Top Banner
Industrial Engineering UNIT I Introduction to Industrial Engineering and Productivity Prepared By Prof. Shinde Vishal Vasant Assistant Professor Dept. of Mechanical Engg. NDMVP’S Karmaveer Baburao Thakare College of Engg. Nashik Contact No- 8928461713 E mail:- [email protected] Website:- www.vishalshindeblog.wordpress.com 01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 1
85

Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Mar 23, 2020

Download

Documents

dariahiddleston
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Industrial Engineering

UNIT –I

Introduction to Industrial Engineering and Productivity

Prepared By Prof. Shinde Vishal Vasant

Assistant Professor

Dept. of Mechanical Engg.

NDMVP’S Karmaveer Baburao Thakare

College of Engg. Nashik

Contact No- 8928461713

E mail:- [email protected]

Website:- www.vishalshindeblog.wordpress.com

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 1

Page 2: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Industrial Engineering • Industrial and systems engineering is concerned with the design,

improvement and installation of integrated systems of people,

materials, information, equipment and energy.

• It draws upon specialized knowledge and skill in the

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 obtained from such

systems.

• The branch of engineering that deals with the creation and

management of systems that integrate people, materials and

energy in productive ways.

• Industrial engineers determine the most effective ways to use

the basic factors of production—people, machines, materials,

information, and energy -- to make a product or provide a

service.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 2

Page 3: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Broad areas of IE

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 3

Page 4: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Typical focuse areas includes

• Project Management

• Manufacturing, Production and Distribution

• Supply Chain Management

• Productivity, Methods and Process Engineering

• Quality Measurement and Improvement

• Program Management

• Ergonomics/Human Factors

• Technology Development and Transfer

• Strategic Planning

• Management of Change

• Financial Engineering

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 4

Page 5: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Objectives of Industrial Engineering

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 5

Page 6: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Application areas of IE

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 6

Page 7: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Events(History) in IE

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 7

Page 8: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Taylor’s contribution to management • Frederick Winslow Taylor (20 March 1856-21 March 1915),

widely known as F. W. Taylor, was an American mechanical

engineer who sought to improve industrial efficiency.

• He is regarded as the father of scientific management, and

was one of the first management consultants.

• He is sometimes called as “Father of Scientific Management”.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 8

Page 9: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

• Scientific management

• It is the art of knowing what exactly you want from your men to do & then seeing that it is done in best possible manner.

• In simple words it is just an application of science to management.

• Management theory by taylor

• Analyzing the work – One best way to do it.

• He is remembered for developing time and motion study.

• He would break a job into parts and measure each of 100th of a minute.

• The efforts of his disciples made the industry to implement these ideas.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 9

Page 10: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Taylors principles of management

• The four principles of management. 1. The development of a true science. 2. The scientific selection of the workman. 3. The scientific education and development of the workman. 4. Intimate and friendly cooperation between the management and the men.

• Taylor created planning departments, staffed them with engineers, and gave them the responsibility to: 1. Develop scientific methods for doing work. 2. Establish goals for productivity. 3. Establish systems of rewards for meeting the goals. 4. Train the personnel in how to use the methods and thereby meet the goals.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 10

Page 11: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Frank & Lillian Gilbreth

Contribution

Time and motion efficiency experts

Developed therbligs, breakdown of manual skills into 16 actions

Frank was a lazy bricklayer looking for an easier way and Lillian was a psychologist.

Endorsed piece-work and suggested a higher rate per unit if his directions were followed.

Disagreed with Taylor’s idea that management should choose which workers took which jobs.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 11

Page 12: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

What is Management?

• Definition: Coordinating work activities so that they are completed efficiently and effectively with and through other people

• Efficiency: getting the most output from the least input

• Effectiveness: completing activities so that the organization’s goals are attained.

OR

• “Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected item”

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 12

Page 13: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Henri Fayol

management strategy

• First came up with the five basic functions of management— Planning, Organizing, Staffing, Directing, Communicating, and Controlling

• First wrote that management is a set of principles which can be learned.

• Developed Fourteen Principles of Management

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 13

Page 14: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Management functions (or) Process of

Management:

There are five types of functions in management. They

are,

• Planning- Defines the goal & establishing strategy.

• Organizing- Includes determining what task has to be done, who is to do them.

• Staffing- Includes recruitment of people and training them towards the project.

• Leading- Includes the motivating the employees and directing the activities.

• Controlling- It is the process of monitoring the performance.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 14

Page 15: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

14 Principles of Management

1. Specialization of labor. Specializing encourages continuous improvement in skills and the development of improvements in methods.

2. Authority. The right to give orders and the power to exact obedience.

3. Discipline. No slacking, bending of rules.

4. Unity of command. Each employee has one and only one boss.

5. Unity of direction. A single mind generates a single plan and all play their part in that plan.

6. Subordination of Individual Interests. When at work, only work things should be pursued or thought about.

7. Remuneration. Employees receive fair payment for services, not what the company can get away with.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 15

Page 16: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

8. Centralization. Consolidation of management functions.

Decisions are made from the top.

9. Scalar Chain (line of authority). Formal chain of command

running from top to bottom of the organization, like military

10. Order. All materials and personnel have a prescribed place, and

they must remain there.

11. Equity. Equality of treatment (but not necessarily identical

treatment)

12. Personnel Tenure. Limited turnover of personnel. Lifetime

employment for good workers.

13. Initiative. Thinking out a plan and do what it takes to make it

happen.

14. Esprit de corps. Harmony, cohesion among personnel.

This is principle that “in union there is strength” as well as an

extension of the principle of unity of command, emphasizing the

need for teamwork and the importance of communication in

obtaining it.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 16

Page 17: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Manager

Top managers

> relatively small group of executives > manage the overall organization > establish its goals, overall strategy, and operating policies > represent the organization in external environment > bear major responsibilities

Middle managers

> largest group of manager > primarily responsible for implementing the policies and plans > supervise and coordinate the activities of lower level managers.

First Line managers

> coordinate and supervise the activities of operating employees > spend a large proportion of their time supervising subordinates

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 17

Page 18: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Manager

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 18

Page 19: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Organisation “Organisation is refers to a social groups designed to achieve certain

goals. Organisation involves creating a structure of relationship among

people working for the desired results”.

OR

Organisation is a system of co-operative activities of two or more

persons

– CONCEPT OF ORGANISATION

• Organisation refers to the institution

• Organising is one of the functions of management

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 19

Page 20: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

• According to keith Davis, “Organisation may be defined as a group of individuals, large of small, that is cooperating under the direction of executive leadership in accomplishment of certain common object.”

• According to Chester I. Barnard, “Organisation is a system of co-operative activities of two or more persons.”

• According to Louis A. Allen, “Organisation is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives.”

• According to Mooney and Railey, “Organisation is the form of every human association for the attainment of a common purpose.”

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 20

Page 21: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Organising process

Determining, grouping and structuring the activities.

Creating rules for effective performance at work.

Allocation of necessary authority and responsibility.

Determining detailed procedures and systems for different problems areas such as coordination, communication motivation etc.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 21

Page 22: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Characteristics / Features of Organisation

• Outlining the Objectives:

Born with the enterprise are its long-life objectives of profitable manufacturing and selling its products. Other objectives must be established by the administration from time to time to aid and support this main objective.

• Identifying and Enumerating the Activities:

After the objective is selected, the management has to identify total task involved and its break-up closely related component activities that are to be performed by and individual or division or a department.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 22

Page 23: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

• Assigning the Duties:

When activities have been grouped according to similarities and common purposes, they should be organized by a particular department. Within the department, the functional duties should be allotted to particular individuals.

• Defining and Granting the Authority:

The authority and responsibility should be well defined and should correspond to each other. A close relationship between authority and responsibility should be established.

• Creating Authority Relationship:

After assigning the duties and delegations of authority, the establishment of relationship is done. It involves deciding who will act under whom, who will be his subordinates, what will be his span of control and what will be his status in the organisation. Besides these formal relationships, some informal organizations should also be developed.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 23

Page 24: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Importance / Need / Advantages / Significance of

Organisation

1. It Facilitated Administration and management: Organisation is an important and the only tool to achieve enterprise goals set b administration and explained by management. A sound organisation increases efficiency, avoids delay and duplication of work, increases managerial efficiency, increases promptness, motivates employees to perform their responsibility.

2. It Help in the Growth of Enterprise: Good organisation is helpful to the growth, expansion and diversifications of the enterprise.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 24

Page 25: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

3 It Ensures Optimum Use of Human Resources:

Good organisation establishes persons with different interests, skills, knowledge and viewpoints.

4 It Stimulates Creativity:

A sound and well-conceived organisation structure is the source of creative thinking and initiation of new ideas.

5 A Tool of Achieving Objectives:

Organisation is a vital tool in the hands of the management for achieving set objectives of the business enterprise.

6 Prevents Corruption:

Usually corruption exists in those enterprises which lack sound organisation. Sound organization prevents corruption by raising the morale of employees. They are motivated to work with greater efficiency, honesty and devotion.

7 Co-ordination in the Enterprises:

8 Eliminates Overlapping and Duplication or work:

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 25

Page 26: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Principles of organisation

• Consideration of Objectives

• Combination of Line and Staff Functions

• Division of Labour or Specialisation

• Departmentation

• Decentralisation

• Principle of Scalar Chain

• Principle of Span of control

• Principle of Unity of Command

• Principle of Balance

• Principle of Flexibility

• Authority and Responsibility

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 26

Page 27: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

• The Principle of Objective

Every enterprise, big or small, prescribes certain basic objectives.

Organisation serves as a tool in attaining these prescribed objectives

• Principle of Specialization

Precise division of work facilitates specialization. According to this

principles division of work between the employees must be based on

their ability, capability, tasks, knowledge and interest. This will

ensure specialization and specialization will lead to efficiency,

quality and elimination of wastage etc.

• The Scalar Principle

This principle is sometimes known as the ‘chain command’. There

must be clear lines of authority running from the top to the bottom

of the organisation.

• The Principle of Authority

It is the tool by which a manager is able to create an environment

for individual performance.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 27

Page 28: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

• The Principle of Unity of Command

One subordinate should be kept in the supervision of one boss only. This principle avoids the possibility of conflicts in instructions and develops the feeling of personnel responsibility for the work.

• The Principal Span of Control

It is also known as ‘span of management’, ‘span of supervision’ or ‘levels of organisation’, etc.

• The Principle of the Unity of Direction

The basic rationale for the very existence of organisation is the attainment of certain objectives. Major objective should be split into functional activities and there should be one objective and one plan for each group of people.

• The Principle of Balance

In every organisation structure there is need for balance. For effective grouping and assigning activities, this principle calls for putting balance on all types of factors human, technical as well as financial.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 28

Page 29: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Elements of Organisation • Organizational design is engaged when managers develop

or change an organization's structure. Organizational Design is a process that involves decisions about the following six key elements:

I. Work Specialization - Describes the degree to which tasks in an organization are divided into separate jobs.

- The main idea of this organizational design is that an entire job is not done by one individual.

- It is broken down into steps, and a different person completes each step. Individual employees specialize in doing part of an activity rather than the entire activity.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 29

Page 30: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

II.Departmentalization

• The process of grouping the activities is commonly known as

“Departmentation”

• Departmentation is useful for specialization and fixation of

responsibility

• Patterns used in Departmentation OR

Common forms of departmentalization

Departmentation By Function

Departmentation by Product or services

Grouping by location or Territories

Departmentation by time

Grouping by process and equipment

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 30

Page 31: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

1.Functional Departmentalization

• it groups jobs by functions performed. It can be used in all

kinds of organizations; it depends on the goals each of them

wants to achieve.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 31

Page 32: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

2. Product Departmentalization.

- It groups jobs by product line. Each manager is responsible of an area within the

organization depending of his/her specialization

32

Page 33: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

3. Geographical Departmentalization/Grouping by

location or Territories

- It groups jobs on the basis of territory or geography.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 33

Page 34: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 34

Page 35: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

4. Process Departmentalization./Grouping by

process and equipment

It groups on the basis of product or customer flow.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 35

Page 36: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

5.Customer departmentalization

• It groups on the basis of common customers

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 36

Page 37: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

III. 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:

• Authority: Refers to the rights inherent in a managerial

position to tell people what to do and to expect them to

do it.

• Responsibility: The obligation to perform any assigned

duties.

• Unity of command: The management principle that

each person should report to only one manager.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 37

Page 38: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

IV. 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 number of employees a manager can efficiently and effectively manage.

V. Formalization It refers to the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 38

Page 39: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Centralization & Decentralization

• Centralized organization: the authority to make

important decisions is retained by top level managers

• Decentralized organization: the authority to make

important decisions is delegated to managers at all

levels in the hierarchy

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 39

Page 40: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Key points of Centralization

• Centralization can facilitate coordination.

• Centralization can help ensure that decisions are consistent with organizational objectives.

• Centralization can avoid duplication of activities by various subunits within the organization.

• By concentrating power and authority in one individual or a management team, centralization can give top-level managers the means to bring about needed major organizational changes.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 40

Page 41: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Key points of Decentralization

• Top management can become overburdened when

decision-making authority is centralized.

• Motivational research favors decentralization.

• Decentralization permits greater flexibility—more

rapid response to environmental changes.

• Decentralization can result in better decisions.

• Decentralization can increase control.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 41

Page 42: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Limitations of Centralization

• Development of low level managers are hampered.

Opportunity given to exercise initiative and judgment

is negligible .

• It is a costly affair and delays decision making .

• It creates problems of effective communication

• No scope of specialization as a person may have to

look into many things

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 42

Page 43: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Limitations of Decentralization • It creates problems in coordination between different units

of the organization.

• May result in higher administrative expenses as qualified

managers a needed for different divisions

• Due to different policies and procedures of each unit in a

decentralized organization inconsistencies may arise in

organizational activities

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 43

Page 44: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

What is organizational structure ?

• Organizational structure is a system used to define a

hierarchy within an organization.

• It identifies each job, its function and where it reports to

within the organization.

• This structure is developed to establish how an

organization operates and assists an organization in

obtaining its goals to allow for future growth.

• The structure is illustrated using an organizational chart.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 44

Page 45: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Why do we need organizational structure ?

• Evaluating Employee Performance

• Achieving Goals

• Function

• Communication

• Prevention/Solution

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 45

Page 46: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Organizational structure

Types of organizational structure

(i) Line/military/scaler organizational structure.

(ii) Staff or functional authority organizational structure.

(iii) Line and staff organizational structure.

(iv) Committee organizational structure.

(v) Divisional organizational structure.

(vi) Matrix organizational structure

(vii) Project organizational structure.

(viii) Hybrid organizational structure.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 46

Page 47: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Line/military/scaler organizational structure

• It is also known as scalar, military, or vertical

organization and perhaps is the oldest form

1. Pure line Organization

2. Departmental Line Organization

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 47

Page 48: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

• Characteristics:

• Line authority and instructions are vertical, that is, they flow

from the top to the bottom.

• The unity of command is maintained in a straight line.

• All persons at the same level of organization are independent of

each other.

• This structure specifies responsibility and authority for all the

positions limiting the area of action.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

• Demerits:

• Lack of Specialisation

• Absence of Conceptual

Thinking

• Autocratic Approach

• Problems of coordination

Suitability:- It is suitable to small – scale organizations where the number of subordinates is quite

small.

•Merits:

• Simplicity

• Discipline

• Prompt Decisions

• Orderly Communication

• Easy Supervision & Economical

48

Page 49: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Functional organizational structure

• Functional structure is created by grouping the activities on the

basis of functional required for the achievement of organizational

objectives.

• For this purpose all the functions required are classified into

basic, secondary and supporting functions.

• Features:

• The whole activities of an organization are divided into various

functions

• Each functional area is put under the charge of one executive

• For any decision, one has to consult the functional specialist

• Limited span of control is there.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 49

Page 50: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

• Merits:

• High Specialisation

• Clarity in functioning

• No duplication

• Satisfactions

• Control and Coordinate

• Demerits:

• Calls for more coordination

• Clear line of authority

• Slow decision making

Suitability:

The establishment of functional organisation structure becomes

necessary as a small organisation grows and business activity

becomes more and more complete

50

Page 51: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Functional organizational structure

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 51

Page 52: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Line and staff organizational structure

• Characteristics:

• It refers to a pattern in which staff specialists advise line

managers to perform their duties.

• Line people will give advices

• The staff people have the right to recommend, but have no

authority to enforce their preference on other departments

• Features:-

• This origin structure clearly distinguishes between two aspects of

administration viz., planning and execution.

• Staff officers provide advice only to the line officers; they do not

have any power of command over them.

• The staff supplements the line members.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 52

Page 53: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 53

Page 54: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

• ADVANTAGES:-

• It adds functional specialists to the pure line organisation and thus

aims at combining the merits of the two.

• It brings expert knowledge to bear upon management.

• Functional specialists provide expert advice to the management

on wide-ranging matters.

• It provides for better placement and utilization of personnel and

leads to more skill development

• DEMERITS:-

• The line and staff relationship often lead to many frictions and

Jealousies

• Line mangers may depend too much on staff experts and thus

lose much of their judgment and initiatives

• The staff experts may remain ineffective because they do not get

the authority to implement their recommendation.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 54

Page 55: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Matrix organizational structure

• Matrix organization structure is essentially a violation of unity

of command

• Matrix structure is the realization of two-dimensional structure

which emanates directly from two dimensions of authority.

• In matrix organization structure, a project manager is

appointed to co-ordinate the activities of the project.

• Personnel are drawn from their respective functional

departments.

• Each functional staff has two bosses his administrative head

and his project manager.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 55

Page 56: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Design of Matrix organizational structure

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 56

Page 57: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

• Merits:-

• It offers operational freedom & flexibility

• It focuses on end results.

• It maintenance professional Identity.

• It holds an employee responsible for management of resources

• Demerits:-

• It calls for greater degree of coordination,

• It violates unity of command.

• Difficult to define authority & responsibility.

• Employee may be de motivated.

• Suitability

• It can be applicable where there is a pressure for dual focus,

pressure for high information processing, and pressure for shred

resources.

• Ex:- Aerospace, chemicals, Banking, Brokerage, Advertising etc.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 57

Page 58: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Committee organizational structure.

• A committee does not represent a separate type of organization

like line and staff, or functional.

• A committee may be defined as a group of people performing

some aspects of Managerial functions.

• Definitions:

• “A committee consists of a group of people specifically designated to perform some administrative work”

W.H. Newman

• “ A committee is a body of persons appointed or elected to meet on an organised basis for the consideration of matters brought

before it”. Allen

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 58

Page 59: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 59

Page 60: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Committee organizational structure

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

MERITS DEMERITS

• Pooling of Knowledge

• Effective co-ordination is available

• Effective Communication

• Motivation through participation of

employees

• Slow decisions

• Most Expensive

• Difficult to maintain secrecy

• Compromise

60

Page 61: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Project organizational structure

• A project organization is a temporary organization designed to achieve specific results by using teams of specialists from different functional areas in the organization.

• The project team focuses all its energies, resources 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 project.

• Some of the examples of projects are: research and development projects, product development, construction of a new plant, housing complex, shopping complex, bridge etc.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 61

Page 62: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

• Importance of Project Organizational Structure:

Project organizational structure is most valuable when:

(i) Work is defined by a specific goal and target date for completion.

(ii) Work is unique and unfamiliar to the organization.

(iii) Work is complex having independent activities and specialized

skills are necessary for accomplishment.

(iv) Work is critical in terms of possible gains or losses.

(v) Work is not repetitive in nature.

• Characteristics of project organization:

1. Personnel are assigned to a project from the existing permanent

organization and are under the direction and control of the project

manager.

2. The project manager specifies what effort is needed and when work

will be performed whereas the concerned department manager

executes the work using his resources.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 62

Page 63: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

3. The project manager gets the needed support from production,

quality control, engineering etc. 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

organization.

5. The services of the specialists (project team members) are

temporarily loaned to the project manager till the completion of the

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 formal prescription of authority.

8. Full and free communication is essential among those working on

the project.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 63

Page 64: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Project organizational structure

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 64

Page 65: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Divisional Organizational Structure:

• In this type of structure, the organization can have

different basis on which departments are formed.

They are:

(i) Function (ii) Product (iii) Geographic territory,

(iv) Project and

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 65

Page 66: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 66

Page 67: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Hybrid organizational structure

• A structure adopting both functional and divisional

structures at the same management levels.

Advantages:

• Alignment of corporate and divisional goals

• Functional expertise and/or efficiency

• Adaptability and flexibility in divisions

Disadvantages:

• Conflicts between corporate departments and divisions

• Excessive administration overhead

• Slow response to exceptional situations

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 67

Page 68: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Organizational Chart

Organizational chart is a line drawing that shows how

the parts of an organization are linked.

The organization chart establishes the following:

• Formal lines of authority—the official power to act

• Responsibility—the duty or assignment

• Accountability—the moral responsibility

01/01/2017 68 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Page 69: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Types Of Organizational Charts

1. Vertical charts

• It shows high-level management at the top with formal lines of

authority down the hierarchy, are most common.

2. A left-to-right (horizontal) charts:

• It shows the high-level management at the left with lower positions

to the right. Shows relative length of formal lines of authority,

helps simplify understanding the lines of authority and

responsibility.

3. Circular charts

• It shows the high-level management in the center with successive

positions in circles. It shows the outward flow of formal authority

from the high-level management. It reduces status implications.

01/01/2017 69 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Page 70: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Vertical Chart

01/01/2017 70 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Page 71: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Circular Chart

01/01/2017 71 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Page 72: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

A Left-to-right (Horizontal) Chart

01/01/2017 72 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Page 73: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Advantages of an Organizational Chart:

1. It provides a quick visual illustration of the organizational structure.

2. It provides help in organizational planning.

3. It shows lines of formal authority, responsibility and accountability.

4. It clarifies who supervises whom and to whom one is responsible.

5. It emphasizes the important aspect of each position.

6. It facilitates management development and training.

7. It is used to evaluate strengths and weakness of current structure.

8. It provides starting points for planning organizational changes.

9. It describes channels of communication.

Disadvantages:

1. Charts become outdated quickly.

2. Does not show informal relationship.

3. Does not show duties and responsibilities.

4. Poorly prepared charts might create misleading effects.

01/01/2017 73 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Page 74: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Productivity

For any type of organization

Productivity = Output

Input

Definition: Productivity is the relationship

between the outputs generated from a system and

the inputs that are used to create those outputs.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 74

Page 75: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Factors affecting Productivity

• Standardization

• Technology

• Use of Internet, fax machines, e-mail,

computerized billing, software

• Searching for lost or misplaced items

• Scrap rates

• Labor turnover, layoffs, new workers

• Safety

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 75

Page 76: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

• Methods

• Design of the workspace

• Incentive plans that reward productivity

• Capacity utilization

• Location

• Layout

• Inventory

• Scheduling

• Shortage of IT workers and other technical workers

• Equipment breakdowns

• Part and material shortages

• Inadequate investment in training & education of the

employees

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 76

Page 77: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Types of productivity

Partial Productivity Measure

Partial Productivity is the ratio of output to one class of input.

Labour productivity = output / labour input

Total-factor Productivity Measure

• Total-factor Productivity is the ratio of net output to sum of associated labour and captial (factor) inputs.

total-factor productivity = net output / (labour and capital input)

Total Productivity Measure

• Total Productivity is the ratio of total output to the sum of all input factors.

Total productivity = total output / total input

Both the output and input(s) are expressed in real or physical terms by being reduced to constant rupees of a reference period (base period).

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 77

Page 78: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Example

For a company XYZ, the total inputs and outputs have been converted in to money value and are given below. calculate total productivity and partial productivity for different categories of inputs.

• Material input= Rs 20,000

• Human input= Rs 30,000

• Energy input= Rs 10,000

• Capital input= Rs 3,00,000

• Miscellaneous input= Rs 50,000

• Total output = Rs 5,00,000

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 78

Page 79: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Total productivity = total output/ total input

= 5,00,000/4,10,000 =1.219

Partial productivities

Material productivity = total output/ material input

= 5,00,000/20,000 =25

Human productivity= total output/human input

= 5,00,000/30,000=16.66

Energy productivity = total output/energy input

= 5,00,000/10,000=50

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 79

Page 80: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

• Common misused of the term Productivity

• XYZ electronic company produced 10000

calculators by employing 50 people at 8 hours/day

for 25 days.

• Production = 10000 calculators

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Productivity (of labour) = output / labour input

= 10,000/ (50x8x25=10,000)

= 1 calculator per man-hours

This company increased its production to 12000 calculators by hiring 10

additional workers at 8 hours/day for 25 days.

Production = 12000 calculators

Productivity (of labour) = 1 calculator per man-hours

Production is concerned with the activity of producing goods and/or services.

An increased production does not necessarily mean increased productivity 80

Page 81: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Productivity Improvement Methods

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 81

Page 82: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 82

Page 83: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

Productivity Improvement Methods

• Productivity improvement techniques can be applied

effectively in enterprises of any size, from one person

companies to corporations with thousands of staff.

A) KAIZEN Techniques:

• Kaizen (Continuous improvement) is a management

supported employee driven process where, employees

make a great number of continuous improvement

efforts.

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 83

Page 84: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

B) Total Productive maintenance (TPM):

• TPM is keeping machines in good working condition

through systematic maintenance of equipment so that they

fail less frequently and production process continues

without interruption.

C) Just In Time:-

• JIT is a management philosophy aimed at eliminating

waste from every aspect.

• of manufacturing and its related activities. The term JIT

refers to producing only what is needed, when it is needed

and in needed quantity.

• The aim of JIT in a factory is to reduce lead times

minimize inventory reduce the defect rate to zero and

accomplish all of the above at minimum cost

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 84

Page 85: Industrial Engineering - vishalshindeblog.files.wordpress.com · Frank & Lillian Gilbreth Contribution ¾ Time and motion efficiency experts ¾ Developed therbligs, breakdown of manual

D)Kanban:-

• Kanban is a manual production scheduling technique

controlled by a process or machine operator.

• Kanban means card in Japanese, is attached to given

number of parts or products in the production line

instructing the delivery of given quantity.

• The kanban card after all parts/products have been

used up is returned by the operator to its origin.

Production is controlled through demand originating

from external customer

01/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 85