UNIT-II

Operations Management: Plant location, Factors influencing location, Principles and types of plant layouts - Methods of production (job, batch and mass production), Work study - Basic procedure involved in method study and Work measurement

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• Production management deals with converting raw materials into finished goods or products. It brings together the 6M's i.e. men, money, machines, materials, methods and markets to satisfy the wants of the people

• The main objective of production management is to produce goods and services of the right quality, right quantity, at the right time and at minimum cost. It also tries to improve the efficiency.
• An efficient Organisation can face competition effectively.

• Plant Location:

A “plant” is a place, where man, materials, money equipment, machinery, etc are brought together for manufacturing products.

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• Plant Location means deciding a suitable location., area, place etc, where the plant or factory will start functioning proper

• Factors Affecting plant location:-
• Nearness to Raw Material:
• Transport facilities:
• Nearness to Markets
• Availability of Labour
• Availability of fuel and power

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• Availability of water
• Climatic conditions
• Financial and other aids
• Land
• Community Attitude
• Success of an industry depends very much on the attitudes of the local people and whether they want work or not.
• Other factors
• Presence of related industries
• Existence of hospitals, marketing centres, schools, post offices etc
• Local buye laws, taxes, building ordinances. etc.
• Security
• Facilities for expansion etc.

Plant Layout and its Types

Layout?

“Plant layout ideally involves allocation of space and arrangement of equipment in such a manner that overall operating costs are minimized”.

• Definition: Plant layout refers to the arrangement of physical facilities such as machines, equipment, tools, furniture etc. in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of raw material to the delivery of the final product.

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Objectives of Layout

1. Efficient utilization of available floor space
2. To ensure that work proceeds from one point to another point without any delay
3. Provide enough production capacity.
4. Reduce material handling costs
5. Reduce hazards to personnel
6. Utilize labor efficiently
7. Increase employee moral.

Objectives of Layout….Cont..

8. Reduce accidents
9. Provide for volume and product flexibility
10. Provide ease of supervision and control
11. Provide for employee safety and health
12. Allow ease of maintenance
13. Allow high machine or equipment utilization
14. Improve productivity

Principles of plant layout

• Principle of integration
• Principle of minimum movement
• Principle of smooth and continue flow
• Principle of cubic space
• Principle of satisfaction of safety
• Principle of flexibility

Types of Layout

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1. Manufacturing units
1. Product;
2. Process;
3. Fixed Position
4. Combined

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1.Manufacturing Layout�a. Product layout(line Layout):

• The materials move form one workstation to another sequentially without any backtracking or deviation.
• Materials are fed into 1^st machine and semi-finished goods travel automatically from machine to machine.
• The output of one machine becoming input of the next.

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Eg: Food Processing Unit; Paper mill

1.Manufacturing Layout�a. Product layout(line Layout):� Eg: Paper mill

1.Manufacturing Layout�a. Product layout(line Layout):

Advantage Disadvantage

Low cost of material handling, due to straight and short route and absence of backtracking

∙          Smooth and continuous operations

∙          Continuous flow of work

∙          Lesser inventory and work in progress

∙          Optimum use of floor space

∙          Simple and effective inspection of work and simplified production control

∙          Lower manufacturing cost per unit

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∙          Higher initial capital investment in special purpose machine (SPM)

∙          High overhead charges

∙          Breakdown of one machine will disturb the production process.

∙          Lesser flexibility of physical resources.

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1.Manufacturing Layout�b. Process (functional)layout:

In this type of layout, the machines of a similar type are arranged together at one place. This type of layout is used for batch production. It is preferred when the product is not standardized, and the quantity produced is very small.

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Eg: Process oriented layout for an hospital

1.Manufacturing Layout�b. Process layout:

Advantage Disadvantage

• Lower initial capital investment is required.
• There is high degree of machine utilization, as a machine is not blocked for a single product
• The overhead costs are relatively low
• Breakdown of one machine does not disturb the production process.
• Supervision can be more effective and specialized.
• Greater flexibility of resources.

• Material handling costs are high due to backtracking
• More skilled labour is required resulting in higher cost.
• Work in progress inventory is high needing greater storage space
• More frequent inspection is needed which results in costly supervision

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1.Manufacturing Layout�c. Fixed (position) layout:

• Here, Major products being produced is fixed at one location.
• All other facilities are brought and arranged around the work center.

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Eg: Ship building, Dam construction, flyover construction.

1.Manufacturing Layout�c. Fixed (position) layout:�Eg: Ship building, Dam & flyover construction.�

Merits:

• It is more flexible layout.
• It requires less floor space because machines are moved from one location to another.
• Material handling cost is minimum.

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Demerits:

• This type of layout is not suitable for manufacturing small products in large quantity.
• It involves high equipment handling cost.
• It requires more capital.

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1.Manufacturing Layout�d. Combined layout:

• In many manufacturing units, several products are produced in repeated numbers with no likelihood of continuous production, combined layout is followed.

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Eg: Soap industry, all inputs are almost manufactured in separate units viz glycerin, water treatment, fragrance etc.

1.Manufacturing Layout�d.Combined layout:�Eg: Soaps

PRODUCTIVITY AND PRODUCTION

Productivity is defined as the rate at which the goods and services are produced. It refers to the relationship between the inputs and the outputs. It is calculated as a ratio between the amount produced and the amount of resources used in the production.

Productivity =output/input

Productivity is different from production. Productivity is the rate of production of goods and services while production refers to the actual amount of goods and services produced.

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Methods of production:- The methods of production can be of the following types.

• Job production
• Batch production
• Continuous or mass production

Job production:- The production of small number of a product at a time, which may or may not be repeated in future is known as job production or unit production.

The products are manufactured to meet the specific requirements of a customer.Generally, a special job order is made and it is connected with some special machinery, special models and projects. These are produced in very small quantity according to the customer requirements.

Ex:- Lifting equipments, pressure vessels, processing plants etc

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Batch production:- The production of sufficient number of identical items, mostly

repeated with time intervals is known as batch production. It is also known as quantity production.

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There are several standard components which are used in different

machineries . Batch production is mainly concerned with the production of such items to meet a specific demand. When a particular batch is manufactured, the plant should be available for the production of similar products. This type of production needs general purpose equipments and is very useful in manufacturing machine tools, paints, drugs etc

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Mass production:- The production of large number of identical items, continuously is known as mass production.

In this case, the production is carried out throughout the day and plant facilities are fully engaged. Production goes on the same sequence of process . It is associated with large quantity production and with high rate of demand.

The main advantage of this method of production is the lowest unit cost of production. The products such as Tv’s, air conditioners, cars, scooters, and others are manufactured through mass production.

Work study

According to the British Standard Institution, “Work Study is a generic term for those techniques, particularly Method Study and Work Measurement, which are used in all its context, and which lead systematically to the investigation of all the factors, which affect the efficiency and economy of the situation being reviewd in order to effect improvement”.

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WORK STUDY -

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• Objectives of Work Study
• To analyse the present method of doing the job in order to develop a better method.
• To measure the work content of the job by measuring the time required to do the job for a qualified worker and hence to establish the standard time.
• To increase the productivity by ensuring best possible use of human, machine and material resources and to achieve best quality product/service at minimum possible cost.
• To improve operational efficiency.

• Benefits of Work study
• Increased productivity and operational efficiency
• Reduced manufacturing cost.
• Improved work place layout.
• Better manpower planning and capacity planning
• Fair wages to employees.
• Better working conditions to employees
• Improved work flow.
• Reduced material handling cost.
• Provides a Standard of Performance to measure labour efficiency.
• Better Industrial Relations and Employee morale.
• Basis for sound incentive schemes.
• Provides better job satisfaction to employees

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METHOD STUDY

Method study is the systematic recording and critical examination of existing and proposed ways of doing work, as a means of developing and applying easier and more effective methods and reducing costs.

Method Study Objectives

• Improvement of processes and procedures so as to improve productivity and thereby reduce operating cost.
• Improvement in the design of plant and equipment.
• Improvement of layout.
• Improvement in the use of men, materials and machines.
• Economy in human effort and reduction of unnecessary fatigue.
• To Standardise work methods or processes, machinery, equipments and tools.
• Development of better working environment.

Lab # 6: Method Study

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March 29, 2022

Method Study - Benefits

1. Work Simplification
2. Improved working method
3. Better product quality
4. Improved workplace layout
5. Improved equipment Design.
6. Better working conditions/environment
7. Better materials handling and lesser material handling cost.
8. Improved work flow
9. Less fatigue to workmen.
10. Optimum utilization of all resources.
11. Shorter production cycle time.
12. Higher job satisfaction for workmen.
13. Reduced material consumption and wastages.
14. Reduced manufacturing cost and higher productivity.
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METHOD STUDY PROCEDURE

1.    DEFINE

2.     RECORD

3.     EXAMINE

4.     DEVELOP

5.     DEFINE NEW METHOD

6.     INSTALL

7.     MAINTAIN

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METHOD STUDY PROCEDURE

RECORDING SYMBOLS

WORK MEASUREMENT

(TIME STUDY)

“ It is defined as the application of techniques designed to establish the work content of a specified task by determining the time required for carrying out the task at a defined standard of performance by a qualified worker”

Objectives and uses of WM

OBJECTIVES AND USES OF WORK MEASUREMENT

The main objectives of work measurement:

1. Manpower planning.

2. Production planning and scheduling.

3. Estimating productions costs.

4. Cost reduction and control.

5. Rational basis for incentives.

6. Performance appraisal.

7. Training of employees.

8. Comparing alternative methods.

9. Accepting new orders.

10. Fixing the selling cost.

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WORK MEASUREMENT PROCEDURE