eee-viii-industrial management_ electrical estimation and e [06ee81]-notes

8/13/2019 Eee-Viii-Industrial Management_ Electrical Estimation and e [06ee81]-Notes

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INDUSTRIAL MANAGEMENT, ELECTRICAL ESTIMATION & ECONOMICS 06EE81

CITSTUDENTS.IN Page 1

VIII SEMESTER

INDUSTRIAL MANAGEMENT, ELECTRICAL ESTIMATION &

ECONOMICS

Subject Code : 06EE81 IA Marks : 25

No. of Lecture Hrs. /

Week

: 04 Exam

Hours

: 03

Total No. of Lecture

Hrs.

: 52 Exam

Marks

: 100

PART - A

UNIT - 1

PERSONAL MANAGEMENT: Recruitment and selection, training of personal employer and

employee relationship, causes andsettlement of disputes. 5 Hours

UNIT - 2

PRODUCTION MANAGEMENT: Plant location, plant lay-out, CPM and PERT strategies, line

balancing, automation, statistical qualitycontrol, control chart, motion study. 7 Hours

UNIT 3

Economics of power factor improvement, Definitionof power factor, Factorsaff ecting power f actor,Disadvantages of low power factor, Causesof low power factor, Advantagesof high power f actor,

Avoidances of low power factor, Methodsof improving power factor, Relative merits and demerits

of static and synchronous condensers, Economics of power f actor improvement, Advantages of


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INDEX

Sl.no Contents Page no

UNIT-1

x PERSONAL MANAGEMENT: Recruitment andselection training of personal employer

5-18 x employee relationship causes

x settlement of disputes

UNIT - 2

x PRODUCTION MANAGEMENT : Plant location

19-50

x plant lay-out, CPM and PERT strategies

x line balancing, automation, statistical qualitycontrol

x control chart, motion study

UNIT 3

x Economics of power factor improvement

51-59

x Definition of power factor, Factors aff ecting power

factor, Disadvantages of low power f actor

x Causes of low power factor, Advantagesof high power

factor, Avoidances of low power f actor

x Methods of improving power factor, Relative merits

and demerits of static and synchronous condensers,

Economics of power factor improvement

x Advantages of static condensers, Advantages and

disadvantages of synchronous condenser, workedexamples.

UNIT - 4 x TARIFFS : Aim and ob jectives of Tariff s 60-74

x factors governing the Tariffs, componentsof Tariff s


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x Choiceof electrical power supply, Workedexamples

UNIT 5 x Choiceof plants and economic selection

75-86 x Factors to be considered in selecting equipment x Methodsof selection, Worked examples.

UNIT 6 x INTERIOR WIRING SYSTEM : Wiring system 87-101

x earthing, and estimation of wiringinstallation

UNIT - 7

x POWER INSTALLATION: Load calculation

87-101 x wire size selection, wiring materials for power circuits

estimate for motor installation

x pumpset, workshop, theater etc.,

UNIT - 8

x Depreciation and valuation of machinery

102-123 x Inventory, Economic orderquantity

x B reak-even analysis.


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UNIT - 1

PERSONAL MANAGEMENT

Recruitment and selection, Trainingof personal employer and employee relationship Causes andsettlement of disputes.

The aims of training a supervisor are:

x To develop leadership qualities in him.

x To develop in him the necessaryskill so that, the same may beimparted to theworkers

x To impart knowledge about managementprinciples to effectivelyinteract with the workers.

x To develop the skills to improve upon theexistingmethodof work.x To provide him adequate knowledge about labour problems and legislations.

x To make him qualifyfor promotions.

x To develop in him the ability to plan,coordinate, control and build up an efficient team.

x To train him about safetyrules and practices to be followed in his section.

Methods of training supervisors (lowerlevel managementtraining)

The various methodsof training supervisors are:

Induction and orientation

Lecture method

Conferences

Written instructional methodand

Training withinthe industry (TWI)

Induction and orientation: This training is given to newemployees appointed as supervisor.

x To familiarize him with the organization he has joined, its history its structure and the

products that arebeing manuf actured.

x To give inf ormation about theauthorities and responsibilitiesassigned to him.


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x To familiarizethe proper useof tools and equipments and

x To explain the personal policies like disciplinary rules, conditions of employment etc.

Lecture method : Lectures are arrangedby experts within or outside the company aboutthe important topics such as techniques and responsibilities of shop management, company

policies, production planning methods, methods of training workers, job evaluation

techniques, merit rating, safety policies, time and motion study etc. The experts usemodern

methodsof teaching using audio- visual aids such as OHP, slides, technical films, LCD

pro jection etc. so that thelearning process becomeseasier.

Conferences: During a conf erence, a homogeneous groupof people join together todiscuss

about particular sub ject matterof their choice, suchas how tocontrol absenteeism, how to

reduce scrapetc. A conference helps in exchanging ideas and experience of diff erent people.

As arrived at. Participation in the conf erences, changes their attitudes, analytical and

questioning abilities aredeveloped and finally helps in solving a particular problem.

Written instruction method: In this method, written instructions are given to the super

visors on standardpractices to be followed for immediate or future use as to how various

jobs have to be perf ormed, which formsa permanentrecord.

Training within the industry (TWI): This method of training is used to impart civilian

supervisory skills and is arranged on thebasis of group conference attendedby supervisors

on a part time basis. The super visors meet informally in a session and discuss about the

basic principles of their own jobs and learn from each otherexperience. The TWI method

imparts training to the supervisors which gives them the ability to give clear instructions to the workers to develop leadership qualities, the ability to analyze and handle labour

problems, to improve the skills of applying new improved methodsof doing the job and how

to prevent accidents create safety conditions and awareness among the workers aboutthe

hazards of accidents.


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Training of executives (managerial training)

The training of executives is an attempt toimprove their managerial skills througha planned

and deliberate process, which develops certain attitudes, skills and knowledge for the

eff icient running and to increase the eff ectiveness of the organization. The efficiency of

the organization directly depends on howwell the managers aretrained to plan and execute

the plans eff ectively.

The basic aims of training the executives are:

i.

ii.iii.

iv.

v.

The self development of the executives so that, they acquire the personnel drive, initiative,

inner motivation and abilities to run the organization eff ectively.

For improving the aptitude of the executives. For educating them to develop a broader outlook about the people working with them, to

improve their capacityof judgment and decision making abilities.

To provide an effective organizational climate and

To effectively use the human resources and to exploit their talents and potentials fully so

that, they becomeeligible forhigher positions.

Methods of training executives

The methodsof training the executives maybe broadly divided into two types:

i)

ii)

On-the- job training and

Off -the- job training

i) On-the-job training method: The various methods of on the job training of the

executives

enlargement

are (a) understudies (b) membership of the committee (c) job rotation (d) job

and job enrichment (e) management byob jectives.

a. Understudies: In this method, the trainee is appointed as an assistant to some senior

manager. The trainee, while working as an assistant learns the ways of working from his

superior under whom heis appointed. This methodis used for the training of new andyoung

managersfor general managementpositions.

b. Membership of the committee: In this method of training, the trainee is appointed as a

member of a committee consisting of the executives of various departments. The trainee


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develops the required skills for solving problems in a group discussion with executives,who

have lot of experience in solving suchproblems.

c. Job rotation: In this method, the trainee is shif ted from one job to another periodically, this

exposes theemployee to diff erent type of experiences and broadenshis knowledge and skills

about diff erent types of jobs he may berequired to plan and execute.

d. Job enlargement and job enrichment : Job enlargement is a horizontal expansion of the job.

New tasks will be added to the already existing job without increasing the level at

responsibility. Job enrichment is the vertical expansion of the job. This increases the level of

the responsibilityof the executives.

e. Management by objectives (MBO): MBO is a processof setting up of the ob jectives jointly

with the trainee and his superior. This type of goal setting f acilitates the learning through

interaction between thelearner and his superior. II . Off-the-job training: The various methodsof off -the- job training are (a) lecture method(b)

case study method(c) business games(d) role playing and(e) conf erences.

a. Lecture method: as explained in previous section

Case study method: In this methodof training, a real life or hypothetical problem is given

to a small of trainees for analyzing theproblem and tofind out thesolution throughproblem

analysis by discussion and participation. This method is best suited for a small group of

twenty or less trainees. The trainees mainly learn from their mutual discussion and the trainer

plays a passive role. The trainer assists the group through theuse of questions, directs the

guides the line of thinking about the problem. He helps in sharpening their analytical abilityto

enlarge their capacity to take a broader look at the problem in arriving at a solution. The

trainee analyze the problem objectivelydiscuss aboutalternate solutions, and ultimately come

out with the best solution. This method of training helps the trainees to develop analytical

thinking, to get problem solving ability,to broaden their outlook and to look at the problem

from diff erent angles and to develop decision making skills, verbal

inter-personal relation skills.

communication skills and

b. Business games: In this method, the trainees are formed into several groups. The trainees in

each group may be from diff erent departments of the same organization or from diff erent

organizations. Each group discusses about sub ject like production planning, research and

development, cost control, inventory control, sales f orecasting etc. The managementprovides


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with the relevant data pertaining to thesub ject of discussion and the trainer provides them with

a simulated data regarding results arising out of decisions made by them, whichin turn leads to

fresh decisions at the end of the business game. This method of training it develops the

decision making abilities, teamwork and develops interaction betweendiff erent groups. The

trainees develop the talents to deal with deal with the real life situations. They learn from the

experience of othersabilities toanticipate problems in advance and tosolve them.

c. Role playing; this type of training helps the trainees to develop leadership qualities and

human relations. The trainers are given either oral or written descriptions of a situation and

the role they are required to play in the situation. Two or more trainees are assigned certain

roles to be played. The trainees are required to play their role spontaneously before theother

participants, who watch, analyze, and criticize thebehavior of the role players. This type of

training is called as f ish bowl exercise because, the participants are in the centerof the areaand the others areobserving their perf ormance.

The typical examples of role playing are: manager conduction an interview, a salesman

promoting sales, an engineer explaining a new methodof working etc. The advantageof this

methodof training are: (i) it generatesenthusiasm and interaction amongparticipants (ii) the

trainees get a chance to observe the performancesof others (iii) it develops humanrelations

skills and brings aboutattitudinal change.

d. Conference: explained in previous section

Employer and employee relationship

The concept of industrial relations means the relationship between the employees and the

managementin the day-to-day working of the industry. The major parties in the industrial

relations are: the employees, employee representatives, employers, associations of employers,

the government, courts and tribunals. The best way of increasing the productivity of an

industry is by maintaining good relations between the employers and the employees.

Industrial relations exist in various stages such as (i) between government andindustry (ii)

between the management and the managers (iii) between the managers and workers. The

government exerts its influence on industrialrelations throughits labour policy, implementing

labour laws, the processof conciliation and ad judication by playing the role of mediator. It

tries to regulate the activities and behavior of both employees organizations and employers


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organizations. The relationship between theemployers i.e. managers and theemployees i.e

the workers arevital forthe successfulrunning of an industry.

Employer is a crucial factor in industrial relations. He employs the worker, pays the wages

and various allowances, and regulates the working relations through various rules and regulations and by enf orcing labour laws. He expects the workers to follow the rules,

regulations and thelaws. He further expects them towork hard and putin their best effortsto

maximize production.

very important.

For this, maintaining good working relations with the employees in

In the early days, the relationship between theemployer and the employee was governedby

the assumption that the employers were like kings and were free to offer any terms of

employment and treat their employees in any way they wanted. There were few laws andprotections available for the employees that would practices and demanded that employees

are also protectedby various labour laws of the government. There has been a phenomenal

growth in employment, wages, benef its, working conditions, statusof the workers andvarious

facilities areprovided to them.

Objectives of good industrial relations

The main ob jectives of good industrialrelations are:

i)

ii)

iii)

iv)

To maintain congenial relations betweenemployees and theemployer.

To promote anddevelop congenial labour managementrelations.

To enhance theeconomic statusof the workerby improving wagesand otherbenef its.

To minimize industrial conflictsand toregulate production.

v) To provide an opportunity to the workers to have a say in the management and decision

vi)

vii)

viii)

management.

To solve the problems of the workers throughmutual negotiations and consultation with the

management. To encourage thedevelop tradeunions in order toimprove the workers strength.

To maintain democratic approachin solving the problems of the workers.


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Code of industrial relations

The management and the tradeunions f ormulate a code of industrial relations in a numberof

industries. The codesof industrialrelations are:

i) ii)

iii)

iv)

v)

The managementshould have a positive attitude towards trade unions and employees.The tradeunions and employees must have a positive attitude towards themanagements.

The attitude of the employees towards the trade unions must bepositive.

Managementshould not influence theemployees regarding joining or withdrawing fromtrade

unions.

The managementshould not encourage the workers to formrival unions.

vi) All the collective bargaining agreements should be implemented in good faith as early as

possible.

vii) The employees and the trade unions should co-operate in implementing the company

viii)

ix)

strategies.

All the employees must attend the training programs when they are asked to doso.

All employees must accept the transfer orders made by themanagement.

x) Employees and trade unions must be allowed to participate in decision making and

xi)

implementation at diff erent levels of the company.

The employees should go on strike only as a last resort and must doso by giving at least one

weeks prior notice. xii) The management should use the lock-out technique only as a last resort and must give a

notice to the tradeunions at least one weekin advance.

Industrial peace

Permanent industrial peace is required for the growthof the industry, which can be ensured

through thefollowingmeasures.

There must be aneffective machineryto preventstrikes and their settlement.

The government mustbe vested with the authority to settle disputes between

and tradeunions.

management


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There must be provision to form bipartite and tripartite committees to draftpersonal policies,

codeof conduct, codeof disciplineetc. for the employees.

There must be provision to form various committees to implement and evaluate the collective

bargaining agreements, court orders and judgments, awards of voluntaryarbitration etc.

Industrial disputes

Disputes are commonin industries. They manif est in the form of strikes, bundhs and lock-

outs. The consequencesof disputes are loss of production, loss of profit, loss of market and

even theclosure of the plant.

According to the Industrial Disputes Act 1947,

industrial dispute means, any dispute or diff erence between employers and employees, or between employers and workmen, or

between workmen and workmen, which is connected with the employment or non-

employment or terms of employment or with the conditions of labour of any person . In

practice, a dispute mainly relates to the diff erence betweenemployers and employees.

Causes of disputes

The causes of industrial disputes are many andvaried.The ma jor causes are:

i)

ii)

iii)

iv)

v)

Wage demands

Union rivalry

Politicalinterf erence

Unfair labour practices and

Multiplicityof labour laws.

i) Wage demands: One of the mostimportant causes for industrial disputes is the demandby

the employees for morewages. High inflation whichincreases the costof living results in the never ending demandby the tradeunions for the increase in the salaries, bonus, incentivesand

otherallowancesof the employees.


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Normally, the tradeunions and the managementwith have a wage agreementvalid for three

years. Each new agreementis the outcomeof a prolonged battle between themanagement

and trade unions, of ten resulting in strikes and lockouts. Any agreement reached in one

company will inspire trade unions in other companies nearby to go on strike for demanding

morewages.

ii) Union rivalry : In most of the organizations, there are multiple unions, which lead to inter-

union rivalries. During the settlement of disputes, if the union agrees for the settlement,

another union will opposeit. This results in never ending disputes in the industry. Multiplicity

of unions results in peculiar problems to the managers. One such problem is the authenticity

of memberships. Unions declare the numberof membersin their unions and

when ultimately the added up memberswill be more than theactual numberof employees.

Another problem will be the selection of a bargainer in the process of settlement Union

rivalry often may lead to large scale violencealso.

iii) Political interference : Major trade unions are affiliated to politicalparties to derive strength

from their political clout. When theunions get politicized, theideological issues divide and

f ragment unions on party lines. When unions multiply because of diff erent political

affiliation inter union rivalry erupts andsettlements become difficult. Anotherproblem is,even when thesettlement is f avorable to all the workers, certain unions refuse tosign the

agreement becauseof their political ideologies, thus keeping the dispute alive. The various

trade unions supportedby ma jor political parties in our country are: CITU affiliated tothe Communist Party of India, INTUC affiliated to the congress partyof India. Every political party somehow manages to engineer strikes, gheraos and bundhs to

demonstratetheir political clout.Invariably, the political party whichis in power favours the

union which is affiliated to it.

disputes.

Politicization of trade unions results in endless industrial

iv) Unfair labour practices: Most of the disputes in the industries is becauseof the attitude of

the management towards the employees. The following are the unfair, labour practices

adopted bymanagements.

a) The managementgenerally do not want to talk to the employees or trade unions about the

disputes, even when they arewilling to talk, whichenrages theworkers.


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b) The management does not want torecognize a particular trade union and createsrivalry by

supporting other union which is likely to fall in line withthe policies of the management.

c) During negotiations for the settlement of a dispute, the representatives of the employers always take the side of the management; createtensions which ultimatelylead to strikes and

lockouts.

d) The managements unwillingness to promote workers with merit but always help yes

masters tohigher positions.

e) The managementalways trying torestrain workers from f orming trade unions with threatsof

dismissal or lockouts,if tradeunions are formed.

f) The managements attitude to victimize the workers evenfor minor mistakes in their work

or misconduct and awarding disproportionate punishment.

g) Transferring workers fromone place to the other, even when it is not required.

h) When the workers are on strike, the managementinsisting on each worker tosign a good

conduct bond asa precondition to allow him to resumework.

i) Indulging in acts of force and violence against workers and failure to honour thesettlement

or agreement.

v) Multiplicity of labour laws: In almost all the countries in the world, labour laws have been

enacted to create conditions for the protection of the labour from unfair employment

practices by the managements and to provide a legal framework to ensure the safetyand

securityof the workers. Labour legislation is regarded as the mostdynamic institution.


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In our country, there are about 180 acts, both central and state, earning our country the

dubious distinction of being one of the few highly labour legislated countries in the world.

The result of so many acts is endless confusion, industrialdisharmony, loss of production

and exploitation of labour by the management and the management by thelabour.

Judiciaryalso has notplayed a positive role in solving theproblems of the labour. By giving

conf licting decisions, the judiciary has aggravated indiscipline among workers. The

judiciaryhas gone to the extentof saying that even an illegal strike is justif ied . The result

is that, the indiscipline in the industry has spread like wild fire and very badly aff ected

productivityand national growth.

Settlement of disputes:

The important methodsof resolving disputes are:

i)

ii)

iii)

iv)

Collectivebargaining

Conciliation

Adjudicationand

Voluntary arbitration

i) Collective bargaining: Collective bargaining is a process of discussion and negotiation

between twoparties to resolve a dispute on mutual consent. It is a collective bargaining

between employers and a group of employees, who agree upon the conditions of work.

Collective bargaining f ormulates the terms and conditions under which labour and

management may cooperate and work together over a certain period. In collective

bargaining, the employer does not deal with the workers directly butdeals with unions of

workers.

The collective bargaining processinvolves six ma jor steps: (a) preparation of negotiations

(b) identifying bargaining issues (c) negotiation (d) reaching the agreement andratif icationand (d) administration of the agreement.

a) Preparations for negotiations: Careful advance preparations are required from bothsides

becauseof the complexity of the issues and wide range of topics to be discussed during


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negotiations. Each side should presentits case in an orderly way with facts and f igures for

discussion during negotiation.

b) Identifying bargaining issues: Normally, the major issues discussed in collective

bargaining fall under thefollowing categories:

i. Wage related issues which include basic wage rates, wage diff erentials, overtime rates,

allowancesetc.

ii. Supplementary economic benef its which include issues such as pension plains, paid

vacations, health issues etc.

iii. Institutional issues such as rights and duties of the employees, trade unions and quality of

life programs.

iv. Administrativeissues such as seniority, discipline,health and safetyof the employees etc.

c) Negotiation: During negotiation each side will presentits initial demands. The negotiation

goes on for days till the final agreement is reached. Negotiation is an art. Successful

negotiations depend on the knowledge and skill of the negotiators. A good negotiator must

know the technique of listening skills and theability tocommunicate clearly.

d) Reaching the agreement andratif ication: After the initialagreement, the twosides returnto

their respective groups to find out whether the agreement is acceptable to them. The

negotiating team explains the points of agreement and places the agreement bef ore the

membersfor a vote. If voted, this agreementis formalized into a contract. The contracthas

to be clear and precise and thereshould not be any ambiguity in the interpretation of the

points in the agreement. The contract is signed by both parties af ter ratif ication by the

membersof both thegroups.


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e) Administration of the agreement: Signing the agreementis not the end of collective

bargaining, rather thebeginning of the process. The agreement mustbe implemented in

the letter and spirit o the provisions of the agreement. Violation of any provision leads to

disputes again. The managementis primarily responsible for implementing the agreement.

H.R.D managerplays a crucial role in the day-to-day administration of the contract. He or

she works with the management and the employees to establish a good working

relationship

spirit.

between them to implement the provisions of the agreement in letter and

ii) Conciliation: Conciliation is a processby which representatives of both themanagement

and workers are brought together beforea third party with the purposeof persuading them

to arrive at an agreement by mutual discussion between them. As per the Industrial

Disputes Act, 1947 the governmentis authorized to appoint conciliators to mediate andpromote thesettlement of industrial disputes. A conciliator appointed by the government

tries to bring about an agreement between the twodisputed parties, but ultimately the final

decision rests with the parties themselves. The conciliator can only offer a solution

acceptable to both the parties. The parties may accepthis recommending or re ject it all

together.

iii) Adjudication: If conciliation f ails, the dispute may be settled by a compulsory

ad judication which the parties have no otherchoice than to acceptit. Adjudicationmeansa

mandatory settlement of industrial disputes by labour courts, industrial tribunals or

national tribunals under a industrial disputes act. Once a dispute is ref erred for

ad judication, the awardof settlement by a labour court or tribunal is binding on both the

parties. The system of ad judication is the mostsignificantmethodof resolving disputes but

is oftencriticized forthe delay in dissolvingthe conf licts.

iv) Voluntary arbitration : V oluntary arbitration is one of the most recognized and

democratic ways of settling industrialdisputes. It is the best methodof resolving industrial

disputes when conciliation methodfails. In this method, a neutral third party studies the dispute, listens to both the parties, gathers the inf ormation and then makes the

recommendations that are binding on both the parties. In this type of settlement, the

agreement must bein writing anda reference to voluntary arbitration must be madebefore

the dispute is referred tolabour court or a tribunal. The arbitrators shall investigate the


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dispute and submit the award of arbitration to the government with the signature of the

arbitrators.


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UNIT 2

PRODUCTION MANAGEMENT

Plant location,plant lay-out CPM and PERT strategies line balancing, automation Statistical quality control, control chart, motion study.

Introduction:

Among all the functional areas of management, production is very crucial in any industrial

organization. Production is the process by which, raw materials and other inputs are

convertedinto useful finished products. Manuf acturing is another word synonymous with

the production.

Manuf acturing normally refers to a process of producing only tangible goods, where as

production includes the creation of tangible goods aswell as intangible services.

Production management refers to the application of managementprinciples to the production

f unction in a f actory. It involves the application of planning, organizing, directing and

controlling of the production process. The standardof living of the people in any nation

depends on the quality of the goods produced. Production creates national wealth. High

productivity is the backboneof a nations economic progress. The production management covers such activities as the location of the plant, acquisition of the land, plant layout,

construction of building, procuring and installing of machinery, purchasing and storing of

materials and converting them into salable products.

Plant location

The selection of a place for the location of a plant is one of the important problems faced by

an entrepreneur while launching a new enterprise. The important considerations in the

location of a plant are:

i)

ii)

iii)

iv)

Easy and regular supply of raw materials

Availability of skilled labour force

Sufficientspacefor efficient plant layout

Proper utilizationof production capacity


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v)

vi)

Reduced cost of production and

Feasibilityof marketing the products

Even though the location of the plant itself can not guarantee the success of the plant, however an ideal location helps in the smooth and eff icient working of the plant. A bad location of plant forms a severe handicap and ultimately may lead to bankruptcy. Therefore,utmost care must be takenin selecting a proper location of the plant. If the mistake is done inlocating the plant, it becomesextremely difficultand costly to relocate it.

Need for plant location:

The need for thelocation of a plant becomes necessary under thefollowing conditions:-

i)

ii)

iii)

iv)

v)

When thebusiness has to be startednewly

When the existing business has outgrown its existing facilities andexpansion is not possible

in the presentlocation.

When thevolume of business increases, it may be necessary to start new branches atdiff erent

places.

When thelease of the land expires and theland lord does not agree to renew thelease.

Other social or economic reasonssuch as inadequate labour supply, shifting of the market,

etc. The selection of the location of the plant must be made afterconsidering all the economic

factors. However, itmay not be possible to find a particular location which satisfies all the

requirements to start an industry. The guiding principle in selecting a plant ultimately mustbe

made for a place where the costof the raw material, its fabrication, costof production and

marketing is minimum, so that the product is highly competitive with similar products

produced by othercompanies.

Web er s theory of plant location:

According to Albert Webers theory of plant location, the locational f actors are broadly

divided into two categories: (i) primary factors(ii) secondary f actors.

Materials andlabour constitute the primary factors which influence thedispersal of industries

over diff erent regions. Industrial units are materials-oriented, depending on the availability of


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raw materials and the costof transportation. They become marketoriented, depending on the

cost of transportation of the final products. They becomelabour-oriented, depending on the

availabilityof skilledand cheaplabour.

Bank credit, insurance, communication, cost of land and rentconstitute the secondaryf actors of location. Some of these f actors, which attracts the location of industries in a place are

called agglomerating factors and someof these which contribute to the moving away of the

industries are called as deglomerating f actor. Though, Weber told his theory in1909, it is

relevant even today.

Errors in location:

Some of the common errorsin the selection of a site for plant location are:

1. Absence of properinvestigation and consideration of various factorsinvolved.

2. Personal likes and dislikes of owners or executives in taking into consideration the impartially

established f acts.

3. The reluctance of the executives to move from traditional home ground to better newlocation.

4. Trying to move to thealready congested orover industrializedareas.

5. Trying to acquire an existing structurewhich is not located in a proper area andwhich is not

designed for efficient production.

6. Choice of backward area towhich key administrative and technical personnel are notwillingto move andtrying to seek employment elsewhere.

In order to see thata wrong site is not located for the plant, a selection committee comprising

people with knowledge of facts and factors, who are in responsible position in the operation


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of the plant, has to beconstitute. The committee must tourplaces, select two or threelocations

and ultimately select the best one for thelocation of the plant.

Steps in plant location

The entrepreneur has tofollow a systematic procedure, step by step in selecting a suitable sitefor plant location.The various steps to befollowedare:

x Deciding ondomestic or international location

x Selectionof the region

x Selectionof the localityand

x Selectionof the exactsite

x Deciding on demand or international location: Due to liberalization, the business is

internationalized. The first step in the location of the plant is to decide whether, the plant hasto be located domestically or internationally.If the management decides on f oreign location,

the next logical step would be to decide upon a particular country. In recent times, countries

are vying with each other to attract f oreign investments. The choice of a particular country

mainly depends on the political stability, export and import regulations, currency and

exchange rates, culturaland economic conditions, availabilityof natural resources, etc.

x Selection of a region: The selection of a particular region in a country is the second step to

be followed in the location of a plant. The following factors influence the selection of a

region

.

i) Availability of raw material: The plant must be located in place where thesupply of raw

materials is plenty and available at reasonable cost. Nearness to raw materials has the

advantagesof reduced costof transportation, regular and propersupply of raw materials and

savings in the costof storageof materials.

ii) Nearness to the market: The goods producedby the plant have to besold in the marketand

hence it is better that the marketis also nearby. Nearness to the market has the advantagesof

transporting the finished goods atlow cost, ad justing the production programme according to


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the requirements of the consumers, ability to render prompt service to the consumers,

providing af ter-sales services,executing replacement orderswithout delay.

iii) Availability of power: Power is an absolute requirement for production in any industry. Coal,electricity, oil and natural gas are the sourcesof power. Industries requiring coal such as iron

and steel industries have to be located near coal fields. Theref ore, most of the modern

industries rely on electricity as the sourceof power. Hence such industries have to be setup

where electrical poweris available in plenty at lower cost.

iv) Transport facilities: T ransport facilities arerequired for bringing raw materials and workers

to the factory andfor carryingthe finishedproducts from factory to themarket. A place whichis well connectedby rail, road and seais ideal for plant location.

v) Suitability of climate: There are certain industries which require particular climatic

conditions becauseof the typeof production and they have tobe located in regions of such

climate. For Ex: cotton textiles and jute industries requires humid climatic conditions. Even

though, artif icially, any climatic conditions can be created, it is very costly. It is always

advisable for an entrepreneur tolocate his industry where suitable natural climatic conditionsexist.The adverse climatic conditions affect labour efficiencyalso.

vi) Incentive and policies of the government: To expand the industrial base and to provide

employment to the people, many statesoffer incentives suchas land at cheaprate, investment

subsides and tax exemptions to new industries, which is very lucrative to start medium-sized

plants. The policies of the governmentsuch as licensing policy, f reight rate policy etc. also

influence the location of plants in the region.

x Selection of locality: Selection of a particular localityis the third step in plant location. The

various factorsthat influence the selection of a locality forplant location are:


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i) Availability of labour: Labour is an important factor in the production of goods. Availability

of enough workers at reasonable wages is very essential for the successf ul working of an

industry. Unskilledlabour can be foundin any locality. It is the availability of skilled labour

which influences the location of the plant. However, theattitude of workers, union activities

and industrial disputes may drive away the existing f actories and discourage new

entrepreneurs fromlocating their plants in such localities.

ii) Civic amenities for workers: The workers must be provided with not only good working

conditions inside the factory, but also other facilities suchas clubs, theatres, parks andgood

schools for their children mustbe available forthe employees, outside the industry.

iii) Availability of water and fire fighting facilities: Some industries require plenty of water for

their working. Hence, such industries must be located where water is available in plenty.

Water may be obtained from the local authority from the canal, from a river or lake or by

sinking borewells. Industrial units are exposed tofire hazards. Hence, adequatefire f ighting

facilitiesmust beavailable.

iv) Finance and research facilities: In the developed countries, the wealth is uniformly distributed but in developing countries, capital is not available uniformly throughout the

country. Hence in such countries, places where f acilities for raising capital are available,

attract new industries.

During the courseof working, a factory may encountera numberof problems. There mustbe

facilities toexamine and find solutions for such problems. If the problems. If the factoryhas

to be dynamic, it should always adopt new technologies and hence research facilities alsomust beavailable in the locality.

x Selection of the size: The selection of an exact site in a chosen locality is inf luenced by the

following considerations.


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x Soil, size and topography : The quality of the soil does notinfluence the selection of size for

plant location, if the factoryis producing engineering goods. However, fertilesoil in the size

is necessary for agro basedindustries. The size of the site is also important becauseit should

not only accommodate theexisting manuf acturing facilities,but thereshould also be scopefor

future expansion.

Proper considerations must also be given to the topographyof the site. A hilly, rocky and

roughterrain is unsuitable for plant location because, lot of money has to be spent tolevel the

site.

Plant Layout

A plant layout is the arrangement of machinery equipments and other industrial f acilities

when a new plant is erected. The efficiency of the production flow mainly depends on the

proper layout of the plant. In the plant layout, importance is given to the placement of

machinery at diff erent places, the location of stores, inspection cabins, tool rooms, and

maintenance wings, plating shops, heat treatmentchambers, toilets, canteens, trolleys, cranes

and otherequipments. However, there is no set patternof layout for all plants. It differs from

plant to plant, from location to location and fromindustry to industry. The best layout is the

one in which the flow of the raw material is quick and the amountof handling is less in

processing the product,

product.

from the receipt of raw materials to the f ormation of the finished

Objectives of a good layout

A good layout of a plant must serve thefollowingob jectives.

1. It should provide enoughcapacity for production.

2. It should reducematerial handling costs.

3. There should not be anycongestion for the movementof materials or workers.


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4. There should not be any hazards to theworkers.

5. The workers should be usedefficientlyand their morale has to beincreased.

6. Utilize availablespaceefficientlyand eff ectively.

7. Provide space for proper supervision.

8. Conductiveatmosphere for safety and health of the workers.

9. provision for the improvement of productivityand

10. Allowance for easymaintenance.

Factors influencing plant layout

The types of layouts are diff erent for diff erent types of plants. The selection of a particularlayout depends onseveral factors.They are:

i) Materials: In the layout there mustbe provision for the storage and proper movementof the

raw materials in the plant until they are convertedinto finished products. There must be proper

storage roomsfor materials and materials handling equipments such as cranes, trolleys, pipe

lines etc. The typeof storagemainlydepends on the typeof material stored i.e. solid or liquid,

light or heavy, small or large. Flow charts have to be drawn tovisualize the pathof materials

flow during various stages of production and care must be taken to see that there are no

crossover, long distances and back tracking. The best pathis thus determined and accordingly

the layout is planned.


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ii) Product: A plant layout must express its product. Any layout of a plant is drawn with the

ultimate purposeof producing a product. The type of product, whether it is solid or liquid,light

or heavy, big or small dictates the layout of the plant. The requirements of a layout meant for a

heavy product is diff erent from therequirements of a layout for a light product. The demandfor

the sales of the product also influences the type of layout. The sales demandfor a productalso

inf luences the type of layout. The sales demand for a product determines the volume of

production and therefore the quality and size of the equipment, the areaof the storagespace

and otherfacilities, whichin turndetermines the typeof layout.

iii) Workers: The type of workers, their positions and their requirements must be taken into

consideration in designing the layout of a plant. If women workers are employed, their

requirements must be kept in mind, whether the workers remain stationary or moving also

influence the layout. Employees facilities such as health and related services, locker rooms,

public facilitiesalso influence the layout.

iv) Machinery: The size and typeof machinery used in the plant depends on the typeof product,

the volume of its production, the typeof process and themanagements policies, whichin turn

influences the plant layout. Production is the combination and manipulation of men, materials

and machines. T hese elements may be combined in various ratios and in various ways during

the course of production activity. Theref ore it is necessary to draw the layout taking into

consideration the stationary or fixed positions of these elements.

v) Type of industry: The type of industry and the methodmanuf acturing significantlyinfluence

the plant layout. All types of industries may be classified basically into two types (a)

intermittent industries and (b) continuous industries. Intermittent industries manuf acture

diff erent components on diff erent machines and assemble them to get the end products.

Continuous industries produce one or two productsof standardized nature. Hence, the layout of

the plant designer must take the methodof manufacture processinto consideration during the

processof planning a layout.


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vi) Location: The site selected for the location of the plant influences its layout in several ways.

The size and the terrain of the site determine the typeof building and modeof transportation

which inf luences the layout. The mode of transportation may be rail roads or by trucks by

which the raw materials and finished products aretransported. The plant layout must also take

into consideration the fuel requirements and its transportation. The type of layout plan also

depends on whether theplant is located in a village or in urban area. If it is in a village, the

expansion may be aff ected by adding one more wing to the existing single-storeys to the

construction. If the plant is in urban area, the expansion may be aff ected by adding more

storeys to the existing buildings. Thus the plant layout must also take into consideration any

demand for futureexpansion.

vii) Managerial policies: Any plant layout is basically decided by the policies of the top

management and the layout engineer must have a clear understanding of these policies and

accordingly design the plant layout. The various management policies which inf luence the

plant layout are

a. The volume of production and provision forexpansion.

b. The extentof automation

c. Desire forprompt andrapid deliveryof goods toconsumers.

d. Purchasing policies.

e. Personnel policies.

Principles of layout:

While designing a particular layout of a plant, the engineer should be guided by certain

principles.They are:


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x The principle of minimum travel: The movement of men and material must be minimum

betweenvarious operations of production to avoid waste of man-hours and tominimize thecost

of materials handling.

x Principle of sequence: The operations on various machines should be arrangedin a sequential

order so that there is continuity in the process of producing the final product from the raw

material.

x Principle of usage: The entire spaceof the site must be effectively utilized, especially whenthe

plant is located in urban areas where theland is costly.

x Principles of compactness: There should be a harmonious fusion of all the relevant factors so

that thefinal layout looks well integrated and compact.

x Principles of safety and satisfaction : The plant layout should contain all built in provision for

the safetyof the workers andprovide comfort andconvenience to them so thatthey feel satisf ied.

x Principle of flexibility: The plant layout should have provision for any changes with minimum

effort andcost.

x Principle of minimum investment : The layout should be such that thecapital investment must

be minimum by an intensive use of available f acilities but not sacrificing the necessary requirements.


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Importance of plant layout:

An ideally laid plant layout reduces manuf acturing costs and helps in smooth and eff icient

running of the plant. Some of the advantagesof a good plant layout are:

x The materials handling cost is reducedby avoiding long distance movements, therebyreducingthe manuf acturing costs.

x The entire site area is effectivelyused for the location of equipments so that, the labour force is

effectivelyused.

x Results in promptexecution of orders andeliminates delays, which helps in the satisf action of

consumers.

x Provides for inspection at diff erent stages og manufacture and ensure quality control of the

productproduced.

x Investment

location.

on equipment is minimized by proper balance in machine procurement and

x The bottlenecks due to slow production,. Inadequate use of space, machines capacities,

accidents and wastageof floor area areavoided.

x Helps in the production of right typeof product at theright time and atreasonable cost.

x Provides for better supervision of the workersby providing a full view of the entire department

for the supervisor.


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x Helps in the effective utilizationof labour by paying ways on hourlybasis.

x Improves employees morale by providing better working conditions, better f acilities and

increased earnings to theworkers.

Types of layouts:

Plant layouts may beclassifiedas

i) Process layout or functional layout

ii) Product layout or line layout

iii) Static layout or fixed position layout and

iv) Mixed layout or hybrid layout

Process layout or functional layout: The processlayout involves thegrouping togetherof likemachines in one department. For example, drillingmachines are installed in drillingdepartments,

all lathes are grouped together in turning section, milling machines are grouped in milling

section etc. There will be diff erent departmentsfor doing diff erent jobs. The fig. 2.1 shows the

processlayout in which the machines in each department attend toany product thatis taken to

them. The flow of the raw material from stores to thefinishedproductis shown by dotted lines in

which the raw material is moved from department to department for diff erent operations in

sequence. This typeof layout is best suited for intermittent typeof production

.

The advantages of process layout are:

x Reduced investment on machines as mostof them aregeneral purposemachines.

x Greater f lexibility in the production.


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x Greater scope for expansion as thecapacities of diff erent departments can beeasilyincreased.

x Results in betterutilizationof men andmachines.

x Easier to handle the breakdownof any equipment by transf erring the work to anothermachine.

x Eff icient supervision is possible throughspecialization.

The disadvantages are:

x There is difficultyin the movementof the materials.

x Requires morefloor space

x There is difficultyin production control

x Production time is moreas the work-in- progress has totravel from place to place in search of

machines.

x There is accumulation of work-in-progress at diff erent places.

i) Product layout or line layout: Product layout involves the arrangementof machines in one

line, depending on the sequenceof operations. Raw materials are fedinto the first machine and

finished products from machine to machine. The output of one becoming the input to the next

machine. For Ex: Sugarcane is fed at one end and sugar comes out at the other endin a sugar

factory. In paper mills, bamboos are fed to themachine at one end and paper comes out at the

otherend.

The advantages of product layout are :

x Handling of materials is automatic and hence thereis reduction in material handling etc.

x There is saving in manuf acturing time.

x Less floor area is required for production.

x Little skill is required for supervision as the processis automatic.

x The mistakes in production can be detectedearly.


x There is no scope for f lexibility of operations. A change in product design may need major

alterations in the layout.


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x The break-down of one machine leads to thecomplete stoppageof that line of production.

x Comparatively,

breakdowns.

high investment is required as standby machines are required during

x Expansion is difficult.

x The paceof production is determined by the slowest machine and hencemachines have excess

idle time.

ii) Static layout or fixed position layout : Static layout involves the movement of men and

machines to the productwhich is stationary. In this typeof layout, the work piece remains in a

fixed position and tools, machinery and men are moved to this position. This type of layout isfollowed in the manufactureof bulky and heavy products suchas locomotives, ships,boilers,

aircrafts,generatorsetc.

The advantages of this type of layout are:

x The high cost anddifficultyof transporting a bulkyproductis avoided.

x The investment on layout is small.

x The workers identif y themselves with the work and takes pride in the completion of the

product.

x A numberof diff erent pro jects can be taken upin the samelayout.


x Highly skilled workers arerequired.

x Machines and tools take moretime to reach theplace.

x Under utilizationof labour and equipments.

iii) Mixed layout or hybrid layout: Mixed layout is the combination of both processlayout andproductlayout, whichis suitable for most of the industrial establishments. This typeof layout is

suitable when the manufactured goodsare somewhat similar and are not complex. In plants

which involve both f abrication and assembly, the f abrication part employs processlayout and

the assembly part employs the productprocess.


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PERT and CPM:

An industrialpro ject consists of a numberof activities involvinglabour, time, materials,money

etc. Many of these activities areinterdependent and the rest can becarried out independently in

order toachieve the desire objectives. The pro ject managementshould not only plan, schedule,

coordinate and optimize the activities but also should identify and watch closely the critical

activities which must be completed within the allotted time. To deal with large and complex

pro jects, a number of management techniques known as network techniques have been

developed. They are:

x PERT

x CPM

x RAMS

x PEP

: Program Evaluation and Review Technique.

: Critical Path Method

: Resource Allocationand Multi pro ject Scheduling

: Program Evaluation Procedure

x COPAC

x MAP

x RPSM

x LCS

x PCS

x GERT

: Critical Operating Production AllocationControl

: Manpower AllocationProcedure

:Resource Planning andScheduling Method

: L east Cost Scheduling

: Project CostSystem

: GraphicalEvaluation Review Technique

The most convenient and commonly used networktechniques are PERT and CPM. PERT and

CPM are thescheduling techniques used to plan, schedule and control a pro ject consisting of a

numberof inter-related activities. T hese techniques provide a frame which def ines the jobs to

be done integrates them in a logical sequence and provides a system of control over the

progressof the plan.

Objectives of PERT and CPM

The ob jectives of PERT and CPM are:

a) To plan, schedule and control the pro ject consisting of a numberof inter-related activities.


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b) To def ine and integrate the tasksin a logical sequence.

c) To show the precedencerelationship between thevarious activitiesof the pro ject.

d) To give guidance about the proper sequenceof operations.

e) To draw the attention on the most critical activities for which the time schedules have toobestrictlyfollowed.

f) To know the progressof the work as related to thescheduled time.

g) To maximizethe useof resources to achieve the ob jective within time and costlimitations.

h) Provides basis for determining the requirements of manpower, material and money.

i) Helps in designing, planning, coordinating, controlling and decision making in order to

accomplish the pro ject mosteconomicallyand in the minimum possible time, with the available

limited resources.

Terms related with PERT and CPM

1 Event: An event is a specific instant of time which indicates the beginning or end of the

activity.Even is also known as a junction. It is representedby a circle and the even t numberis

representedwith in the circle. An event consumes neither time nr resources. For ex: Start the

motor, loan approvedetc.

2. Activity: Every pro ject consists of a number of operations or tasks which are called as

activities.An activityis time consuming or resource consuming part of the pro ject which hasa

def inable start andfinish. It may be a processlike moldings, a material handling or machine

procurement

activities.

process. For Ex: Install machinery, arrange f oreign exchange is examples of


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An activity is representedby an arrow in the networkdiagram. It begins in start event(or tail

event) and endson completion event (or head event). An activity is normally given a name

such as A, B, Cetc. which is marked below the arrow and theestimated time to accomplish the

activityis marked above thearrow.

Tail eventmeans: startmachine installation

Activity A means: machine installation

Head eventmeans: complexityof machine installation.

3. Represents the time required for installation which maybe in hours ordays.

The activities are classifiedas:

x Critical activities

x Non critical activitiesand

x Dummy activities

1. Critical activities : In a pro ject, critical activities are those which have to be completed

within the stipulated time. If they consume moretime than the estimated time, the pro ject

will be delayed. Hence, moreattention must bepaid to the critical activities.Any delay evenin the completion of one critical activity, thepro ject can not be completed in time. In the

network diagram, the critical activityis marked by a thick arrow or a double line arrow to

distinguish it from non-criticalactivity.

2. Non-critical activities: These are such activities in the pro ject, even if they aredelayed over

and above the estimated time, the pro ject as a whole will not be delayed. Hence such

activitieswill have a provision of f loat or stack.

3. Dummy activities: A dummy activity in an artificial activityintroduced in a network, to

maintain a unique numbering system for the diff erent activities andalso to keep thelogical

sequence of activities and their inter-relationships correctly. A dummy activity does not


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consumetime or resources. In the network, it is representedby a dotted arrow. In Fig 2.4, F

representsa dummy activity.

4. Critical path: It is that sequence of activities which decide the total pro ject duration.

Critical path is followed by critical activities.In f igure 2.4, the path 1-2-4-5is the critical

path. Critical path consumes maximum resources. It is the longest path and consumes

maximum time. A critical pathhas zero float. Even if one critical activity is delayed, the

pro ject cannot be completed in time. A critical path indicates that these activities must be

completed by hook or crook, if the pro ject schedule has to bemaintained.

5. Duration: It is estimated or the actual time required to complete a task or activity.

6. Total project time: It is the time taken tocomplete a pro ject and is found from thesequence

of the critical activities.In otherwords, it is the duration of the criticalpath.

7. Earliest start time (EST): It is the earliest possible time by which the activityis started.

8. Earliest finish time (EFT): It is the earliest possible time by which an activity can be

finishedEFT= EST+ duration of that activity

9. Latest start time (LST): It is the latest possible time by which an activity can startwithout

delaying the dateof completion of the pro ject. LST= LFT- duration of that activity.

10. Latest finish time (LFT); it is the latest time by which the activity must be completed so

that thescheduled date for the completion of the pro ject is not delayed. It is calculated bymoving backwards from the last event to the networkdiagram.

11. Float or slack: Float or slack means a margin of extra time over and above its duration

which a critical activitycan consume without delaying the dateof completion of the pro ject.


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Float is usedwith respect to anactivity andslack is used with respect to an eventi.e. f loat is

used in CPM and slack is used in PERT. However, in general, they can be used

interchangeably.

Float orslack = (LST EST) or (LFT EFT )

Network diagram or arrow diagram:

A network diagram is the basic featureof network planning. It is a diagram which represents

all the events and activities in a sequence in which they are required to be performedto

complete the pro ject along with their inter-relation and inter-dependencies. Arrow diagram

is the visual representation of the complete activities representedby meansof arrows. It is

the mostf requently used formof network diagram, where every activityis representedby an

arrow and the activity sequences areindicated by the direction of the arrows. Complete. F is

a dummy activity representedby a dotted arrow and shows thatactivities. A and B finish at

the same time i.e. t1 = t2 and C and D start at the same time. There are two paths to

complete the pro ject. They are 1-2-4-5 and 1-3-4-5. In an arrow diagram, the length and

inclination of an arrow does not haveany significance. Arrow diagrams are very useful as

they provide detailed inf ormation for making decisions in connections with large and

complex pro jects.

PERT (Project Evaluation and Review Techniques)

PERT is atechnique used for planning, scheduling and controlling the industrial pro jects. It

is used in programmes, where the activities are sub ject to considerable degreeof uncertainly

in performance time. It is very essential for timely execution of the pro jects. it is used for

large and complex pro jects. Because of the uncertainty of activity timings. PERT is a

probabilistic model. It uses linear programming and probability concepts for planning and

controlling the activities. PERT is mainly concerned with events and is thus an event

oriented system. The basic tool used in PERT technique is the network diagram which consists of a series of related events and activities.

The various steps followed in PERT planning techniques are:

x The pro ject is brokeninto diff erent activities systematically.


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x The activitiesare arrangedin a logical sequence.

x The network diagram is drawn. The events and activities are marked on the network

diagram.

x Using threetimes estimate, the expectedtime for each activity is calculated.

x The standarddeviation and variance for each activity is computed.

x ESTs and LFT s are calculated.

x Expected time, earliest starting time and latest finishing times are marked on the network

diagram.

x The slack is calculated.

x Critical path is identif ied and marked on the networkdiagram.

x The length of the criticalpath ortotal pro ject duration is foundout.

x Lastly, the probabilitythat the pro ject will finishat due dateis calculated.

CPM (Critical Path Method)

CPM is a technical used for planning and controlling the most logical and economic

sequenceof operations for accomplishing a pro ject. It is widely recognized and is the most

versatile and potent management technique. CPM is applicable to both small and big

pro jects. The

Project is analyzed into diff erent activities, whoserelationships are expressedin the network

diagram. The network is then utilized for optimizing the resources, progressand control.

CPM employs the followingtechniques for accomplishing the pro ject planning.

x The pro ject is brokeninto various activitiessystematically.

x All the activities are arrangedin a logical sequence.

x The arrow diagram is constructed. x All the events andactivities arelabeled.

x The time required for each activity is found and markedin the arrowdiagram.

x ESTs and LST s are calculated and markedin the arrowdiagram.

x The f loat for each activity is calculated.


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Applications of network techniques

Network techniques find wide range of applications in planning and controlling various

processes are:

1. The detailed and thoughtf ul planning provides betteranalysisand logical thinking. 2. Identif ies critical activitiesso that more attention can begiven to them.

3. Helps in f orecasting the pro ject durations more accurately.

4. The resources areoptimized by using the conceptof slack.

5. Scientificallymonitor the slippages and controls them.

6. Helps in bettercoordination among therelated activities.

The limitations of networks techniques are:

1. Network technique is only a tool to help the management andhence, its eff ectiveness mainly

depends on howwell it is used by themanagement.

2. Its accuracy depends on theestimation of the data usedin the network.

3. It is useful onlyif it is updatedregularlyand corrective actions are takenin time.

Line balancing:

In an industry, line balancing means thebalancing of the production line or an assembly line.The main ob jective of line balancing is to distribute the tasks over thework stations so as to

minimize the idle time of men andmachines. Line balancing is done by grouping the tasks

and workers in order to obtain an optimum balance of the capacities and flow of production of

assembly processes. The main aim of layout planning is to find out the minimum number of

workers required and assigning tasks to each oneof them sothat, the desired level of outputis

achieved. If the line balancing of any product layout is not proper, it means that the utilization

of machinery and men is poor and the idle time is more. L ine balancing is the arrangementof

a production line such that, there is an even flow production from onework station that will

leave the next work station with idle time.The main problem in line balancing is to assign the

task to the workers at work stations so that the perf ormance times are made as equal as

possible. This problem can besolved to a great extentby followingthe steps given below.


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x The task is def ined i.e. task is the smallest grouping of work that can be assigned to a work

station.

x The tasks are properly sequenced. For this the predecessorand successor tasks are to be

properly identif ied.

x The minimum numberof work stations required to producea desired outputis calculated.

x Tasks are assigned to each station. For this, several combinations are possible. Normally

heuristicmethod(i.e. T humb rules, logical analysis,commonsense, and pastexperience) are

normallyused.

x The efficiency and eff ectiveness of the line balance is evaluated. If it yields the desired

output, it is effective, efficientand minimizes idletime.

x The line balancing of the layout may beimproved by trial and error method.

Methods of line balancing

The various methodsof line balancing are:

x Heuristicmethod

x Linear programming method

x Dynamicprogramming method

x Computer basedsampling techniques.

Heuristic and computer based techniques are widely used for solving large scale line

balancing problems. We will discuss only about the Heuristic method of line balancing.

Heuristic method is a thumb rule method which gives almost a satisf actory but not

optimized solution to the line balancing problem. Heuristic methods are acceptable whenoptimizing solutions are not f easible and are too costly to apply. Heuristic method of line

balancing is a trial and error technique in which work elements are grouped suchthat, the

cycle time is not violated and the procedurediagram is made useof to group theactivities as

per the sequenceof operations.


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Automation:

Automation is def ined as the processof moving materials and partsin and outof machines

and operating the machines automatically without any human control. It requires that

machines, tools and othermechanical handling devices are so integrated that all these act

like a continuous machine without any human intervention. Automation is not just

mechanization but something more than that. Mechanization means doing something by

machines what previously was done by men. It requires human watching, thinking and

reacting for routine machines operations. But in automation, machine operators are no

longer required to load, put the machine through its cycle, unload, inspect, make any

machine corrections and send the parton its way to the nextoperation. All these stepsare

performedby instruments, mechanical and electronic devices and other meansof controls,

f eed, operator andlink machines togetherinto an automatic process.

Types of automation:

There are three typesof automation. They are:

1. Continuous automation

2. Segmented automation and

3. Non-manuf acturing automation x Continuous automation: This type of automation is used in industries like chemical plants,

oil ref ineries etc, where homogenous materials such as liquid, gases and pulverized

substances will be conveyed throughout the whole process. The operations are done by

control boards and pushbuttons. The instruments measure, record andcontrol volumes, weight

flow, pressure, humidity, temperature etc and takecorrective measures when something starts

going out of control.

x Segmented automation: This type of automation is intermittent automation of a part of the

whole process, such as f abrication or assembly with intervals between automation

equipments. This typeof automation is used whereit is not practically possible to automation

the whole processof f abrication or assembly.


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x Non-manuf acturing automation: This type of automation is used in office automation,

automatic elevators, transportation ticket selling equipments etc. in which no manuf acturing

processis involved.

Advantages of automation

The various advantagesof automation are:

x Greater output per unit labour

x Greater output per unit investment

x Lesser floor spacerequired

x Increased safety to theoperators

x Automatic production schedules

x Uniform qualityof products x High rate of production due to transferof knowledge of efforts from man tomachine.

x Less scrap

x Less inventories

x Requires less expert staffand restsemi-skilledworkers.

The various disadvantages are:

x Requiresgreatercapital investment x Less manuf acturing f lexibility

x Increased unemployment

x Failureof one part mayresult in the shut down thewhole process

x During lessdemand, the automated plant can not be usedfor any other purpose.

Applications of automation.

Automation of plants is not economical, if the volume of production is small or where a

great variety of products are to be manuf actured, in the plant. Automated plants are employed in the following cases:

x Where a product design is stable for a long time, so that the cost of automation can be

sustained.


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x Where thevolume of continuous manufacture is adequate and steadyfor a long time so that,

the plant installation becomes economical, prof itable and permit the use of single purpose

equipment.

x Where themanuf acturing method requires more manual work and automation helps in cost

saving.

x Where machines are complex or work at such a high speed that it is not possible to work

efficientlyusing manpower.

x Where the productis so hazardous that it can not be controlled by manual methods suchas

radioactive materials.

Statistical Quality Control

Before understanding the meaning of statistical quality control, it is better to know the meaning of the three words statistics, quality and control. Statistics means data required to

obtain reliable results. Qualityis a relative term which describes the f itness of the product

for a particular purpose. Control means measuring and checking. It speaks about, when to

inspect, how often toinspect and how much toinspect. Hence statistical qualitycontrol may

be def ined as a quality control system employing the statistical techniques to control the

quality of the productby perf orming inspection, testing and analysis to find out whetherthe

quality of the productis as per thelaid quality standards. S.Q.C relies on probabilitytheory to evaluate the batch quality and controls the quality of the processes and products.

Statistical quality control involves the statistical analysis of the inspection data obtained

from thesamples. The f undamental basis of S.Q.C is the theoryis probability. Accordingto

the theoryof probability, thedimensions of the components made on the samemachine in a

batch, vary slightly from component to component due to the inherent machine

characteristics and environmental conditions. The chance thata sample will representthe

entire batch of component is developed from the theory of probability. S.Q .C evaluates

batchquality andcontrols the quality of the processes and products using the followingthree

techniques.

x Samplinginspection

x Control chartsand


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x Analysis of data

When large numberof similarcomponentsis manuf actured, it is impossible to inspect all the

componentsindividually as it is very tiring and costly. This continuous process becomes

monotonous and chancesof errors in inspection increases. On the other hand, if a random

sample is selected from a lot and inspected using probability concepts, assuming that this

sample represents thelot, there will be much saving in cost andlabor involved in inspection.

In certain cases such as f atigue testing, analyzing the chemical composition of an alloy,

sampling test is the only methodof inspection. Sampling plans control of the averagequality

of the outgoing components. The results are analyzed by determining the mean, range,

standarddeviation and the control limits for fixed levels of conf idence. S.Q.C also decides

about the shape andsize of the sample and its reliability.

Advantages of S.Q.C

S.Q .C is one of the tools of scientific management and has the following advantagesas

compared to 100%inspection.

x Reduction in c

eee-viii-industrial management_ electrical estimation and e [06ee81]-notes

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