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OPERATIONS MANAGEMENT What is Operations Management? What are the objectives of Operations Management? Enlist key elements of Operations Management.

Answer: Operations Management The design, operation, and improvement of the production systems that create the firms products or services. Operations Management is primarily concerned with transformation processes: Inputs Transformation Processes Outputs Inputs include following components: Raw materials Labor Energy Knowledge

All organizations and all production of goods and services involve transformation of some form (physical, in time, in location). It includes the following components: Facility Capacity Process Control

An effective transformation process: Works to lower the cost of creating the product; or to Create a better product for the same cost. Outputs include following components: Goods Services Information

Operations management involves making decisions about the entities and activities within systems of processes.

Beyond the central transformation process, a business can be seen as a collection of processes to be designed, managed, and improved. Examples of OM Decisions Intel needs to construct a new fabrication plant to produce its next generation of computer chips. Where should it build the facility? What should the capacity of the facility be? United Airlines needs to allocate resources to meet all of its customer demand for air travel next month. How should it assign different-sized aircraft to flight routes? How should it assign crews to flights while adhering to government regulations and union agreements? How should it schedule aircraft maintenance? Charter Cable needs to plan tomorrows service visits. Which customers will get serviced? How should customer site visits be assigned to service personnel? All decisions in operations management involve trade-offs.

Typical operations performance measures: Profit Cost Productivity Quality Delivery Customer service KEY: Always look at total cost when making a decision! Objectives of Operations Management: The four basic requirements right quality, right quantity, right time & right price, are the four basic requirements of the customer and also determine the extent of customer satisfaction. Thus the objectives of Operations Management: Producing the right kind of goods and services that satisfy customers needs. This is effectiveness objective. Maximizing output of goods and services with minimum resource inputs. This is efficiency objective.

Ensuring that goods & services produced conform to pre-set quality specifications. This quality objective. Minimizing throughput time the time that elapses in the environment or conversion process by reducing delays, waiting time and idle time. This is leadtime objective. Maximizing utilisation of manpower, machines etc. (capacity utilization objective). Minimizing cost of producing goods or rendering a service. This is cost-objective.

Elements of Operations Management: (i) Product Selection and Design: The right kind of products and good design of the products are crucial for the success of an organization. A wrong selection of the product and/or poor design of the products can render the companys operations ineffective and non-competitive. Products/services, therefore, must be chosen after detailed evaluation of the products/services alternatives in conformity with the organizations objectives. (ii) Process Selection and Planning: Process Selection and planning is the key objective of Operations Management. Process selection decisions and Planning is an important choice. It includes decisions concerning choice of technology, equipment, machines, and material handling systems, mechanisation and automation. It involves detailing of processes of resource conversion required and their sequence. (iii) Plant Location: Plant Location is strategic decision and once plant is set-up at a location, it is comparatively immobile and can be shifted later only at a considerable cost and interruption of production. Therefore, it is important to choose the right location, which will minimise total delivered-customer cost. Locational decisions involve evaluation of locational alternatives against multiplicity of which are operationally advantageous to the organization. (iv) Plant Layout and Materials Handling: Plant Layout is considered to be an important element of Operations Management. It is concerned with relative location of one department with another in order to facilitate material flow and processing of a product in the most efficient manner through the shortest possible distance and through the shortest possible time. A good layout reduces materials handling cost. Since, the layout integrates the factors of production, the selection of the layout depends on the nature of the production systems. Only a good layout can ensure minimum materials handling.


Capacity Planning: Capacity planning concerns determination and acquisition of productive resource to ensure that their availability matches the demand. Capacity decisions have a direct influence on performance of the production system in respect of both resource productivity and customer service. Capacity planning decisions can be short-term as well as long-term decisions. Long-term capacity planning decisions concern expansion/contraction of major facilities require in the conversion process, economics of multi-shift operation, development of vendors for major components, etc. Short-term capacity planning decisions concerns issues like overtime working, shift adjustments, etc. Break-even analysis is valuable tool for capacity planning. (vi) Production Planning and Control (PPC): Production planning is the system for specifying the production procedure to obtain the desired output in a given time at optimum cost in conformance with specified standard of quality, and control is essential to ensure that manufacturing takes place in the manner stated in the plan. Production planning is pre-production activity associated with determination of optimal production schedule, sequence of operations, etc. Production control is a complementary activity to production planning and it involves keeping track of what is happening & taking remedial action when the progress is behind schedule. Production planning is a centralized activity and it includes functions such as order preparation, materials control, process planning and schedule. Production is a diffused activity, which includes dispatching, progressing and expediting functions. (vii) Inventory Control: Inventory control deals with determination of optimal inventory levels of raw materials, components, parts, tools, finished goods, spares & supplies to ensure their availability with minimum capital lock up. Material requirement Planning (MRP) & JustIn-Time (JIT) are the latest techniques that can help the firm to reduce inventory. (viii) Quality Assurance and Control: Quality assurance system includes setting standards of quality, inspections of purchased and sub-contracted parts, control of quality during manufacture and inspection of finished product including performance testing, etc. (ix) Work Study and Job Design: Work-study is concerned with improvement of productivity in the existing jobs and the maximization of productivity in the design of new jobs. Two principles component of work-study are a. Method Study It has been defined (BS 3138) as the systematic recording and critical examination of the existing and proposed ways of doing work, as a means of developing and applying easier & more effective methods and reducing costs.

b. Work Measurement It is defined as the application of techniques designed to establish the time for a qualified worker to carry out a specified job under specified conditions and at a defined level of performance. Since the correct standard of performance can be set approximately only after the work method has been standardized, method study should precede work measurement. (x) Maintenance and Replacement: Maintenance and replacement involve selection of optimal maintenance to ensure higher equipment availability at minimum maintenance and repair cost. Preventive maintenance, which includes preventive inspection, plant lubrication, periodic, cleaning, planned replacement of parts, etc. Replacement decisions concerning machines are basically financial investment decisions but have a major influence on the efficiency of the production system. (xi) Cost Reduction and Cost Control: Effective production management must ensure minimum cost of production and in this context cost reduction and cost control acquires significant importance. Conclusion: In todays world, lot of changes has taken place in operations management. The industry today has well planned layouts, materials handling equipments, manufacturing facilities and trained manpower. In past, the education was limited to knowledge of art, literature, and languages but today it has vase scope. Today, production man is required to know commerce, economics and technology.

Q3 a. Why are locational decisions important? What factors should be taken into account while deciding of a unit to manufacture washing machines? Answer Locational decisions concern both manufacturing and assembly units as well as service organizations. An ideal plant location is important for business activities both in manufacturing and service category. Locational decisions are important in the following way when: (i) A new manufacturing (or servicing) unit is to be set up. (ii) Existing plant operations are difficult to expand due to poor selection of the site earlier. (iii) The growth of the business makes it advisable to establish additional facilities in new territories. (iv) There is emergence of new social, political or economic conditions, which suggest a change in the location of the existing plant. (v) The product developments have outweighed the advantages of the existing plant. (vi) The changes in the industrial policy of the government. Factors of Plant Location: Plant Location studies are conducted in three phases under the following three factors: Regional factors: Regional factors decide the overall area (or region) within the country. Such factors are: (i) Proximity to Market: Every company is in business to market and it can survive only if their product reaches the consumers on time and at through competitive price. The ratio of selling costs to sales generally increases with distance. Therefore, in the choice of the location of the plant, the factor of proximity to the market is given the highest priority. (ii) Proximity to Sources of Raw Materials: Proximity to supply of raw materials factor assumes greater importance if raw materials are of perishable nature or if they are expensive to transport, or if processing substantially reduces their weight. Raw materials can be classified into two categories on the basis of their influence: (a) Gross materials are those which loose weight in the process of transformation into finished goods, e.g. Iron ore, coal, limestone, sugarcane, etc. Industrial places are located nearer to their sources of availability. (b) Pure materials are those, which add their weight to the finished product in the process, manufacture e.g. Cotton textiles, woolen, silk fabrics, etc. The

place of consumption where the final product is more expensive to carry because it is more bulky and more perishable than its raw materials. Proximity to sources of raw materials is equally important for small units.


Infrastructural Facilities: Infrastructural facilities consider availability of utilities like power, water, disposal of water-waste, etc. These form the life-blood of many types of industries without which their activities may come to a stand still. Underestimating the need of anyone of the utilities can be extremely costly and inconvenient. Transport Facilities: Transportation cost to value added is a key determinant of the plant location. The structure of the transportation cost depends on (i) characteristics of the commodity (ii) average distance of shipment (iii) medium of shipment: rail, road, air & sea. Labor and Wages: Labor & wages are the important factors for plant location. Importing labor from outside is usually costly while labor locally is better since problem of arranging accommodation & other related problems do not arise. Productivity of labor is a factor of equal importance. Inhabitants of certain areas are more productive than others. Prevailing wage pattern, living costs and industrial relations are other related, which need to be taken into account. Legislation and taxation: The policies of the state government and local bodies relating to issuer of licenses, building codes, labor laws, etc, are the factors in selecting/rejecting a particular community/site. In order to disperse industries and ensure balanced economic growth, both central and state government offer a package of incentives for setting up industries in particular locations. Since taxes & duties levied by the state government and local bodies substantially influence product cost, the incidence of such taxes must be taken into account while selecting a community or site. Climatic conditions: Climatic factors may not have a major influence these days because of modern air conditioning facilities available today. However, it may be important factor for certain industries like textile mills, which require high humidity.





Community Factors:

Community factors decide the selection of the plant location within the region. Such factors are: (i) Industrial and Labor Attitudes: Community attitudes towards hostile trade union activities are an important factor. Locating facilities in a certain region/community may not be desirable as frequent labor problems and interruptions are harmful to the plant in the long run. Political situation in the state and attitude of the government towards labor activities also influences selection of the site for the plant. (ii) Safety Requirement: Safety factor may be important for certain industries like nuclear power plants, explosive factories, etc. Location of such industries close to border areas is undesirable. (iii) Community Facilities/Social Infrastructure: Community facilities imply accommodation, educational, entertainment and transport facilities. Accommodation is needed unless the employees are local residents. Accommodation should be easily available, comparatively cheap and near some public transport stop. Communication is another important infrastructure without which no unit can run efficiently. Availability of a post office and telegraphic office is a must. Availabilities of medical facility such as dispensary or a hospital in the neighborhood are must. Equally important is the requirement of educational facilities in the neighborhood like schools, colleges, etc. Likewise entertainment facilities such as cinema, parks, clubs, etc. Community Attitudes: Supporting Industries and Services: Locational factors should also include proximity of services needed by the firm. A firm desirous of getting some or all parts made from outside or some of the operations done from outside must see that such sub-contractors are located in the neighborhood. Also if units are too far off, it will not cost only additional transportation cost but also time consuming and costly.

(iv) (v)

Site Factors: Site factors favor specific site within the community. Such factors are: (i) (ii) Suitability of the Land: Site selection should also take into account topography and soil structure of the land. The soil structure must be capable of bearing loads of foundations. Availability and cost of the Land: Site size must be large enough to accommodate the present production facilities, parking and access facilities but also leave sufficient room for future expansion.

Q3 b. What are the objectives of a good layout? Discuss any six principles of a good layout? Answer Plant layout is the disposition of the various facilities and services of the plant within the area of the site selected previously. Since a layout once made can be changed only at the considerable cost and disruption of production, plant layout decisions are strategic decisions. A good layout results in comforts, convenience, appearance, safety, efficiency and profits while a poor layout causes congestion, disruption in material flow, unnecessary materials handling, more scrap and rework, higher throughput time, wasted movements, frustration and inefficiency. Objectives of a Good Layout: (i) Economy in handling of materials, work-in process and finished goods. (ii) Minimization of production delays. (iii) Lesser work-in progress and minimum manufacturing cycle time. (iv) Efficient utilization of available space. (v) Easy supervision and better production control. (vi) Greater flexibility for changes in product design and for future expansion. (vii) Better working conditions by eliminating causes of excessive noise, objectionable odor, smoke, etc. Principles of a Good Layout: (i) Overall Integration of Factors: A good layout is one that integrates men, materials, machines and supporting activities and others in a way that the best compromise is obtained. No layout can satisfy each and every principle of a good layout. It has to integrate all factors into the best possible compromise. (ii) Effective use of available space: A good layout is one that makes effective use of available space both horizontal and vertical. It is important for following aspects: (a) Back-tracking and duplicated movements consume more time, involve unnecessary materials handling, add to cost and lead to inefficiency. (b) Raw materials, work-in-progress and finished goods should be piled vertically one above another rather than being strewn on the floor. (c) Pallets or equivalents should be made use of to pile up several layers one above another. (d) Area below the worktables or in the cupboards built into the wall is welcome since they reduce requirement of space.

(iii) Unidirectional Flow: A good layout is one that makes the materials move only in the forward direction, towards stage of completion, without any backtracking, important things to be noted here are (a) Since straight line is the shortest distance between any two points, materials as far as possible should be made to move on the principle of straight line flow. And when straight-line flow is not possible, other flow like U-shaped flow, circular flow or zigzag flow may be adopted, but the layout must ensure that materials move in the forward direction. (b) To ensure forward flow, equipment if necessary may be duplicated. (iv)Maximum Visibility: A good layout is one that makes man, machines and materials readily observable at all times. Following points should be implemented (a) All departments should be smoothly integrated, convenient to service and easy to supervise. (b) Every piece of positioning or screening or partitioning should be scrutinized and carefully planned. (c) Special cupboards, enclosures, offices, partitions, etc. should be avoided except when their utility is established beyond doubt. (v) Inherent safety: A good layout is one that makes the plant safer for the workmen. For this it should be followed like (a) The aisles should be clearly marked and should be kept free from obstructions. (b) The aisles should be located in such a way that workmen do not have to walk close to chemical vats or furnaces or conveyers, etc. (c) Pick-up & pick-down points for the materials should be so located that material handling facility fork loft, overhead crane, etc. do not endanger safety of machines or workmen. (d) Fire protection equipments should be provided at strategic locations. (e) Gangways should be kept well lit. (f) One way traffic rule may be observed in areas of greater traffic. (vi)Maximum Flexibility: A good layout is one that can be altered later without much cost. The main aspects which has to be applied are (a) Future requirements should be taken into account while designing for the present. (b) Each machine must be self contained i.e. it must have everything of its own like lubrication system, cooling system, supplementary lighting, air system, etc. (c) Multipurpose machines give flexibility over special purpose machines and process layout is more flexible than product layout.

(d) Standardization of machine tools, jigs and fixtures, give flexibility to production in the event of machine breakdown.


How does production planning differ from production control? What are the key functions of production planning and control?

Answer Production is defined as the manufacturing of goods and services and planning is defined as the series of related and coordinated activities material control, process planning, scheduling, etc designed to systematic in advance the manufacturing efforts. Production planning is the pre-determination of manufacturing requirements such as men, materials, machines, manufacturing process, money, order priority, etc. for the production of goods of the right quality, in the right quantities and at the right time. Production control is the corollary to short term production planning or scheduling, and its quite simply concerned with the implementation of production schedules. Planning is thus forward thinking while control is mechanism for execution. Production planning and control (PPC) is different from each other in the following ways: Production Planning Planning involves collection & maintenance of data regarding time standards, materials and their specifications, machines & their quantities, tools & their process capabilities, drawings & operational layouts, etc. Planning is seeing that requirement tools, machines, men, instructions, authorization and like-will be available at the right time and in the right quantities and of proper quality. Planning involves preparation of load charts and fitting various work orders into uncommitted time available on the companys facilities (men & machines) Planning involves preparation of all necessary forms and paper work. Planning involves forward thinking regarding the remedial action to be taken if the jobs fall behind schedule. Planning involves designing suitable feedback as to what may happen. Control Control improves dissemination of data, preparation of reports regarding output, machine and labor efficiency, percentage defectives, etc. Control is seeing that the requirements are actually made available at the right place and in the right quantities. Control involves actual seeing that the jobs are started and completed as per the schedule prepared by the scheduling call of the PPC. Control involves actual issue of forms and paper work. Control involves suggesting remedial action when the job is falling behind schedule. Control involves keeping track of what is happening and collecting information as to what has


Functions of Production Planning and Control There are normally two sets of functions of production planning and control (i) Regular functions (ii) Optional Functions Regular (or Common) Functions Regular functions are those, which are generally assigned to PPC in most of the organizations thought the importance of the function may vary from industry to industry. Objectives of regular functions are (a) Order Preparation: Order preparation includes activities like making of work orders, converting work orders into shop orders, preparing auxiliary orders and releasing such orders to those concerned to authorize their activities. (b) Materials Control: Concerns preparation of materials estimates, indenting non-stock materials, ascertaining, availability of materials purchased to stock, continued follow-up with purchase and stores for timely receipt of materials and advising stores to allocate required quantities or available materials against specific shop orders. (c) Process planning/Routing: Concerns fixation of method of manufacture: operations and their sequence, machine tool for each operation, jigs and fixtures, measuring instruments, etc. to enable shops to produce goods of the right quantity at the lowest cost. (d) Tools Control: Concerns preparation of estimates of cutting tools, gauges and measuring instruments, etc. indenting non-stick tooling; follow up with tool room for timely manufacture jigs and fixtures; periodical replenishment of worn-out-non-consumable tooling. (e) Scheduling: Concerns preparation of machine tools (loads), fixation of calendar dates of various operations to be performed on a job, coordination with sales to confirm delivery dates of new items, and periodical preparation of dispatch schedules of regular items. (f) Dispatching:

Concerns preparation and distribution of shop orders and manufacturing instructions to the concerned department as their authority to perform the work according to the pre-determined schedule. (g) Progressing: Concerns collection of data from manufacturing shops, recoding of progress of work, and comparing progress against the plan. (h) Expediting: Concerns intensive progress chasing to identify delays and interruptions which may hold up production, devising cures from time to time to keep rate of production in line with the schedule, communicating possible failure in delivery commitments to sales department. Optional Functions Optional functions are those, which may be assigned to PPC depending upon policy of the management of the firm. Optional functions has following objectives (a) Cost Estimation: Concerns preparation of pre-production cost estimates to be used by sales department for quotation purposes. (b) Work Measurement: Concern fixation of time to be allowed to a qualified workman to carryout a specific task, under specified conditions and at the defined level of performance. Work measurement employs scientific, well-known techniques like time study, work sampling, standard data, production study, analytical estimating, etc. (c) Sub-Contract: Concerns offloading of certain work on outside vendors for economic reasons or to argument the existing manufacturing facilities. (d) Capacity Planning: Concerns estimation of requirements of men and machines as the basis of decision making to meet the firms increased volume of business. (e) Demand Forecasting: Concerns making projection of companys product market. Though, long term forecasts are given by sales department but short term forecasts required for materials planning, machine loading, subcontracting, etc. may be prepared by PPC department.


What is Preventive Maintenance? Why it is better than Breakdown Maintenance? What are the key activities of Preventive Maintenance?

Answer Preventive Maintenance is the maintenance system wherein certain maintenance activities are carried out in a planned manner with an explicit objective of detecting weak spots and the perfect functioning of the plant is ensured by suitable preventive measures including replacement of parts which could still be used. Such preventive measures provide a high degree of reliability to the machine. Preventive maintenance can be either running maintenance or shutdown maintenance. (i) Running Maintenance: It includes preventive maintenance activities like minor adjustments in machines revealed through inspections, lubrication, cleaning and upkeep, etc. which are carried out when the machine is still running. (ii) Shutdown Maintenance: It includes preventive maintenance activities such as minor component replacement whose needs are identified through inspections, which requires stoppage of machines. Preventive inspection is one of they key activities of preventive maintenance which is usually performed by making use of human senses watch (eye), listen (ear), touch (hand, leg, body), smell (nose) & taste (tongue) but the trend is changing towards use of condition monitoring instruments. Such a maintenance practice is known as preventive or condition-based maintenance. Preventive Maintenance is better than Breakdown Maintenance: Breakdown Maintenance is categorized as unplanned maintenance. It partly is planned, as failures, which can be considered in advance through timing of the failure, may not be known. In case, the resources for breakdown are not considered and planned, then breakdown maintenance is to be treated as unplanned maintenance. And if resources have been provided for, the breakdown maintenance may be treated as planned maintenance as unplanned maintenance. On the other hand, Preventive maintenance fulfills the criteria of prevention is better than cure. It works because almost no equipment fails without showing the signs of malfunctioning. If a fault if detected when it is still in a pre-matured minor stage, eventual breakdown of the equipment can be prevented. Preventive maintenance advocates maintenance procedures whereby the condition of the plant is constantly watched through systematic inspection to unearth unhealthy conditions and preventive action is taken to prevent unscheduled interruption to the plant and equipment. Thus, preventive maintenance is better than breakdown maintenance in the planned sense.

Key activities of Preventive Maintenance: 1. Preventive inspection: Preventive inspection is an integral part of the preventive maintenance programme. Inspection is carried out systematically, at periodical intervals, by the staff specially trained, to determine the condition of the equipment. Preventive inspection is of two types External & internal. External Inspection is indented to detect such as abnormal sound, heat, smoke, vibrations, etc. and is carried out, by making use of human senses, when the equipment is in operation. Whereas, Internal inspection is meant to identify defects in moving parts, internal cracks, and others when the machine is under pre-planned shutdowns. Internal inspection may also be conducted to investigate into the causes of defects noticed during external inspection. 2. Planned Lubrication: Planned lubrication is said to be the nervous system of the equipment. Regular lubrication with carefully selected lubricants is an essential factor in the maintenance of high-grade machine tools working under continuous loads. Essentials of well-planned lubrication systems are: (i) Proper identification of lubrication points (Right place) (ii) Right selection of the lubricant (Right quantity) (iii) Optimum frequency of lubrication (Right time) (iv) Optimum quantity of the lubricant (Right quantity) (v) Proper care and storage of lubricants (Right care) 3. Cleaning and upkeep: Cleaning and upkeep of the machines is another important activity of preventive maintenance. Periodical cleaning of the machine is required to prevent ingression of dust into the components. Dust gets mixed with lubricants forms an abrasive substance and causes pre-mature failure of machinery. The collection of dust on equipment also leads to destruction of protective coatings, which further accelerate the rate of wear and tear of the requirement. Besides periodic cleaning of machines and surrounding areas provides tidy and clean working environment which itself improves maintenance efficiency. A well-designed preventive maintenance system incorporates periodic cleaning of plant and equipment schedules as a part of its preventive maintenance activity. Examples of cleaning activities are (i) Transformers, rectifiers, etc., (ii) Hydraulic oil tanks, (iii) carbon brushes on converters and D.C. Motors (iv) Motors, fan blades & fins of motors (v) Filters (vi) Air tools, hand chicks, air chucks. 4. Minor Adjustments and Replacements: Preventive inspection may identify certain points, which require minor adjustments and/or replacements. Typical examples are (i) Tightening of loose parts (ii) Replacements of oil filter and oil seals (iii) Replacement of damaged oil nipples. Depending upon the urgency of work these preventive maintenance jobs require to be scheduled. 5. Engineering Records: Good record keeping is the essence of good preventive maintenance. The following document and records must be maintained for smooth working of the department:

a. Instruction Manuals the catalogues supplied by the manufacturers of the machines alone with the equipment. b. Spare-parts Catalogues separate catalogues of the consumable and replacement spares of their equipments. c. Electrical and Hydraulic Circuits diagrams It normally appended to the instruction manuals. d. Equipments Card record of the information pertaining to the name and address of the manufacturer of the equipment, purchase order number and date, date of commissioning, equipment specifications, list of the accessories, list of major spare parts, etc. e. Equipment History Cards record of all repairs, replacements and engineering changes carried out in the equipment during its period in service. f. Failure Statistics Analysis This analysis helps to identify causes for major repetitive failures and thereby take decisions for their prevention in future. Forecast defects and to make plan to rectify before failure occurs.


What is method study? Describe the procedural steps to develop easier and effective methods.

Answer To increase productivity, two important functions of production management are: installation of the most effective method of performing the operation and the control of resources mainly plant and labor required in carrying out the operation. Work-study, formerly known as Time and Motion Study, fulfills two requirements thought its two complementary specializations of Method Study and Work measurement. Method study aims to determine the most effective method of performing a job, the most logical layout of manufacturing facilities, the smooth flow of men and materials throughout the organization and the right placement of inspection stages to enable processing of a job through the smallest possible time and at the least possible cost. According to British Standards Institution (BS-3138) Method study is the systematic recording and critical examination of existing and proposed ways of doing work, as a means of developing and applying easier and more effective methods and reducing costs. The definition suggests that the examination of existing as well as proposed production methods. Critical examination when conducted on existing methods helps the firm to identify unnecessary costs associated with the associated jobs. Such costs get added to the jobs due to various reasons and are not readily apparent especially to those who are responsible for causing them. Critical examinations of proposed production methods, on the other hand, helps the organization to prevent the possibility of introduction of unnecessary cost in new jobs. Method study in general analyses the following aspects: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) Manufacturing Operations and their sequence Machines Workmen Materials Tools Gauges & measuring instruments Work bench layout Layout of physical facilities Movement of men & materials Materials handling Working conditions

The scope of method study is not merely restricted to manufacturing industries. It can be applied almost in any field, say offices, banks, hospitals, shops and even defense. In a manufacturing industry, method study can be successfully used in many areas of production management.

Procedural Steps of Method Study: Method study is an organized approach and described on the following six steps outlined in the block diagram (fig 1). 1. Select 2. Record 3. Examine 4. Develop 5. Install 6. Maintain

Economic Consideration Technical Consideration Human Consideration Charting Symbols Charting Conventions
Select the job to be analysed

Records facts relating to the existing method

Examine facts critically but impartially






Develop alternatives to the existing method

Install the new method

Maintain the new method

Fig 1.1: Block Diagram of the Steps in Method Study

Above steps can be described as: 1. Selection of the Job The selection of the job to be analyzed is a managerial responsibility. The usual attitude to have a look around and find something to deal with is wrong is unlikely to produce good results. The following considerations should be kept in mind while selecting a job for the purpose of method improvement. a) Economic Consideration is usually important at all stages of the study. The time and money spend in conducting a long investigation should be justified by the savings resulting from it. b) Technical Consideration analyses technical aspects of the job selected for the analysis. The method study man should select a job, which he has the technical knowledge failing which he will not be able to do justice to the job. c) Human Consideration is the greatest consideration of all. Method study means a change but a change, which is accepted, half-heartedly by the workers and their representatives is really no good a change. Human reactions play an important role in method study and as such must given due consideration by the must be given due consideration by the method study man. The people affected by the change normally resist any change. You must overcome the resistance to change. Convince your employer why change is necessary necessary. Selecting and improving can prove the effectiveness of the method study some of the jobs, which are considered unsafe, dirty, strenuous, hard & inconvenient by the workers themselves. In the following situations human consideration should be given preference: (i) Workers complaining of unnecessary and tiring work. (ii) Poor morale evidenced by petty or trivial complaints. (iii) Repeated cases of accidents and health hazards. (iv) Inconsistent earnings where the earnings are tied to output. 2. Recording of Facts Recording is the preparatory step towards critical examination. The success of critical examination to a large extent depends on how correctly, precisely and in comprehensive form the facts relating to method under study are recorded. Activities, which are recorded in method study, are: (a) Method Study Symbols (i) Operation: An operation occurs when there is a distinct change in physical/chemical characteristic of an object or, when there is an addition/subtraction or, when there is consumption of physical effort or, when Operation

Information is given or received. An operation always takes the object (materials, component, item or service) a stage further towards completion. Operation is represented by circle. (ii) Inspection: An inspection occurs when the object is verified against predetermined standards of quality or quantity, or both. Inspection unlike operation, does not take the object one step Inspection forward towards completion. It merely verified(s) whether or not the object has undergone the required operation as per specifications. Inspection is represented by square. (iii) Transport: A transport occurs when the object is moved from one place to another. Transport is represented by an arrow. (iv) Delay: A delay occurs when the object is held up resulting in delay in the start of next event i.e. Next operation, inspection or transport. Delay is repressed by letter dee (D). (v) Storage: storage occurs when the object is kept in an authorized custody and is protected against unauthorized removal. Storage is represented by an inverted triangle. b) Charting Conventions: Complicated activities like rework, rejection, repetition, change of state, introduction of new material, combined activities etc. are used in charting conventions. Typical charting conventions are: (i) Composition of the Chart The three different parts of the chart are: Introduction, to record name of the chart, present or proposed method, task under study, chart begins, chart ends, charted by, date of charting. Body, to show activities by relevant symbols written one below another according to the sequence. Summary, to give frequency of each symbol, total time for each symbol and total distance travelled by the object.




(ii) Rejection Sometimes materials/components are rejected during processing. Such rejection the stage at which it occurs and the place where this discarded material is taken to requires to be shown in the chart. (iii) Reprocessing Reprocessing concerns a situation where the component is not completely rejected but is to be recorded. (iv) Repetition Repetition concerns a situation where an activity or a series of activities are to be repeated. To show such activities by repeated use of symbols is unnecessary/laborious. Enclosing the activities by a loop can save much of this extra effort. (v) Introduction of new Materials Introduction of new materials considers the entry points of the materials. Such entries are indicated on the chart by horizontal lines with description of materials written above the line and quantity written below the line. (vi) Combined Activities Sometimes, the operator performs more than one activity simultaneously. Such activities are represented by combined symbols. (vii) Numbering of Activities The symbols in a process chart are numbered to facilitate easy reference for comparison. Likewise symbols are numbered serially from the beginning to end. c) Charting Methods: (i) Charts Charts are the most popular method of recording data. The activities comprising the job are recorded by means of symbols and charting conventions. There are following types of charts Operation Process Chart (OPC) An operation process chart is a chart on which the major activities and entry points of materials are recorded to have graphic view of operations and inspections involved in the process. An OPC gives the detailed step-by-step

account of what is done to the materials from beginning of the first stage to the last stage. Flow Process Chart (FPC) Flow process chart is a chart, which sets out the sequence of flow of work of a product, or any part of it through the section or the department or the factory by recording the events under review using appropriate symbols. Multiple Activity Chart A Multiple activity chart is chart on which the activities of more than one subject are recorded to indicate their inter-relationship in a given cycle. Multiple activity charts in other words shows what each subject does at any time in relation to the other. Two Handed Process Chart A two-handed process chart is a chart on which the activities performed by two hands or two limbs of the operator are recorded to show their interrelationship. (ii) Diagrams 1. Flow Diagram Flow diagrams are the scale plans on which the movements of an object are traced by lines. The flow diagram shows the relative position of the machine tools, workbenches, storage racks etc. on a scaled diagram on which are marked the paths flowed by the workman & materials. 2. String Diagram String diagrams are the scale plans on which the movements of an object are traced by means of a string. String diagrams have certain distinct advantages over flow diagrams. Repetitive movements between workstations, which are difficult to be traced on flow diagrams, can be convent ally shown a string diagrams. 3. Critical Examination Critical examination aims to analyses the facts critically and thereby give rise to alternatives, which forms the basis for selection and development of improved methods. The principles to be followed during critical examination are: (a) Facts should be examined as they are & not as they should be. (b) Each step, how insignificant it may be, should be analysed in a logical sequence. (c) Hasty judgments must be avoided. (d) Opinion regarding alternatives to the existing methods should not be formed unless all aspects of the existing method have been exposed to critical examination.

Critical examination is conducted through a systematic and methodical questioning process. The questioning process is considered under five major heads referred to governing considerations (i) (ii) (iii) (iv) (v) Purpose: analyses whether the job/activity is essential. Place: analyses whether the job/activity is being performed at the right place. Sequence: analyses whether the job/activity is being done at the right time. Person: analyses whether the job/activity is being performed by the right person. Means: analyses whether the job is done using right materials, right tools, right jigs and fixtures, right measuring instruments and gauges.

4. Developments and Selection Development involves analysis of creative ideas and giving them a creative shape. Development phase is the combination of three phases: evaluation, investigation & selection. a) Evaluation Evaluation assesses the true worth of each creative idea & thereby decide whether an idea should be pursued or discarded. It is therefore, an exercise to shortlist creative ideas. These shortlist ideas explores the following (i) Fault Finding and Fault Identification Evaluation investigates into advantages & disadvantages of each creative idea so as to identify creative ideas which: Appear usable: Such ideas are straightway adopted for further investigation. Possess technical flaws: Such ideas are discarded and removed from the list. Lack confidence: Such ideas are not discarded or thrown away. They are kept aside until a future time when proper data/knowledge will make them usable. Contain more disadvantages than advantages: Such ideas are critically examined to see whether deficiencies can be removed failing which they are kept aside. (ii) Combinations of Ideas Creative ideas covering different aspects of materials, machines, design and the like combined to reduce the number of creative ideas. (iii) Estimation of Cost of Testing and Implementation

Estimation is made to forecast the kind of expenditure that shall require to be incurred to test an idea or a combination of ideas. Cost estimation of each idea helps to narrow down the list of available ideas. b) Investigation Investigation explores as to how the ideas cleared at the evaluation stage as suitable or promising can be converted into practical suggestions. Investigation usually involves preparation of drawings, holding discussion with personnel from design/purchase/finance/quality control etc. making prototypes, conducting trial runs, getting work measurement studies redone from industrial engineering or making cost accountant prepare fresh cost estimates. Investigation involves steps detailed below: (i) Test each idea for its technical feasibility. (ii) Predict performance of each technically feasible idea. (iii) Test each technical feasible idea for its economic feasibility. (c) Selection To select the optimum alternative, each alternative needs to be evaluated against a set of specific factors. The most commonly selected factors are: investigation required, production rate expressed in terms of cycle time per price, and physical effort. To select a preferred alternative, the points scored by each alternative against each specific factor are totalled up. 5. Installation of the Proposed Method Installation Comprises of two vital steps: a) Recommendation Phase Even if the management is solidity behind the methods improvement program, it still requires facts and figures to support specific proposals. That is each change proposal requires method study practitioner to prepare a formal report of this proposal, present his recommendations to the management, provide information on implementation plan and secure approved of the management. b) Implementation Phase No recommendation is effective until implemented. Though the responsibility of implementation is that of top management yet active assistance of methods man is required to(i) Resolve problems encountered in implementation process. (ii) Minimize delay in the implementation process. (iii) Ensure that change proposal is not modified during the implementation process would cause it lose its cost effectiveness/the basis for its original selection.

6. Maintenance of the Proposed Method Method change does not get completed with the implementation of the proposal. Follow up after the implementation: (i) Serves as a monitoring and control mechanism and helps to ensure that revised methods are followed in future. (ii) Audit results achieved from the implementation of the study. (iii) Evaluates effectiveness of the methodology followed and enables the practitioner to take corrective action for future projects. (iv) Appraises the management of the contribution of method changes.

Q 8 a. What is work sampling? Why is it conducted? Answer In B.S. Glossary work sampling has been defined as a technique in which statistically component number of instantaneous observations are taken, over a period of time, of a group of machines, processes or workers. Each observation records what is seen to happen and the percentage of observations recorded for a particular activity or delay is a measure of the percentage of time absorbed by the occurrence. Work sampling thus is a sampling technique where a large number of observations are conducted at random intervals of time and the state of each member of the group working or not working is studied. The observations of non-working are further amplified and the cause of delay (idle) is recorded. The data is so collected can be utilized in a variety of ways. It is conducted in the following aspects: (i) Cost Reduction and Cost Control Work sampling data yields a lot of useful information on delays and interruptions and the causes underlying them. This serves a good basis for a work simplification programme. (ii) Assessment of Allowances for Output Standards The output standards besides relaxation allowances include allowances for delays and interruptions incidental to the work. Such delays can economically be measured with work sampling technique. (iii) Fixation of Output Standards Output standards for short-cycle-repetitive-jobs can economically be set with time study and allied work measurement techniques. It is useful for setting output standards for long cycle jobs and operations involving teamwork. This technique is also used in heterogeneous activities. (iv) Testing the Accuracy of the Output Standards Work sampling can also be used to check the accuracy of the output standards set by means of other techniques of work measurement. L.H.C. TIPPET in Britain originally developed work-sampling technique in 1934 for the British Cotton Industry Research Board. The founder father named it as Activity Sampling. In 1952, the technique was renamed as Work Sampling.

Q 8 b. A work sampling study was conducted for 60 hours on a band saw machine in order to establish the standard time to saw off 200f, En 8 bar stock into 20f x 45mm long pieces. The total number of observations recorded was 250. No working activity was noticed in 50 observations. Manual activity could be observed in 20 observations and average performance was estimated at 90%. The total number of pieces produced during 60hours study was 45. Calculate standard time of the job assuming 12% as relevant allowances. Answer From the question, Let N = Total No. Of Observations = 250 Here, No activity of work = 50 Because, Np = Observations of production activity =Nm + Nn Nm = Observations of machine controlled work = 250-50 = 200 Nn = Observations of hand controlled (manual) work = 20 Because, Np = Nm + Nn = 200 + 20 =220 R = Average performance indeed = 90% n = No. of pieces during the study = 45 s = Duration of the study = 60 hours = 60 x 60 = 3600 minutes Therefore, Overall time per unit (To) = Duration of the study -------------------------------------No. of pieces produced during study Therefore, 3600 To = ------ = 80 minutes 45 Because, Effective time = Overall time X % time spent on productive activity per piece (Te) per unit Therefore, Te = To x Np --N = To x Nm+Nn ---------N

= 80 x 220 --------250 Therefore, Te = 70.4 mts. Tm = Machine controlled portion of effective time per piece OR Tm = Te x Nm ---Np 200 --------200 + 20 = 70.4 x 200 -----------220 Tm = 64 mts. & Tn = Hand controlled portion of effective time per piece OR Tn = Te x Nn ----Np = 70.4 x 20 ---------200+20 = 70.4 x 20 ----------220 Tn = 6.4 mts. Therefore, Normal time = Machine controlled portion of + Normal time of hand controlled Per piece effective time per piece portion of effective time per piece Or, Tn = Tm + Tn x R = 64 + 6.4 x 90 --100 = 64 + 6.4 x 0.90 = 64 + 5.76 Tn = 69.76 = 70.4 x

We have, standard time per piece = Normal time + Allowances Or, Ts = Tn x 100 + Allowances -------------------100

= 69.76 x 1.12 i.e. Ts = 78.13 minutes

Q9 a. What desirable conditions need to be present to guarantee success of an incentive scheme? Answer Incentive is an inducement given to an employee to improve his effectiveness. An incentive scheme should neither be regarded as a substitute for bad management nor it should be looked upon as a substitute for a poor wage structure. It is, infact a tool to create more capacity, increase productivity and to reduce manufacturing cost per unit. A great deal of planning and preparation, therefore, is necessary to formulate a good incentive scheme. The desirable conditions for an ideal incentive scheme are: 1. Fixation of Performance Standards

The success of a wage incentive plan to a large extent depends on the quality of the performance standards. The standards should be accurate and must be based on scientific work measurement studies. An incentive scheme, which considers past performance and its base is bound to fail to the detriment of the management. 2. Methods Improvement

Performance standards should be set after systematic analysis of methods failing which they will soon become loose because workers motivated by higher incentive earnings tend to improve their work methods. This fear of rate cutting to the workmen, leads to resistant to any change even if these changes are the result of methods improvement or due to changes in material or equipment. It is therefore, essential that all tasks prior to installation of the incentive scheme should be studied for methods improvement. 3. Good Production Planning and Control

Good production planning and control system is an important pre-requisite to the installation of a wage incentive scheme. Ineffective time in all forms must be reduced to its minimum. Each workman must know in advance his next work assignment. Temporary inventory banks should be created to avoid possibility of loss of time due to interruption at the preceding operations. Overlapping of operations should be carefully planned to ensure continuous working of the machines. 4. Proper Accounting of Production

In the absence of proper accounting system, some workmen may record bogus figures of production to increase their earnings and thereby make the company lose heavily. This is especially important for machines where cycles times are short.


Fair Wage Structure

Incentive scheme should not be of poor wage structure. A scientific job evaluation programme to ensure that work differentials are reflected in wage differentials should establish base rates. Minimum decent wage must be present before installing a scheme and the same should be guaranteed irrespective of workers performance. The guaranteed wage rates must be kept up-to-date. General increase in wage rate on conclusion of the wage agreements should be added to the base rate. 6. Elimination of Overtime

Overtime is single factor, which can thwart the success of an incentive scheme. Overtime must be eliminated to guarantee the success of the wage incentive scheme, because overtime tends to reward workmen more than the incentive scheme. 7. Inspection and Quality Control

Proper system of inspection and quality control is a must before installation of an incentive scheme. Inspection points should be such that defectives are automatically segregated. Inspection results should be made known to the worker as early as possible. The frequency of inspection should be adequate so that defects are highlighted and are corrected as production takes place. 8. Trial of Performance Standards

Many an incentive schemes fail in their objective due to loose standards. Not only the output standards should be based on scientific work measurement studies, they should also be tried out. Work sampling and production studies are two other techniques of work measurement, which can be used to test the viability of the standards. 9. Acceptance by Labour Body

Another important desirable condition scheme for incentive is its acceptance by the representatives of the employees. The following points are important: a) Management at all levels, especially shop management and union should be sold to the need and desirability of incentive scheme. b) Each feature of the proposed scheme namely incentive plan, method of calculating incentive bonus, performance standards, period of payment etc. should be explained, discussed and if necessary modified. c) Modifications, if mutually acceptable, should be incorporated. The installation of the scheme should be postponed until agreement is reached.


Accurate Projection of Future Business

To use an incentive scheme as means of increasing production capacity for a short-term boom period is to court disaster. The incentive scheme once installed must remain in operation for at least next five years. 11. Training Supervisors

Training of supervisors is equally important. The policy of the management on wage incentives should be made clear to each of the supervisors so that they understand each and every problem concerning the plan and are able to answer employees questions to latters satisfaction. Experience of the author is that with the introduction of an Incentive scheme, the supervisor has additional duties: Concentrating on quality products so that workman in their enthusiasm to earn more and do not produce defectives. Keeping facilities in order so that work can proceed smoothly. Making available necessary production aids on time. Maintaining proper records of time and output made by workmen. Assisting workmen to calculate incentive earnings when they approach him for clarification/confirming the payments received.

Q9 b. A welder working under the Hasley Plan completed the following jobs in an 8 hours shift. The standard time for each job is given in the table below: --------------------------------------------------------------------------------------Time Taken Standard Remarks Job No. From To Time --------------------------------------------------------------------------------------J-3012 7AM 9AM 3 ----J-3385 9AM 11AM 5 between 11:00-11:30AM 11:30AM 12:30PM workmen have lunch break J-3528 12:30PM 2:30PM 2 ----J-3539 2:30PM 3:30PM 2 Job could not be done as workman while moving fell down and got badly hurt. ---------------------------------------------------------------------------------------Answer 9 (b): --------------------------------------------------------------------------------------Time Taken Standard Actual Bonus Job No. From To Time Time(Ts-Tt) (Ts-Tt)x R -------------------------------------------------------------------------------------------J-3012 7AM 9AM 3 1 5.00 J-3385 9AM 11AM 5 2 10.00 11:30AM 12:30PM J-3528 12:30PM 2:30PM 2 0 0 J-3539 2:30PM 3:30PM 2 1 5.00 --------------------Total 20.00 since, workman is paid Rs. 80/day therefore or workman is paid (R) 80/8 As per rule of Hasley system, We have, Bonus for each job = (Ts-Tt) x R = (Ts-Tt) x 10 Total incentive bonus & Earnings for the day = Rs. 20 = 8 x 10 + 20 = Rs. 100

= Rs. 10/hour

Q10 a. What are X -R Charts? How are they made and used in controlling a process? Answer X -R chart is a pair of chart consisting of an average chart (called X chart) and a range chart (Called R chart) placed one below another on a piece of graph paper. The X chart is used to control the mean value of the characteristic and R-chart is used to restrict the range variations in the values. X -R charts are drawn when the characteristics are measurable. Each chart consists of three values: a central line, upper control limit and lower control limit. The control line represents the arithmetic average of the sample means, which equals the mean of the population, . The upper the upper and lower control limits are located at three standard deviation on either side of the central line. Samples of fixed size are drawn at regular intervals and measurements are taken. The samples wise values of the mean and range are plotted in their respective X and R charts. The spread of sample points in the charts is studied to decide the remedial action to be taken. The X chart analyses whether or not the mean of the quality characteristics is within control while R-chart analyses whether or not the variability is within control. Steps to Create X -R chart Step 1: Collect Data a) Collect sufficient samples spread over a reasonable period. Each sample must be of equal size. b) Measure each component comprising the sample for the given quality characteristic. c) Record individual measurements on a work data sheet. Step 2: Calculate mean ( X ) and range (R) of each sample a) The mean ( X ) is average of each sample and is obtained by totalling the individual measurements of the units comprising the sample and dividing the total by the sample size (number of units in each sample). b) The range (R) is obtained as the difference between the highest and lowest measurement of a sample. c) The values of X and R are recorded sample wise either on the extreme right of the individual measurements on the data sheet or in a separate table.

Step 3: Calculate grand average ( X ) and mean range ( R ) a) The grand average ( X ) is the average of the sample averages and is obtained by dividing the total of the averages of all the samples by the total number of samples. b) The mean range ( R ) is the average of the ranges and is obtained by dividing the total of the ranges of the samples by the total number of samples. Step 4: Set up Control chart for the average a) Set up a control chart with central line drawn at X 1, upper control limit located X +A2R and lower control limit set up at X -A2 R . b) Plot the averages to see whether the process was under control when samples were drawn. c) If all points fall within the control limits, the process is said to be under control. d) If process is not under control i.e., some points falling outside the control limits, eliminate points outside the control limits and compute new trial control limits for the remaining points. e) Repeat step 4(d) until all points fall within the control limits. f) Control limits in a practical situation should be revised from time to time as additional data is accumulated. Step 5: Calculate Control limits of the range chart a) The control chart for range chart is set up with central line as R , upper control limit (UCLR) located at D4 R above the central line and allowed lower control limit (LCLR) at D3 R below the central line. b) Plot the value of the range of each sample. c) If all points fall within the control limits, no modification is necessary unless it is desired to reduce the process dispersion d) If range chart exhibits lack of control indicated by some points falling outside the control limits, eliminate those points out of control and compute new trial control limits. e) Repeat step 5(d) until all points fall within the control limits. f) Control limits in a practical situation should be revised time to time as additional data is accumulated.

Step 6: Use control chart a) Collect samples of fixed sized at specified intervals of time. b) Measure each unit of the sample for the quality characteristics, calculate mean and the range of each sample. c) Plot the values of X and of each sample in their respective charts. d) Study the trend of the points of the points to interpret and suggest remedial action.

Q10 b. ABC Company produces a solvent which must contain 3 percent of alcohol. It tries to maintain the actual percentage at 3???%. It tests hourly in samples of five. The following table shows the results of last five samples. Setup a control chart for mean and examine whether the process is under control. ____________________________________________________________ Sample_______________%alcohol________________________________ 1 2 3 4 ____________________________________________________________ 1 2.9 2.8 3.0 2.8 2 2.9 3.0 3.0 3.0 3 3.0 3.1 3.1 3.1 4 3.0 3.0 3.0 3.0 5 2.9 3.0 3.1 2.9 ____________________________________________________________

5 3.1 3.0 3.0 3.0 3.1

value of constants A2, D3 and D4 for the sample size of 5 are 0.5768, O and 2.114 respectively. Answer 10 (b): Given that, Sample 1 2 3 4 5 1 2.9 2.9 3.0 3.0 2.9 2 2.8 3.0 3.1 3.0 3.0 3 3.0 3.0 3.1 3.0 3.1 4 2.8 3.0 3.1 3.0 2.9 5 3.1 3.0 3.0 3.0 3.1

For sample 1, mean X 1 = 2.9 + 2.8 + 3.0 + 2.8 + 3.1 = 14.6 =2.92 5 5 For sample 2, mean X 2 = 2.9 + 3.0 + 3.0 + 3.0 + 3.0 = 14.9 = 2.98 5 5 For sample 3, mean X 3 = 3.0 + 3.1 + 3.1 + 3.1 + 3.0 = 15.3 = 3.06 5 5 For sample 4, mean X 4= 3.0 + 3.0 + 3.0 + 3.0 + 3.0 = 15 = 3.0 5 5 For sample 5, mean X 5= 2.9 + 3.0 + 3.1 + 2.9 + 3.1 = 15 = 3.0 5 5 For sample 1, the highest and lowest measurements respectively are 3.1 & 2.8

Therefore, Range ( R 1) for sample 1 = 3.1 2.8 = 0.3 Range ( R 2) for sample 2 = 3.0 2.9 = 0.1 Range ( R 3) for sample 3 = 3.1 3.0 = 0.1 Range ( R 4) for sample 4 = 3.0 3.0 = 0 Range ( R 5) for sample 5 = 3.1 2.9 = 0.2 The individual figures of range for different samples in given below: Sample 1 2 3 4 5 Grand average of samples, i.e., X = 2.92 + 2.98 + 3.06 + 3.0 + 3.0 = 14.96 = 2.992 = 2.99 5 5 Average mean range of samples i.e., R = 0.3 + 0.1 + 0.1 + 0 + 0.2 = 0.7 = 0.14 5 5 Now, set up control chart Central line = CL X = X = 2.99 Upper control line = UCL X = X + A2. R = 2.99 + 0.5768 ??? 0.14 = 2.99 + 0.09 i.e. UCL X = 3.08 Lower control line = LCL X = X A2. R = 2.99 0.5768 x 0.14 = 2.99 0.09 i.e. LCL X = 2.90 The averages of the samples have been posted into the chart to see whether or not the process in under control (Fig 1) Mean ( X ) 2.92 2.98 3.06 3.00 3.00 Range (R) 0.3 0.1 0.1 0 0.2

AVERAGE CHART [X(Bar)-chart]

Diameter measurement 3.15 3.1 3.05 3 2.95 2.9 1 2.92 2 3 4 5 6 2.98 3.06 3 3 1 2 3 4 5 6

Sample number

In the above chart, all the points are within the control limits i.e., it is to be said that X chart represents a process under control. Now, set up a range chart Central line = CLR = R = 0.14 Lower control line = LCLR = D3. R = 0 x 0.14 i.e. LCLR = 0 Upper control line = UCLR = D4. R = 2.114 x 0.14 = 0.295 i.e. UCLR = 0.30 The range chart for the above control parameters is drawn in Fig 2.

because, D3 = 0

because, D4 = 2.114


0.6 Range number 0.5 0.4 0.3 0.2 0.1 0 1 2 3 4 0.1 0.1 0 5 6 Sample number 0.3 0.2 1 2 3 4 5 6

The values of R are within the control limits.

Q12 a. What is critical path? What does it signify? How is it identified? Answer A network consists of chains of activities called path of network. Addition of durations of activities on any path gives the duration of that path. The comparison of durations of the paths identifies a path whose duration is the longest. It is this path, the path with the longest duration, which sets the overall duration of the project, is called critical path. And the activities of the critical path are known as critical activities. Characteristics of Critical Path 1. 2. 3. 4. Every network has a critical path. It is possible to have more than one critical path. A critical path is one of the connecting links between the first and the last events. A critical path may have lesser number of activities compared to non-critical paths. 5. A critical path may see through a dummy activity. Significance of Critical path 1. Critical path helps to identify a set of activities and events, which are critical and as such, must be carefully monitored and controlled. 2. Mere allocation of additional resources does not help to reduce the duration of the project. To shorten the time of a project, some of the activities on the critical path must be shortened. 3. Certain resources like men, machines and money are generally common to different activities. Critical path identifies the activities to be given preference in allocation of resources. 4. Each and every activity of the project need not be controlled. If critical activities are started and completed on time, project automatically gets completed on schedule. Since critical are few in number, identification of critical path helps to exercise control by exception. Identification of Critical Path Performing the following four steps can identify critical path in a network: (i) Enumerate all the paths in the network. (ii) List down the activities on each of the above paths. (iii) Sum up the times of the activities along each path. (iv) Compare the duration of the paths to identify a path whose duration is the longest. It is this path, which is called critical path.

Q12 b. Implementation of a value change proposal (VCP) requires eight activities whose three estimates prepared by the value analysis syndicate is given below: Activity 1-2 1-3 1-4 2-5 3-5 4-5 4-6 5-6 Answer Expected time of an activity can be obtained from the three time estimates using the formula: Te = a+4m+b 6 Where, a = Optimistic time m = Most likely time b = Pessimistic time From the above formula, we can calculate the expected time, which is plotted in the below table: Activity (i - j) 1-2 1-3 1-4 2-5 3-5 4-5 4-6 Three time estimates (a-m-b) 2 -3 -10 2-4-6 2 -6 - 10 1-1-1 4 - 5 - 12 2-3-4 2-5-8 Expected time (te) 4 4 6 1 6 3 5 Optimistic 02 02 02 01 04 02 02 03 Estimated duration (weeks) Most likely 03 04 06 01 05 03 05 05 Pessimistic 10 06 10 01 12 04 08 13


3 - 5 - 13

Network diagram for the above project is shown in the Figure 1:

Figure 1 (Network Diagram)

Q13. The Operator engaged on an assembly operatiion performed the following work elements. Given below are the individual elemental times and the average rating. ELEMENT A B C D E i) ii) Answer Normal time computation from observed times are shown in the below table: ELEMENT A B C D E 1 0.22 0.14 0.37 0.10 0.12 CYCLE TIME 2 3 4 0.24 0.28 0.26 0.18 0.35 0.09 0.13 0.15 0.37 0.12 0.11 0.13 0.33 0.10 0.11 5 0.25 0.15 0.33 0.10 0.13 RATING 80 100 120 90 100 NORMAL TIME (IN MINUTES) 1.25 X 80/100 = 1.00 0.75 X 100/100 = 0.75 1.75 X 120/100 = 2.10 0.51 X 90/100 = 0.46 0.60 X 100/100 = 0.60 TOTAL = 4.91 1 0.22 0.14 0.37 0.10 0.12 2 0.24 0.18 0.35 0.09 0.13 CYCLE TIME 3 0.28 0.15 0.37 0.12 0.11 4 0.26 0.13 0.33 0.10 0.11 5 0.25 0.15 0.33 0.10 0.13 RATING 80 100 120 90 100

Calculate normal time of the job. Calculate standard time of the job assuming relaxation allowance of 15% and contingency allowance of 5%.

# Normal time of the job = 4.91 minutes

..(i) ..(ii) ..(iii)

# Relaxation allowance = 15/100 X 4.91 = 0.74 minutes # Contingency allowance = 5/100 X 4.91 = 0.25 minutes # Standard time of the job = (i) + (ii) + (iii) = 4.91 + 0.74 + 0.25 i.e. Standard time of the job = 5.90 minutes