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Transcript of Cours File-Industrial Management(2)
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INDUSTRIAL MANAGEMENT
EHU-601
Course File
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UNIT-I
Introduction : Concept, Development, application and scope of Industrial Management.
Productivity : Definition, measurement, productivity index, types of production system, Industrial
Ownership.
MANAGEMENT
Traditional Author says that management is an art of getting things done through people where as modern
authors says that management is a process of accomplishing certain objectives through the utilization of human
and other resource.
IMPORTANCE OF MANAGEMENT
For the accomplishment of the goals.
For effective utilization of the resources.
Sound Organization.
Providing vision &Foresight.
For the harmony in work.
To help employees in achieving personal objective.
Development of the society and nation.
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INDUSTRIAL MANGEMENT
Industrial management is now a branch of engineering which facilitates creation of management system
and integrates same with people and their activities to utilize the resources.
Industrial management is structured approach to manage the operational activities of the organization.
SCOPE OF INDUSTRIAL MANGEMENT
1. Related to Designing of the production system.(see notes)
2. Relating to analysis & control of production operation.(see notes)
APPLICATION OF THE INDUSTRIAL MANGEMNT
1. Planning Function
For Designing Conversion System
For Scheduling Conversion System
2. Organizing Function
Organizing for conversion
Structuring of Operation Staffing
Job & Work Design.
For Production & Operation Standard.
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Performance Achieved (Effectiveness)
PRODUCTIVITY INDEX=
Input Resources Consumed (Efficiency)
Efficiency is the ratio of actual output attained to the standard expected output. It measures of
how well the resources are utilized to accomplish the target or result.
Effectiveness is the degree of accomplishing the objectives
Production System
The production system can be viewed as a framework or skeleton of activities within which the creation
of value can occur.
The difference between the value of input and the value of output represent the value created through
production activities.
At the one end of the production system are the input and at the other end are output.
Connecting the input and output are a series of operations or processes, storage and inspections represent
the simplified production system.
Figure : PRODUCTION SYSTEM
Input Receiving Reports
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Row material Inventory Reports
Operation - 1 Schedules
Production Manager
Operation 2 Route Sheets
Production Reports
Operation 3 Time and Cost Record
Final inspection Inspection Reports
Finished goods storage Inventory Reports
Output Shipping Orders
INPUT OUTPUT MODEL (ANALYSIS OF PRODUCTION SYSTEM)
It is one of the basic models of the production system.
Production system is the set of interconnected input output element.
It is made up of three component parts namely Input, Output and Process.
A wide variety of inputs are transformed so that they give out a set of output.
The transforming process can be complicated and the design of an actual input and output system for
manufacturing may be expensive and difficult.
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Purpose to Increase Productivity
FOR MANAGEMENT
To produce good earning (profit).
To clear the debt or loans acquired from different sources.
To sell more.
To stand better in the market.
FOR WORKERS
HIGHER WAGES.
Better Working Conditions.
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MATERIAL
MEN
ENERGY
PLANT &
FACILITIES
GOODES &
SERVICES
INPUTOUTPUT
PRODUTION
PROCESS
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Higher standard of living.
Job Security and Satisfaction
FOR CUSTOMER
To reduced price of the article.
Sole Proprietorship
Sole Proprietorship is that form of Industrial ownership in which Individual Exercise & enjoy all rights related
to business in his own interest.
Merits
Easy Formation
Easy to Operate
Secrecy
Simplicity
Demerits
Limited Resources
Lack of Continuity
Unlimited Liability
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Limited Managerial Ability
Partnership
Partnership may be defined as the relation between person who has agreed to share the profits of a business
carried on by all or any of them acting for all.
Merits
Legal Entity
Risk Sharing
More Funds
Continuity
Mutual Agency
Demerits
Unlimited Liability
Limited Resources
Possibility Of Conflict
Lack of Public Interest
Joint Stock Company
A joint stock Company means an association of several people who contributed money or moneys worth to a
joint or common stock & employ it in same business & share among themselves the profit or loss arising from
it.
Merits
Limited Liability
Transfer of Interest
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Perpetual Existence
Scope for Management
Professional Management
Demerits
Complexity in Formation
Lack of Secrecy
Impersonal Work Environment
Numerous Regulation
Delay In Decision Making
Co Operative Undertaking
The Co Operative society is voluntary association of person, who join together with the motive of welfare of
the members and society.
Merits
Limited liability
Economy in Operation
Support From Government
Stable Existence
Ease of Formation
Demerits
Limited Resources
Inefficiency in Management
Lack Of Secrecy
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Government Control
Difference Of Opinion
UNIT-II
Management Function : Principles of Management- Management Tools time and motion study, worksimplification- process charts and flow diagrams, Production Planning, Specification of Production
requirements.
Management Function: Management
Management is generic. Management principles are general rather than specific to a type of firm or
organization. However, management is universal only if the manager has become familiar with the specificsituation in which it is applied. Production technology, customer characteristics and the culture of the industry
are examples of specifics that managers need to learn to be effective in applying their generic management
skills.
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Management is creative problem solving. This creative problem solving is accomplished through four
functions of management: planning, organizing, leading and controlling. The intended result is the use of
an organization's resources in a way that accomplishes its mission and objectives.
Planning is the ongoing process of developing the business' mission and objectives and determining
how they will be accomplished. Planning includes both the broadest view of the organization, e.g., itsmission, and the narrowest, e.g., a tactic for accomplishing a specific goal.
Organizing is establishing the internal organizational structure of the organization. The focus is on
division, coordination, and control of tasks and the flow of information within the organization. It is in
this function that managers distribute authority to job holders.
Staffing is filling and keeping filled with qualified people all positions in the business. Recruiting,
hiring, training, evaluating and compensating are the specific activities included in the function. In the
family business, staffing includes all paid and unpaid positions held by family members including the
owner/operators.
Directing is influencing people's behavior through motivation, communication, group dynamics,
leadership and discipline. The purpose of directing is to channel the behavior of all personnel to
accomplish the organization's mission and objectives while simultaneously helping them accomplish
their own career objectives.
Controllingis a four-step process of establishing performance standards based on the firm's objectives,
measuring and reporting actual performance, comparing the two, and taking corrective or preventive
action as necessary.
The American Luther Gulick and Brit Lydnall Urwick expanded Fayol's list to seven executive management
activities summarized by the acronym POSDCORB:
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http://www.ag.ohio-state.edu/~mgtexcel/Planning.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Organize.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Staffing.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Direct.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Control.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Planning.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Organize.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Staffing.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Direct.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Control.html -
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planning: determine objectives in advance and the methods to achieve them;
organizing: establish a structure of authority for all work;
staffing: recruit, hire and train workers; maintain favourable working conditions;
directing: make decisions, issue orders and directives;
coordinating: interrelate all sectors of the organisation;
reporting: inform hierarchy through reports, records and inspections;
budgeting: depend on fiscal planning, accounting and control.
Each of these functions involves creative problem solving. (Figure 4.2 from Higgins, page 118) Creative
problem solving is broader than problem finding, choice making or decision making. It extends from analysis
of the environment within which the business is functioning to evaluation of the outcomes from the alternative
implemented.
Principles of Management
Henri Fayol, the father of the school of Systematic Management, was motivated to create a theoretical
foundation for a managerial educational program based on his experience as a successful managing director of
a mining company. In his day, managers had no formal training and he observed that the increasing complexity
of organisations would require more professional management.
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A principle refers to a fundamental truth. It establishes cause and effect relationship between two or more
variables under given situation. They serve as a guide to thought & actions. Therefore, management principles
are the statements of fundamental truth based on logic which provides guidelines for managerial decision
making and actions. These principles are derived: -
a. On the basis of observation and analysis i.e. practical experience of managers.b. By conducting experimental studies.
There are 14 Principles of Management described by Henri Fayol.
1. Division of Labor
a. Henry Fayol has stressed on the specialization of jobs.
b. He recommended that work of all kinds must be divided & subdivided and allotted to various
persons according to their expertise in a particular area.
c. Subdivision of work makes it simpler and results in efficiency.
d. It also helps the individual in acquiring speed, accuracy in his performance.
e. Specialization leads to efficiency & economy in spheres of business.
2. Party of Authority & Responsibility
a. Authority & responsibility are co-existing.
b. If authority is given to a person, he should also be made responsible.
c. In a same way, if anyone is made responsible for any job, he should also have concerned
authority.
d. Authority refers to the right of superiors to get exactness from their sub-ordinates whereas
responsibility means obligation for the performance of the job assigned.
e. There should be a balance between the two i.e. they must go hand in hand.
f. Authority without responsibility leads to irresponsible behavior whereas responsibility without
authority makes the person ineffective.
3. Principle of One Boss
a. A sub-ordinate should receive orders and be accountable to one and only one boss at a time.
b. In other words, a sub-ordinate should not receive instructions from more than one person
because
- It undermines authority
- Weakens discipline
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- Divides loyalty
- Creates confusion
- Delays and chaos
- Escaping responsibilities
- Duplication of work
- Overlapping of efforts
c. Therefore, dual sub-ordination should be avoided unless and until it is absolutely essential.
d. Unity of command provides the enterprise a disciplined, stable & orderly existence.
e. It creates harmonious relationship between superiors and sub-ordinates.
4. Unity of Direction
a. Fayol advocates one head one plan which means that there should be one plan for a group of
activities having similar objectives.
b. Related activities should be grouped together. There should be one plan of action for them and
they should be under the charge of a particular manager.
c. According to this principle, efforts of all the members of the organization should be directed
towards common goal.
d. Without unity of direction, unity of action cannot be achieved.
e. In fact, unity of command is not possible without unity of direction.
Basis Unity of command Unity of direction
Meaning It implies that a sub-ordinate should receive
orders & instructions from only one boss.
It means one head, one plan for a group of
activities having similar objectives.
Nature It is related to the functioning of personnels. It is related to the functioning of departments,
or organization as a whole.
Necessity It is necessary for fixing responsibility of each
subordinates.
It is necessary for sound organization.
Advantage It avoids conflicts, confusion & chaos. It avoids duplication of efforts and wastage
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of resources.
Result It leads to better superior sub-ordinate
relationship.
It leads to smooth running of the enterprise.
Therefore it is obvious that they are different from each other but they are dependent on each other i.e. unity of
direction is a pre-requisite for unity of command. But it does not automatically comes from the unity of
direction.
5. Equity
a. Equity means combination of fairness, kindness & justice.
b. The employees should be treated with kindness & equity if devotion is expected of them.c. It implies that managers should be fair and impartial while dealing with the subordinates.
d. They should give similar treatment to people of similar position.
e. They should not discriminate with respect to age, caste, sex, religion, relation etc.
f. Equity is essential to create and maintain cordial relations between the managers and sub-
ordinate.
g. But equity does not mean total absence of harshness.
h. Fayol was of opinion that, at times force and harshness might become necessary for the sake of
equity.
6. Order
a. This principle is concerned with proper & systematic arrangement of things and people.
b. Arrangement of things is called material order and placement of people is called social order.
c. Material order- There should be safe, appropriate and specific place for every article and every
place to be effectively used for specific activity and commodity.
d. Social order- Selection and appointment of most suitable person on the suitable job. There
should be a specific place for every one and everyone should have a specific place so that they
can easily be contacted whenever need arises.
7. Discipline
a. According to Fayol, Discipline means sincerity, obedience, respect of authority & observance
of rules and regulations of the enterprise.
b. This principle applies that subordinate should respect their superiors and obey their order.
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c. It is an important requisite for smooth running of the enterprise.
d. Discipline is not only required on path of subordinates but also on the part of management.
e. Discipline can be enforced if -
- There are good superiors at all levels.
- There are clear & fair agreements with workers.- Sanctions (punishments) are judiciously applied.
8. Initiative
a. Workers should be encouraged to take initiative in the work assigned to them.
b. It means eagerness to initiate actions without being asked to do so.
c. Fayol advised that management should provide opportunity to its employees to suggest ideas,
experiences& new method of work.
d. It helps in developing an atmosphere of trust and understanding.
e. People then enjoy working in the organization because it adds to their zeal and energy.
f. To suggest improvement in formulation & implementation of place.
g. They can be encouraged with the help of monetary & non-monetary incentives.
9. Fair Remuneration
a. The quantum and method of remuneration to be paid to the workers should be fair, reasonable,
satisfactory & rewarding of the efforts.
b. As far as possible it should accord satisfaction to both employer and the employees.
c. Wages should be determined on the basis of cost of living, work assigned, financial position of
the business, wage rate prevailing etc.
d. Logical & appropriate wage rates and methods of their payment reduce tension & differences
between workers & management creates harmonious relationship and pleasing atmosphere of
work.
e. Fayol also recommended provision of other benefits such as free education, medical &
residential facilities to workers.
10. Stability of Tenure
a. Fayol emphasized that employees should not be moved frequently from one job position to
another i.e. the period of service in a job should be fixed.
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b. Therefore employees should be appointed after keeping in view principles of recruitment &
selection but once they are appointed their services should be served.
c. According to Fayol. Time is required for an employee to get used to a new work & succeed to
doing it well but if he is removed before that he will not be able to render worthwhile services.
d. As a result, the time, effort and money spent on training the worker will go waste.
e. Stability of job creates team spirit and a sense of belongingness among workers which
ultimately increase the quality as well as quantity of work.
11. Scalar Chain
a. Fayol defines scalar chain as The chain of superiors ranging from the ultimate authority to the
lowest.
b. Every orders, instructions, messages, requests, explanation etc. has to pass through Scalar chain.
c. But, for the sake of convenience & urgency, this path can be cut shirt and this short cut is
known as Gang Plank.
d. A Gang Plank is a temporary arrangement between two different points to facilitate quick &
easy communication as explained below:
In the figure given, if D has to communicate with G he will first send the communication upwards with the help
of C, B to A and then downwards with the help of E and F to G which will take quite some time and by that
time, it may not be worth therefore a gang plank has been developed between the two.
Gang Plank clarifies that management principles are not rigid rather they are very flexible. They can be
moulded and modified as per the requirements of situations
12. Sub-Ordination of Individual Interest to General Interest
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a. An organization is much bigger than the individual it constitutes therefore interest of the
undertaking should prevail in all circumstances.
b. As far as possible, reconciliation should be achieved between individual and group interests.
c. But in case of conflict, individual must sacrifice for bigger interests.
d. In order to achieve this attitude, it is essential that -
- Employees should be honest & sincere.
- Proper & regular supervision of work.
- Reconciliation of mutual differences and clashes by mutual agreement. For example,
for change of location of plant, for change of profit sharing ratio, etc.
13. Espirit De Corps (can be achieved through unity of command)
a. It refers to team spirit i.e. harmony in the work groups and mutual understanding among the
members.
b. Spirit De Corps inspires workers to work harder.
c. Fayol cautioned the managers against dividing the employees into competing groups because it
might damage the moral of the workers and interest of the undertaking in the long run.
d. To inculcate Espirit De Corps following steps should be undertaken -
There should be proper co-ordination of work at all levels
Subordinates should be encouraged to develop informal relations among themselves.
Efforts should be made to create enthusiasm and keenness among subordinates so that
they can work to the maximum ability.
Efficient employees should be rewarded and those who are not up to the mark should be
given a chance to improve their performance.
Subordinates should be made conscious of that whatever they are doing is of great
importance to the business & society.
e. He also cautioned against the more use of Britain communication to the subordinates i.e. face to
face communication should be developed. The managers should infuse team spirit &
belongingness. There should be no place for misunderstanding. People then enjoy working in
the organization & offer their best towards the organization.
14. Centralization & De-Centralization
a. Centralization means concentration of authority at the top level. In other words, centralization is
a situation in which top management retains most of the decision making authority.
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b. Decentralization means disposal of decision making authority to all the levels of the
organization. In other words, sharing authority downwards is decentralization.
c. According to Fayol, Degree of centralization or decentralization depends on no. of factors like
size of business, experience of superiors, dependability & ability of subordinates etc.
d. Anything which increases the role of subordinate is decentralization & anything which
decreases it is centralization.
e. Fayol suggested that absolute centralization or decentralization is not feasible. An organization
should strike to achieve a lot between the two.
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Management tools
Classic Tools
There's an elusive balance between chasing after each new management tool or method, and ignoring the fact
that we have actually learned some things about management over the past 100,000 years. The best tools are
those which stand the test of time, and which give you a lot of leverage over common problems.
Pie Charts
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Quality Control Charts Other Quality Management Tools
Pie charts
Bar charts
Run Charts
Radar Charts
Scatter Plots
Histograms
Pareto Charts
Normal Test Plots
Process Capability Calculations
Control Charts
Relations Diagram
Pathway
Affinity Diagrams
Brainstorms
Building Consensus
Cause and Effect Diagrams
Flowcharts
Force Field Diagrams
Tree Diagrams
http://www.skymark.com/resources/tools/pie_charts.asphttp://www.skymark.com/resources/tools/bar_charts.asphttp://www.skymark.com/resources/tools/run_charts.asphttp://www.skymark.com/resources/tools/radar_charts.asphttp://www.skymark.com/resources/tools/scatter_plots.asphttp://www.skymark.com/resources/tools/histograms.asphttp://www.skymark.com/resources/tools/pareto_charts.asphttp://www.skymark.com/resources/tools/normal_test_plot.asphttp://www.skymark.com/resources/tools/process_capability.asphttp://www.skymark.com/resources/tools/control_charts.asphttp://www.skymark.com/resources/tools/relations_diagram.asphttp://www.skymark.com/resources/tools/pathway.asphttp://www.skymark.com/resources/tools/affinity_diagram.asphttp://www.skymark.com/resources/tools/brainstorming.asphttp://www.skymark.com/resources/tools/building_consensus.asphttp://www.skymark.com/resources/tools/cause.asphttp://www.skymark.com/resources/tools/flowchart.asphttp://www.skymark.com/resources/tools/force_field_diagram.asphttp://www.skymark.com/resources/tools/tree%20diagram.asphttp://www.skymark.com/resources/tools/pie_charts.asphttp://www.skymark.com/resources/tools/bar_charts.asphttp://www.skymark.com/resources/tools/run_charts.asphttp://www.skymark.com/resources/tools/radar_charts.asphttp://www.skymark.com/resources/tools/scatter_plots.asphttp://www.skymark.com/resources/tools/histograms.asphttp://www.skymark.com/resources/tools/pareto_charts.asphttp://www.skymark.com/resources/tools/normal_test_plot.asphttp://www.skymark.com/resources/tools/process_capability.asphttp://www.skymark.com/resources/tools/control_charts.asphttp://www.skymark.com/resources/tools/relations_diagram.asphttp://www.skymark.com/resources/tools/pathway.asphttp://www.skymark.com/resources/tools/affinity_diagram.asphttp://www.skymark.com/resources/tools/brainstorming.asphttp://www.skymark.com/resources/tools/building_consensus.asphttp://www.skymark.com/resources/tools/cause.asphttp://www.skymark.com/resources/tools/flowchart.asphttp://www.skymark.com/resources/tools/force_field_diagram.asphttp://www.skymark.com/resources/tools/tree%20diagram.asp -
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Pie charts are used to show classes or groups of data in proportion to the whole data set. The entire pie
represents all the data, while each slice represents a different class or group within the whole.
Bar Charts
Bar Charts, like pie charts, are useful for comparing classes or groups of data. In bar charts, a class or group can
have a single category of data, or they can be broken down further into multiple categories for greater depth of
analysis.
Run Charts
Run charts (often known as line graphs outside the quality management field) display process performance over
time. Upward and downward trends, cycles, and large aberrations may be spotted and investigated further. In a
run chart, events, shown on they axis, are graphed against a time period on thex axis. For example, a run chart
in a hospital might plot the number of patient transfer delays against the time of day or day of the week. The
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results might show that there are more delays at noon than at 3 p.m. Investigating this phenomenon could
unearth potential for improvement. Run charts can also be used to track improvements that have been put into
place, checking to determine their success. Also, an average line can be added to a run chart to clarify
movement of the data away from the average.
Radar Charts
Radar charts are useful when you want to look at several different factors all related to one item. Radar charts
have multiple axes along which data can be plotted. For example, you could use a radar chart to compile data
about a wide receiver on a professional football team. On one axis, you could plot the percentage of passes
caught. Another axis would show his yards per completion; another, his completions per 100 plays; another,
blocks made; and a final axis might show his interceptions.
Scatter Plots
Scatter Plots (also called scatter diagrams) are used to investigate the possible relationship between two
variables that both relate to the same "event." A straight line of best fit (using the least squares method)
is often included.
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Histograms
A histogram is a specialized type of bar chart. Individual data points are grouped together in classes, so that you
can get an idea of how frequently data in each class occur in the data set. High bars indicate more points in a
class, and low bars indicate less points. In the histogram show above, the peak is in the 40-49 class, where there
are four points.
Pareto Charts
Vilfredo Pareto, a turn-of-the-century Italian economist, studied the distributions of wealth in different
countries, concluding that a fairly consistent minority about 20% of people controlled the large
majority about 80% of a society's wealth. This same distribution has been observed in other areas
and has been termed the Pareto effect.
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Normal Test Plot
Normal Test Plots (also called Normal Probability Plots or Normal Quartile Plots) are used to investigate
whether process data exhibit the standard normal "bell curve" or Gaussian distribution.
Process Capability
The capability of a process is some measure of the proportion of in-specification items the process produces
when it is in a state of statistical control.
For valid process capability calculations, all data must be from an in-control process, with respect to both the
mean and standard deviation. Make sure to check this data in a variables control chart to make sure that all
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points in the x bar, s or R charts are in control. If they aren't, your capability indices in the statistics dialog box
are not valid.
Control Charts
Every process varies. If you write your name ten times, your signatures will all be similar, but no two
signatures will be exactly alike. There is an inherent variation, but it varies between predictable limits. If, as
you are signing your name, someone bumps your elbow, you get an unusual variation due to what is called a
"special cause". If you are cutting diamonds, and someone bumps your elbow, the special cause can be
expensive. For many, many processes, it is important to notice special causes of variation as soon as they occur.
Other Quality Management Tools
Relations Diagram (or Interrelationship Digraph)
Relations Diagrams are drawn to show all the different relationships between factors, areas, or processes. Why
are they worthwhile? Because they make it easy to pick out the factors in a situation which are the ones which
are driving many of the other symptoms or factors. For example, a relations diagram of urban poverty might
start out something like this:
Instead of one item following another in a logical sequence, each item is connected to many other pieces,
showing that they have an impact on each one. Once all the relevant connections between items have been
drawn, the connections are counted. Those with the most connections will usually be the most important factors
to focus on.
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Project Pathways for Management
One of the common features of modern management thinking is its focus on methodologies for problem-
solving. Dr. Deming used the Plan-Do-Check-Act cycle. Marshall-Qualtec espouses a seven-step problem
solving model. The Juran Institute has a slightly different method. So does Executive Learning Inc. That said,
all the approaches, while different in the details, are very similar overall.The pathway, embodied in software, is
a key means of keeping a team focused and on-track. It also provides an easy way for managers of many
projects or departments to keep tabs on the status and progress of work.
Affinity Diagram
The affinity diagram, or KJ method (after its author, Kawakita Jiro), wasn't originally intended for quality
management. Nonetheless, it has become one of the most widely used of the Japanese management and
planning tools. The affinity diagram was developed to discovering meaningful groups of ideas within a raw list.
In doing so, it is important to let the groupings emerge naturally, using the right side of the brain, rather than
according to preordained categories.
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To create an affinity diagram, you sort the brainstormed list, moving ideas from the brainstorm into affinity
sets, and creating groups of related ideas. As you sort ideas:
1. Rapidly group ideas that seem to belong together.
2. It isn't important to define why they belong together.
3. Clarify any ideas in question.4. Copy an idea into in more than one affinity set if appropriate.
5. Look for small sets. Should they belong in a larger group?
6. Do large sets need to be broken down more precisely?
7. When most of the ideas have been sorted, you can start to enter titles for each affinity set.
Brainstorming
Creative thinking requires tools such as the brainstorm and the affinity diagram. Brainstorming is simply listing
all ideas put forth by a group in response to a given problem or question. In 1939, a team led by advertising
executive Alex Osborn coined the term "brainstorm." According to Osborn, " Brainstorm means using the
brain to storm a creative problem and to do so "in commando fashion, each stormer audaciously attacking the
same objective." Creativity is encouraged by not allowing ideas to be evaluated or discussed until everyone has
run dry. Any and all ideas are considered legitimate and often the most far-fetched are the most fertile.
Structured brainstorming produces numerous creative ideas about any given "central question". Done right, it
taps the human brain's capacity for lateral thinking and free association.
Brainstorms help answer specific questions such as:
What opportunities face us this year?
What factors are constraining performances in Department X?
What could be causing problem Y?
What can we do to solve problem Z?
Building Consensus
The word consensus comes to us from Latin roots meaning "shared thought". Consensus does not imply
complete agreement, but does involve seeking a decision with which everyone is reasonably comfortable. To
accomplish this, everyone will need a fair opportunity to be heard and latent issues must be explored to the
satisfaction of the group. Many different tools can be used to build consensus. In fact, all the tools used in
quality management contribute to consensus. For example, a well-run brainstorming session can get lots of
ideas out onto the table and give everyone a chance for input. Still, most groups approach a point where they
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must choose between options, or try to narrow a list from many items to just a few. For this, effective tools
specifically for building consensus are used.
Cause & Effect Diagram
The cause & effect diagram is the brainchild of Kaoru Ishikawa, who pioneered quality management processes
in the Kawasaki shipyards, and in the process became one of the founding fathers of modern management.
The C&E diagram is also known as the fishbone diagram because it was drawn to resemble the skeleton of a
fish, with the main causal categories drawn as "bones" attached to the spine of the fish, as shown below.
Flowcharting
Flowcharts are maps or graphical representations of a process. Steps in a process are shown with symbolic
shapes, and the flow of the process is indicated with arrows connecting the symbols. Computer programmers
popularized flowcharts in the 1960's, using them to map the logic of programs. There are many varieties of
flowcharts and scores of symbols that you can use. Experience has shown that there are three main types thatwork for almost all situations:
High-level flowcharts map only the major steps in a process for a good overview.
Detailed flowcharts show a step-by-step mapping of all events and decisions in a process.
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Deployment flowcharts which organize the flowchart by columns, with each column representing a
person or department involved in a process.
The trouble spots in a process usually begin to appear as a team constructs a detailed flowchart.
Although there are many symbols that can be used in flowcharts to represent different kinds of steps, accurate
flowcharts can be created using very few (e.g. oval, rectangle, diamond, delay, cloud).
Force Field Analysis
Force Field Analysis is a simple but powerful technique for building an understanding of the forces that will
drive and resist a proposed change. It consists of a two column form, with driving forces listed in the first
column, and restraining forces in the second.
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The force field diagram is derived from the work of social psychologist Kurt Lewin. According to Lewins
theories, human behavior is caused by forces beliefs, expectations, cultural norms, and the like within the
"life space" of an individual or society. These forces can be positive, urging us toward a behavior, or negative,
propelling us away from a behavior. A force field diagram portrays these driving forces and restraining
forces that affect a central question or problem. A force field diagram can be used to compare any kind of
opposites, actions and consequences, different points of view, and so on.
Tree Diagram
The tree diagram is one of the 7 Management and Planning Tools described by Shigeru Mizuno. It is used to
figure out all the various tasks that must be undertaken to achieve a given objective. If you use it carefully and
thoroughly, it will give you a better understanding of the true scope of a project, and will help your team
focuses on specific tasks that are needed to get something done.
Time and motion study
A time and motion study (or time-motion study) is a business efficiency technique combining the Time
Study work of Frederick Winslow Taylor with the Motion Study work of Frank and Lillian Gilbreth (not to be
confused with their son, best known through the biographical 1950 film and book Cheaper by the Dozen). After
its first introduction, time study developed in the direction of establishing standard times, while motion study
evolved into a technique for improving work methods. The two techniques became integrated and refined into a
widely accepted method applicable to the improvement and upgrading of work systems. This integrated
approach to work system improvement is known as methods engineering.
Time and motion study have to be used together in order to achieve rational and reasonable results. It is
particularly important that effort be applied in motion study to insure equitable results when time study is used.
In fact, much of the difficulty with time study is a result of applying it without a thorough study of the motion
pattern of the job. Motion study can be considered the foundation for time study. The time study measures the
time required to perform a given task in accordance with a specified method and is valid only so long as the
method is continued. Time studies are applied today to industrial as well as service organizations, including
banks, schools and hospitals. Once a new work method is developed, the time study must be changed to agree
with the new method.
Methods-Time Measurement (MTM) is a predetermined motion time system that is used primarily in
industrial settings to analyse the methods used to perform any manual operation or task and, as a byproduct of
that analysis, set the standard time in which a worker should complete that task.
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Methodology
The rating, or Levelling, system used was the Westinghouse or LMS system so called after its originators
Lowry, Maynard and Stegemerten. This system considers four factors independently:
Skill Proficiency in following the given method
Effort The will to work Conditions The general work surroundings
Consistency of performance
Each factor is assigned an alpha rating, e.g. B-, C+, A, etc. which has a numeric value which is applied
later. This reduces the possibility of clock rating and ensures that all factors are considered in the composite
rating. Appendix 1 shows the model for Causes of Difference in Output on which the LMS system is based.
Layout, distances, sizes of parts and tools and tolerances were accurately measured and recorded on the shop
floor to complement the later analyses.
The films were then projected frame-by-frame and analysed and classified in to a predetermined format of
Basic Motions. These Basic Motions were Reach, Grasp, Move, Position, Release, etc. A motion was taken to
begin on the frame in which the hand first started performing the motion and was taken to end on the frame in
which the motion was completed. This allowed a time for each recorded motion to be calculated in seconds, by
means of a frame count, and then levelled to a common performance.
Plots of the levelled times for the various motions were drawn. Analysis determined the best definitions of
limits of motions and their major, time-determining variables, and resulted in, more or less, the structure which
the manual motions of MTM-1 have today. Later work, using Time Study, gave the table of Body Motions.
MTM is complementary to other Industrial Engineering charting analytical techniques; it does not replace
them. It should be used after broader techniques have established the Necessity and Purpose, Place, Sequence,
Person and Means of the tasks to be evaluated.
Unit
The unit in which movements are measured for MTM is TMU (time measurement unit): 1 TMU = 36
milliseconds ; 1 hour = 100,000 TMU
1 TMU = 0.036 second
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Work Simplification
Work simplification describes the making of daily tasks easier in order to reduce strain, or to decrease the
amount energy required to complete an activity. Work Simplification is a scientific approach to study work
processes with a view to simplifying the process such that the work process becomes more efficient and
effective and thereby raises productivity and reduces wastage of labor effort, materials, space, time and energy
in the process of producing a good or delivering a service.
Work simplification techniques range from low-tech (such as using no-scrub cleaners) to high-tech (such as
using voice recognition software for typing).
Some examples include:
Using an automated can opener instead of the manual version
Lengthening a short handle on a dustpan to avoid bending
Using pre-pressed clothes that eliminate the need for ironing
Sliding heavy objects or using a wheeled cart to avoid lifting
Putting an automatic toilet cleaner in the bowl
Work simplification can be useful for people who wish to remain independent for as long as possible, even if
they have a chronic health condition.
Allow for Flexibility Simplification and Harmonization by its very definition allows for flexibility for the UNCountry Team and national partners to apply those Simplification and Harmonization measures that are
appropriate to their country situation and that take into account the financial management capacities available
for implementation and that empower recipient countries.
Contribute to Capacity Building The Simplification and Harmonization must be an instrument towards
increased national capacities. It needs to be built around national systems and processes and must complement
the directions on aid coordination that governments in programme countries are pursuing.
Link with other Simplification and Harmonization Initiatives Simplification and Harmonization process
envisages close collaboration with country offices and national partners, and must factor in and mutually build
on the various efforts at Simplification and Harmonization, notably of the OECD-DAC, World Bank and
Regional Banks, the EU and others. This will ensure synergy and complementarities.
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Include other agencies while the various Simplification and Harmonization measures pertain largely to the
four ExCom agencies that have adopted a common Country Programme approach, a number of the
recommendations could apply to all the UN funds and programmes and specialized agencies at the country
level. The gradual adoption of some of the elements of the programme approach by the various other agencies
might enable them to align with the other measures.
Work Simplification has generated billions of dollars through effectiveness and efficiency for organizations
that focused on their people and gave them tools for continuous improvement. Over the past two decades, the
glamour of electronics has seduced many organizations into treating their people as expenses rather than
resources. For those organizations whose leaders truly believe that their people are their most valuable
resource, the tools of Work Simplification are still available - and better than ever.
In 1946, ASME did something that was even then a long time in the making. They established a set of symbols
as the ASME Standard for Operation and Flow Process Charts. Twenty-five years earlier Frank and Lillian
Gilbreth had presented "Process Charts - First Steps in Finding the One Best Way" at the Annual Meeting of
ASME in 1921. By the time the symbols were standardized they had evolved into a solid set of five symbols
that covered every aspect of work, in any work environment, that can be used with very little confusion. The
first process charts appeared as a series of symbols strung down a page in sequential order. This was (and still
is) a simple and effective way to track the flow of a person or a piece of material through a work process.
- Operation. An operation occurs when an object is arranged or prepared for another step, assembled ordisassembled or intentionally changed.
- Transportation. A transportation occurs when an object is moved from one location to another.
-Inspection. An inspection occurs when an object is verified for quality or quantity in any of its characteristics.
-Delay. A delay occurs when an object waits for the next planned action.
-Storage. A storage occurs when an object is kept and protected against unauthorized removal.
These days, processes change so fast that many organizations have failed to keep up. Their work is
undocumented and as changes are made the complexity mounts. The simple and effective approach of Work
Simplification has more to offer than it ever had. However, its use is not widespread. It appears that many
organizations are focusing their attention on purchasing solutions for their business rather than mastering their
work themselves. Where the purchased solutions lead to downsizing, the corporate memory is discarded
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leaving the organization dependent on those from whom they purchased their processes.
The Work Simplification approach utilizes the corporate memory rather than discarding it. It counters
increasing complexity with continuous improvement and enables the work force to be the masters of their
processes. It is on the program at many universities and it is being applied in increasing numbers of
organizations across the US and Canada; in South America, Europe and Australia as these companies seek to
regain control of their operations.
New methods for studying work are introduced on a regular basis. Usually they focus effectively on one or
another aspect of improvement but they often fail because they do not deal rigorously with the work itself. This
is a good time to look back and discover again a simple tool that visually displays processes in a universal
language that can be readily understood by anyone who wants to understand.
Today, if you are pursuing six sigma or lean manufacturing; if you are using Kazan or value stream mapping, if
you are managing your supply chain, developing a b2b strategy, establishing an electronic commerce presence,
managing day to day internal operations or documenting your processes for certification or audit, understanding
the fundamental steps in your work processes will help you get those things done. Work Simplification helps
you get therefaster, cheaper and better!
Flowchart
A flowchart is a type ofdiagram that represents an algorithm orprocess, showing the steps as boxes of various
kinds, and their order by connecting these with arrows. This diagrammatic representation can give a step-by-step solution to a given problem. Process operations are represented in these boxes, and arrows connecting
them represent flow of control. Data flows are not typically represented in a flowchart, in contrast with data
flow diagrams; rather, they are implied by the sequencing of operations. Flowcharts are used in analyzing,
designing, documenting or managing a process or program in various fields.
Flowcharts used to be a popular means for describing computer algorithms and are still used for this purpose.
Modern techniques such as UMLactivity diagrams can be considered to be extensions of the flowchart. In the
1970s the popularity of flowcharts as an own method decreased when interactive computer terminals and third-
generation programming languages became the common tools of the trade, since algorithms can be expressed
much more concisely and readably as source code in such a language, and also because designing algorithms
using flowcharts was more likely to result in spaghetti code because of the need forgotos to describe arbitrary
jumps in control flow. Often pseudo-code is used, which uses the common idioms of such languages without
strictly adhering to the details of a particular one.
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Flowchart building blocks
Symbols
A typical flowchart from older basic computer science textbooks may have the following kinds of symbols:
Start and end symbols
Represented as circles, ovals or rounded rectangles, usually containing the word "Start" or "End", or
another phrase signaling the start or end of a process, such as "submit enquiry" or "receive product".
Arrows
Showing what's called "flow of control" in computer science. An arrow coming from one symbol and
ending at another symbol represents that control passes to the symbol the arrow points to.
Generic processing steps
Represented as rectangles. Examples: "Add 1 to X"; "replace identified part"; "save changes" or similar.
Subroutines
Represented as rectangles with double-struck vertical edges; these are used to show complex processing
steps which may be detailed in a separate flowchart. Example: PROCESS-FILES. One subroutine may have
multiple distinct entry points or exit flows (see coroutine); if so, these are shown as labeled 'wells' in the
rectangle, and control arrows connect to these 'wells'.
Input/output
Represented as a parallelogram. Examples: Get X from the user; display X.
Prepare conditionalRepresented as a hexagon. Shows operations which have no effect other than preparing a value for a
subsequent conditional or decision step (see below).
Conditional or decision
Represented as a diamond (rhombus) showing where a decision is necessary, commonly a Yes/No
question or True/False test. The conditional symbol is peculiar in that it has two arrows coming out of
it, usually from the bottom point and right point, one corresponding to Yes or True, and one
corresponding to No or False. (The arrows should always be labeled.) More than two arrows can be
used, but this is normally a clear indicator that a complex decision is being taken, in which case it may
need to be broken-down further or replaced with the "pre-defined process" symbol.
Junction symbol
Generally represented with a black blob, showing where multiple control flows converge in a single exit
flow. A junction symbol will have more than one arrow coming into it, but only one going out.
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In simple cases, one may simply have an arrow point to another arrow instead. These are useful to
represent an iterative process (what in Computer Science is called a loop). A loop may, for example,
consist of a connector where control first enters, processing steps, a conditional with one arrow exiting
the loop, and one going back to the connector.
For additional clarity, wherever two lines accidentally cross in the drawing, one of them may be drawn
with a small semicircle over the other, showing that no junction is intended.
Labeled connectors
Represented by an identifying label inside a circle. Labeled connectors are used in complex or multi-
sheet diagrams to substitute for arrows. For each label, the "outflow" connector must always be unique,
but there may be any number of "inflow" connectors. In this case, a junction in control flow is implied.
Concurrency symbol
Represented by a double transversal line with any number of entry and exit arrows. These symbols are
used whenever two or more control flows must operate simultaneously. The exit flows are activatedconcurrently when all of the entry flows have reached the concurrency symbol. A concurrency symbol
with a single entry flow is afork; one with a single exit flow is ajoin.
It is important to remember to keep these connections logical in order. All processes should flow from top
to bottom and left to right.
Data-flow extensions
A number of symbols have been standardized to represent data flow, rather than control flow. These
symbols may also be used in control flow charts (e.g. to substitute for the parallelogram symbol), but they
generally have little currency:
ADocumentrepresented as a rectangle with a wavy base;
AManual inputrepresented by quadrilateral, with the top irregularly sloping up from left to right. An
example would be to signify data-entry from a form;
AManual operation represented by a trapezoid with the longest parallel side at the top, to represent an
operation or adjustment to process that can only be made manually.
AData File represented by a cylinder.
Types of flowchart
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Sterneckert (2003) suggested that flowcharts can be modeled from the perspective of different user groups
(such as managers, system analysts and clerks) and that there are four general types:
Document flowcharts, showing controls over a document-flow through a system
Data flowcharts, showing controls over a data flows in a system
System flowcharts showing controls at a physical or resource level Program flowchart, showing the controls in a program within a system
Notice that every type of flowchart focuses on some kind of control, rather than on the particular flow itself. In
addition, many diagram techniques exist that are similar to flowcharts but carry a different name, such as UML
activity diagrams.
Example of System flow chart diagram as follows:
Software
Any drawing program can be used to create flowchart diagrams, but these will have no underlying data model
to share data with databases or other programs such as project management systems or spreadsheets. Some
tools offer special support for flowchart drawing. Many software packages exist that can create flowcharts
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automatically, either directly from source code, or from a flowchart description language. On-line Web-based
versions of such programs are available.
Functional flow block diagram
A Functional Flow Block Diagram (FFBD) is a multi-tier, time-sequenced, step-by-step flow diagram of a
systems functional flow.The FFBD notation was developed in the 1950s, and is widely used in classical
systems engineering. FFBDs are one of the classic business process modeling methodologies, along with flow
charts, data flow diagrams, control flow diagrams, Gantt charts, PERT diagrams, and IDEF.
Functional Flow Block Diagram Format as follows:
FFBDs are also referred to asFunctional Flow Diagrams,functional block diagrams, andfunctional flows.
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Development of functional flow block diagrams
FFBDs can be developed in a series of levels. FFBDs show the same tasks identified through functional
decomposition and display them in their logical, sequential relationship. For example, the entire flight
mission of a spacecraft can be defined in a top level FFBD, as shown in Figure 2. Each block in the first
level diagram can then be expanded to a series of functions, as shown in the second level diagram for
"perform mission operations." Note that the diagram shows both input (transfer to operational orbit) and
output (transfer to space transportation system orbit), thus initiating the interface identification and
control process. Each block in the second level diagram can be progressively developed into a series of
functions, as shown in the third level diagram on Figure 2.
Figure 2: Development of Functional Flow Block Diagrams
These diagrams are used both to develop requirements and to identify profitable trade studies. For example,
does the spacecraft antenna acquire the tracking and data relay satellite (TDRS) only when the payload data are
to be transmitted, or does it track TDRS continually to allow for the reception of emergency commands or
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transmission of emergency data? The FFBD also incorporates alternate and contingency operations, which
improve the probability of mission success. The flow diagram provides an understanding of total operation of
the system, serves as a basis for development of operational and contingency procedures, and pinpoints areas
where changes in operational procedures could simplify the overall system operation. In certain cases, alternate
FFBDs may be used to represent various means of satisfying a particular function until data are acquired, which
permits selection among the alternatives.[8]
Building blocks
An overview of the key FFBD attributes:
Graphical explanation of a "function block" used in these diagrams. Flow is from left to right.
Function block: Each function on an FFBD should be separate and be represented by single box (solid
line). Each function needs to stand for definite, finite, discrete action to be accomplished by system
elements.
Function numbering: Each level should have a consistent number scheme and provide information
concerning function origin. These numbers establish identification and relationships that will carry
through all Functional Analysis and Allocation activities and facilitate traceability from lower to top
levels.
Functional reference: Each diagram should contain a reference to other functional diagrams by using a
functional reference (box in brackets).
Flow connection: Lines connecting functions should only indicate function flow and not a lapse in time
or intermediate activity. Flow direction: Diagrams should be laid out so that the flow direction is generally from left to right.
Arrows are often used to indicate functional flows.
Summing gates: A circle is used to denote a summing gate and is used when AND/OR is present. AND
is used to indicate parallel functions and all conditions must be satisfied to proceed. OR is used to
indicate that alternative paths can be satisfied to proceed.
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GO and NO-GO paths: G and bar G are used to denote go and no-go conditions. These
symbols are placed adjacent to lines leaving a particular function to indicate alternative paths.
Function symbolism
A function shall be represented by a rectangle containing the title of the function (an action verb followed by a
noun phrase) and its unique decimal delimited number. A horizontal line shall separate this number and the
title, as shown in see Figure 3 above. The figure also depicts how to represent a reference function, which
provides context within a specific FFBD. See Figure 9 for an example regarding use of a reference function.
Figure 3. Function Symbol
Figure 4. Directed Lines
Directed lines
A line with a single arrowhead shall depict functional flow from left to right, see Figure 4.
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Logic Symbols
The following basic logic symbols shall be used.
AND: A condition in which all preceding or succeeding paths are required. The symbol may contain a
single input with multiple outputs or multiple inputs with a single output, but not multiple inputs and
outputs combined (Figure 5). Read the figure as follows: F2 AND F3 may begin in parallel aftercompletion of F1. Likewise, F4 may begin after completion of F2 AND F3.
Figure 5. "AND" Symbol Figure 6. "Exclusive OR" Symbol
Exclusive OR: A condition in which one of multiple preceding or succeeding paths is required, but not
all. The symbol may contain a single input with multiple outputs or multiple inputs with single output,
but not multiple inputs and outputs combined (Figure 6). Read the figure as follows: F2 OR F3 may
begin after completion of F1. Likewise, F4 may begin after completion of either F2 OR F3.
Inclusive OR: A condition in which one, some, or all of the multiple preceding or succeeding paths arerequired. Figure 7 depicts Inclusive OR logic using a combination of the AND symbol (Figure 5) and
the Exclusive OR symbol (Figure 6). Read Figure 7 as follows: F2 OR F3 (exclusively) may begin after
completion of F1, OR (again exclusive) F2 AND F3 may begin after completion of F1. Likewise, F4
may begin after completion of either F2 OR F3 (exclusively), OR (again exclusive) F4 may begin after
completion of both F2 AND F3
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Figure 7. Inclusive OR Logic
Contextual and Administrative Data
Each FFBD shall contain the following contextual and administrative data:
Date the diagram was created
Name of the engineer, organization, or working group that created the diagram
Unique decimal delimited number of the function being diagrammed
Unique function name of the function being diagrammed.
Figure 8 and Figure 9 present the data in an FFBD. Figure 9 is a decomposition of the function F2 contained in
Figure 8 and illustrates the context between functions at different levels of the model.
Figure 8. FFBD Function 0 Illustration
Figure 9. FFBD Function 2 Illustration
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PRODUCTION PLANNING AND SCHEDULING
After taking decisions about the type of business, its location, layout etc. the entrepreneur steps into
the shoe of production manager and attempts to apply managerial principles to the production function in
an enterprise.
Production is a process whereby raw material is converted into semi finished products and thereby
adds to the value of utility of products, which can be measured as the difference between the value of
inputs and value of outputs.
Production function encompasses the activities of procurement, allocation and utilization of resources. The
main objective of production function is to produce the goods and services demanded by the customers in
the most efficient and economical way. Therefore efficient management of the production function is of
utmost importance in order to achieve this objective.
Production system is a system whose function is to convert a set of inputs into a set of desired outputs.
Production system is depicted under with help of chart Production management involves the managerial
decisions regarding design of the product and design of the production system i.e. determination of
production processes and production planning and control.
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PRODUCT DESIGN
Product design is a strategic decision as the image and profit earning capacity of a small firm depends largely
on product design. Once the product to be produced is decided by the entrepreneur the next step is to prepare its
design. Product design consists of form and function. The form designing includes decisions regarding its
shape, size, color and appearance of the product. The functional design involves the working conditions of the
product. Once a product is designed, it prevails for a long time therefore various factors are to be considered
before designing it. These factors are listed below: -
(a) Standardization
(b) Reliability
(c) Maintainability
(d) Servicing
(e) Reproducibility
(f) Sustainability
(g) Product simplification
(h) Quality Commensuration with cost
(i) Product value
(j) Consumer quality
(k) Needs and tastes of consumers.
Above all, the product design should be dictated by the market demand. It is an important decision and
therefore the entrepreneur should pay due effort, time, energy and attention in order to get the best results.
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(ii) Batch Production: - In this, limited quantities of each of the different types of products are
manufactured on same set of machines. Different products are produced separately one after the
other.
(iii) Mass or flow production: Under this, the production run is conducted on a set of machines
arranged according to the sequence of operations. A huge quantity of same product is manufactured at
a time and is stocked for sale. Different product will require different manufacturing lines. Since
one line can produce only one
type of product, this process is also called as line flow.
(iv) Process Production: Under this, the production run is conducted for an indefinite period.
Factors Need To Be Considered Before Making A Choice Of Manufacturing Process.
a) Effect of volume/variety: This is one of the major considerations in selection of manufacturing process.
When the volume is low and variety is high, intermittent process is most suitable and with increase in
volume and reduction in variety continuous process become suitable. The following figure indicates the
choice of process as a function of repetitiveness. Degree of repetitiveness is determined by dividing volume of
goods by variety.
b) Capacity of the plant: Projected sales volume is the key factor to make a choice between batch and line
process. In case of line process, fixed costs are substantially higher than variable costs. The reverse is
true for batch process thus at low volume it would be cheaper to install and maintain a batch process and line
process becomes economical at higher volumes.
c) Lead time: - The continuous process normally yields faster deliveries as compared to batch process.
Therefore lead-time and level of competition certainly influence the choice of production process.
d) Flexibility and Efficiency: - The manufacturing process needs to be flexible enough to adapt
contemplated changes and volume of production should be large enough to lower costs.
Hence it is very important for entrepreneur to consider all above mentioned factors before taking a
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decision regarding the type of manufacturing process to be adopted as for as SSI are concerned they usually
adopt batch processes due to low investment.
Production Planning And Control Can Facilitate The Small Entrepreneur In The Following Ways
(1) Optimum Utilisation of Capacity: With the help of Production Planning and Control [PPC] the
entrepreneur can schedule his tasks and production runs and thereby ensure that his productive capacity does
not remain idle and there is no undue queuing up of tasks via proper allocation of tasks to the production
facilities. No order goes unattended and no machine remains idle.
(2) Inventory control: Proper PPC will help th entrepreneur to resort to just- in- time systems and thereby
reduce the overall inventory. It will enable him to ensure that the right supplies are available at the right time.
(3) Economy in production time: PPC will help the entrepreneur to reduce the cycle time and increase the
turnover via proper scheduling.
(4) Ensure quality: A good PPC will provide for adherence to the quality standards so that quality of output is
ensured.
To sum up we may say that PPC is of immense value to the entrepreneur in capacity utilization and inventory
control. More importantly it improves his response time and quality. As such effective PPC contributes to time,
quality and cost parameters of entrepreneurial success.
PRODUCTION PLANNING AND CONTROL
Once the entrepreneur has taken the decisions regarding the product design and production processes
and system, his next task is to take steps for production planning and control, as this function is
essentially required for efficient and economical production. One of the major problems of small scale
enterprises is that of low productivity small scale industries can utilise natural resources, which are otherwise
lying.
Planned production is an important feature of the small industry. The small entrepreneur possessing the
ability to look ahead, organize and coordinate and having plenty of driving force and capacity to lead
and ability to supervise and coordinate work and simulates his associates by means of a programme of
human relation and organization of employees, he would be able to get the best out of his small industrial unit.
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Gorden and Carson observe production; planning and control involve generally the organization and
planning of manufacturing process. Especially it consists of the planning of routing, scheduling, dispatching
inspection, and coordination, control of materials, methods machines, tools and operating times. The
ultimate objective is the organization of the supply and movement of materials and labour, machines utilization
and related activities, in order to bring about the desired manufacturing results in terms of quality,
quantity, time and place.
Production planning without production control is like a bank without a bank manager, planning initiates
action while control is an adjusting process, providing corrective measures for planned development.
Production control regulates and stimulates the orderly how of materials in the manufacturing process
from the beginning to the end.
STEPS OF PRODUCTION PLANNING AND CONTROL
Production Planning and Control (PPC) is a process that comprises the performance of some critical;
functions on either side, viz., planning as well as control.
Production planning: Production planning may be defined as the technique of foreseeing every step in
a long series of separate operations, each step to be taken at the right time and in the right place and
each operation to be performed in maximum efficiency. It helps entrepreneur to work out the quantity
of material manpower, machine and money requires for producing predetermined level of output in
given period of time.
Routing: Under this, the operations, their path and sequence are established. To perform these
operations the proper class of machines and personnel required are also worked out. The main aim of
routing is to determine the best and cheapest sequence of operations and to ensure that this sequence is
strictly followed. In small enterprises, this job is usually done by entrepreneur in self in a rather adhocmanner. Routing procedure involves following different activities.
(1) An analysis of the article to determine what to make and what to buy.
(2) To determine the quality and type of material
(3) Determining the manufacturing operations and their sequence.
(4) A determination of lot sizes
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(5) Determination of scrap factors
(6) An analysis of cost of the article
(7) Organization of production control forms.
Scheduling: It means working out of time that should be required to perform each operation and also
the time necessary to perform the entire series as routed, making allowances for all factors concerned. It
mainly concerns with time element and priorities of a job. The pattern of scheduling differs from one
job to another which is explained as below:
Production schedule: The main aim is to schedule that amount of work which can easily be handled by
plant and equipment without interference. Its not independent decision as it takes into account following
factors.
(1) Physical plant facilities of the type required to process the material being scheduled.
(2) Personnel who possess the desired skills and experience to operate the equipment and perform the
type of work involved.
(3) Necessary materials and purchased parts.
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Master Schedule: Scheduling usually starts with preparation of master schedule which is weekly or
monthly break-down of the production requirement for each product for a definite time period, by
having this as a running record of total production requirements the entrepreneur is in better position to
shift the production from one product to another as per the changed production requirements. This
forms a base for all subsequent scheduling acclivities. A master schedule is followed by operator
schedule which fixes total time required to do a piece of work with a given machine or which shows the
time required to do each detailed operation of a given job with a given machine or process.
Manufacturing schedule: It is prepared on the basis of type of manufacturing process involved. It is
very useful where single or few products are manufactured repeatedly at regular intervals. Thus it
would show the required quality of each product and sequence in which the same to be operated
Scheduling of Job order manufacturing: Scheduling acquires greater importance in job order
manufacturing. This will enable the speedy execution of job at each center point. As far as small scale
industry is concerned scheduling is of utmost importance as it brings out efficiency in the operations
and s reduces cost price. The small entrepreneur should maintain four types of schedules to have a close
scrutiny of all stages namely an enquiry schedule, a production schedule, a shop schedule and an arrears
schedule out of above four, a shop schedule is the most important most suited to the needs of small
scale industry as it enables a foreman to see at a glance.
1. The total load on any section
2. The operational sequence
3. The stage, which any job has reached.
Loading: The next step is the execution of the schedule plan as per the route chalked out it includes the
assignment of the work to the operators at their machines or work places. So loading determines who
will do the work as routing determines where and scheduling determines when it shall be done. Gantt
Charts are most commonly used in small industries in order to determine the existing load and also to
foresee how fast a job can be done. The usefulness of their technique lies in the fact that they compare
what has been done and what ought to have been done. Most of a small scale enterprise fail due to non-
adherence to delivery schedules therefore they can be successful if they have ability to meet delivery
order in time which no doubt depends upon production of quality goods in right time. It makes all themore important for entrepreneur to judge ahead of time what should be done, where and when thus to
leave nothing to chance once the work has begun.
Production control: Production control is the process of planning production in advance of operations,
establishing the extract route of each individual item part or assembly, setting, starting and finishing for
each important item, assembly or the finishing production and releasing the necessary orders as well as
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initiating the necessary follow-up to have the smooth function of the enterprise. The production control
is of complicated nature in small industries. The production planning and control department can
function at its best in small scale unit only when the work manager, the purchase manager, the
personnel manager and the financial controller assist in planning production activities. The production
controller directly reports to the works manager but in small scale unit, all the three functions namely
material control, planning and control are often performed by the entrepreneur himself production
control starts with dispatching and ends up with corrective actions.
Dispatching: Dispatching involves issue of production orders for starting the operations. Necessary
authority and conformation is given for:
1. Movement of materials to different workstations.
2. Movement of tools and fixtures necessary for each operation.
3. Beginning of work on each operation.
4. Recording of time and cost involved in each operation.
5. Movement of work from one operation to another in accordance with the route sheet.
6. Inspecting or supervision of work
Dispatching is an important step as it translates production plans into production.
Follow up: Every production programme involves determination of the progress of work, removing
bottlenecks in the flow of work and ensuring that the productive operations are taking place in
accordance with the plans. It spots delays or deviations from the production plans. It helps to reveal
detects in routing and scheduling, misunderstanding of orders and instruction, under loading or
overloading of work etc. All problems or deviations are investigated and remedial measurer are
undertaken to ensure the completion of work by the planned date.
Inspection: This is mainly to ensure the quality of goods. It can be required as effective agency of
production control.
Corrective measures: Corrective action may involve any of those activities of adjusting the route,
rescheduling of work changing the workloads, repairs and maintenance of machinery or equipment,
control over inventories of the cause of deviation is the poor performance of the employees. Certain
personnel decisions like training, transfer, demotion etc. may have to be taken. Alternate methods maybe suggested to handle peak loads.
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REQUIREMENTS ANALYSIS
Requirements analysis in systems engineering and software engineering, encompasses those tasks that go into
determining