UNIT-2 IM (Detail Notes)

Indusrtial Management Unit-2 By: Mayank Pandey

UNIT 2

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UNIVERSITY SYLLABUSManagement Function: Principles of Management

Management Tools time and motion study, work simplification- process charts and flow diagrams,Production Planning, Specification of Production requirements.

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MANAGEMENT FUNCTIONS==============================================================================

MANAGEMENT FUNCTIONSThe management process is methodology of getting the things done. The logic of management process is thatparticular functions are performed in a sequence through time.Management functions are

1. Forecasting.2. Planning.3. Organizing.4. Staffing.

LeadershipCommunication

5. Directing MotivationSupervision

6. Coordinating.7. Controlling.8. Decision making

1. Forecasting.- Forecasting is necessary preliminary to planning.- Forecasting begins with sales forecast followed by production forecast and forecast for cost, finance, purchase,profit or loss etc.2. Planning.Planning is a process by which a manager anticipates the future and discovers the alternative course of action.Planning involves what is to be done?;How, when and where it is to be done?Who is to do it? andWhat results are to be evaluated?Without proper planning, the activities of an enterprise may become confused, and ineffective. e.g. If arefrigerator company making concern does not plan in advance how many refrigerators and of what capacitiesare to be made before the summer starts? and thus if it does not procure necessary material, tools, supplies intime, it cannot reach the production targets.

3. Organizing.


Organizing is the process by which the structure and allocation of jobs is determined.The process of organizing involves:-i. Divide the work into component activities.ii. Assign people to task.iii. Define responsibilities.iv. Delegate authority.v. Establish structural relationship to secure coordination.

4. Staffing.Staffing is the process by which managers select, train, promote, and retire their subordinates.

Developing and placing of qualified people in the various jobs in the organization.The aim is to have appropriate persons to move into vacated positions or new positions.

5. Directing:Actual performance of subordinates is guided toward common goals of the enterprise.directing involves motivating, guiding, and supervising subordinates towards company objectives.Directing includes: Giving instructions to subordinates. Guiding the subordinates to do the work. Supervising the subordinates to make certain that the work done by them is as per the plans

established. Directing involves functions as

(a) Leadership, (b) Communication,(c) Motivation, and (d) Supervision.

(a) Leadership: Leadership is to inspire confidence and trust in their subordinates. Get maximum cooperation from them. Guide the activities of subordinates in organized efforts.

(b) Communication: It is the process by which ideas are transmitted received and understood by others. Communication may be verbal or written orders, reports, instructions etc. Ineffective communication leads to confusion, misunderstanding, and dissatisfaction.

(c) Motivation: Inspiring the subordinates to do work, or To achieve company objectives effectively and efficiently.

(d) Supervision:To ensure that The work is going on as per schedule and The workers are doing as they are directed to do.

6. Coordinating. Achieving harmony of individual effort towards the accomplishment of company objectives. Coordinate the activities of subordinates Regulate their communications.

7. Controlling.


Controlling is the process that measures current performance and guides it towards some predetermined goal. The process of controlling involves

i. Observe continuously and study the periodic results of performance.ii. Compare this performance with the present standard.

iii. Ascertain the exact causes of deviations.iv. Initiate and implement the corrective action.

8. Decision making: It is the process by which a course of action is chosen from available alternatives for the purpose of

achieving desired results.

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FAYOLS GENERAL PRINCIPLES OF MANAGEMENT==============================================================================

1 Division of work: Work specialization can result in efficiencies and is applicable to both managerial andtechnical functions. Yet there are limitations to how much that work should be divided.

2. Authority: Authority is the right to give orders and the power to exact obedience. It derives from the formalauthority of the office and from personal authority based on factors like intelligence and experience. Withauthority comes responsibility.

3. Discipline: Discipline is absolutely necessary for the smooth running of an organization, but the state ofdiscipline depends essentially on the worthiness of its leaders.

4. Unity of command: An employee should receive orders from one superior only.

5. Unity of direction: Activities aimed at the same objective should be organized so that there is one plan andone person in charge.

6. Subordination of individual interest to general interest: The interests of one employee or group shouldnot prevail over the interests and goals of the organization.

7. Remuneration: Compensation should be fair to both the employee and the employer.

8. Centralization: The proper amount of centralization or decentralization depends on the situation. Theobjective is the optimum use of the capabilities of personnel.9. Scalar chain: A scalar (hierarchical) chain of authority extends from the top to the bottom of an organizationand defines the communication path. However, horizontal communication is also encouraged as long as themanagers in the chain are kept informed.

10. Order: Materials should be kept in well-chosen places that facilitate activities. Similarly, due to goodorganization and selection, the right person should be in the right place.

11. Equity: Employees should be treated with kindness and justice.


12. Stability of personnel tenure: Because time is required to become effective in new jobs, high turnovershould be prevented.

13. Initiative: Managers should encourage and develop subordinate initiative to the fullest.

14. Esprit de corps: Since union is strength, harmony and teamwork are essential.

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PRODUCTION PLANNING AND CONTROL==============================================================================

Production planning and control is essentially required for efficient and economical production. Productionplanning and control can facilitate the small entrepreneur in the following ways.

1. Optimum Utilisation of Capacity: No order goes unattended and no machine remains idle.2. Inventory control: To ensure that the right supplies are available at the right time.3. Economy in production time: To reduce the cycle time and increase the turnover via proper scheduling.4. Ensure quality: Quality of output is ensured.

Steps of Production Planning and ControlProduction Planning and Control (PPC) is a process that comprises. Functions on either side, viz., planningas well as control.

Production Planning: To work out the quantity of material, manpower, machine and money requires forproducing predetermined level of output in given period of time.

Planning

Routing

Scheduling

Loading

Dispatching

Following up

Inspection

Corrective

Production Planning and Control

Production Planning Production Control


Aggregate Planning The objective of aggregate planning is to find out the most economical method ofusing production resources to meet fluctuating demands of production output. The planning period variesfrom a week to a year or so. The planning consists of finding alternative combinations of labour force, timesubcontracting and varying inventory levels.

Routing: Routing procedure involves following different activities.1. The operations to be carried out on a job.2. The machine or work centre to be used.3. The details of operations to be performed.4. The sequence of operations from raw material to finished product.

Objective of Routing The main objective of routing is to prduce the job most economically which dependupon the following factors:

1. Types of machines or work centre available.2. Capacity of each work center.3. Labour required for each work centre.4. Availability of tools and other resources.5. Efficiency of work centre and labour.6. Types and quantities of jobs to be produced.

Scheduling: Working out of time that should be required to perform each operation and also the timenecessary to perform the entire series as routed, making allowances for all factors concerned.Master Schedule: Scheduling usually starts with preparation of master schedule which is weekly or monthlybreak-down of the production requirement for each product for a definite time period. A master schedule isfollowed by operator schedule which fixes total time required to do a piece of work with a given machine orwhich shows the time required to do each detailed operation of a given job with a given machine or process.Production schedule: It takes into account following factors.1. Physical plant facilities of the type required to process the material being scheduled.2. Personnel who possess the desired skills and experience to operate the equipment and perform the type ofwork involved.3. Necessary materials and purchased parts.

Loading: Loading determines who will do the work as routing determines where and scheduling determineswhen it shall be done.

Production Control: Production control is the process of planning production in advance of operations,establishing the exact route of each individual item part or assembly, setting, starting and finishing for eachimportant item, assembly or the finishing production and releasing the necessary orders as well as initiatingthe necessary follow-up to have the smooth function of the enterprise.

Dispatching: Dispatching involves issue of production orders for starting the operations. Necessaryauthority and conformation is given for:1. Movement of materials to different workstations.2. Movement o tools and fixtures necessary for each operation.3. Beginning or work on each operation.4. Recording of time and cost involved in each operation.5. Movement of work from one operation to another in accordance with the route sheet.


6. Inspecting or supervision of work.

The following documents are issued to different departments.1. Job order or work order or shop order.2. Material issue order3. Tool order4. Move orderFinal delivery notification

Follow up: Every production programme involves determination of the process of work, removingbottleneck in the flow of work and ensuring that the productive operations are taking place in accordancewith the plans. All problems or deviations are investigated and remedial measures are undertaken to ensurethe completion of work by the planned date.

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

Corrective measures: Corrective action may involve any of those activities of adjusting the route,rescheduling of work changing the workloads, repairs and maintenance of machinery or equipment.

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SPECIFICATION OF PRODUCTION REQUIREMENT==============================================================================

1. Part Drawing (Production Drawing).2. Machining Detailed and Sequences.3. Materials for the components.4. Quality level required.5. Production Quantity.

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WORK STUDY==============================================================================

Work Study implies the study of human work. Work study investigates the work done in organization and itaims at finding the best and most efficient way of using available resources men, material, machine and money.Work Study & Productivity:


Objectives of Work Study1. Improved working process and standardized.2. Less fatigue to the operator.3. Efficient utilization of men material.

4. To evaluate human work.5. To reduce ineffective time due to management &workers.

Benefits of Work Study1. Improved Productivity.2. Higher efficiency in productivity.3. Manufacturing cost is reduced.4. Quicker and accurate delivery dates.

5. Good employee- employer relationship.6. Job satisfaction to workers.7. Higher wages and incentives to workers.

Method Study or (Motion Study)

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

Objectives of Method Study1. The improvement of process and procedures2. The improvement of factory, shop and workplacelayout and of the design of plant and equipment.3. Economy in human efforts and reduction ofunnecessary fatigue.

4. Improvement in use of materials, machines &manpower5. To find out the best way of doing a job.6. To standardize the best method7. Effective material handling

Economic Consideration Technical Consideration Human Reactions

1. Operation involvinggreat deal of manpowercondition

1.Bottlenecks holdingproduction

1. More acceptable if it canImprove working

2. Highly fatigued work 2. Movement of material overlong distancesbetween shops

2. Reduce the efforts and fatigueof workers

3. Operations involvingrepetitive work

3. Inconsistency in quality


Work MeasurementWork measurement is concerned with elimination of ineffective time and establishment of time standards for ajob.Work measurement is a technique to establish the time for a qualified worker to carryout a specified job at adefinite level of performance. Uses of Work Measurement1. To reveal the existence of ineffective time2. To compare the efficiency of alternative method.3. To determine with the help of man machine chart the number of machine an operator can run.4. To set the time standard for carrying out the work.5. As a basis for realistic and fair incentive scheme.

Time StudyTime study is a work measurement technique for recording the times performing a certain specific job or itselements carried out under specified conditions, and for analyzing the data so as to obtain the time necessary foran operator to carry it out at a defined rate of performance.


Time Study Equipments1. Stop Watch: A fly back decimal- minute stopwatch is most commonly used stop watch.2. The Study Board: Time study board is flat board, of plywood or plastic sheet, having fittings to hold stopwatch and time study forms.3. Time Study Forms: Time study forms are printed forms of standard size constant information like productname, operation number description of operation, time study observers name etc are preprinted on the top ofthe sheet-

Time Study FormProduct-------- Time Study -------------Operation No----------- ObserverDescription of-------------------- Date-------------------OperationNo. of Cycles 5(say)Standard time found------

Procedure for Collecting Time Study DataThe following are the procedural steps in stop Watch time study:-

1. Identify the operation to be studied2. Obtain the improved procedure from method study departments.3. Collect and check necessary equipment4. Select the worker to be observed for Time Study5. Explain the worker the objective of Time Study6. Explain the worker the improved procedure.7. Break the operation into small elements.8. Determine the number of observations to be timed for each element.9. Conduct the observation and record them on time study form10. Rate also the performance of the worker during step.11. Calculate normal time from observed time by using performance rating factor

Observed time * Rating factorNormal time=________________________________

100

12. Add process allowance, rest and personal allowance and special allowances to normal time in order toobtain standard time.

ElementDescription

Observed time AverageobservedTime

Ratingfactor

NormalTime

All Std.Time

1 2 3 4 5


Conversion of observed Time to Standard Time

Apply Performance Rating Factor

Add allowance likePersonal allowance process allowance

Advantages of Time Study1. Standard labour cost per unit of product can be calculated.2. Comparisons of actual and standard production.3. Enable further improvement in work methods, training necessity and better workplace layout.Limitations of Time Study1. Not suitable for non- repetitive jobs.2. Not suitable for highly automated work place3. May affect operators morale if output standard is not attained.4. While rating a worker error may come due to subjectivity involved in it.

Observed Time

Normal Time

Standard Time

UNIT-2 IM (Detail Notes)

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