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IndustryIndustryIndustryIndustry

IndustryIndustry refers to the production of anrefers to the production of an economiceconomicgoodgood (either material or a service) within an(either material or a service) within aneconomyeconomy ..

Definition:Definition:An industry is the manufacturing of goods or servicesAn industry is the manufacturing of goods or serviceswithin a category.within a category.According to section 2(j) of industrial dispute act,According to section 2(j) of industrial dispute act,1947. Industry means any systematic activity carried1947. Industry means any systematic activity carriedon by coon by co--operation between an employer and hisoperation between an employer and hisworkmen for the production, supply or distribution of workmen for the production, supply or distribution of goods or services with a view to satisfy human wantsgoods or services with a view to satisfy human wantsor wishes.or wishes.

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C ontinueC ontinueC ontinueC ontinue

3 . T ertiary Industry:3 . T ertiary Industry:T his group is involved in the provision of services.T his group is involved in the provision of services.

T hey include teachers, managers and other serviceT hey include teachers, managers and other service providers. It involves wide rang of services instead of providers. It involves wide rang of services instead of making anything and is the largest group of industries.making anything and is the largest group of industries.Examples of so called Service Industries.Examples of so called Service Industries.

4. Quaternary Industry:4. Quaternary Industry:

T his involved a small group of research andT his involved a small group of research anddevelopment industries. It is the newest industrial sector (development industries. It is the newest industrial sector (often linked with tertiary) and is growing rapidly.often linked with tertiary) and is growing rapidly.

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Integration of Manufacturing and ServicesIntegration of Manufacturing and ServicesIntegration of Manufacturing and ServicesIntegration of Manufacturing and Services

ManufacturingManufacturing is the use of is the use of machinesmachines ,, toolstools and labor toand labor to produce goods for use or sale. T he term may refer to a range of produce goods for use or sale. T he term may refer to a range of human activity, fromhuman activity, from handicrafthandicraft toto high techhigh tech , but is most, but is mostcommonly applied tocommonly applied to industrialindustrial production, in which production, in which rawraw

materialsmaterials are transformed intoare transformed into finished goodsfinished goods on a large scale.on a large scale.Service is the diametric ally opposed nonService is the diametric ally opposed non- -material counter material counter

piece of a physical goods. piece of a physical goods.Services are intangible in nature, only appearing whenServices are intangible in nature, only appearing whenrequired by the consumer, which makes the nature of a servicerequired by the consumer, which makes the nature of a service

business very different from that of other types of businesses. business very different from that of other types of businesses.Some examples of service businesses include the hospitalitySome examples of service businesses include the hospitalitysector, consulting, appliance repair, computer support, healthsector, consulting, appliance repair, computer support, healthcare, utilities, business services, real estate, legal services, andcare, utilities, business services, real estate, legal services, and

educationeducation

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F actors Influencing the choice of F actors Influencing the choice of Manufacturing Process or MethodManufacturing Process or Method

F actors Influencing the choice of F actors Influencing the choice of Manufacturing Process or MethodManufacturing Process or Method

T here is no best manufacturing system for anyT here is no best manufacturing system for any product. T he choice of the system depends on various product. T he choice of the system depends on variouscircumstances but it must meet two basic objectives,circumstances but it must meet two basic objectives,namely:namely:1. It must be able to meet the specifications of the1. It must be able to meet the specifications of thefinal product, andfinal product, and2. It must be cost effective2. It must be cost effective

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C ontinueC ontinueC ontinueC ontinue

V arious factors which determine the choice of theV arious factors which determine the choice of themanufacturing process are as follows:manufacturing process are as follows:1.1. E ffect of volume/varietyE ffect of volume/variety

2. C apacity of the plant2. C apacity of the plant3. F lexibility3. F lexibility4. Lead4. Lead timetime5. E fficiency5. E fficiency6.6. E nvironmentE nvironment

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C lassification of Manufacturing MethodsC lassification of Manufacturing MethodsC lassification of Manufacturing MethodsC lassification of Manufacturing Methods

M anufacturing methods can be classified into fiveM anufacturing methods can be classified into fivetypes.types.1. Project Production1. Project Production

2. Job Production2. Job Production3 . Batch Production3 . Batch Production4. M ass and flow production4. M ass and flow production5 . process Production5 . process Production

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C ontinue..C ontinue..C ontinue..C ontinue..

Types of Production

Intermittent Production Continuous Production

ProjectProduction

JobbingProduction

BatchProduction

Mass & FlowProduction

ProcessProduction

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Project ProductionProject ProductionProject ProductionProject Production

Project Production is characterized by complex set of Project Production is characterized by complex set of activities that must be performed in particular order activities that must be performed in particular order within the given period & within the estimatedwithin the given period & within the estimatedexpenditure.expenditure.Characteristics:Characteristics:1. Definite beginning and definite end1. Definite beginning and definite end2. Non uniform requirement of resources2. Non uniform requirement of resources3 . Involvement of different agencies3 . Involvement of different agencies4. Fixed position Layout4. Fixed position Layout5 . High cost overruns5 . High cost overruns

6 . Personnel Problems 7. Scheduling & Control6 . Personnel Problems 7. Scheduling & Control

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J obbing productionJ obbing productionJ obbing productionJ obbing production

Jobbing production isJobbing production is charecterisedcharecterised by the manufacturer of one by the manufacturer of oneor few numbers of single product designed and manufacturedor few numbers of single product designed and manufacturedstrictly to customers specifications, within the given period &strictly to customers specifications, within the given period &within the price fixed prior to the contract.within the price fixed prior to the contract.

C harecteristicsC harecteristics of jobbing productionof jobbing production ::1. small production runs1. small production runs2. Discontinuous flow of materials2. Discontinuous flow of materials3 . Disproportionate manufacturing cycle time3 . Disproportionate manufacturing cycle time4. General purpose machine and process layout4. General purpose machine and process layout5 . Highly skilled5 . Highly skilled labour labour 6 . highly competent knowledge supervision6 . highly competent knowledge supervision7 Large work 7 Large work- -inin--progress progress8

. Limited functions of production planning & control8

. Limited functions of production planning & control

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B atch productionB atch productionB atch productionB atch production

Batch Production isBatch Production is charecterisedcharecterised by the by the manufascturer manufascturer of aof alimited number of product(but many such quantities of limited number of product(but many such quantities of different product) produced at periodic intervals and stocked indifferent product) produced at periodic intervals and stocked inwerehouseswerehouses as finished goods (or finished parts) awaiting salesas finished goods (or finished parts) awaiting salesor withdrawal for assembly)or withdrawal for assembly)

CharecteristicsCharecteristics: :1.1. 1. Short runs1. Short runs2.2. 2. Skilled2. Skilled labour labour in specific tradesin specific trades3 .3 . 3 . Supervisors to posses knowledge of a specific process3 . Supervisors to posses knowledge of a specific process4.4. 4. limited span of control4. limited span of control5 .5 . 5 . General purpose machines and process type of layout5 . General purpose machines and process type of layout6 .6 . 6 . M anual material handling6 . M anual material handling7.7. 7. manufacturing cycle time affected due to queues.7. manufacturing cycle time affected due to queues.

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C ontinue.C ontinue.C ontinue.C ontinue.

8 . Large work in progress8 . Large work in progress9. flexibility of production schedules9. flexibility of production schedules10. Need to have production planning and control10. Need to have production planning and control

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Mass and F low ProductionMass and F low ProductionMass and F low ProductionMass and F low Production

M ass as well as flow production are characterized byM ass as well as flow production are characterized bythe manufacturer of a several number of a standardthe manufacturer of a several number of a standard

producted producted and stocked in the warehouses as finishedand stocked in the warehouses as finishedgoods awaiting salesgoods awaiting salesCharacteristics:Characteristics:1. Continuous flow of material1. Continuous flow of material2. Special purpose machine and product type layout2. Special purpose machine and product type layout3 .3 . M echanisedM echanised material handlingmaterial handling4. low skilled4. low skilled labour labour 5 . short manufacturing cycle time5 . short manufacturing cycle time

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C ontinue.C ontinue.C ontinue.C ontinue.

6 . Easy supervision6 . Easy supervision7. limited work in progress7. limited work in progress8 . lesser flexibility in8 . lesser flexibility in production schedules production schedules

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Process ProductionProcess ProductionProcess ProductionProcess Production

Process production is characterized by theProcess production is characterized by themanufacturer of a single product produced andmanufacturer of a single product produced andstocked in the warehouses awaiting sales. T hestocked in the warehouses awaiting sales. T heflexibility such plants is almost zero. As only oneflexibility such plants is almost zero. As only onetype of product can be produced in such plants.type of product can be produced in such plants.E.g.. Sugar, steel, cement, paper, coke, refineries etc.E.g.. Sugar, steel, cement, paper, coke, refineries etc.

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C haracteristics of Process productionC haracteristics of Process productionC haracteristics of Process productionC haracteristics of Process production

1. Special purpose machines with built1. Special purpose machines with built- -inin--control.control.2. highly mechanized material handling.2. highly mechanized material handling.3 . V irtually zero manufacturing time.3 . V irtually zero manufacturing time.

4. low skilled4. low skilled labour labour..5 . supervisors to be process specialist.5 . supervisors to be process specialist.6 . Negligible work in progress.6 . Negligible work in progress.

Limited production planning and control functions.Limited production planning and control functions.

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E nd of C hapter 1E nd of C hapter 1E nd of C hapter 1E nd of C hapter 1