Colony Limited Company Project Original

8/6/2019 Colony Limited Company Project Original

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OPERATION MANAGEMENT:

DEFINITION:

The ongoing activities of designing, reviewingand using the operating system to achieve

service output as determined by the organization

for customers.

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COLONY LIMITED COMPANY

BRIEF HISTORY

We are pleased to present here the brief history and social importance of the Colony

Mills Limited (CML).

Its history started from more than a century back when Mian Mohammad Ismail Sheikh

inaugurated his first ginning factory in United India, near Khanewal, Punjab, in 1889 and

thus laid the foundation of the "Colony" name. In 1908 Mian Mohammad Ismail

established his first flour mill and by the time of independence he had set up one of the

largest Muslim industrial enterprise with 14 ginning, flour and oil mills. In 1946 he went

on to incorporate Colony Textile Mills Limited which had the distinction of being one of

the very first textile mills to come into production in 1948, after independence. Colony

Mills Limited also holds a very special place as being one of the first companies that

were registered at the opening of Karachi Stock Exchange in 1948. CML has also

played a role of an institution of learning for the field functionaries and produced most

prominent textile technicians in our country. The CML has always aspired for the welfare

of the people and therefore became a major contributor towards laying the foundation of

the textile college at Faisalabad. The clear objective was to promote and generate the

specific skills of this industry, in the textile Engineering. From then onwards the

enterprise grew rapidly into cement, power generation, banking and obviously textiles.

The nationalization of the early 1970s was a major blow when cement, power

generation and banking were nationalized.

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Colony Textile Mills Limited:

A composite textile unit, worked as the flagship of the colony group and

helped it venture into fields like cement, power generation, insurance and banking.

In pursuance of the division of assets between the family members the one time

flagship of the group, Colony Textile Mills Limited, which had turned into a sick unit by

1993, was handed over to Mian Mughis A. Sheikh, the present chairman of the Colony

Group. It was sheer hard work and untiring efforts that the unit has been

completely turned around today and bears a complete new look and vision. Today, it

can again be termed as flagship of the group. Once Colony Textile Mills Limited was set

on the right course, the Group (which had reduced to a single company) set up two

other projects namely, Sheikh Spinning Mills Limited, a spinning unit and Colony

Weaving Mills (Private) Limited, a weaving unit. These have since been merged into

one composite unit. A brief on the group companies is given here under:

Colony Mills Limited (CML):

Colony Textile Mills Limited a textile-manufacturing unit was established on

August 24, 1946 in Ismailabad, Multan. In the year 2006 this company was merged into

Colony Mills Limited along with another company. Colony Mills Limited has equity of

Rupees 2,937 million as at December 31, 2006. Today, Colony Mills Limited produces

100% Cotton yarn, 100% Polyester yarn, 100% Viscose yarn, Mixed Cotton Polyesteryarn and Cotton Viscose yarn ranging from 20 counts to 80 counts. There are seven

production units within the same factory premises. Presently the numbers of spindles

installed stand at 186 576. The annual turnover of the company is Rupees 6 billion.

Colony Industries (Private) Limited (CIPL):

Two of the Group Companies Sheikh Spinning Mills Limited (SSML) and

Colony Weaving Mills (Private) Limited (CWML) were merged with effect from

December 12, 2004 into CIL. The equity of the company as at December,31,2006 wasRupees 1500 million .The spinning division which comprises of approximately 34,000

spindles capable of manufacturing Polyester Cotton, Polyester Viscose and 100%

Cotton yarn and a weaving division engaged in manufacturing of grey cloth from 100%

cotton yarn. The weaving division comprises of 421 air-jet looms including 120 in the

process of installation .The Annual turnover is around Rupees 4.5billion.

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Colony Sugar Mills LIMITED (CSML):

Colony Sugar Mills Limited (CSML) is the flagship project of the group in the

sugar industry. The project has a cane crushing capacity of 7,500 tons per day and a

rated capacity of producing 125,000 liters of Ethanol.

TRANSFORMATIONAL PROCESS OF COLONY LIMITED:

The transformational process of this organization is well explained by the given diagramstructure:

Feed back

Feed back

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Input

LandLabourCapitalInformation

ManMoneyManagmmentMaterial

Transformation/conversion process Output

Control


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SCOPE OF OPERATION MANAGEMENT:

The scope of operation management ranges across the organization. Operation

management people are involved in product and services design, process selection,

selection and management of technology, design of work system, location planning,

facilities planning, and quality improvement of the organization products and services.

Plant Location

What is plant location?

Plant location refers to the choice of region and the selection of a particular

site for setting up a business or factory. But the choice is made only after considering

cost and benefits of different alternative sites. It is a strategic decision that cannot be

changed once taken. If at all changed only at considerable loss, the location should be

selected as per it own requirements and circumstances. Each individual plant is a case

in itself. Businessman should try to make an attempt for optimum or ideal location.

LOCATIONAL ANALYSIS:

Location analysis is a dynamic process where entrepreneur analyses and

compares the appropriateness or otherwise of alternative sites with the aim ofselecting

the best site for a given enterprise. It consists the following:

(a) Demographic Analysis: It involves study of population in the area in terms of

Total population (in no.), age composition, per capita income, educational level,

Occupational structure etc

(b) Trade Area Analysis: It is an analysis of the geographic area that provides

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continued clientele to the firm. He would also see the feasibility of accessing the

trade area from alternative sites.

(c) Competitive Analysis: It helps to judge the nature, location, size and quality

of competition in a given trade area.

(d) Traffic analysis: To have a rough idea about the number of potential

Customers passing by the proposed site during the working hours of the shop, the

traffic analysis aims at judging the alternative sites in terms of pedestrian and

vehicular traffic passing a site.

(e) Site economics: Alternative sites are evaluated in terms of establishment costs

and operational costs under this. Costs of establishment is basically cost incurred

for permanent physical facilities but operational costs are incurred for running

business on day to day basis, they are also called as running costs.

SELECTION CRITERIA:

The important considerations for selecting a suitable location are given as

follows:

Natural or climatic conditions.

Availability and nearness to the sources of raw material.

Transport costs-in obtaining raw material and also distribution or marketing

finished products to the ultimate users.

Access to market: small businesses in retail or wholesale or services should be

located within the vicinity of densely populated areas.

Availability of Infrastructural facilities such as developed industrial sheds or

sites, link roads, nearness to railway stations, airports or sea ports, availability

of electricity, water, public utilities, civil amenities and means of

communication are important, especially for small scale businesses.

Availability of skilled and non-skilled labor and technically qualified and

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trained managers.

Banking and financial institutions are located nearby.

Locations with links: to develop industrial areas or business centers result in

Savings and cost reductions in transport overheads, miscellaneous expenses.

Strategic considerations of safety and security should be given due importance.

Government influences: Both positive and negative incentives to motivate an

entrepreneur to choose a particular location are made available. Positive

includes cheap overhead facilities like electricity, banking transport, tax relief,

subsidies and liberalization. Negative incentives are in form of restrictions for

setting up industries in urban areas for reasons of pollution control and

decentralization of industries.

Residence of small business entrepreneurs want to set up nearby their

homelands.

PURPOSE OF TAKING LOCATION DECISION:

Location decisions are particularly important - whether we are considering the

location of warehouses, manufacturing plants, hospitals, fire stations, or retail outlets -

because once the buildings are built; managers must live with their location decisions

for a long time. And, although it might appear that location decisions are one-time

problems pertaining to new organization, existing organizations often have a bigger

stake in theses kinds of decisions than new organizations. One purpose of selecting a

best sit for a business is to utilize that location profitably. Existing firms may need to

make location decisions for many reasons some of them are below:

As a part of marketing strategies

To expand their market

Adding new location to existing firms

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OPTION FOR LOCATION DECISION:

There are four options in location planning

To expand an existing facility

To add new location while retaining existing one. It is essential to take into

account what the impact will be on total system. Adding new location can be a

defensive strategy designed to maintain a market share or to prevent competitors

from entering into market.

To shut down in one location and move toward another location. An organization

must weigh the costs of a move and resulting benefits against the costs and

benefits of the existing locations. A shift in markets, exhaustion of raw materials,

and the cost of operations often cause firms to consider this option seriously.

Organizations have an option of doing nothing. If detailed analysis of potential

locations fails to uncover benefits of expanding adding or moving to new location

than a firm decide to maintain the status quo, or at least for the time being.

Many factors influence location decisions. It often happen that one or few factors are so

important that they dominant the decisions. Managers must weigh many factors whenassessing desirability of a particular site. In fact, there is comprehensive covering

the myriad factors that could be important in any given situation. For example in

manufacturing, the potentially dominant factors usually include availability of abundant

energy and water supply and proximity to raw materials. Transportation cost can be

major factor. In service organizations traffic pattern, convenience, and competitors,

location as well as proximity to the market are dominant factors

In order to pare the checklist to a reasonable size, we will disregard those factors not

meet at least one of two conditions:

The factor must be sensitive to location. A factor will influence choice nlye if

management is convinced that the degree of factor achievement vary among the

locations under consideration.

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Management must consider the difference in degree of factor achieve to be

significant. Even a 50 percent differential is not important applied to a minor cost

category.

Managers can divide location factors into dominant and secondary factors.

Dominant factors are derived from competitive priorities and have a particu larly

strong impact on sales or costs. For example, a labor-intensive plant might

require low wage costs in order to remain competitive. Secondary factors are also

important, but management may downplay or even ignore some of them if others

are relatively more important.

Dominant Factors in Manufacturing

According to interviews and survey data, five groups of factors dominate loca tion

decisions for new manufacturing plants (Schmenner, 1982). The per centage

shown for each group represents the proportion of respondents who picked it as a

"must" when considering a new location.

1.Favorable labor climate (76%)

2.Proximity to markets (55%)

3.Quality of life (35%)

4.

Proximity to suppliers and resources (31 %)5.Proximity to company's other facilities (25%)

Once an organization has determined the most important factors, it will try to narrow the

search for suitable alternatives to generate geographical regions. Then a small number

of community alternatives are identified and subjected to detailed analysis.

Favorable Labor Climate

For 76 percent of the respondents, a favorable labor climate was a dominant factor

in making location decisions. Labor is a function of the cost and availability of labor,

training requirements, wage rate in an area, labor productivity and attitude toward

work and union strength. Many executives believe that weak unions or a low

probability of union organizing efforts is a major advantage.

One indicator of this attitude is that, although 50 percent of U.S. industry is

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unionized, and only 20 percent of new plants being opened have unions. Labor-

intensive firms that give strong consideration to labor climate include manufactures

tiles, furniture, and consumer electronics.

Proximity to Markets

Profit oriented firm locate near the markets they intend to serve where as non profit

oriented organizations choose locations relative to the needs of the users of their

services. Other factors include distribution costs or the perishabilty of a finish

product.

After determining where the demand for goods and services is greatest,

management must select a location for the facility supply that demand. Locating

near markets is particularly important goods are bulky or heavy and outbound

transportation rates are high. For example, manufacturers of products, that are

relatively inexpensive to produce, such as paper, plastic pipe, and heavy metals

all emphasize proximity to their markets.

Quality of Life and Community considerations

Respondents from all but one of the industrial groups gave quality of life a

relatively low rating. The lone exception was high-tech exec utives, who rated it at

the top of their lists. For them, attracting and keeping a good engineering staff is

more important than labor environment or trans portation costs. Cost of availability

of utilities, environmental regulations, transportation, religious worships, medical

services, local attitude toward services, Quality schools, recreational facilities,

and an attractive life style can make the difference in their location decisions.

Proximity to Suppliers and Resources

Most respondents rated proximity to suppliers and resources of relatively low

importance. The exception was industries dependent on bulky or heavy raw

materials. In such cases inbound transportation costs become a dominant factor,

forcing these firms to locate facilities near suppliers. For example, it is practical to

locate paper mills near forests and food processing facilities near farms. Another

advantage of locating near suppliers is the ability to maintain lower inventories.

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Firm locate near or at the source of raw materials for three reasons.

Necessity

Perish ability

Transportation cost

Transportation costs are important in industries where processing

eliminates much of the bulk connected with a raw material, making it much less

expensive to transport the product or material after process.

Proximity to the Parent Company's Facilities/ Site-related factors

In many companies, plants supply parts to other facilities or rely on other facilities for

management and staff support. These ties require frequent coordination and

communication, activities that can become more difficult as distance increases.

Other important factors may emerge, depending on the situation. They include the cost

of shuffling people and materials between plants, utility costs (telephone, energy, and

water), local and state taxes, financing incentives offered by local or state governments,

and relocation costs. After management narrows the location choice to a specific site,

still other factors arise: room for expansion, land and construction costs, accessibility to

multiple modes of transportation, insurance, competition from other firms for the work

force, local ordinances (such as pollution or noise control), community attitudes, andmany others.

Climate and taxes

Climate and taxes sometimes play a role in location decision. Climate should be suitable

of the production of product. And in case taxes free zones are available it should be

utilized.

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The Facility Location Decision (internationally or domestically)National Decision Regional Decision Community Decision Site Decision

I. Stability ofGovernment,Economy, andPolitical System2. LaborAvailability and Costs3. Export andImport Quotas,Duties, and Fees4. CurrencyExchange Rates5. TransportationSystem

6. Materials andSuppliesAvailability and Costs7. Climate8. GovernmentIncentives9. Culturaland EconomicPeculiarities10. Regulations on Operations

I. Customer or ConstituentConcentrations andTrends2. Labor Availabilityand Costs3. Degree of Unionization4. Construction and Land Costs5. Utilities Supplyand Costs6. Transportati

on SystemAvailability7. TransportationCosts8. Materialsand SuppliesAvailability andCosts9. Climate10. GovernmentIncentives

I. Customer orConstituentConcentrations andTrends2. Preference ofManagement3. CommunityServices and Taxes4. Community Attitudes towardNew FacilityLocations5. Labor Availability

and Costs6. Site Availabilityand Costs7. ConstructionCosts8. Transportation SystemAvailability9. TransportationCosts10. Materials andSuppliesAvailability and

Costs II. BankingServices12. Environmental

Impact13. Government

Incentives

1.Customer or Constituent

Concentrations andTrends2.Site Costs3.Size of Site4.Proximity to

TransportationSystems5.Utilities Availability6.Zoning Restrictions7. Proximity to

Related Industry or

Services8.Environmental

Impact9. Materials and

SuppliesAvailabilityand Costs

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PROCEDURE FOR MAKING LOCATION DECISIONS

The way an organization approaches location decisions often depends on its size and

the nature or scope of its operations. The general procedure for making location

decisions usually consists of the following steps:

Decide on the criteria to use for evaluating location alternatives, such as

increased revenues or community service.

Identify important factors, such as location of markets or raw materials. Develop location alternatives:

Identify the general region for a location.

Identify a small number of community alternatives.

Identify site alternatives among the community alternatives.

Evaluate the alternatives and make a selection.

Colony Mills Limited Plant Location:

Colony Mills Limited has an installed production capacity of 55 million

kilograms of yarn (Ne 20s converted) produced from 186,576 ring spindles and 2,880

rotors, divided over 7 production units, Alhamdulillah, making Colony Mills Ltd. the

largest yarn spinning facility in Pakistan. To support these large operations, a natural

gas based, in-house, power generation facility of 36 mega watts is also installed.

Spinning process is backed by most modern back-process of European and Japanese

origin. Modern laboratory facilities are available to test and evaluate quality of raw

materials and yarns. With direct employment base of over 6000 strong work force,

Colony Mills Limited is the largest single industrial employer in Multan. Complete work

force is hosted within the housing facilities in the mills premises. The facility which

extends to 160 Acres not only has the workers accommodation but housing facilities for

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lower middle & upper management. All amenities are available in house including

separate high school for boys and girls, hospital, post office, bank and a market.

FIELDS OF ACTIVITIES:

The following are the fields of activities in Colony Group of Industries.

A. Spinning.

B. Weaving.

SPINNING:

Yarn is manufactured by 100% cotton through ring spinning. Its brand name is

CARNITION. The properties of natural cotton fibers vary from one area to other

because of different climatic conditions year to year. When cotton crop is crop is

collected from fields, sapphire sends its professionals for surveying the best cotton

growing areas. These specific areas are known as stations. So, after the selection of the

best stations, the next step is the selection of ginning factories in respected areas. Then

cotton is sent to these ginning factories where cotton lint and seeds are separated.

Seeds are used as the raw material for oil factories and cotton lint is used in the

spinning of yarn. This raw cotton is tested at various parameters, its staple length,

floating fibber trash color, yellowness and moisture content etc. Cotton is purchased for

the whole year consumption by considering these parameters. After ginning, ginners

send cotton in lots to spinning mills in the form of pressed bales having weight of about

165-170 Kg each bale. Each lot contains 100 bales.

Two types of yarn is produced in Sapphire,

Combed

Carded

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The spinning process is different for the production of both types of Yarn. The steps

involved in production of Combed Yarn are and some of them are involved in Carded

Yarn are as under.

BLOWROOM:

Following three jobs are done here.

Mixing.

Opening.

Cleaning.

Cotton is blended together come from various growing stations. These growing

stations should be within the range of one hundred sequare kilometers range. The

stations, which are blended, are about 7-8. Each station representing about 20-25

bales. Approximately, there are 120 bales are issued for Blow Room.

For bales opening and contamination sorting, 80-100 people are deputed.

Contamination may be colored yarn pieces, small cloth pieces, jute, feathers and

hairpieces. Then blending and mixing starts after contamination sorting. Because of this

the variation from vale to bale and from station to station minimizes. Now cotton is kept

here for 24 hours for reducing moisture content 7-8%. After this cotton is passed

through various machines which open the cotton to further small tufts.

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CARDING:

Cotton from blow room machines is transferred to next department called

carding. This is machine, which has big cylinders with very sharp wires. These cylinders

are so placed in the machine that at various points of the machine, cotton experiences

and extensive opening and cleaning. Up to here 12% waste has been extracted. The

product of carding machine is caolled Silver. It is and assembly of fibers almost parallel

to each other and condensed in the form of rope. About 500 yards of silver are laid in

Can.

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Laps are fed to the next process called Combing. Here 15-18% short fibers are

extracted which are called Comber Noil. The resultant of this process is also silver of

very fine and clean form.

DrawingThe silver obtained from combers is again fed to another draw frame passage called

post-combing process. Sometimes this silver is passed once through draw frames and

sometimes twice. In the former case it is called a single passage and the later is called

double passage.

On the draw frames again, six or eight-combed silver are mixed and blended together to

minimize the variation in the combed sliver. The resultant sliver again collected in cans.

6. Simplex

Here are the objectives as under.

Drafting

Twisting

Winding

The drawn cans are subjected to a next process called simplex. One hundred and

twenty cans are placed at the back of each simplex machine. Each cans again

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experiences a strech of six to seven times assume a shape of finer than sliver. This fine

rope is twisted and wound on to a plastic bobbin. This rope is called roving. Up to her in

spinning process this process is called back process.

7.Ring

It is in fact yarn production department as yarn count is controlled here. Each roving

bobbin contains about 2000 to 3000 yards of roving. This roving is once again subjected

to a stretching process. As the roving is unwound from the roving bobbin, it is passed

through three pairs of rollers. Their speeds are so adjusted that the speed of no. 3 is

about 22 times more than that of no. 1. In this way if one yard of roving is subjected to

three rollers; it will be lengthened to twenty-two yards.

8. Auto Cone

Three jobs are done here;

Faults removal:

This yarn has some faults e.g. some thin or thick places. While winding and electronic

device called yarn cleaner senses the thin and thick places in yarn.

During winding process waxing is done only with hosiery yarn to reduce its friction

with the needles of the knitting machine.

Winding yarn on paper cones.

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9. Conditioning

After a pre-decided length is wound on a paper cone, a certain weight e.g. 4.166 lbs.

are obtained. After the weighting of every cone it is inspected through Ultra Violet

device. Then they are stacked in packing department for conditioning. In this way

strength of yarn is improved.

Plant Layout

Plant layout refers to the arrangement of physical facilities such as machinery,

equipment, furniture etc. within the factory building 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 material to the shipment of the finished

product.

IMPORTANCE:

Plant layout is an important decision as it represents long-term commitment. An ideal

plant layout should provide the optimum relationship among output, floor area and

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manufacturing process. It facilitates the production process, minimizes material

handling, time and cost, and allows flexibility of operations, easy production flow, makes

economic use of the building, promotes effective utilization of manpower, and provides

for employees convenience, safety, comfort at work, maximum exposure to natural light

and ventilation. It is also 99 important because it affects the flow of material and

processes, labor efficiency, supervision and control, use of space and expansion

possibilities etc.

FACILITY LAYOUT:

Facility layout means planning for the location of all machines, utilities, employee work

stations, customer service areas, material storage areas, aisles, rest rooms,

lunchrooms, drinking fountains, internal walls, offices, and computer rooms, andfor theflow patterns of materials and people around, into, and within building. Facility layout

refers to the configuration of departments, work centers, and equipment, with particular

emphasis on movement of work through the system.

We select or design processing machinery; in conjunction with product design,

we determine the characteristics of the materials in the products, and we introduce new

technology into operations. Through facility layouts, the physical arrangement of these

processes within buildings, the space necessary for the operation of these processes,and the space required for support functions are provided.

Layout planning:

Layout planning involves decisions about the physical arrangement of economic

activity centers within a facility. The goal is to allow workers and, equipment to operate

at peak effectiveness and efficiency. An economic activitycenter can be anything thatconsumes space: a person or group of people, a machine, a workbench or work station,

a department, a stairway or an aisle, a timecard rack, a cafeteria or storage room, and

so on.

The termphysical arrangementraises four questions for the manager:

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1. What centers should the layout include? Centers should reflect the process

design and maximize productivity. For example, a central storage a tools is most

efficient for certain processes, but keeping tools at individual work stations makes

more sense for others.

2. How much space and capacity does each center need? Inadequate space can

reduce productivity, deprive employees of privacy, and even create health and safety

hazards. However, excessive space is wasteful, can also reduce productivity, and

can isolate employees unnecessarily.

3. How should each center's space be configured?The amount of space, its shape

and the elements in it are all interrelated. For example, placement of a desk and

chair relative to the other furniture in an office is date by the size and shape of the

office, as well as the activities performecl

4. Where should each center be located?Location, whether in the middle facility or

in a back room, can have a significant effect on productivity. This question has two

dimensions: relative location and allocation. Managers must consider both when

modifying existing layout in order to increase productivity.

TYPES OF LAYOUT

As discussed so far the plant layout facilitates the arrangement of machines, equipment

and other physical facilities in a planned manner within the factory premises. An

entrepreneur must possess an expertise to lay down a proper layout for new or existing

plants. It differs from plant to plant, from location to location and from industry to

industry. But the basic principles governing plant layout are more or less same. As far

as small business is concerned, it requires a smaller area or space and can be located

in any kind of building as long as the space is available and it is convenient. Plant layout

for Small Scale business is closely linked with thenfactory building and built up area.

From the point of view of plant layout, we can classify small business or unit into

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three categories:

1. Manufacturing units

2. Traders

3. Service Establishments

1. Manufacturing units

In case of manufacturing unit, plant layout may be of four types:

Product or line layout

Process or functional layout

Fixed position or location layout

Combined or group layout

FACTORS INFLUENCING LAYOUT:

While deciding his factory or unit or establishment or store, a small-scale businessman

should keep the following factors in mind:

a) Factory building: The nature and size of the building determines the floor space

available for layout. While designing the special requirements, e.g. air conditioning, dust

control, humidity control etc. must be kept in mind.

b) Nature of product: product layout is suitable for uniform products whereas process

layout is more appropriate for custom-made products.

c) Production process: In assembly line industries, product layout is better. In job order

or intermittent manufacturing on the other hand, process layout is desirable.

d) Type of machinery: General purpose machines are often arranged as per process

layout while special purpose machines are arranged according to product layout

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e) Repairs and maintenance: machines should be so arranged that adequate space is

available between them for movement of equipment and people required for repairing

the machines.

f) Human needs: Adequate arrangement should be made for cloakroom, washroom,lockers, drinking water, toilets and other employee facilities, proper provision should be

made for disposal of effluents, if any.

g) Plant environment: Heat, light, noise, ventilation and other aspects should be duly

considered, e.g. paint shops and plating section should be located in another hall so

that dangerous fumes can be removed through proper ventilation etc. Adequate safety

arrangement should also be made.

Thus, the layout should be conducive to health and safety of employees. It should

ensure free and efficient flow of men and materials. Future expansion and

Diversification may also be considered while planning factory layout.

COLONY MILLS PLANT LAYOUT:

In general when we talk about the whole plant layout of Colony mills it follows

a product layout where different departments are receiving their raw materials (from

previous departments) and then after a processing sending raw martial to another

departments.

This layout of plant is best to facilitate the flow of material from department to

department. This layout provides advantage to Colony mills by reducing material

handling because of shorter travel of work, less total time of production, close co-

ordination of manufacturing because of definite sequence of operation.

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The basic product that is produce by the mill is yarn that is manufacture through the

100% cotton through ring spinning. Following are the plants that are used in order to

prepare the yarn:

YARN MANUFACTUREING MACHINE

This is the machine that is used to manufacture the yarn from the cotton. This machine

is helpful in order to separate the cotton and convert it into the small fabric which is

known as RESHA

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Yarn manufacturing machine

SPINING MACHINE:

This is the machine that is used to convert the wool or cotton in to thread. This

machine plays the major role in order to manufacture the thread. It work same as

like in the past years the wooden wheel is used in order to make thread from the

cotton or from the wool.

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Spinning machine

MONARCH SPINNING FRAME:

This is the machine that is used to manufacture the fiber. At this stage the fiber

or thread id prepare and this machine is helpful in order to separate it from the

useless material and transfer the long thread in to round bindles.

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This machine is used in order to convert the bundle of threads on the cones. At this

stage the thread is transferred from bundles to large cones according to different colors

or thread specifications and its quality.

CHARKHA MACHINE:

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This is the machine that is used to bundle the large cones in to the small cones.

This machine is like a old charkha which is used to convert the thread on to the cone.

With the help of this machine cones of different types are prepared of all kind of sizes. In

the colony a simple cartoon contains round about 68 cones of thread in a single pack.

PRODUCT LAYOUT:

When a facility's positioning strategy calls for repetitive or continuous

production, the operations manager dedicates resources to indi vidual products.

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This strategy is achieved by a product layout, which arranges work stations or

departments in a linear path. Output is balanced to move the product along in a

smooth, continuous flow. Operations arrange resources around the product's

route, rather than share them across many products. An automated car wash is a

good example.

Product layouts often follow a straight line, but this arrangement is not always best

or possible. In such managers may opt for L, 0, S, or U shapes. A product layout

is often a production,orassembly, line.The difference is that an assembly line is line

assembly processes. Product layouts are designed to accommodate only a few

product designs. Such layouts are designed to allow a direct material flow through the

facility for products. Auto-manufacturing plants are good examples of facilities that use

an assembly line or a product layout.

PURCHASING

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Purchasing refers to a business or organization attempting to acquire goods or

services to accomplish the goals of the enterprise. Though there are several

organizations that attempt to set standards in the purchasing process, processes can

vary greatly between organizations. Purchasing is responsible for obtaining the

materials, parts, supplies and services needed to produce a product or provide a

service.

The percentage of purchased inventories is even higher for retail and whole

sale companies, sometimes exceeding 90%. The importance of purchasing is more than

just the cost of goods purchased, other important factors include the quality of goods

and services or timing of delivery of goods and services, both of which can have asignificant impact on operations.

The goal of purchasing is to develop and implement purchasing plans for

products and services that support operations strategies. Among the duties of

purchasing are identifying sources of supply, negotiating contracts, maintaining

database of supplies, obtaining goods and services that meet or exceed operations

requirements in a timely and cost-efficient manner, and managing suppliers. Thus

purchasing selects suppliers, negotiates contracts establishes alliance, and acts asliaison between suppliers and various internal departments.

Purchasing is taking an increased importance as organizations place

greater emphasis on supply chain management, quality improvement, lean production,

and outsourcing. Moreover, business to business buying relationships are changing.

Although traditional relationships currently account for the lion's share of buying

relationships, they are expected to decrease substantially by the middle of decade,

while web-based auctions and managed inventory relationships are expected to grow.

In addition, increasing globalization will continue to have an impact on purchasing.

PURCHASING INTERFACE

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Purchasing has interface with a number of other functional arrears, as well as with

outside suppliers. Purchasing is connecting link between the organization and the

suppliers. In this capacity, it exchanges information with suppliers and functional areas.

The interacting between purchasing and the other areas are as follows:

Operation constitute the main source of requests for purchased materials, and

close cooperation between these units and the purchasing department is vital if

quality, quantity and delivery goals are to be met. Cancellation, changes in

specification or changes in quality, quantity or delivery time must be

communicated immediately for purchasing to be effective.

The purchasing department may require the assistance of the legal department in

contract negotiations. In drawing up bid specifications for non routine purchase,

and in helping interpret legislation on pricing, product liability and contracts with

suppliers.

Accounting is responsible for handling payments to suppliers and must be

notified promptly when goods are received in order to take advantage of possible

discounts. In many firms, data processing is handled by the accounting

department, which keeps inventory records, checks invoices and monitors vendor

performance.

Design and engineering usually prepare material specification, which must be

communicated to purchasing. Because of its contacts with suppliers, purchasing

if often in a position to pass information about new products and materials

improvement on to design personnel. Also, design and purchasing people may

work closely to determine whether changes in specifications, design or materials

can reduce the cost of purchased items

Receiving checks incoming shipment of purchased items to determine whether

quality, quantity and timing objectives have been met, and it moves the goods to

temporary storage. Purchasing must be notified when shipments are late,

accounting must be notified when shipments are received so that payments can

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be made and both purchasing and accounting must be appraised of current

information on continuing vendor evaluation.

Suppliers or vendors work closely with purchasing to learn materials will be purchased

and that work kings of specifications will be required in terms of quality, quantity and

deliveries. Purchasing must rate vendors on cost reliability and so on. Good supplier

relations can be important on rush orders and material improvements.

THE PURCHASING CYCLE

DEFINITION:

"Series of steps that begin with a request for purchase material, equipment, supplies or

other items from outside the organization, and ends when the purchasing department isnotified that a shipment has been received in satisfactory condition."

PURCHASE CYCLE OF COLONY MILLS LIMITED:

There are three modes by which purchase department purchases:

On credit basis.

On advanced payment.

Cash purchase.

The procedure for all three modes of purchases is different. Let us discuss them in

detail.

ON CREDIT BASIS

Following are the steps, which are involved during the procedure.

1) Purchase Indent or Requisition.

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When any department requires any item then this department prepares purchase indent

and verifies it from head of department and finally approved by General Manager. This

purchase indent is sent to store and store further send it to purchase department. The

information which are provided by this purchase indent to purchase department are,

code, item, quantity, description, stock in hand, progressive consumption from (1st of

month) rate, amount, quantity to be purchased and remarks.

2) Comparative Statement

After receiving indent purchase dept. settled rates. There are three or four dealers are

contacted to whom Sapphire mostly purchase. Purchase Manager takes rates from

them and prepares comparison statements.

There are two copies of comparative statement (red and black) re prepared. The red is

used for internal record and black is approved from directors. Comparative statement

includes Indent no., description, quantity, and unit and supplier name.

3) Purchase Order

After settlement of rates, purchase order is prepared and sent to supplier.

4) Dispatch Advice

When purchase dept. receives information from supplier for the completion of goods

then it issues three copies of dispatch advice. Yellow copy is kept for record and other

two copies are sent to mill with the delivery challan for entry of goods at gate.

5) Transformation

The party sends message for completion of goods to purchase department. After

receiving messages from different parties, vehicles are sent for loading and

transportation of goods. The goods are unloaded in mill.

6) Party Bill

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Description.

Unit.

Current rate.

Challan amount. Approved amount.

Previous rate.

8) Quality Control Test

When the technical experts or users receive goods at mill then these goods are

inspected, if the goods are matched by specifications which co. require then test report

is prepared.

Rejection of Item

In case, if items are not according to specifications then these are returned to suppliers.

If the quality of items remains unchanged then contract may be transferred to any other

supplier.

After quality control approval, mill send store challan + gate entry + test report to

purchase department.

A file is maintained for whole month with different documents.

Store Challan

Gate Entry

Test Report

Party Bill

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9) Station wise Receipt Report

At the end of month, summery is prepared at mill for all goods purchased during the

month. It provides information about station, challan date, item code, item description,

quantity record, unit value, total value, previous purchase price and variance (Rs.).This summery is sent from mill to purchase department. It tallies all details with actual

documents. After telling all information, this complete file is transferred to accounts

department. Accounts Department issue checks for payments of these purchases.

Separate checks are issued for each party. These checks are sent to purchase

department for payment.

On Advanced Payment

In this case, payment is made before the purchases. Purchase Department prepares

advice payment slip for this mode of purchase. The particulars of payment slip are

indent no. Item description, quality, unit, rate and amount. After the approval of

comparison statement, payment slip is prepared. By this payment slip, store challan or

challan is generated.

Store challan + advance slip + quotation are sent to accounts department which issue

checks in name of dealers and sent back these documents to purchase dept. with

checks. Purchase dept. submits these checks to bank. Further procedure is same as in

case of credit basis.

Cash Purchase

When items are purchased against cash then procedure is different from advanced

payment case and on credit basis case. An amount of Rs. 1,000000 is deposited

purchase account every time. Mostly this procedure is used for cheaper goods.

Purchase dept. directly issue for payment. Remaining procedure is same as in case of

credit basis.

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LABOR SUPPLY

The employment procedure was the first phase of personnel work to receive the

attention of management and it has increased in importance in recent years.

Under present labor laws and strong union organization a worker who is once

employed soon achieves a claim upon his job which makes its difficult for

management to discharge him. The importance of employment procedure is

increased also by the policy of promotion from within since future executives may

enter the service of the company by way of the employment office.

SOURCES OF LABOR SUPPLY:

The employment of worker requires attention to the source of labor Cheaper and

quicker to recruit

People already familiar with the business and how it operates

Provides opportunities for promotion with in the business can be

motivating

Creates another vacancy which needs to be filled

Business already knows the strengths and weaknesses of candidates

DISADVANTAGES:

Limits the number of potential applicants No new ideas can be introduced from outside the business

May cause resentment amongst candidates not appointed.

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JOB POSTING:

Publicizing an open job to employees (often by literally posting it on bulletin boards) and

listing its attributes, like qualification, supervisor, work schedule, any pay rate.

Qualifications personnel inventory tools like those described earlier ( such as

computerized skills banks) are also important. An examination of personnel records may

reveal employees who are working in jobs below their educational or skill levels. It may

also reveal employees who are working in jobs below their educational or skill levels. It

may also reveal persons who have potential for further training or who already have the

right background for the open job. Computerized records systems can help ensure that

you consider qualified inside candidates for the opening.

ADVANTAGES:

Foreknowledge of candidates strengths and weaknesses

More accurate view of candidates skills

Candidates have a stronger commitment to the company

Increases employee morale

Less training and orientation required

DISADVANTAGES:

Failed applicants become discontented

Time wasted interviewing inside candidates who will not be considered

Inbreeding of the status quo

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REHIRING FORMAL EMPLOYES:

Rehiring former employees has its pros and cons. On the plus side, former employees

are known quantities n(more or less), and are already familiar with the companys

culture, style, and ways of doing things. On the other hand, employees who left for

greener pastures back into better positions may signal your current employees that the

best way to get ahead is to leave the firm.

In any event, there are several ways to reduce the chance of adverse reactions. For

example, after rehired employees have been back on the job for a certain period, credit

them with the years of service they had accumulated before they left. In addition, inquire

(before hiring them) about what they did during the layoff and how they feel about

returning to the firm: You dont want someone coming back who feels theyve been

mistreated, said one manager.

ADVANTAGES:

They are known quantities.

They know the firm and its culture.

DISADVANTAGES:

They may have less-than positive attitudes.

Rehiring may sent the wrong message to current employees about how to get

ahead.

PROCESS FOR EMPLOYMENT:

When a worker is needed the foreman mat prepares the acquisition for help. After the

requisition has been approved by the division chief it is send to the personal department

the employment section has on file the job description and job specification for the

various jobs. The employment section may also have on file and application from a

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qualified person. If so that person is invited to call. For hire ranking jogs some of the

present employers may be available by transfer or promotion. If the job cannot be filled

by a present employee or an applicant previously interviewed and investigated. It may b

necessary to select a worker from those currently making application

The procedure for employment depends upon the kind of job to be filled and also varies

with the company. Some companies give much more an accurate test and others. The

procedure for employing sales people would necessary be different from that for

assembly line workers. The following procedure is used by one employer in selecting

factory workers:

Applicant enters from the street through a divided doorway with separate

entrance for male and female applicants. A receptionist examines the job seekers

credentials notes his name and admits it into the application room inside.

Applicant is directed to a table or an armchair provided with pencil and

application blank and after completing the form is refers to an interviewer.

Prospective employee outlines previous vocational experience to interviewer.

He is advised for opening for which he might qualify, union agreement provision

which concern him and company policies and regulation effecting employment

If the applicant desire a job for which he appears qualifies he directed to the

physical examination room. His record is written for file purposes.

Applicant undergoes a physical checkup.

X-ray picture is taken.

If an applicant has match the physical qualification of the jobs. He steps into the

photographic identification room, receives he employment credential and

instructions as to where and when to report for work then steps into the street at

the exit.

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Foreman

Foreman

Definitions:

A person who exercises control over workers

A supervisor responsible for a group of workers

A man who serves as the leader of a work crew, as in a factory

A person in charge of a group of workers, a particular operation,

or a section of a plant

A person in charge of a particular department or a group of

workers, etc., as in a factory or the like

Foremen are the front line supervisors. They play a very important role in ensuring the

work is done to the required standard and completed it safely as they are the direct

supervisors of the workers who actually carry out the job. Therefore, they should

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possess knowledge in safety to enable them to give instruction and have supervision on

their workers to complete the work safely and effectively.

The foreman is the worker who is in charge of the labor. Normally the foreman is a

person with many years of experience in a particular work of supervising others.Typically the foreman is a person with specialist knowledge of a good management of

people. A good foreman is said to be the keystone of the work projects. Foreman is a

person overseeing others work or in charge of a group of workers. A man who serves as

the leader of a work crew in a factory called foreman.

A foreman supervises the activities of workers in a plant or factory. He is a responsible

for supervisory position. This employee is responsible for assigning and directing

workers who perform the various tasks necessary to carry out a production work & a

comprehensive maintenance and repair of plant and machinery as well. Work is

performed under general supervision and requires considerable judgment and initiative

approach.

A foremans Vision is to transform the way people work and to create individuals with

the knowledge, skills and attitudes to succeed professionally. His business approach will

be;

Integrity: professional standards

Commitment: going the extra mile

Achievement: exceeding expectations

Balance: maintaining a healthy attitude

Teamwork: supportive individuals

Someone who directs and supervises workers is also a foreman.

A foreman must Keep track of:

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Safety Meetings

Inspections

Material and Equipment Purchases

Important Telephone Numbers & Addresses

Accidents

Tardiness & Absences of Workers

Work Accomplished

Extra Work Performed

Equipment Used

Problems & Delays

THE ROLE OF THE FOREMAN IN PROVIDING SAFETY FOR LABOR

Experience in the organization of safe working conditions has shown that safe and

injury-free work depends upon the attitude to this question of the direct organizer of

production and labor, the foreman of the production area. The role of foreman in

providing safety for labor was clearly determined. In plant the foremen conduct meetings

in which they familiarize the workers with safety techniques, discuss cases of the

violation of safety rules during work, take into consideration rules published in

connection with these failures, and determine in each case the benefit to the workers, in

distributing the tasks for the shift the foreman gives instructions for safe conduct of the

work.

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Before the start of work the foremen together with the public inspectors carefully check

the condition of the working areas. The results of the inspection are entered in a special

first stage of inspection journal and, in the case of deficiencies which cannot be

eliminated by the crew, in the shop head's journal (second-stage journal), Almost all of

the deficiencies are eliminated by the efforts of the crew and only occasionally do the

foremen turn to the shop management for help. The plant is devoting much attention to

increasing the level of knowledge of foremen and to the adoption of standards and rules

of safety the observation of the requirements of which are included in their

responsibilities. This is obtained by holding lectures and conferences before the annual

checking of the rules of safety by foremen and leaders of areas and shifts. Each week

the shop heads and periodically the chief specialists check the safety activity of foremen

and conduct the necessary conferences. In turn the foremen periodically and before

instructing new workers on safety carefully check working methods in their area, check

them against the appropriate rules and instructions, make up a summary, and only after

this do they teach the workers safe working methods. The fulfillment of the rules and

instructions for safe work is possible only with strict observation of production discipline,

which is provided only by the painstaking educational work of the foremen. The training

of young workers as experienced workers increases their mutual responsibility for the

observation of instructions on safety and production discipline. Together with the

foremen, public inspectors actively participate in inspection for preventing injury.

THE ROLE OF FOREMAN IN PRODUCTION:

The Increasing Role of Foremen in Production meets the task of improving

administrative activities at the level of supervision of primary labor collectives and

defines the role and importance of the foreman as the organizer and educator of

workers. A high evaluation of the work of foreman is done, important tasks are placed

before them, and measures are provided for ensuring their fruitful activities in production

in increasing the efficiency of production and labor productivity, and in improving

product quality.

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There is a feeling of deep satisfaction for the concern about increasing the role and

authority of foremen in production. Foremen represent an enormous force whose

influence encompasses essentially the entire production of material goods.

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Required Knowledge, Skills and Abilities:

He must have considerable knowledge of methods, materials, and techniques used in

production and demonstrated ability to plan, schedule, assign, and supervise the work

of others; to communicate effectively; and to maintain effective working relations with

top management, subordinates, and the general public. He must have experience and

training. Any combination of education and experience which provides the required

knowledge, skills and abilities may be accepted.

Foreman Training:

Training is appropriate for many different business situations

and job roles. Whether an individual is leading a team, moving

into a more senior position or needs to enhance their skills to

deliver on current responsibilities, training provides positive outcomes quickly and cost-

effectively. Foreman understands how to identify and address your real learning and

development needs. Knowing is not enough; we must apply. Willing is not enough we

must do. In todays knowledge-driven economy it is the skills and behaviors of key staff

that make the difference between success and failure. Yet many companies fail to

maximize the return on their investment in people because learning and development

programs are not clearly aligned with business goals. Improved personal skills,

behavioral change and business competencies aligned with corporate objectives will

benefit the firm. A unique blended learning approach combines seminars, facilitators,

skills practice and reinforcement. Intellectual property relates to the effective transfer of

knowledge into personal and organizational business improvement. Training is designed

to impart specific skills and achieve defined changes in work behavior: for example,

more successful negotiation outcomes. Its focus on action-oriented content that can be

applied to add value to your company, creating practical models that participants can

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take back to use at work. The objective of training is to provide the basic safety training

for foremen to enhance their safety knowledge.

If you always do what youve always done, youll always get what youve always got.

The art of teaching is the art of assisting discovery. The key to effective training istalented, experienced trainers. In stimulating and challenging learning environment

workers will learn more. It is said that What we hear, we forget. What we see, we

remember. What we do, we understand.

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Product Design:

Product Design

Product design is paramount to every company involved in the manufacture and

marketing of physical products of any type. Design is fundamentally about making

things better - better for consumers and users, better for business, and better for the

world.

A well-conceived and better product will:

sell more

increase market share

obtain wider distribution

improve margins

carve out new opportunities

All of which will increase revenue and, potentially, also decrease costs

The potential wins from effective product design are undeniable, but the management of

the process to ensure a cost-to-benefit gain is rarely straightforward. The breadth of the

activity can be narrow and geared to small step changes, or alternatively very wide-

ranging in the search for genuine innovation and a sea change in the clients business.

The greatest benefits accrue from innovative and demanding ideas which can involve

higher risk and greater commitment. Hardcore businessmen and women often distrust

creative activities geared to wide-ranging thinking. That which is hard to understand and

intangible at the outset is invariably categorized as risky.

Product design can be defined as the idea generation, concept development, testing

and manufacturing or implementation of a physical object or service.

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Product Designers conceptualize and evaluate ideas, making them tangible through

products in a more systematic approach. The role of a product designer encompasses

many characteristics of the marketing manager, product manager, industrial

designer and design engineer. The role of the product designer combines art, science

and technology to create tangible three-dimensional goods. This evolving role has been

facilitated by digital tools that allow designers to communicate, visualize and analyze

ideas in a way that would have taken greater manpower in the past.Product designers

are equipped with the skills needed to bring products from conception to market.

Aesthetics is considered important in Product Design but designers also deal with

important aspects including technology, usability, engineering etc.

COLONY MILLS PRODUCT DESIGN:

The design of the product is consists of the following stages:

1. Design Brief

The design brief is typically a statement of intent. I.e. "We will design and make

a Formula One racing car". Although it states the problem, it isn't enough information

with which to start designing.

Briefing usually encompasses three main views:

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A. Marketing

The marketing part of the brief will describe the anticipated product, its

functionality, positioning with respect to main competitors and brand imperatives

It may also have a 'wish list' of functions and features, as well as 'must haves'

It will also either refer to, or enclose recent consumer research findings

B. Technical

The technical part of the brief will invariably spell out the restrictions on

investment for new tooling, existing parts or components that need to be reused, a

preliminary product specification covering performance, cost and intended manufacture,

and standards that need to be respected

It will usually clarify or inform about key functional criteria that are likely to

influence a future design

C. Commercial

The commercial part of the brief will typically cover all aspects relating to sales

and distribution including

ROI (Return on Investment), and sales planning (targets and forecasts)

In addition it may cover key account needs and the commercial implications for

the new product in the context of other products in the manufacturers line up

Typical outputs would include documents and reports

2. Product Design Specification (PDS)

The PDS is a document listing the problem in detail. It is important to work with

the customer and analyze the marketplace to produce a list of requirements necessary

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to produce a successful product. The designer should constantly refer back to this

document to ensure designs are appropriate.

To produce the PDS it is likely that you will have to research the problem and

analyze competing products and all important points and discoveries should be includedin your PDS.

We can model the production of the PDS for a given product using a process

flow diagram. One example of such a diagram is given in Figure.

3. Concept Design

Using the PDS as the basis, the designer attempts to produce an outline of a

solution. A conceptual design is a usually an outline of key components and their

arrangement with the details of the design left for a later stage. The degree of detail

generated at the conceptual design stage will vary depending on the product being

designed.

It is important when designing a product that you not only consider the product

design specification but you also consider the activities downstream of the design stage.

Downstream activities typically are manufacture, sales, transportation etc. By

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One useful technique for evaluating concepts to decide on which one is the best

is to use a technique called 'matrix evaluation'

With matrix evaluation a table is produced listing important the features

required from a product - usually this list is drawn up from the important featuresdescribed in the product design specification. The products are listed across the table.

The first concept is the benchmark concept. The quality of the other concepts are

compared against the benchmark concept for the required features, to help identify if the

concept is better, worse than, or is the same as the benchmark concept. The design

with the most 'better than' is likely to be the best concept to develop further.

Most people who use the matrix technique will assign points, rather than

simple, better, worse, same, so that it is easier to identify which concepts are the best. It

is also likely that some features of the design will be more important than others so a

weighting is used.

6. Detail design

In this stage of the design process, the chosen concept design is designed in

detailed with all the dimensions and specifications necessary to make the design

specified on a detailed drawing of the design.

It may be necessary to produce prototypes to test ideas at this stage. The

designer should also work closely with manufacture to ensure that the product can be

made.

7. Manufacturing and Testing

After manufacturing products are tested against the set standards.

8. Sales

Clearly, an important part of the design activity is designing a product that will

sell.

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Simplification:

Simplification is usually initiated because the product line has become overextended

through the development of an excessive numbers of unrelated products or the

production of too many colors, sizes or other varieties.

Steps involved in simplification:

a) Group efforts of many manufacturers and producers.

b) Voluntary recommendation by government and private agencies.

c) Progress by individual manufacturer

Development by engineering department.

Improvement of weaknesses

Improvement of market channel

Selection and rejection accordingly

Untraditional markets

Objectives:-

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i. Better goods on same price

ii. Same goods on lower price

iii. Large turnovers

iv. Less investments

v. Increase in labor efficiency

vi. Satisfying consumer needs

PRODUCT LINE:

The expansion of product line proceeds from two directions.

TWO DIRECTIONS:

The first is the addition of a new product as result of research and creative ideas of a

person in the management or as a result of the acquisition of new plants or mergers

with other companies.

Many reasons may be found for such expansions. The research division may have

found a way to utilize waste and scrap or it may have discovered new manufacturing

methods, new kinds of raw materials or new application of scientific knowledge.

Expansion through the development and design of the new product may be planned for

the purpose of providing financial stability through the seasonal dovetailing of demand.

The expansion or merger may enable the company to reach the markets in new

territorial areas or to gain any one of many other advantages in production, sales,

finance, or general management.

The multiplicity of styles, size and colors of product has resulted largely from difficulties

encountered by the sales division in marketing and from recommendations for new

designs by that division. During seasons or years when sales were difficult to make and

buyers market prevails, the salesmen endeavor to give the buyer what he wants or what

he thinks he needs, even though he requests a product that is not included in the

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Industrial Standards

Consumer Standards

Industrial Standards:-

An engineering or industrial standard is a precise description

or definition of a product, a part, a raw material , or a manufacturing process which has

been establish by one company or by a group of companies in an industry.

Some standards are national in scope and some are international. The standards are

establish by agreement and are made effective by voluntary compliance.

Several types of industrial standards have been adopted.

One type includes the nomenclature or the technical terms that are used in

specifications, contracts, catalogue or literature. Or generally accepted requirements

followed by the members of an industry. A technical standard is an established norm or

requirement. It is usually a formal document that establishes uniform engineering or

technical criteria, methods, processes and practices.

The nomnclature extends to abbreviations, letter symbols for chemical composition,

graphic symbols and pictograph used in drawing or diagrams. The standardization of

nomenclature permits a buyer and a seller to execute a concise contract of purchase

and sale with aminimum of misunderstanding and confusion.

A technical standard can also be a controlled artifact or similar formal means used for

calibration. Reference Standards and certified reference materials have an assigned

value by direct comparison with a reference base. A primary standard is usually under

the jurisdiction of a national standards body. Secondary, tertiary, check standards andstandard materials may be used for reference in a metrology system. A key requirement

in this case is (metrological) traceability, an unbroken paper trail of calibrations back to

the primary standard.

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Another type ofstandard pertains to the dimensions that are necessary to secure the

interchangeability of parts and suppliers and the proper funtionng of the product. The

agreement as to dimension and sizes may also make provision for the concentration of

production upon a optimum number of sizes, colors or grades of the product.The

company adopting the stands may agree not to make any varities other than those for

which standards have been established.

Standards may also designate the properties or qualities of bulk materails and

suppliers in order that the purchaser may be assured of the grade of product he desires.

Other industrial standards provide for the rating of machinery and equipment on the

basis of performance, durability,variances in the product turned out by the machine,

power consumption, horse power or ther such quality. The rating establish the test

limits under certain conditions and afford a basis specification used in the purchase of

machinery and equipment..

Safety Standards:-

Safety standards provide for the safety of workers in the use of

machines and equipment or Safety standards are standards designed to ensure the

safety of products, activities or processes, etc. They may be advisory or compulsory and

are normally laid down by an advisory orregulatory body that may be either voluntary or

statutory. China has recently experienced trouble with some of the post listed

associations.

These standards would include

guards for grinding wheels, gears, belts and other moving parts

warning signals by means of light or other devices

color schemes for safety purposes

protection against gases and fumes

noise control

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Quality:

What is quality?

Quality is important to businesses but can be quite hard to define. Customers want

quality that is appropriate to the price that they are prepared to pay and the level of

competition in the market.

Key aspects of quality for the customer include:

Good design looks and style

Good functionality it does the job well

Reliable acceptable level of breakdowns or failure

Consistency

Durable lasts as long as it should

Good after sales service

Value for money

Why is quality important?

Quality helps determine a firms success in a number of ways:

Customer loyalty they return, make repeat purchases and recommend the

product or service to others.

Strong brand reputation for quality

Retailers want to stock the product

As the product is perceived to be better value for money, it may command a

premium price and will become more price inelastic

Fewer returns and replacements lead to reduced costs

Attracting and retaining good staff

These points can each help support the marketing function in a business. However,

firms have to work hard to maintain and improve their reputation for quality, which can

easily be damaged by a news story about a quality failure.

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How is quality measured?

Aside from achievement of standards like BSI, firms can measure quality aspects such

as:

Failure or reject rates

Level of product returns

Customer complaints

Customer satisfaction usually measured by a survey

Customer loyalty evident from repeat purchases, or renewal rates

A detailed analysis of areas such as these would be an important part of Quality

Improvement.

Quality Assurance

This is an approach that aims to achieve quality by organizing every process to get the

product right first time and prevent mistakes ever happening. This is also known as a

zero defect approach.

In quality assurance, there is more emphasis on self-checking, rather than checking byinspectors.

Advantages include:

Costs are reduced because there is less wastage and re-working of faulty

products as the product is checked at every stage.

It can help improve worker motivation as workers have more ownership and

recognition for their work It can help break down us and them barriers between workers and managers as

it eliminates the feeling of being checked up on.

With all staff responsible for quality, this can help the firm gain marketing

advantages arising from its consistent level of quality.

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Quality assurance refers to planned and systematic production processes that provide

confidence in a product's suitability for its intended purpose. It is a set of activities

intended to ensure that products (goods and/or services) satisfy customer requirements

in a systematic, reliable fashion. QA cannot absolutely guarantee the production of

qualityproducts, unfortunately, but makes this more likely.

Inspection

Quality inspection

The act of monitoring or observing, (usually involving sampling and related sampling

plans), a process, procedure, or service to insure compliance with the operational

definition and to insure that all customer requirements or internal prerequisites are meet.

Activities may include the collecting data using stratified sampling from the item being

inspected. Usually execute by the QA, (quality assurance), departments, but not always.

Typically employs the use of a control charts using collected data to evaluate the

process using statistical process control.

An inspection is one of the most common sorts of review practices found in software

projects. The goal of the inspection is for all of the inspectors to reach consensus on a

work product and approve it for use in the project. Commonly inspected work products

include software requirements specifications and test plans. In an inspection, a work

product is selected for review and a team is gathered for an inspection meeting to

review the work product. A moderator is chosen to moderate the meeting. Eachinspector prepares for the meeting by reading the work product and noting each defect.

The goal of the inspection is to identify defects.

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In an inspection, a defect is any part of the work product that will keep an inspector from

approving it. For example, if the team is inspecting a software requirements

specification, each defect will be text in the document which an inspector disagrees

with.

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Reassessment or re-inspection

Monitor result of corrective actions

6 weeks to 6 months after initial inspection

Nature of defects

Work undertaken

Specific requirements

Not observed

Not adequately implemented

Special Inspection

Spot check focusing on

One product, a group of related products

Specific operations, e.g. mixing, labeling

Complaints or recalls

Adverse drug reactions

Marketing approval or export certificate

Information or investigation

Specific information

Advice on regulatory requirements

STEPS OF PRODUCTION PLANNING AND

CONTROL

Production Planning and Control (PPC) is a process that comprises the performance of

some critical; functions on either side, viz., planning as well as control.

Production planning:

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Production planning may be defined as the technique of foreseeing every step in a long

series of separate operations, each step to be taken at the right time and in the right

place and each operation to be performed in maximum efficiency. It helps entrepreneur

to work out the quantity of material manpower, machine and money requires for

producing predetermined level of output in given period of time.

Routing:

Under this, the operations, their path and sequence are established. To perform these

operations the proper class of machines and personnel required are also worked out.

The main aim of routing is to determine the best and cheapest sequence of operations

and to ensure that this sequence is strictly followed. In small enterprises, this job is

usually done by entrepreneur himself in a rather adhoc manner. Routing procedure

involves following different activities.

(1) An analysis of the article to determine what to make and what to buy.

(2) To determine the quality and type of material

(3) Determining the manufacturing operations and their sequence.

(4) A determination of lot sizes

(5) Determination of scrap factors

(6) An analysis of cost of the article

(7) Organization of production control forms.

Scheduling:

It means working out of time that should be required to perform each operation and also

the ti

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