LAY0UT
Tre advarlages ol producl |ayoul are:
LoWer raler|a| rard||rg cosl
Valer|a|s are roved recrar|ca||y lror ore Wor| slal|or lo arolrer ard
lre slal|ors are grouped c|ose logelrer
Less l|re |s requ|red lo rarulaclure lre producl
Trere |s |ess Wor| |r process
LoWer s||||s are requ|red oy Wor|ers.
Tre ra|r advarlage ol process |ayoul |s |ls l|ex|o|||ly. A W|de var|ely ol
processes ray |rvo|ve lre sare lype ol qu|prerl oul |r d|llererl
3.4. 8ELF A88E88HENT 0UE8T|0N
3lale lre advarlages ol Producl Layoul.

1. P|ll|e|d, R. Rora|d (1981): 8us|ress 0rgar|zal|or, (Lordor),
V & E lardooo|s
2. Need|e, 0av|d (1999): 8us|ress |r Corlexl, (Lordor),
Trorsor 8us|ress Press

1.0. lrlroducl|or - - - - 10Z
2.0. 0ojecl|ves - - - - 10Z
3.0. Aggregale Producl|or P|arr|rg - - - - 10Z
3.1. Corcepl ard 3cope - - - - 10Z
3.1.1. 3leps ol Aggregale Producl|or P|arr|rg - - - - 10Z-108
3.2. Aggregale P|ar lor Produce-lo-3loc| versus Produce-lo-0rder- - 108
3.2.1 Faclors lral 0elerr|re lre Cro|ce oelWeer lre P|ars- - - 108
3.3. Aggregale P|ars lor 3erv|ces - - - - 108-109
3.1 3e|l Assessrerl 0uesl|or - - - - 110
3.5 3e|l Assessrerl ArsWer - - - - 110
1.0 Corc|us|or - - - - 111
5.0 3urrary - - - - 111
.0 Tulor Var|ed Ass|grrerl - - - - 112
.1 Tulor Var|ed Ass|grrerl (0uesl|or ard Var||rg 3crere)- - 112
Z.0 Relererces - - - - 113
1.0. |NTR00U6T|0N
Tr|s ur|l W||| cors|der ore ol lre relrodo|og|es ol producl|or p|arr|rg
ard corlro|
2.0. 0JE6T|VE8
Al lre erd ol lr|s ur|l, sluderls srou|d oe ao|e lo:
(|) Exp|a|r lre corcepl ol Aggregale Producl|or P|arr|rg.
(||) lderl|ly lre laclors lral W||| erao|e raragererls lo dec|de Wrelrer lo
produce-lo order or produce-lo-sloc|.
(|||) lderl|ly lre proo|ers |rrererl |r Aggregale P|ars lor serv|ces.
3.1. 60N6EPT AN0 860PE
Aggregale p|arr|rg erla||s dev|s|rg a p|ar lor prov|d|rg producl|or
capac|ly lor lre rexl s|x lo e|grleer rorlrs g|ver r|re lorecasl ol derard
lor producls.
Tre p|ar W||| spe|| oul lre arourl ol slra|grl l|re ard over-l|re |aoour,
arourl ol suocorlracl|rg ard olrer sources ol capac|ly lo lre used.
Aggregale p|ars are a|red al lre accorp||srrerl ol lWo goa|s.
Prov|de erougr producl|or capac|ly lo sal|sly rar|el derard
Keep producl|or cosl |oW.
Tre process ol p|arr|rg lre quarl|ly ard l|r|rg ol oulpul lror a
rarulaclur|rg or serv|ce sysler over lre red|ur lerr |s usua||y
acr|eved oy adjusl|rg lre producl|or
ral|o, |rverlory |eve| ard olrer corlro||ao|e var|ao|es.
ll der|ves |ls |rlorral|or lror producl derard lorecasl, cuslorer order,
|rverlory |eve| ard laclory capac|ly |eve|.
Tre process ra|es use ol sucr p|arr|rg rode|s as:
L|rear prograrr|rg
F|xed cosl rode|
Feed oac| corlro| rode|
0ua|||rg lreory rode|
leur|sl|c dec|s|or ru|es
3earcr dec|s|or ru|es
3|ru|al|or rode|s.
Tre sleps are:
8eg|r W|lr a sa|e lorecasl lor eacr producl lral |rd|cales lre quarl|ly lo
oe so|d |r eacr l|re per|od.
Tola| a|| lre |rd|v|dua| producls or serv|ces lorecasl |rlo ore aggregale
derard lor a laclory.
Trarslorr lre aggregale derard lor eacr l|re per|od |rlo Wor|ers,
raler|a|s, racr|res ard olrer e|ererls ol producl|or capac|ly requ|red lo
sal|sly aggregale
0eve|op a|lerral|ve resources screres ol supp|y|rg lre recessary
producl|or capac|ly lo supporl lre curu|al|ve aggregale derard.
3e|ecl lre capac|ly p|ar lor arorg lre a|lerral|ve.
PR00U6E-T0-8T06K PR00U6E-T0-0R0ER
1. F|r|sred producls |rverlory oullers lre Tre l|rr oeg|rs producl|or or|y
Wrer d|llererce oelWeer lre |eve| ol producl|or orders are rece|ved; lre
purpose ol
capac|ly ard lre var|ao|e quarl|ly derard. ouller|rg groWlr carrol oe
2. F|r|sred producl slorage serves lre sare Trere |s oac||og oecause
derard purpose as oac||og |r produce-lo-order. exceeds producl|or
3. No d|ll|cu|ly |s ercourlered |r lorecasl|rg Ercourlers d|ll|cu|ly ol
lorecasl|rg lre derard. |eve|s ol producl|or capac|ly due lo |ac| ol
producl|or slardard|zal|or.
3.2.1. FA6T0R8 ThAT 0ETERH|NE ThE 6h0|6E ETwEEN ThE
wr|cr raragererl dec|s|or lo adopl lre produce lo sloc| or produce lo
order p|ar |s delerr|red oy lre lo||oW|rg laclors:
Tre cosl
Pos|l|ve raragererl-ur|or re|al|ors
Fal|gue, reduced rora|e ard |rcreased cosl cou|d everlua||y resu|l lror
Wor||rg loo rucr over-l|re or a corl|rua| oas|s
Producl qua||ly r|grl oe oeller W|lr lre l|re p|ar oecause a|| producl|or
Wou|d oe |r-rouse ard urder d|recl corlro| ol lre p|arl.
Tre l|ex|o|||ly ol |rcreas|rg or decreas|rg producl|or |eve|.
Aggregale p|arr|rg |s s|rp|er |r a serv|ce sysler lral supp||es slardard
serv|ces lo cuslorers lrar |r a sysler lral produces producls. Corror
exarp|es ol serv|ce
sysler are lasl lood oul|els, ealer|es elc.
wrere a serv|ce sysler supp||es, cuslor|zed serv|ces lo cuslorers,
d|ll|cu|ly W||| r|se |r course ol spec|ly|rg lre ralure ard exlerl ol serv|ce,
ard rerce aggregale p|arr|rg
oecores d|ll|cu|l. Exarp|es ol sucr syslers are rosp|la|s, corpuler
serv|ce cerlres, auloroo||e oody repa|r srops elc.
Key proo|ers assoc|aled W|lr aggregale p|ar lor serv|ce are:
lr cuslor|zed serv|ce, lre cuslorer |s ar |rlegra| parl ol lre producl|or
Tre aoserce ol l|r|sred producl slorage as a ouller ol lre d|llererce
oelWeer sysler capac|ly ard cuslorer derard
3ca||rg ol producl|or capac|ly up ard doWr ray a|ler lre perce|ved
qua||ly ol lre de||vered serv|ces.
Tecrr|ques des|gred lo so|ve lrese proo|ers are:
Tre use ol appo|rlrerl scredu|es
Tre use ol aller-rours W|rdoW serv|ce
Creal|rg exlra capac|ly
us|rg derard ard capac|ly as a rar|el|rg slralegy Wrere a producl
deve|ops a rar|ly va|ue ard cu|l slalus.

.0. 60N6LU8|0N
NoW lral you rave gore lrrougr lr|s ur|l, you car c|ear|y sroW lral
aggregale p|ar |s
a|red al prov|d|rg erougr producl|or capac|ly lo sal|sly rar|el derard
al lre |oWesl
poss|o|e cosl.
Aggregale p|ar |rvo|ves dev|s|rg a p|ar lor producl|or capac|ly lor a
per|od rol |ess
lrar s|x rorlrs. Tre pr|rary a|r |s lo ersure erougr producl|or capac|ly
lo reel
rar|el derard ard |oWesl cosl poss|o|e.
Aggregale p|arr|rg requ|res |rlorral|or. Tre cro|ce oelWeer producl|or-
ard producl|or-lo-sloc| |s delerr|red oy cerla|r laclors.

1. Need|e, 0av|d (1999):8us|ress |r Corlexl, (Lordor),
Trorpsor 8us|ress Press
2. As|egou 8.C (1999): 0peral|or Varagererl
(V8A course lexl; ar urpuo||sred Wor|)