Cours File-Industrial Management(2)

8/2/2019 Cours File-Industrial Management(2)

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INDUSTRIAL MANAGEMENT

EHU-601

Course File

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UNIT-I

Introduction : Concept, Development, application and scope of Industrial Management.

Productivity : Definition, measurement, productivity index, types of production system, Industrial

Ownership.

MANAGEMENT

Traditional Author says that management is an art of getting things done through people where as modern

authors says that management is a process of accomplishing certain objectives through the utilization of human

and other resource.

IMPORTANCE OF MANAGEMENT

For the accomplishment of the goals.

For effective utilization of the resources.

Sound Organization.

Providing vision &Foresight.

For the harmony in work.

To help employees in achieving personal objective.

Development of the society and nation.

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INDUSTRIAL MANGEMENT

Industrial management is now a branch of engineering which facilitates creation of management system

and integrates same with people and their activities to utilize the resources.

Industrial management is structured approach to manage the operational activities of the organization.

SCOPE OF INDUSTRIAL MANGEMENT

1. Related to Designing of the production system.(see notes)

2. Relating to analysis & control of production operation.(see notes)

APPLICATION OF THE INDUSTRIAL MANGEMNT

1. Planning Function

For Designing Conversion System

For Scheduling Conversion System

2. Organizing Function

Organizing for conversion

Structuring of Operation Staffing

Job & Work Design.

For Production & Operation Standard.

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Performance Achieved (Effectiveness)

PRODUCTIVITY INDEX=

Input Resources Consumed (Efficiency)

Efficiency is the ratio of actual output attained to the standard expected output. It measures of

how well the resources are utilized to accomplish the target or result.

Effectiveness is the degree of accomplishing the objectives

Production System

The production system can be viewed as a framework or skeleton of activities within which the creation

of value can occur.

The difference between the value of input and the value of output represent the value created through

production activities.

At the one end of the production system are the input and at the other end are output.

Connecting the input and output are a series of operations or processes, storage and inspections represent

the simplified production system.

Figure : PRODUCTION SYSTEM

Input Receiving Reports

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Row material Inventory Reports

Operation - 1 Schedules

Production Manager

Operation 2 Route Sheets

Production Reports

Operation 3 Time and Cost Record

Final inspection Inspection Reports

Finished goods storage Inventory Reports

Output Shipping Orders

INPUT OUTPUT MODEL (ANALYSIS OF PRODUCTION SYSTEM)

It is one of the basic models of the production system.

Production system is the set of interconnected input output element.

It is made up of three component parts namely Input, Output and Process.

A wide variety of inputs are transformed so that they give out a set of output.

The transforming process can be complicated and the design of an actual input and output system for

manufacturing may be expensive and difficult.

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Purpose to Increase Productivity

FOR MANAGEMENT

To produce good earning (profit).

To clear the debt or loans acquired from different sources.

To sell more.

To stand better in the market.

FOR WORKERS

HIGHER WAGES.

Better Working Conditions.

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MATERIAL

MEN

ENERGY

PLANT &

FACILITIES

GOODES &

SERVICES

INPUTOUTPUT

PRODUTION

PROCESS


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Higher standard of living.

Job Security and Satisfaction

FOR CUSTOMER

To reduced price of the article.

Sole Proprietorship

Sole Proprietorship is that form of Industrial ownership in which Individual Exercise & enjoy all rights related

to business in his own interest.

Merits

Easy Formation

Easy to Operate

Secrecy

Simplicity

Demerits

Limited Resources

Lack of Continuity

Unlimited Liability

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Limited Managerial Ability

Partnership

Partnership may be defined as the relation between person who has agreed to share the profits of a business

carried on by all or any of them acting for all.

Merits

Legal Entity

Risk Sharing

More Funds

Continuity

Mutual Agency

Demerits

Unlimited Liability

Limited Resources

Possibility Of Conflict

Lack of Public Interest

Joint Stock Company

A joint stock Company means an association of several people who contributed money or moneys worth to a

joint or common stock & employ it in same business & share among themselves the profit or loss arising from

it.

Merits

Limited Liability

Transfer of Interest

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Perpetual Existence

Scope for Management

Professional Management

Demerits

Complexity in Formation

Lack of Secrecy

Impersonal Work Environment

Numerous Regulation

Delay In Decision Making

Co Operative Undertaking

The Co Operative society is voluntary association of person, who join together with the motive of welfare of

the members and society.

Merits

Limited liability

Economy in Operation

Support From Government

Stable Existence

Ease of Formation

Demerits

Limited Resources

Inefficiency in Management

Lack Of Secrecy

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Government Control

Difference Of Opinion

UNIT-II

Management Function : Principles of Management- Management Tools time and motion study, worksimplification- process charts and flow diagrams, Production Planning, Specification of Production

requirements.

Management Function: Management

Management is generic. Management principles are general rather than specific to a type of firm or

organization. However, management is universal only if the manager has become familiar with the specificsituation in which it is applied. Production technology, customer characteristics and the culture of the industry

are examples of specifics that managers need to learn to be effective in applying their generic management

skills.

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Management is creative problem solving. This creative problem solving is accomplished through four

functions of management: planning, organizing, leading and controlling. The intended result is the use of

an organization's resources in a way that accomplishes its mission and objectives.

Planning is the ongoing process of developing the business' mission and objectives and determining

how they will be accomplished. Planning includes both the broadest view of the organization, e.g., itsmission, and the narrowest, e.g., a tactic for accomplishing a specific goal.

Organizing is establishing the internal organizational structure of the organization. The focus is on

division, coordination, and control of tasks and the flow of information within the organization. It is in

this function that managers distribute authority to job holders.

Staffing is filling and keeping filled with qualified people all positions in the business. Recruiting,

hiring, training, evaluating and compensating are the specific activities included in the function. In the

family business, staffing includes all paid and unpaid positions held by family members including the

owner/operators.

Directing is influencing people's behavior through motivation, communication, group dynamics,

leadership and discipline. The purpose of directing is to channel the behavior of all personnel to

accomplish the organization's mission and objectives while simultaneously helping them accomplish

their own career objectives.

Controllingis a four-step process of establishing performance standards based on the firm's objectives,

measuring and reporting actual performance, comparing the two, and taking corrective or preventive

action as necessary.

The American Luther Gulick and Brit Lydnall Urwick expanded Fayol's list to seven executive management

activities summarized by the acronym POSDCORB:

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http://www.ag.ohio-state.edu/~mgtexcel/Planning.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Organize.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Staffing.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Direct.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Control.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Planning.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Organize.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Staffing.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Direct.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Control.html


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planning: determine objectives in advance and the methods to achieve them;

organizing: establish a structure of authority for all work;

staffing: recruit, hire and train workers; maintain favourable working conditions;

directing: make decisions, issue orders and directives;

coordinating: interrelate all sectors of the organisation;

reporting: inform hierarchy through reports, records and inspections;

budgeting: depend on fiscal planning, accounting and control.

Each of these functions involves creative problem solving. (Figure 4.2 from Higgins, page 118) Creative

problem solving is broader than problem finding, choice making or decision making. It extends from analysis

of the environment within which the business is functioning to evaluation of the outcomes from the alternative

implemented.

Principles of Management

Henri Fayol, the father of the school of Systematic Management, was motivated to create a theoretical

foundation for a managerial educational program based on his experience as a successful managing director of

a mining company. In his day, managers had no formal training and he observed that the increasing complexity

of organisations would require more professional management.

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A principle refers to a fundamental truth. It establishes cause and effect relationship between two or more

variables under given situation. They serve as a guide to thought & actions. Therefore, management principles

are the statements of fundamental truth based on logic which provides guidelines for managerial decision

making and actions. These principles are derived: -

a. On the basis of observation and analysis i.e. practical experience of managers.b. By conducting experimental studies.

There are 14 Principles of Management described by Henri Fayol.

1. Division of Labor

a. Henry Fayol has stressed on the specialization of jobs.

b. He recommended that work of all kinds must be divided & subdivided and allotted to various

persons according to their expertise in a particular area.

c. Subdivision of work makes it simpler and results in efficiency.

d. It also helps the individual in acquiring speed, accuracy in his performance.

e. Specialization leads to efficiency & economy in spheres of business.

2. Party of Authority & Responsibility

a. Authority & responsibility are co-existing.

b. If authority is given to a person, he should also be made responsible.

c. In a same way, if anyone is made responsible for any job, he should also have concerned

authority.

d. Authority refers to the right of superiors to get exactness from their sub-ordinates whereas

responsibility means obligation for the performance of the job assigned.

e. There should be a balance between the two i.e. they must go hand in hand.

f. Authority without responsibility leads to irresponsible behavior whereas responsibility without

authority makes the person ineffective.

3. Principle of One Boss

a. A sub-ordinate should receive orders and be accountable to one and only one boss at a time.

b. In other words, a sub-ordinate should not receive instructions from more than one person

because

- It undermines authority

- Weakens discipline

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- Divides loyalty

- Creates confusion

- Delays and chaos

- Escaping responsibilities

- Duplication of work

- Overlapping of efforts

c. Therefore, dual sub-ordination should be avoided unless and until it is absolutely essential.

d. Unity of command provides the enterprise a disciplined, stable & orderly existence.

e. It creates harmonious relationship between superiors and sub-ordinates.

4. Unity of Direction

a. Fayol advocates one head one plan which means that there should be one plan for a group of

activities having similar objectives.

b. Related activities should be grouped together. There should be one plan of action for them and

they should be under the charge of a particular manager.

c. According to this principle, efforts of all the members of the organization should be directed

towards common goal.

d. Without unity of direction, unity of action cannot be achieved.

e. In fact, unity of command is not possible without unity of direction.

Basis Unity of command Unity of direction

Meaning It implies that a sub-ordinate should receive

orders & instructions from only one boss.

It means one head, one plan for a group of

activities having similar objectives.

Nature It is related to the functioning of personnels. It is related to the functioning of departments,

or organization as a whole.

Necessity It is necessary for fixing responsibility of each

subordinates.

It is necessary for sound organization.

Advantage It avoids conflicts, confusion & chaos. It avoids duplication of efforts and wastage

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of resources.

Result It leads to better superior sub-ordinate

relationship.

It leads to smooth running of the enterprise.

Therefore it is obvious that they are different from each other but they are dependent on each other i.e. unity of

direction is a pre-requisite for unity of command. But it does not automatically comes from the unity of

direction.

5. Equity

a. Equity means combination of fairness, kindness & justice.

b. The employees should be treated with kindness & equity if devotion is expected of them.c. It implies that managers should be fair and impartial while dealing with the subordinates.

d. They should give similar treatment to people of similar position.

e. They should not discriminate with respect to age, caste, sex, religion, relation etc.

f. Equity is essential to create and maintain cordial relations between the managers and sub-

ordinate.

g. But equity does not mean total absence of harshness.

h. Fayol was of opinion that, at times force and harshness might become necessary for the sake of

equity.

6. Order

a. This principle is concerned with proper & systematic arrangement of things and people.

b. Arrangement of things is called material order and placement of people is called social order.

c. Material order- There should be safe, appropriate and specific place for every article and every

place to be effectively used for specific activity and commodity.

d. Social order- Selection and appointment of most suitable person on the suitable job. There

should be a specific place for every one and everyone should have a specific place so that they

can easily be contacted whenever need arises.

7. Discipline

a. According to Fayol, Discipline means sincerity, obedience, respect of authority & observance

of rules and regulations of the enterprise.

b. This principle applies that subordinate should respect their superiors and obey their order.

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c. It is an important requisite for smooth running of the enterprise.

d. Discipline is not only required on path of subordinates but also on the part of management.

e. Discipline can be enforced if -

- There are good superiors at all levels.

- There are clear & fair agreements with workers.- Sanctions (punishments) are judiciously applied.

8. Initiative

a. Workers should be encouraged to take initiative in the work assigned to them.

b. It means eagerness to initiate actions without being asked to do so.

c. Fayol advised that management should provide opportunity to its employees to suggest ideas,

experiences& new method of work.

d. It helps in developing an atmosphere of trust and understanding.

e. People then enjoy working in the organization because it adds to their zeal and energy.

f. To suggest improvement in formulation & implementation of place.

g. They can be encouraged with the help of monetary & non-monetary incentives.

9. Fair Remuneration

a. The quantum and method of remuneration to be paid to the workers should be fair, reasonable,

satisfactory & rewarding of the efforts.

b. As far as possible it should accord satisfaction to both employer and the employees.

c. Wages should be determined on the basis of cost of living, work assigned, financial position of

the business, wage rate prevailing etc.

d. Logical & appropriate wage rates and methods of their payment reduce tension & differences

between workers & management creates harmonious relationship and pleasing atmosphere of

work.

e. Fayol also recommended provision of other benefits such as free education, medical &

residential facilities to workers.

10. Stability of Tenure

a. Fayol emphasized that employees should not be moved frequently from one job position to

another i.e. the period of service in a job should be fixed.

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b. Therefore employees should be appointed after keeping in view principles of recruitment &

selection but once they are appointed their services should be served.

c. According to Fayol. Time is required for an employee to get used to a new work & succeed to

doing it well but if he is removed before that he will not be able to render worthwhile services.

d. As a result, the time, effort and money spent on training the worker will go waste.

e. Stability of job creates team spirit and a sense of belongingness among workers which

ultimately increase the quality as well as quantity of work.

11. Scalar Chain

a. Fayol defines scalar chain as The chain of superiors ranging from the ultimate authority to the

lowest.

b. Every orders, instructions, messages, requests, explanation etc. has to pass through Scalar chain.

c. But, for the sake of convenience & urgency, this path can be cut shirt and this short cut is

known as Gang Plank.

d. A Gang Plank is a temporary arrangement between two different points to facilitate quick &

easy communication as explained below:

In the figure given, if D has to communicate with G he will first send the communication upwards with the help

of C, B to A and then downwards with the help of E and F to G which will take quite some time and by that

time, it may not be worth therefore a gang plank has been developed between the two.

Gang Plank clarifies that management principles are not rigid rather they are very flexible. They can be

moulded and modified as per the requirements of situations

12. Sub-Ordination of Individual Interest to General Interest

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a. An organization is much bigger than the individual it constitutes therefore interest of the

undertaking should prevail in all circumstances.

b. As far as possible, reconciliation should be achieved between individual and group interests.

c. But in case of conflict, individual must sacrifice for bigger interests.

d. In order to achieve this attitude, it is essential that -

- Employees should be honest & sincere.

- Proper & regular supervision of work.

- Reconciliation of mutual differences and clashes by mutual agreement. For example,

for change of location of plant, for change of profit sharing ratio, etc.

13. Espirit De Corps (can be achieved through unity of command)

a. It refers to team spirit i.e. harmony in the work groups and mutual understanding among the

members.

b. Spirit De Corps inspires workers to work harder.

c. Fayol cautioned the managers against dividing the employees into competing groups because it

might damage the moral of the workers and interest of the undertaking in the long run.

d. To inculcate Espirit De Corps following steps should be undertaken -

There should be proper co-ordination of work at all levels

Subordinates should be encouraged to develop informal relations among themselves.

Efforts should be made to create enthusiasm and keenness among subordinates so that

they can work to the maximum ability.

Efficient employees should be rewarded and those who are not up to the mark should be

given a chance to improve their performance.

Subordinates should be made conscious of that whatever they are doing is of great

importance to the business & society.

e. He also cautioned against the more use of Britain communication to the subordinates i.e. face to

face communication should be developed. The managers should infuse team spirit &

belongingness. There should be no place for misunderstanding. People then enjoy working in

the organization & offer their best towards the organization.

14. Centralization & De-Centralization

a. Centralization means concentration of authority at the top level. In other words, centralization is

a situation in which top management retains most of the decision making authority.

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b. Decentralization means disposal of decision making authority to all the levels of the

organization. In other words, sharing authority downwards is decentralization.

c. According to Fayol, Degree of centralization or decentralization depends on no. of factors like

size of business, experience of superiors, dependability & ability of subordinates etc.

d. Anything which increases the role of subordinate is decentralization & anything which

decreases it is centralization.

e. Fayol suggested that absolute centralization or decentralization is not feasible. An organization

should strike to achieve a lot between the two.

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Management tools

Classic Tools

There's an elusive balance between chasing after each new management tool or method, and ignoring the fact

that we have actually learned some things about management over the past 100,000 years. The best tools are

those which stand the test of time, and which give you a lot of leverage over common problems.

Pie Charts

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Quality Control Charts Other Quality Management Tools

Pie charts

Bar charts

Run Charts

Radar Charts

Scatter Plots

Histograms

Pareto Charts

Normal Test Plots

Process Capability Calculations

Control Charts

Relations Diagram

Pathway

Affinity Diagrams

Brainstorms

Building Consensus

Cause and Effect Diagrams

Flowcharts

Force Field Diagrams

Tree Diagrams
http://www.skymark.com/resources/tools/pie_charts.asphttp://www.skymark.com/resources/tools/bar_charts.asphttp://www.skymark.com/resources/tools/run_charts.asphttp://www.skymark.com/resources/tools/radar_charts.asphttp://www.skymark.com/resources/tools/scatter_plots.asphttp://www.skymark.com/resources/tools/histograms.asphttp://www.skymark.com/resources/tools/pareto_charts.asphttp://www.skymark.com/resources/tools/normal_test_plot.asphttp://www.skymark.com/resources/tools/process_capability.asphttp://www.skymark.com/resources/tools/control_charts.asphttp://www.skymark.com/resources/tools/relations_diagram.asphttp://www.skymark.com/resources/tools/pathway.asphttp://www.skymark.com/resources/tools/affinity_diagram.asphttp://www.skymark.com/resources/tools/brainstorming.asphttp://www.skymark.com/resources/tools/building_consensus.asphttp://www.skymark.com/resources/tools/cause.asphttp://www.skymark.com/resources/tools/flowchart.asphttp://www.skymark.com/resources/tools/force_field_diagram.asphttp://www.skymark.com/resources/tools/tree%20diagram.asphttp://www.skymark.com/resources/tools/pie_charts.asphttp://www.skymark.com/resources/tools/bar_charts.asphttp://www.skymark.com/resources/tools/run_charts.asphttp://www.skymark.com/resources/tools/radar_charts.asphttp://www.skymark.com/resources/tools/scatter_plots.asphttp://www.skymark.com/resources/tools/histograms.asphttp://www.skymark.com/resources/tools/pareto_charts.asphttp://www.skymark.com/resources/tools/normal_test_plot.asphttp://www.skymark.com/resources/tools/process_capability.asphttp://www.skymark.com/resources/tools/control_charts.asphttp://www.skymark.com/resources/tools/relations_diagram.asphttp://www.skymark.com/resources/tools/pathway.asphttp://www.skymark.com/resources/tools/affinity_diagram.asphttp://www.skymark.com/resources/tools/brainstorming.asphttp://www.skymark.com/resources/tools/building_consensus.asphttp://www.skymark.com/resources/tools/cause.asphttp://www.skymark.com/resources/tools/flowchart.asphttp://www.skymark.com/resources/tools/force_field_diagram.asphttp://www.skymark.com/resources/tools/tree%20diagram.asp


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Pie charts are used to show classes or groups of data in proportion to the whole data set. The entire pie

represents all the data, while each slice represents a different class or group within the whole.

Bar Charts

Bar Charts, like pie charts, are useful for comparing classes or groups of data. In bar charts, a class or group can

have a single category of data, or they can be broken down further into multiple categories for greater depth of

analysis.

Run Charts

Run charts (often known as line graphs outside the quality management field) display process performance over

time. Upward and downward trends, cycles, and large aberrations may be spotted and investigated further. In a

run chart, events, shown on they axis, are graphed against a time period on thex axis. For example, a run chart

in a hospital might plot the number of patient transfer delays against the time of day or day of the week. The

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results might show that there are more delays at noon than at 3 p.m. Investigating this phenomenon could

unearth potential for improvement. Run charts can also be used to track improvements that have been put into

place, checking to determine their success. Also, an average line can be added to a run chart to clarify

movement of the data away from the average.

Radar Charts

Radar charts are useful when you want to look at several different factors all related to one item. Radar charts

have multiple axes along which data can be plotted. For example, you could use a radar chart to compile data

about a wide receiver on a professional football team. On one axis, you could plot the percentage of passes

caught. Another axis would show his yards per completion; another, his completions per 100 plays; another,

blocks made; and a final axis might show his interceptions.

Scatter Plots

Scatter Plots (also called scatter diagrams) are used to investigate the possible relationship between two

variables that both relate to the same "event." A straight line of best fit (using the least squares method)

is often included.

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Histograms

A histogram is a specialized type of bar chart. Individual data points are grouped together in classes, so that you

can get an idea of how frequently data in each class occur in the data set. High bars indicate more points in a

class, and low bars indicate less points. In the histogram show above, the peak is in the 40-49 class, where there

are four points.

Pareto Charts

Vilfredo Pareto, a turn-of-the-century Italian economist, studied the distributions of wealth in different

countries, concluding that a fairly consistent minority about 20% of people controlled the large

majority about 80% of a society's wealth. This same distribution has been observed in other areas

and has been termed the Pareto effect.

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Normal Test Plot

Normal Test Plots (also called Normal Probability Plots or Normal Quartile Plots) are used to investigate

whether process data exhibit the standard normal "bell curve" or Gaussian distribution.

Process Capability

The capability of a process is some measure of the proportion of in-specification items the process produces

when it is in a state of statistical control.

For valid process capability calculations, all data must be from an in-control process, with respect to both the

mean and standard deviation. Make sure to check this data in a variables control chart to make sure that all

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points in the x bar, s or R charts are in control. If they aren't, your capability indices in the statistics dialog box

are not valid.

Control Charts

Every process varies. If you write your name ten times, your signatures will all be similar, but no two

signatures will be exactly alike. There is an inherent variation, but it varies between predictable limits. If, as

you are signing your name, someone bumps your elbow, you get an unusual variation due to what is called a

"special cause". If you are cutting diamonds, and someone bumps your elbow, the special cause can be

expensive. For many, many processes, it is important to notice special causes of variation as soon as they occur.

Other Quality Management Tools

Relations Diagram (or Interrelationship Digraph)

Relations Diagrams are drawn to show all the different relationships between factors, areas, or processes. Why

are they worthwhile? Because they make it easy to pick out the factors in a situation which are the ones which

are driving many of the other symptoms or factors. For example, a relations diagram of urban poverty might

start out something like this:

Instead of one item following another in a logical sequence, each item is connected to many other pieces,

showing that they have an impact on each one. Once all the relevant connections between items have been

drawn, the connections are counted. Those with the most connections will usually be the most important factors

to focus on.

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Project Pathways for Management

One of the common features of modern management thinking is its focus on methodologies for problem-

solving. Dr. Deming used the Plan-Do-Check-Act cycle. Marshall-Qualtec espouses a seven-step problem

solving model. The Juran Institute has a slightly different method. So does Executive Learning Inc. That said,

all the approaches, while different in the details, are very similar overall.The pathway, embodied in software, is

a key means of keeping a team focused and on-track. It also provides an easy way for managers of many

projects or departments to keep tabs on the status and progress of work.

Affinity Diagram

The affinity diagram, or KJ method (after its author, Kawakita Jiro), wasn't originally intended for quality

management. Nonetheless, it has become one of the most widely used of the Japanese management and

planning tools. The affinity diagram was developed to discovering meaningful groups of ideas within a raw list.

In doing so, it is important to let the groupings emerge naturally, using the right side of the brain, rather than

according to preordained categories.

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To create an affinity diagram, you sort the brainstormed list, moving ideas from the brainstorm into affinity

sets, and creating groups of related ideas. As you sort ideas:

1. Rapidly group ideas that seem to belong together.

2. It isn't important to define why they belong together.

3. Clarify any ideas in question.4. Copy an idea into in more than one affinity set if appropriate.

5. Look for small sets. Should they belong in a larger group?

6. Do large sets need to be broken down more precisely?

7. When most of the ideas have been sorted, you can start to enter titles for each affinity set.

Brainstorming

Creative thinking requires tools such as the brainstorm and the affinity diagram. Brainstorming is simply listing

all ideas put forth by a group in response to a given problem or question. In 1939, a team led by advertising

executive Alex Osborn coined the term "brainstorm." According to Osborn, " Brainstorm means using the

brain to storm a creative problem and to do so "in commando fashion, each stormer audaciously attacking the

same objective." Creativity is encouraged by not allowing ideas to be evaluated or discussed until everyone has

run dry. Any and all ideas are considered legitimate and often the most far-fetched are the most fertile.

Structured brainstorming produces numerous creative ideas about any given "central question". Done right, it

taps the human brain's capacity for lateral thinking and free association.

Brainstorms help answer specific questions such as:

What opportunities face us this year?

What factors are constraining performances in Department X?

What could be causing problem Y?

What can we do to solve problem Z?

Building Consensus

The word consensus comes to us from Latin roots meaning "shared thought". Consensus does not imply

complete agreement, but does involve seeking a decision with which everyone is reasonably comfortable. To

accomplish this, everyone will need a fair opportunity to be heard and latent issues must be explored to the

satisfaction of the group. Many different tools can be used to build consensus. In fact, all the tools used in

quality management contribute to consensus. For example, a well-run brainstorming session can get lots of

ideas out onto the table and give everyone a chance for input. Still, most groups approach a point where they

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must choose between options, or try to narrow a list from many items to just a few. For this, effective tools

specifically for building consensus are used.

Cause & Effect Diagram

The cause & effect diagram is the brainchild of Kaoru Ishikawa, who pioneered quality management processes

in the Kawasaki shipyards, and in the process became one of the founding fathers of modern management.

The C&E diagram is also known as the fishbone diagram because it was drawn to resemble the skeleton of a

fish, with the main causal categories drawn as "bones" attached to the spine of the fish, as shown below.

Flowcharting

Flowcharts are maps or graphical representations of a process. Steps in a process are shown with symbolic

shapes, and the flow of the process is indicated with arrows connecting the symbols. Computer programmers

popularized flowcharts in the 1960's, using them to map the logic of programs. There are many varieties of

flowcharts and scores of symbols that you can use. Experience has shown that there are three main types thatwork for almost all situations:

High-level flowcharts map only the major steps in a process for a good overview.

Detailed flowcharts show a step-by-step mapping of all events and decisions in a process.

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Deployment flowcharts which organize the flowchart by columns, with each column representing a

person or department involved in a process.

The trouble spots in a process usually begin to appear as a team constructs a detailed flowchart.

Although there are many symbols that can be used in flowcharts to represent different kinds of steps, accurate

flowcharts can be created using very few (e.g. oval, rectangle, diamond, delay, cloud).

Force Field Analysis

Force Field Analysis is a simple but powerful technique for building an understanding of the forces that will

drive and resist a proposed change. It consists of a two column form, with driving forces listed in the first

column, and restraining forces in the second.

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The force field diagram is derived from the work of social psychologist Kurt Lewin. According to Lewins

theories, human behavior is caused by forces beliefs, expectations, cultural norms, and the like within the

"life space" of an individual or society. These forces can be positive, urging us toward a behavior, or negative,

propelling us away from a behavior. A force field diagram portrays these driving forces and restraining

forces that affect a central question or problem. A force field diagram can be used to compare any kind of

opposites, actions and consequences, different points of view, and so on.

Tree Diagram

The tree diagram is one of the 7 Management and Planning Tools described by Shigeru Mizuno. It is used to

figure out all the various tasks that must be undertaken to achieve a given objective. If you use it carefully and

thoroughly, it will give you a better understanding of the true scope of a project, and will help your team

focuses on specific tasks that are needed to get something done.

Time and motion study

A time and motion study (or time-motion study) is a business efficiency technique combining the Time

Study work of Frederick Winslow Taylor with the Motion Study work of Frank and Lillian Gilbreth (not to be

confused with their son, best known through the biographical 1950 film and book Cheaper by the Dozen). After

its first introduction, time study developed in the direction of establishing standard times, while motion study

evolved into a technique for improving work methods. The two techniques became integrated and refined into a

widely accepted method applicable to the improvement and upgrading of work systems. This integrated

approach to work system improvement is known as methods engineering.

Time and motion study have to be used together in order to achieve rational and reasonable results. It is

particularly important that effort be applied in motion study to insure equitable results when time study is used.

In fact, much of the difficulty with time study is a result of applying it without a thorough study of the motion

pattern of the job. Motion study can be considered the foundation for time study. The time study measures the

time required to perform a given task in accordance with a specified method and is valid only so long as the

method is continued. Time studies are applied today to industrial as well as service organizations, including

banks, schools and hospitals. Once a new work method is developed, the time study must be changed to agree

with the new method.

Methods-Time Measurement (MTM) is a predetermined motion time system that is used primarily in

industrial settings to analyse the methods used to perform any manual operation or task and, as a byproduct of

that analysis, set the standard time in which a worker should complete that task.

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Methodology

The rating, or Levelling, system used was the Westinghouse or LMS system so called after its originators

Lowry, Maynard and Stegemerten. This system considers four factors independently:

Skill Proficiency in following the given method

Effort The will to work Conditions The general work surroundings

Consistency of performance

Each factor is assigned an alpha rating, e.g. B-, C+, A, etc. which has a numeric value which is applied

later. This reduces the possibility of clock rating and ensures that all factors are considered in the composite

rating. Appendix 1 shows the model for Causes of Difference in Output on which the LMS system is based.

Layout, distances, sizes of parts and tools and tolerances were accurately measured and recorded on the shop

floor to complement the later analyses.

The films were then projected frame-by-frame and analysed and classified in to a predetermined format of

Basic Motions. These Basic Motions were Reach, Grasp, Move, Position, Release, etc. A motion was taken to

begin on the frame in which the hand first started performing the motion and was taken to end on the frame in

which the motion was completed. This allowed a time for each recorded motion to be calculated in seconds, by

means of a frame count, and then levelled to a common performance.

Plots of the levelled times for the various motions were drawn. Analysis determined the best definitions of

limits of motions and their major, time-determining variables, and resulted in, more or less, the structure which

the manual motions of MTM-1 have today. Later work, using Time Study, gave the table of Body Motions.

MTM is complementary to other Industrial Engineering charting analytical techniques; it does not replace

them. It should be used after broader techniques have established the Necessity and Purpose, Place, Sequence,

Person and Means of the tasks to be evaluated.

Unit

The unit in which movements are measured for MTM is TMU (time measurement unit): 1 TMU = 36

milliseconds ; 1 hour = 100,000 TMU

1 TMU = 0.036 second

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Work Simplification

Work simplification describes the making of daily tasks easier in order to reduce strain, or to decrease the

amount energy required to complete an activity. Work Simplification is a scientific approach to study work

processes with a view to simplifying the process such that the work process becomes more efficient and

effective and thereby raises productivity and reduces wastage of labor effort, materials, space, time and energy

in the process of producing a good or delivering a service.

Work simplification techniques range from low-tech (such as using no-scrub cleaners) to high-tech (such as

using voice recognition software for typing).

Some examples include:

Using an automated can opener instead of the manual version

Lengthening a short handle on a dustpan to avoid bending

Using pre-pressed clothes that eliminate the need for ironing

Sliding heavy objects or using a wheeled cart to avoid lifting

Putting an automatic toilet cleaner in the bowl

Work simplification can be useful for people who wish to remain independent for as long as possible, even if

they have a chronic health condition.

Allow for Flexibility Simplification and Harmonization by its very definition allows for flexibility for the UNCountry Team and national partners to apply those Simplification and Harmonization measures that are

appropriate to their country situation and that take into account the financial management capacities available

for implementation and that empower recipient countries.

Contribute to Capacity Building The Simplification and Harmonization must be an instrument towards

increased national capacities. It needs to be built around national systems and processes and must complement

the directions on aid coordination that governments in programme countries are pursuing.

Link with other Simplification and Harmonization Initiatives Simplification and Harmonization process

envisages close collaboration with country offices and national partners, and must factor in and mutually build

on the various efforts at Simplification and Harmonization, notably of the OECD-DAC, World Bank and

Regional Banks, the EU and others. This will ensure synergy and complementarities.

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Include other agencies while the various Simplification and Harmonization measures pertain largely to the

four ExCom agencies that have adopted a common Country Programme approach, a number of the

recommendations could apply to all the UN funds and programmes and specialized agencies at the country

level. The gradual adoption of some of the elements of the programme approach by the various other agencies

might enable them to align with the other measures.

Work Simplification has generated billions of dollars through effectiveness and efficiency for organizations

that focused on their people and gave them tools for continuous improvement. Over the past two decades, the

glamour of electronics has seduced many organizations into treating their people as expenses rather than

resources. For those organizations whose leaders truly believe that their people are their most valuable

resource, the tools of Work Simplification are still available - and better than ever.

In 1946, ASME did something that was even then a long time in the making. They established a set of symbols

as the ASME Standard for Operation and Flow Process Charts. Twenty-five years earlier Frank and Lillian

Gilbreth had presented "Process Charts - First Steps in Finding the One Best Way" at the Annual Meeting of

ASME in 1921. By the time the symbols were standardized they had evolved into a solid set of five symbols

that covered every aspect of work, in any work environment, that can be used with very little confusion. The

first process charts appeared as a series of symbols strung down a page in sequential order. This was (and still

is) a simple and effective way to track the flow of a person or a piece of material through a work process.

- Operation. An operation occurs when an object is arranged or prepared for another step, assembled ordisassembled or intentionally changed.

- Transportation. A transportation occurs when an object is moved from one location to another.

-Inspection. An inspection occurs when an object is verified for quality or quantity in any of its characteristics.

-Delay. A delay occurs when an object waits for the next planned action.

-Storage. A storage occurs when an object is kept and protected against unauthorized removal.

These days, processes change so fast that many organizations have failed to keep up. Their work is

undocumented and as changes are made the complexity mounts. The simple and effective approach of Work

Simplification has more to offer than it ever had. However, its use is not widespread. It appears that many

organizations are focusing their attention on purchasing solutions for their business rather than mastering their

work themselves. Where the purchased solutions lead to downsizing, the corporate memory is discarded

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leaving the organization dependent on those from whom they purchased their processes.

The Work Simplification approach utilizes the corporate memory rather than discarding it. It counters

increasing complexity with continuous improvement and enables the work force to be the masters of their

processes. It is on the program at many universities and it is being applied in increasing numbers of

organizations across the US and Canada; in South America, Europe and Australia as these companies seek to

regain control of their operations.

New methods for studying work are introduced on a regular basis. Usually they focus effectively on one or

another aspect of improvement but they often fail because they do not deal rigorously with the work itself. This

is a good time to look back and discover again a simple tool that visually displays processes in a universal

language that can be readily understood by anyone who wants to understand.

Today, if you are pursuing six sigma or lean manufacturing; if you are using Kazan or value stream mapping, if

you are managing your supply chain, developing a b2b strategy, establishing an electronic commerce presence,

managing day to day internal operations or documenting your processes for certification or audit, understanding

the fundamental steps in your work processes will help you get those things done. Work Simplification helps

you get therefaster, cheaper and better!

Flowchart

A flowchart is a type ofdiagram that represents an algorithm orprocess, showing the steps as boxes of various

kinds, and their order by connecting these with arrows. This diagrammatic representation can give a step-by-step solution to a given problem. Process operations are represented in these boxes, and arrows connecting

them represent flow of control. Data flows are not typically represented in a flowchart, in contrast with data

flow diagrams; rather, they are implied by the sequencing of operations. Flowcharts are used in analyzing,

designing, documenting or managing a process or program in various fields.

Flowcharts used to be a popular means for describing computer algorithms and are still used for this purpose.

Modern techniques such as UMLactivity diagrams can be considered to be extensions of the flowchart. In the

1970s the popularity of flowcharts as an own method decreased when interactive computer terminals and third-

generation programming languages became the common tools of the trade, since algorithms can be expressed

much more concisely and readably as source code in such a language, and also because designing algorithms

using flowcharts was more likely to result in spaghetti code because of the need forgotos to describe arbitrary

jumps in control flow. Often pseudo-code is used, which uses the common idioms of such languages without

strictly adhering to the details of a particular one.

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Flowchart building blocks

Symbols

A typical flowchart from older basic computer science textbooks may have the following kinds of symbols:

Start and end symbols

Represented as circles, ovals or rounded rectangles, usually containing the word "Start" or "End", or

another phrase signaling the start or end of a process, such as "submit enquiry" or "receive product".

Arrows

Showing what's called "flow of control" in computer science. An arrow coming from one symbol and

ending at another symbol represents that control passes to the symbol the arrow points to.

Generic processing steps

Represented as rectangles. Examples: "Add 1 to X"; "replace identified part"; "save changes" or similar.

Subroutines

Represented as rectangles with double-struck vertical edges; these are used to show complex processing

steps which may be detailed in a separate flowchart. Example: PROCESS-FILES. One subroutine may have

multiple distinct entry points or exit flows (see coroutine); if so, these are shown as labeled 'wells' in the

rectangle, and control arrows connect to these 'wells'.

Input/output

Represented as a parallelogram. Examples: Get X from the user; display X.

Prepare conditionalRepresented as a hexagon. Shows operations which have no effect other than preparing a value for a

subsequent conditional or decision step (see below).

Conditional or decision

Represented as a diamond (rhombus) showing where a decision is necessary, commonly a Yes/No

question or True/False test. The conditional symbol is peculiar in that it has two arrows coming out of

it, usually from the bottom point and right point, one corresponding to Yes or True, and one

corresponding to No or False. (The arrows should always be labeled.) More than two arrows can be

used, but this is normally a clear indicator that a complex decision is being taken, in which case it may

need to be broken-down further or replaced with the "pre-defined process" symbol.

Junction symbol

Generally represented with a black blob, showing where multiple control flows converge in a single exit

flow. A junction symbol will have more than one arrow coming into it, but only one going out.

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In simple cases, one may simply have an arrow point to another arrow instead. These are useful to

represent an iterative process (what in Computer Science is called a loop). A loop may, for example,

consist of a connector where control first enters, processing steps, a conditional with one arrow exiting

the loop, and one going back to the connector.

For additional clarity, wherever two lines accidentally cross in the drawing, one of them may be drawn

with a small semicircle over the other, showing that no junction is intended.

Labeled connectors

Represented by an identifying label inside a circle. Labeled connectors are used in complex or multi-

sheet diagrams to substitute for arrows. For each label, the "outflow" connector must always be unique,

but there may be any number of "inflow" connectors. In this case, a junction in control flow is implied.

Concurrency symbol

Represented by a double transversal line with any number of entry and exit arrows. These symbols are

used whenever two or more control flows must operate simultaneously. The exit flows are activatedconcurrently when all of the entry flows have reached the concurrency symbol. A concurrency symbol

with a single entry flow is afork; one with a single exit flow is ajoin.

It is important to remember to keep these connections logical in order. All processes should flow from top

to bottom and left to right.

Data-flow extensions

A number of symbols have been standardized to represent data flow, rather than control flow. These

symbols may also be used in control flow charts (e.g. to substitute for the parallelogram symbol), but they

generally have little currency:

ADocumentrepresented as a rectangle with a wavy base;

AManual inputrepresented by quadrilateral, with the top irregularly sloping up from left to right. An

example would be to signify data-entry from a form;

AManual operation represented by a trapezoid with the longest parallel side at the top, to represent an

operation or adjustment to process that can only be made manually.

AData File represented by a cylinder.

Types of flowchart

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Sterneckert (2003) suggested that flowcharts can be modeled from the perspective of different user groups

(such as managers, system analysts and clerks) and that there are four general types:

Document flowcharts, showing controls over a document-flow through a system

Data flowcharts, showing controls over a data flows in a system

System flowcharts showing controls at a physical or resource level Program flowchart, showing the controls in a program within a system

Notice that every type of flowchart focuses on some kind of control, rather than on the particular flow itself. In

addition, many diagram techniques exist that are similar to flowcharts but carry a different name, such as UML

activity diagrams.

Example of System flow chart diagram as follows:

Software

Any drawing program can be used to create flowchart diagrams, but these will have no underlying data model

to share data with databases or other programs such as project management systems or spreadsheets. Some

tools offer special support for flowchart drawing. Many software packages exist that can create flowcharts

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automatically, either directly from source code, or from a flowchart description language. On-line Web-based

versions of such programs are available.

Functional flow block diagram

A Functional Flow Block Diagram (FFBD) is a multi-tier, time-sequenced, step-by-step flow diagram of a

systems functional flow.The FFBD notation was developed in the 1950s, and is widely used in classical

systems engineering. FFBDs are one of the classic business process modeling methodologies, along with flow

charts, data flow diagrams, control flow diagrams, Gantt charts, PERT diagrams, and IDEF.

Functional Flow Block Diagram Format as follows:

FFBDs are also referred to asFunctional Flow Diagrams,functional block diagrams, andfunctional flows.

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Development of functional flow block diagrams

FFBDs can be developed in a series of levels. FFBDs show the same tasks identified through functional

decomposition and display them in their logical, sequential relationship. For example, the entire flight

mission of a spacecraft can be defined in a top level FFBD, as shown in Figure 2. Each block in the first

level diagram can then be expanded to a series of functions, as shown in the second level diagram for

"perform mission operations." Note that the diagram shows both input (transfer to operational orbit) and

output (transfer to space transportation system orbit), thus initiating the interface identification and

control process. Each block in the second level diagram can be progressively developed into a series of

functions, as shown in the third level diagram on Figure 2.

Figure 2: Development of Functional Flow Block Diagrams

These diagrams are used both to develop requirements and to identify profitable trade studies. For example,

does the spacecraft antenna acquire the tracking and data relay satellite (TDRS) only when the payload data are

to be transmitted, or does it track TDRS continually to allow for the reception of emergency commands or

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transmission of emergency data? The FFBD also incorporates alternate and contingency operations, which

improve the probability of mission success. The flow diagram provides an understanding of total operation of

the system, serves as a basis for development of operational and contingency procedures, and pinpoints areas

where changes in operational procedures could simplify the overall system operation. In certain cases, alternate

FFBDs may be used to represent various means of satisfying a particular function until data are acquired, which

permits selection among the alternatives.[8]

Building blocks

An overview of the key FFBD attributes:

Graphical explanation of a "function block" used in these diagrams. Flow is from left to right.

Function block: Each function on an FFBD should be separate and be represented by single box (solid

line). Each function needs to stand for definite, finite, discrete action to be accomplished by system

elements.

Function numbering: Each level should have a consistent number scheme and provide information

concerning function origin. These numbers establish identification and relationships that will carry

through all Functional Analysis and Allocation activities and facilitate traceability from lower to top

levels.

Functional reference: Each diagram should contain a reference to other functional diagrams by using a

functional reference (box in brackets).

Flow connection: Lines connecting functions should only indicate function flow and not a lapse in time

or intermediate activity. Flow direction: Diagrams should be laid out so that the flow direction is generally from left to right.

Arrows are often used to indicate functional flows.

Summing gates: A circle is used to denote a summing gate and is used when AND/OR is present. AND

is used to indicate parallel functions and all conditions must be satisfied to proceed. OR is used to

indicate that alternative paths can be satisfied to proceed.

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GO and NO-GO paths: G and bar G are used to denote go and no-go conditions. These

symbols are placed adjacent to lines leaving a particular function to indicate alternative paths.

Function symbolism

A function shall be represented by a rectangle containing the title of the function (an action verb followed by a

noun phrase) and its unique decimal delimited number. A horizontal line shall separate this number and the

title, as shown in see Figure 3 above. The figure also depicts how to represent a reference function, which

provides context within a specific FFBD. See Figure 9 for an example regarding use of a reference function.

Figure 3. Function Symbol

Figure 4. Directed Lines

Directed lines

A line with a single arrowhead shall depict functional flow from left to right, see Figure 4.

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Logic Symbols

The following basic logic symbols shall be used.

AND: A condition in which all preceding or succeeding paths are required. The symbol may contain a

single input with multiple outputs or multiple inputs with a single output, but not multiple inputs and

outputs combined (Figure 5). Read the figure as follows: F2 AND F3 may begin in parallel aftercompletion of F1. Likewise, F4 may begin after completion of F2 AND F3.

Figure 5. "AND" Symbol Figure 6. "Exclusive OR" Symbol

Exclusive OR: A condition in which one of multiple preceding or succeeding paths is required, but not

all. The symbol may contain a single input with multiple outputs or multiple inputs with single output,

but not multiple inputs and outputs combined (Figure 6). Read the figure as follows: F2 OR F3 may

begin after completion of F1. Likewise, F4 may begin after completion of either F2 OR F3.

Inclusive OR: A condition in which one, some, or all of the multiple preceding or succeeding paths arerequired. Figure 7 depicts Inclusive OR logic using a combination of the AND symbol (Figure 5) and

the Exclusive OR symbol (Figure 6). Read Figure 7 as follows: F2 OR F3 (exclusively) may begin after

completion of F1, OR (again exclusive) F2 AND F3 may begin after completion of F1. Likewise, F4

may begin after completion of either F2 OR F3 (exclusively), OR (again exclusive) F4 may begin after

completion of both F2 AND F3

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Figure 7. Inclusive OR Logic

Contextual and Administrative Data

Each FFBD shall contain the following contextual and administrative data:

Date the diagram was created

Name of the engineer, organization, or working group that created the diagram

Unique decimal delimited number of the function being diagrammed

Unique function name of the function being diagrammed.

Figure 8 and Figure 9 present the data in an FFBD. Figure 9 is a decomposition of the function F2 contained in

Figure 8 and illustrates the context between functions at different levels of the model.

Figure 8. FFBD Function 0 Illustration

Figure 9. FFBD Function 2 Illustration

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PRODUCTION PLANNING AND SCHEDULING

After taking decisions about the type of business, its location, layout etc. the entrepreneur steps into

the shoe of production manager and attempts to apply managerial principles to the production function in

an enterprise.

Production is a process whereby raw material is converted into semi finished products and thereby

adds to the value of utility of products, which can be measured as the difference between the value of

inputs and value of outputs.

Production function encompasses the activities of procurement, allocation and utilization of resources. The

main objective of production function is to produce the goods and services demanded by the customers in

the most efficient and economical way. Therefore efficient management of the production function is of

utmost importance in order to achieve this objective.

Production system is a system whose function is to convert a set of inputs into a set of desired outputs.

Production system is depicted under with help of chart Production management involves the managerial

decisions regarding design of the product and design of the production system i.e. determination of

production processes and production planning and control.

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PRODUCT DESIGN

Product design is a strategic decision as the image and profit earning capacity of a small firm depends largely

on product design. Once the product to be produced is decided by the entrepreneur the next step is to prepare its

design. Product design consists of form and function. The form designing includes decisions regarding its

shape, size, color and appearance of the product. The functional design involves the working conditions of the

product. Once a product is designed, it prevails for a long time therefore various factors are to be considered

before designing it. These factors are listed below: -

(a) Standardization

(b) Reliability

(c) Maintainability

(d) Servicing

(e) Reproducibility

(f) Sustainability

(g) Product simplification

(h) Quality Commensuration with cost

(i) Product value

(j) Consumer quality

(k) Needs and tastes of consumers.

Above all, the product design should be dictated by the market demand. It is an important decision and

therefore the entrepreneur should pay due effort, time, energy and attention in order to get the best results.

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(ii) Batch Production: - In this, limited quantities of each of the different types of products are

manufactured on same set of machines. Different products are produced separately one after the

other.

(iii) Mass or flow production: Under this, the production run is conducted on a set of machines

arranged according to the sequence of operations. A huge quantity of same product is manufactured at

a time and is stocked for sale. Different product will require different manufacturing lines. Since

one line can produce only one

type of product, this process is also called as line flow.

(iv) Process Production: Under this, the production run is conducted for an indefinite period.

Factors Need To Be Considered Before Making A Choice Of Manufacturing Process.

a) Effect of volume/variety: This is one of the major considerations in selection of manufacturing process.

When the volume is low and variety is high, intermittent process is most suitable and with increase in

volume and reduction in variety continuous process become suitable. The following figure indicates the

choice of process as a function of repetitiveness. Degree of repetitiveness is determined by dividing volume of

goods by variety.

b) Capacity of the plant: Projected sales volume is the key factor to make a choice between batch and line

process. In case of line process, fixed costs are substantially higher than variable costs. The reverse is

true for batch process thus at low volume it would be cheaper to install and maintain a batch process and line

process becomes economical at higher volumes.

c) Lead time: - The continuous process normally yields faster deliveries as compared to batch process.

Therefore lead-time and level of competition certainly influence the choice of production process.

d) Flexibility and Efficiency: - The manufacturing process needs to be flexible enough to adapt

contemplated changes and volume of production should be large enough to lower costs.

Hence it is very important for entrepreneur to consider all above mentioned factors before taking a

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decision regarding the type of manufacturing process to be adopted as for as SSI are concerned they usually

adopt batch processes due to low investment.

Production Planning And Control Can Facilitate The Small Entrepreneur In The Following Ways

(1) Optimum Utilisation of Capacity: With the help of Production Planning and Control [PPC] the

entrepreneur can schedule his tasks and production runs and thereby ensure that his productive capacity does

not remain idle and there is no undue queuing up of tasks via proper allocation of tasks to the production

facilities. No order goes unattended and no machine remains idle.

(2) Inventory control: Proper PPC will help th entrepreneur to resort to just- in- time systems and thereby

reduce the overall inventory. It will enable him to ensure that the right supplies are available at the right time.

(3) Economy in production time: PPC will help the entrepreneur to reduce the cycle time and increase the

turnover via proper scheduling.

(4) Ensure quality: A good PPC will provide for adherence to the quality standards so that quality of output is

ensured.

To sum up we may say that PPC is of immense value to the entrepreneur in capacity utilization and inventory

control. More importantly it improves his response time and quality. As such effective PPC contributes to time,

quality and cost parameters of entrepreneurial success.

PRODUCTION PLANNING AND CONTROL

Once the entrepreneur has taken the decisions regarding the product design and production processes

and system, his next task is to take steps for production planning and control, as this function is

essentially required for efficient and economical production. One of the major problems of small scale

enterprises is that of low productivity small scale industries can utilise natural resources, which are otherwise

lying.

Planned production is an important feature of the small industry. The small entrepreneur possessing the

ability to look ahead, organize and coordinate and having plenty of driving force and capacity to lead

and ability to supervise and coordinate work and simulates his associates by means of a programme of

human relation and organization of employees, he would be able to get the best out of his small industrial unit.

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Gorden and Carson observe production; planning and control involve generally the organization and

planning of manufacturing process. Especially it consists of the planning of routing, scheduling, dispatching

inspection, and coordination, control of materials, methods machines, tools and operating times. The

ultimate objective is the organization of the supply and movement of materials and labour, machines utilization

and related activities, in order to bring about the desired manufacturing results in terms of quality,

quantity, time and place.

Production planning without production control is like a bank without a bank manager, planning initiates

action while control is an adjusting process, providing corrective measures for planned development.

Production control regulates and stimulates the orderly how of materials in the manufacturing process

from the beginning to the end.

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: 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 in self in a rather adhocmanner. 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

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(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 time necessary to perform the entire series as routed, making allowances for all factors concerned. It

mainly concerns with time element and priorities of a job. The pattern of scheduling differs from one

job to another which is explained as below:

Production schedule: The main aim is to schedule that amount of work which can easily be handled by

plant and equipment without interference. Its not independent decision as it takes into account following

factors.

(1) Physical plant facilities of the type required to process the material being scheduled.

(2) Personnel who possess the desired skills and experience to operate the equipment and perform the

type of work involved.

(3) Necessary materials and purchased parts.

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Master Schedule: Scheduling usually starts with preparation of master schedule which is weekly or

monthly break-down of the production requirement for each product for a definite time period, by

having this as a running record of total production requirements the entrepreneur is in better position to

shift the production from one product to another as per the changed production requirements. This

forms a base for all subsequent scheduling acclivities. A master schedule is followed by operator

schedule which fixes total time required to do a piece of work with a given machine or which shows the

time required to do each detailed operation of a given job with a given machine or process.

Manufacturing schedule: It is prepared on the basis of type of manufacturing process involved. It is

very useful where single or few products are manufactured repeatedly at regular intervals. Thus it

would show the required quality of each product and sequence in which the same to be operated

Scheduling of Job order manufacturing: Scheduling acquires greater importance in job order

manufacturing. This will enable the speedy execution of job at each center point. As far as small scale

industry is concerned scheduling is of utmost importance as it brings out efficiency in the operations

and s reduces cost price. The small entrepreneur should maintain four types of schedules to have a close

scrutiny of all stages namely an enquiry schedule, a production schedule, a shop schedule and an arrears

schedule out of above four, a shop schedule is the most important most suited to the needs of small

scale industry as it enables a foreman to see at a glance.

1. The total load on any section

2. The operational sequence

3. The stage, which any job has reached.

Loading: The next step is the execution of the schedule plan as per the route chalked out it includes the

assignment of the work to the operators at their machines or work places. So loading determines who

will do the work as routing determines where and scheduling determines when it shall be done. Gantt

Charts are most commonly used in small industries in order to determine the existing load and also to

foresee how fast a job can be done. The usefulness of their technique lies in the fact that they compare

what has been done and what ought to have been done. Most of a small scale enterprise fail due to non-

adherence to delivery schedules therefore they can be successful if they have ability to meet delivery

order in time which no doubt depends upon production of quality goods in right time. It makes all themore important for entrepreneur to judge ahead of time what should be done, where and when thus to

leave nothing to chance once the work has begun.

Production control: Production control is the process of planning production in advance of operations,

establishing the extract route of each individual item part or assembly, setting, starting and finishing for

each important item, assembly or the finishing production and releasing the necessary orders as well as

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initiating the necessary follow-up to have the smooth function of the enterprise. The production control

is of complicated nature in small industries. The production planning and control department can

function at its best in small scale unit only when the work manager, the purchase manager, the

personnel manager and the financial controller assist in planning production activities. The production

controller directly reports to the works manager but in small scale unit, all the three functions namely

material control, planning and control are often performed by the entrepreneur himself production

control starts with dispatching and ends up with corrective actions.

Dispatching: Dispatching involves issue of production orders for starting the operations. Necessary

authority and conformation is given for:

1. Movement of materials to different workstations.

2. Movement of tools and fixtures necessary for each operation.

3. Beginning of work on each operation.

4. Recording of time and cost involved in each operation.

5. Movement of work from one operation to another in accordance with the route sheet.

6. Inspecting or supervision of work

Dispatching is an important step as it translates production plans into production.

Follow up: Every production programme involves determination of the progress of work, removing

bottlenecks in the flow of work and ensuring that the productive operations are taking place in

accordance with the plans. It spots delays or deviations from the production plans. It helps to reveal

detects in routing and scheduling, misunderstanding of orders and instruction, under loading or

overloading of work etc. All problems or deviations are investigated and remedial measurer are

undertaken to ensure the completion of work by the planned date.

Inspection: This is mainly to ensure the quality of goods. It can be required as effective agency of

production control.

Corrective measures: Corrective action may involve any of those activities of adjusting the route,

rescheduling of work changing the workloads, repairs and maintenance of machinery or equipment,

control over inventories of the cause of deviation is the poor performance of the employees. Certain

personnel decisions like training, transfer, demotion etc. may have to be taken. Alternate methods maybe suggested to handle peak loads.

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REQUIREMENTS ANALYSIS

Requirements analysis in systems engineering and software engineering, encompasses those tasks that go into

determining

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