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Indusrtial Management Unit-2 By: Mayank Pandey
UNIT 2
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UNIVERSITY SYLLABUSManagement Function: Principles of
Management
Management Tools time and motion study, work simplification-
process charts and flow diagrams,Production Planning, Specification
of Production requirements.
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MANAGEMENT
FUNCTIONS==============================================================================
MANAGEMENT FUNCTIONSThe management process is methodology of
getting the things done. The logic of management process is
thatparticular functions are performed in a sequence through
time.Management functions are
1. Forecasting.2. Planning.3. Organizing.4. Staffing.
LeadershipCommunication
5. Directing MotivationSupervision
6. Coordinating.7. Controlling.8. Decision making
1. Forecasting.- Forecasting is necessary preliminary to
planning.- Forecasting begins with sales forecast followed by
production forecast and forecast for cost, finance, purchase,profit
or loss etc.2. Planning.Planning is a process by which a manager
anticipates the future and discovers the alternative course of
action.Planning involves what is to be done?;How, when and where it
is to be done?Who is to do it? andWhat results are to be
evaluated?Without proper planning, the activities of an enterprise
may become confused, and ineffective. e.g. If arefrigerator company
making concern does not plan in advance how many refrigerators and
of what capacitiesare to be made before the summer starts? and thus
if it does not procure necessary material, tools, supplies intime,
it cannot reach the production targets.
3. Organizing.
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Indusrtial Management Unit-2 By: Mayank Pandey
Organizing is the process by which the structure and allocation
of jobs is determined.The process of organizing involves:-i. Divide
the work into component activities.ii. Assign people to task.iii.
Define responsibilities.iv. Delegate authority.v. Establish
structural relationship to secure coordination.
4. Staffing.Staffing is the process by which managers select,
train, promote, and retire their subordinates.
Developing and placing of qualified people in the various jobs
in the organization.The aim is to have appropriate persons to move
into vacated positions or new positions.
5. Directing:Actual performance of subordinates is guided toward
common goals of the enterprise.directing involves motivating,
guiding, and supervising subordinates towards company
objectives.Directing includes: Giving instructions to subordinates.
Guiding the subordinates to do the work. Supervising the
subordinates to make certain that the work done by them is as per
the plans
established. Directing involves functions as
(a) Leadership, (b) Communication,(c) Motivation, and (d)
Supervision.
(a) Leadership: Leadership is to inspire confidence and trust in
their subordinates. Get maximum cooperation from them. Guide the
activities of subordinates in organized efforts.
(b) Communication: It is the process by which ideas are
transmitted received and understood by others. Communication may be
verbal or written orders, reports, instructions etc. Ineffective
communication leads to confusion, misunderstanding, and
dissatisfaction.
(c) Motivation: Inspiring the subordinates to do work, or To
achieve company objectives effectively and efficiently.
(d) Supervision:To ensure that The work is going on as per
schedule and The workers are doing as they are directed to do.
6. Coordinating. Achieving harmony of individual effort towards
the accomplishment of company objectives. Coordinate the activities
of subordinates Regulate their communications.
7. Controlling.
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Indusrtial Management Unit-2 By: Mayank Pandey
Controlling is the process that measures current performance and
guides it towards some predetermined goal. The process of
controlling involves
i. Observe continuously and study the periodic results of
performance.ii. Compare this performance with the present
standard.
iii. Ascertain the exact causes of deviations.iv. Initiate and
implement the corrective action.
8. Decision making: It is the process by which a course of
action is chosen from available alternatives for the purpose of
achieving desired results.
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FAYOLS GENERAL PRINCIPLES OF
MANAGEMENT==============================================================================
1 Division of work: Work specialization can result in
efficiencies and is applicable to both managerial andtechnical
functions. Yet there are limitations to how much that work should
be divided.
2. Authority: Authority is the right to give orders and the
power to exact obedience. It derives from the formalauthority of
the office and from personal authority based on factors like
intelligence and experience. Withauthority comes
responsibility.
3. Discipline: Discipline is absolutely necessary for the smooth
running of an organization, but the state ofdiscipline depends
essentially on the worthiness of its leaders.
4. Unity of command: An employee should receive orders from one
superior only.
5. Unity of direction: Activities aimed at the same objective
should be organized so that there is one plan andone person in
charge.
6. Subordination of individual interest to general interest: The
interests of one employee or group shouldnot prevail over the
interests and goals of the organization.
7. Remuneration: Compensation should be fair to both the
employee and the employer.
8. Centralization: The proper amount of centralization or
decentralization depends on the situation. Theobjective is the
optimum use of the capabilities of personnel.9. Scalar chain: A
scalar (hierarchical) chain of authority extends from the top to
the bottom of an organizationand defines the communication path.
However, horizontal communication is also encouraged as long as
themanagers in the chain are kept informed.
10. Order: Materials should be kept in well-chosen places that
facilitate activities. Similarly, due to goodorganization and
selection, the right person should be in the right place.
11. Equity: Employees should be treated with kindness and
justice.
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Indusrtial Management Unit-2 By: Mayank Pandey
12. Stability of personnel tenure: Because time is required to
become effective in new jobs, high turnovershould be prevented.
13. Initiative: Managers should encourage and develop
subordinate initiative to the fullest.
14. Esprit de corps: Since union is strength, harmony and
teamwork are essential.
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PRODUCTION PLANNING AND
CONTROL==============================================================================
Production planning and control is essentially required for
efficient and economical production. Productionplanning and control
can facilitate the small entrepreneur in the following ways.
1. Optimum Utilisation of Capacity: No order goes unattended and
no machine remains idle.2. Inventory control: To ensure that the
right supplies are available at the right time.3. Economy in
production time: To reduce the cycle time and increase the turnover
via proper scheduling.4. Ensure quality: Quality of output is
ensured.
Steps of Production Planning and ControlProduction Planning and
Control (PPC) is a process that comprises. Functions on either
side, viz., planningas well as control.
Production Planning: To work out the quantity of material,
manpower, machine and money requires forproducing predetermined
level of output in given period of time.
Planning
Routing
Scheduling
Loading
Dispatching
Following up
Inspection
Corrective
Production Planning and Control
Production Planning Production Control
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Indusrtial Management Unit-2 By: Mayank Pandey
Aggregate Planning The objective of aggregate planning is to
find out the most economical method ofusing production resources to
meet fluctuating demands of production output. The planning period
variesfrom a week to a year or so. The planning consists of finding
alternative combinations of labour force, timesubcontracting and
varying inventory levels.
Routing: Routing procedure involves following different
activities.1. The operations to be carried out on a job.2. The
machine or work centre to be used.3. The details of operations to
be performed.4. The sequence of operations from raw material to
finished product.
Objective of Routing The main objective of routing is to prduce
the job most economically which dependupon the following
factors:
1. Types of machines or work centre available.2. Capacity of
each work center.3. Labour required for each work centre.4.
Availability of tools and other resources.5. Efficiency of work
centre and labour.6. Types and quantities of jobs to be
produced.
Scheduling: Working out of time that should be required to
perform each operation and also the timenecessary to perform the
entire series as routed, making allowances for all factors
concerned.Master Schedule: Scheduling usually starts with
preparation of master schedule which is weekly or monthlybreak-down
of the production requirement for each product for a definite time
period. A master schedule isfollowed by operator schedule which
fixes total time required to do a piece of work with a given
machine orwhich shows the time required to do each detailed
operation of a given job with a given machine or process.Production
schedule: It takes into account following factors.1. Physical plant
facilities of the type required to process the material being
scheduled.2. Personnel who possess the desired skills and
experience to operate the equipment and perform the type ofwork
involved.3. Necessary materials and purchased parts.
Loading: Loading determines who will do the work as routing
determines where and scheduling determineswhen it shall be
done.
Production Control: Production control is the process of
planning production in advance of operations,establishing the exact
route of each individual item part or assembly, setting, starting
and finishing for eachimportant item, assembly or the finishing
production and releasing the necessary orders as well as
initiatingthe necessary follow-up to have the smooth function of
the enterprise.
Dispatching: Dispatching involves issue of production orders for
starting the operations. Necessaryauthority and conformation is
given for:1. Movement of materials to different workstations.2.
Movement o tools and fixtures necessary for each operation.3.
Beginning or work on each operation.4. Recording of time and cost
involved in each operation.5. Movement of work from one operation
to another in accordance with the route sheet.
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Indusrtial Management Unit-2 By: Mayank Pandey
6. Inspecting or supervision of work.
The following documents are issued to different departments.1.
Job order or work order or shop order.2. Material issue order3.
Tool order4. Move orderFinal delivery notification
Follow up: Every production programme involves determination of
the process of work, removingbottleneck in the flow of work and
ensuring that the productive operations are taking place in
accordancewith the plans. All problems or deviations are
investigated and remedial measures are undertaken to ensurethe
completion of work by the planned date.
Inspection: This is mainly to ensure the quality of goods. It
can be required as effective agency ofproduction control.
Corrective measures: Corrective action may involve any of those
activities of adjusting the route,rescheduling of work changing the
workloads, repairs and maintenance of machinery or equipment.
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SPECIFICATION OF PRODUCTION
REQUIREMENT==============================================================================
1. Part Drawing (Production Drawing).2. Machining Detailed and
Sequences.3. Materials for the components.4. Quality level
required.5. Production Quantity.
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WORK
STUDY==============================================================================
Work Study implies the study of human work. Work study
investigates the work done in organization and itaims at finding
the best and most efficient way of using available resources men,
material, machine and money.Work Study & Productivity:
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Indusrtial Management Unit-2 By: Mayank Pandey
Objectives of Work Study1. Improved working process and
standardized.2. Less fatigue to the operator.3. Efficient
utilization of men material.
4. To evaluate human work.5. To reduce ineffective time due to
management &workers.
Benefits of Work Study1. Improved Productivity.2. Higher
efficiency in productivity.3. Manufacturing cost is reduced.4.
Quicker and accurate delivery dates.
5. Good employee- employer relationship.6. Job satisfaction to
workers.7. Higher wages and incentives to workers.
Method Study or (Motion Study)
Method study is systematic recording and critical examination of
existing and proposed ways of doing work, asa means of developing
and applying easier and more effective methods and reducing
costs.
Objectives of Method Study1. The improvement of process and
procedures2. The improvement of factory, shop and workplacelayout
and of the design of plant and equipment.3. Economy in human
efforts and reduction ofunnecessary fatigue.
4. Improvement in use of materials, machines &manpower5. To
find out the best way of doing a job.6. To standardize the best
method7. Effective material handling
Economic Consideration Technical Consideration Human
Reactions
1. Operation involvinggreat deal of manpowercondition
1.Bottlenecks holdingproduction
1. More acceptable if it canImprove working
2. Highly fatigued work 2. Movement of material overlong
distancesbetween shops
2. Reduce the efforts and fatigueof workers
3. Operations involvingrepetitive work
3. Inconsistency in quality
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Indusrtial Management Unit-2 By: Mayank Pandey
Work MeasurementWork measurement is concerned with elimination
of ineffective time and establishment of time standards for
ajob.Work measurement is a technique to establish the time for a
qualified worker to carryout a specified job at adefinite level of
performance. Uses of Work Measurement1. To reveal the existence of
ineffective time2. To compare the efficiency of alternative
method.3. To determine with the help of man machine chart the
number of machine an operator can run.4. To set the time standard
for carrying out the work.5. As a basis for realistic and fair
incentive scheme.
Time StudyTime study is a work measurement technique for
recording the times performing a certain specific job or
itselements carried out under specified conditions, and for
analyzing the data so as to obtain the time necessary foran
operator to carry it out at a defined rate of performance.
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Indusrtial Management Unit-2 By: Mayank Pandey
Time Study Equipments1. Stop Watch: A fly back decimal- minute
stopwatch is most commonly used stop watch.2. The Study Board: Time
study board is flat board, of plywood or plastic sheet, having
fittings to hold stopwatch and time study forms.3. Time Study
Forms: Time study forms are printed forms of standard size constant
information like productname, operation number description of
operation, time study observers name etc are preprinted on the top
ofthe sheet-
Time Study FormProduct-------- Time Study -------------Operation
No----------- ObserverDescription of--------------------
Date-------------------OperationNo. of Cycles 5(say)Standard time
found------
Procedure for Collecting Time Study DataThe following are the
procedural steps in stop Watch time study:-
1. Identify the operation to be studied2. Obtain the improved
procedure from method study departments.3. Collect and check
necessary equipment4. Select the worker to be observed for Time
Study5. Explain the worker the objective of Time Study6. Explain
the worker the improved procedure.7. Break the operation into small
elements.8. Determine the number of observations to be timed for
each element.9. Conduct the observation and record them on time
study form10. Rate also the performance of the worker during
step.11. Calculate normal time from observed time by using
performance rating factor
Observed time * Rating factorNormal
time=________________________________
100
12. Add process allowance, rest and personal allowance and
special allowances to normal time in order toobtain standard
time.
ElementDescription
Observed time AverageobservedTime
Ratingfactor
NormalTime
All Std.Time
1 2 3 4 5
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Indusrtial Management Unit-2 By: Mayank Pandey
Conversion of observed Time to Standard Time
Apply Performance Rating Factor
Add allowance likePersonal allowance process allowance
Advantages of Time Study1. Standard labour cost per unit of
product can be calculated.2. Comparisons of actual and standard
production.3. Enable further improvement in work methods, training
necessity and better workplace layout.Limitations of Time Study1.
Not suitable for non- repetitive jobs.2. Not suitable for highly
automated work place3. May affect operators morale if output
standard is not attained.4. While rating a worker error may come
due to subjectivity involved in it.
Observed Time
Normal Time
Standard Time