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UNIT 1 - PRODUCTION MANAGEMENT

FREQUENTLY ASKED QUESTIONS

What is Estimating?

Involves deciding the quantity of products to be produced and cost involved in it on the basis of

sales forecast. Estimating manpower, machine capacity and materials required (bill of materials

is the basis) to meet the planned production targets.

What is Routing?

This is the process of determining the sequence of operations to be performed in the production

process. Routing determines what work must be done, where and how?

Routing information is provided by product or process engineering function and it is useful to

prepare machine loading charts and schedules.

Example:

What is Scheduling?

It Involves fixing priorities for each job and determining the starting time and finishing time for

each operation, the starting dates and finishing dates for each part, sub assembly and final

assembly.

Scheduling lays down a time table for production, indicating the total time required for the

manufacture of a product and also the time required for carrying out the operation for each part

on each machine or equipment.

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Example: Schedule chart

What is Loading ?

Facility loading means loading of work centre and deciding, which jobs to be assigned to which

work centre or machine? Loading is the process of converting operation schedules into practice.

Machine loading is the process of assignment specific jobs to machines, men or work centers

based on relative priorities and capacity utilization.

Example of machine loading chart is Gantt chart

What is Dispatching?

It is defined as setting production activities in motion through the release of orders (work order,

shop order) and instructions in accordance with the previously planned time schedules or

routings. It also provides a means for comparing actual progress with planned production

progress.

What is Expediting?

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It ensures that, the work is carried out as per the plan and delivery schedules are met. It

includes activities such as status reporting, attending to bottlenecks in production and removing

the same, controlling variations or deviations from planned performance levels, following up and

monitoring progress of work through all stages of modifying the production plans and re-plan if

necessary.

What is Inspection

To achieve the quality standards set by product design, every product coming out of the work

center is tested for quality in production.

Example:

Inspection The Perfect Buns: Digital Imaging System On Production Line Catches Bad Sandwich

Buns

What is Evaluation?

The objective of evaluation is to improve performance. Performance of machines, processes

and labour is evaluated to improve the same.

What are types of productivity?

Capital Productivity

Capital involves resources, such as, money deployed in plant, machinery, buildings, distribution

system and also working capital.

To maximize the utilization of the funds allotted towards capital, strategies such as, adapting

new technologies, outsourcing, balancing of workstations, methods analysis, rationalization of

packaging methods and quality circles need to be followed.

Labour Productivity

Labour productivity is the amount of goods and services that a labourer produces in a given

amount of time. It is measured using Motion Study and work measurement methods.

Personal Productivity

Personal does not involve those who do work on the machine, but those, who facilitate the

operations, who co-ordinate between various operations of identifying the jobs that have to be

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done, check the setups, verify allocation of machines and calibration of inspection equipments

etc.

The productivity of these personal cannot be directly measured. Their productivity is indirectly

measured in terms of the productivity of the functions and workforce they are aligned.

What are the different ways of improving Productivity?

Machine: Manual labor be replaced by machines Reliable machines Automation

Management: Motivated workforce Better planning and coordinations Effective control of system

Process: Computerization of system Use of Management Information System (MIS) Improvement in scheduling Better material flow Fast and accurate retrieval of parts

Work Design: Improve job-design Better work method On-job training

Work Environment: Better lighting and illumination Better ventilation Safe work-place Total Quality Management (TQM)

Program: Quality circle Suggestion scheme Incentive schemes Revise pay or policy

Technology: Acquire new technology such as electro-chemical machining (ECM), etc. Acquire automation in assembly, for example, surface mounting technology (SMT) for

printed circuit board assembly unit. Acquire computer controlled machines, such as CNC or DNC. Use automated guided vehicle (AGV) for material transportation.

Manufacturing strategy:

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Change the manufacturing system from fictional to cellular layout, if it is a batch production unit.

Adopt stock-less production strategy and just-In-Time framework in the production unit. Keep work-place clean and environment friendly (also termed as green-production

system). Go for total change in the process/product or strategy if the system is not working

properly (also know as business process re-engineering or BPR). External Environment: Better political stability. Boosting economy and purchasing capacity of buyers. Globalization and open market economy.

What are Quality Circles?

Definition:

Quality Circle is a small group of 6 to 12 employees doing similar work who voluntarily meet

together on a regular basis to identify improvements in their respective work areas using proven

techniques for analysing and solving work related problems coming in the way of achieving and

sustaining excellence leading to mutual up-liftment of employees as well as the organisation. It

is "a way of capturing the creative and innovative power that lies within the work force".

Concept:

The concept of Quality Circle is based upon the human resource management, which is

considered as one of the key factors in the improvement of product quality & productivity.

The major attributes of Quality Circle are:

Quality Circle is a form of participation management.

Quality Circle is a human resource development technique.

Quality Circle is a problem solving technique.

Objective:

The objectives of Quality Circles are

Bring in Positive Attitude From I dont want to be a part of to I do want to be a part

of.

Self Development Imbibe additional skills

Team Culture From I to WE.

Improved Organisational Culture - Positive working environment, Total involvement of

people at all levels, higher motivational level.

Structure:

The structure of a Quality Circle consists of the following elements:

1. A Steering Committee - This is at the top of the structure. It is headed by a senior

executive and includes representatives from the top management personnel and human

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resources development people. It establishes policy, plans and directs the program and

meets usually once in a month.

2. Co-ordinator: Co-ordinator may be a Personnel or Administrative officer who co-

ordinates and supervises the work of the facilitators and administers the programme.

3. Facilitator: Facilitator may be a senior supervisory officer. He /She co-ordiates the

works of several quality circles through the Circle leaders.

4. Circle leader: Leaders may be from lowest level workers or Supervisors. A Circle leader

organises and conducts Circle activities.

5. Circle members: They may be staff workers. Without circle members the porgramme

cannot exist. They are the lifeblood of quality circles

Methodology:

The methodology of quality circles involves a set of sequential steps as mentioned below:

Problem identification: Identify problems.

Problem selection: Depending on priority select the highest priority problem.

Problem Analysis : Problem is analysed by basic problem solving methods.

Obtain alternative solutions: Identify and evaluate causes and generate number of

possible alternative solutions.

Select the most appropriate solution: Discuss and evaluate the alternative solutions

by comparison in terms of investment and return from the investment. This enables to

select the most appropriate solution.

Prepare plan of action: Prepare plan of action for converting the solution into reality by

using 5W1H method, that is, "who, what, when, where, why and how" of solving

problems.

Present Solution: Present solution to management for approval.

Implementation of solution: The management evaluates the recommended solution.

Then it is tested and if successful, implemented on a full scale.

Techniques used by QC:

The following techniques are most commonly used to analyse and solve work related problems.

Brain storming

Pareto Diagrams

Cause & Effect Analysis

Data Collection

Data Analysis

The tools used for data analysis are:

Tables

Bar Charts

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Histograms

Scattergrams

Benefits & Limitations of QC:

A variety of benefits have been attributed to Quality Circles, including higher quality, improved productivity, greater upward flow of information, broader improved worker attitudes, job enrichment, and greater teamwork.

Limitations include lack of management commitment and support, resistance by middle management, resentment by non participants, inadequate training, lack of clear objectives and failure to get solutions implemented.