Operations Management

Course Register No. Name Address

: : :

PGDBA-Operations 200309032 Vaddadi C itti Ramarao

: Ne! No: 9" #ea$ ers Co%on&" 'ast ur(a Nagar" Ad&ar C ennai-)00020" *ndia. : +9,----.2,,)32/

P one No.

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0.No. ,: 1 at is 2Operations 3anagement45 1 at are t e 3anagement5 9n%ist :e& e%ements o8 Operations 3anagement5 Ans!er:

o(6e$ti7es

o8

Operations

An operation may be defined as the process of changing inputs into outputs thereby adding value to some entity. Right quality, right quantity, right time and right price are the four basic requirements of the customers and as such they determine the extent of customer satisfaction. And if these can be provided at a minimum cost, then the value of goods produced or services rendered increases. Thus the objectives of production management are to produce goods and services of the right quality, in the right quantities, according to the time schedule and a minimum cost. bjectives of production management may be amplified as under! "roducing the right #ind of goods and services that satisfy customers$ needs %effectiveness objective&. 'aximi(ing output of goods and services )ith minimum resource inputs %efficiency objective&. *nsuring that goods and services produced conform to pre+set quality specifications %quality objective&. 'inimi(ing throughput+time+ the time that elapses in the conversion process+ by reducing delays, )aiting time and idle time %lead time objective&. 'aximi(ing utili(ation of manpo)er, machines, etc. %,apacity utili(ation objective&. 'inimi(ing cost of producing goods or rendering a service %,ost objective&. perations 'anagement

-ey elements of

Produ$t se%e$tion and design: The right #ind of products and good designs of the products are crucial for the success of an organi(ing. A )rong selection of the product and.or poor design of the products can render the company$s operation ineffective and non+competitive. "roducts.services, therefore, must be chosen after detailed evaluation of the product.services alternatives in conformity )ith the organi(ation$s objectives. Techniques li#e value engineering may be employed in creating alternate designs, )hich are free from unnecessary features and meet the intended functions at the lo)est cost. Pro$ess se%e$tion and p%anning: /election of the optimal conversion system is as important as choice of products.services and their design. "rocess selection decisions include decisions concerning choice of technology, *quipment, machines, material handling systems, mechani(ation and automation. "rocess planning involves detailing of processes if resource conversion required and their sequence. ;a$i%ities <P%ant= %o$ation: "lant location decisions are strategic decisions and once plant is set up at a location, it is comparatively immobile and can be shifted later only at a considerable cost and interruption of production. Although problem of location choice does not fall )ithin previe) the production function and it occurs infrequently, yet it is of crucial importance because of its major effect on the performance of every department including production. Therefore, it is important to choose the right location, )hich )ill minimi(e total delivered customer cost %"roduction and distribution cost&. 0ocational decisions involve evaluation of locational alternatives against multiplicity of relevant factors considering their relative importance to the organi(ation and selecting those, )hich are operationally advantageous to the organi(ation. ;a$i%ities <P%ant= %a&out and materia%s and%ing:

"lant layout is concerned )ith relative location of one department %1or# center& )ith another in order to facilitate material flo) and processing of a product in the most efficient manner through the shortest possible time. A good layout reduces material handling cost, eliminates delays and congestion, improves co+ordination, provide good house#eeping etc. )hile a poor layout results in congestion, )aste, frustration, inefficiency and loss of profit.

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Capa$it& P%anning: ,apacity planning concerns determination and acquisition of productive resource to ensure that their availability matches the demand. ,apacity decisions have a direct influence on performance of production system in respect of both resource productivity and customer service %i.e. delivery performance&. *xcess capacity results in lo) resource productivity )hile inadequate capacity leads to poor customer service. ,apacity planning decisions can be short+term decisions. 0ong+term capacity planning decisions concern expansion.contraction of major facilities required in the conversion process, economics of multiple shift operation, development of vendors for major components etc. /hort+term capacity planning decisions concern issues li#e overtime )or#ing, sub+contracting, shift adjustments etc. 2rea#+even analysis is a valuable tool for capacity planning. Produ$tion P%anning and Contro% <PPC=: "roduction planning is the system for specifying the production procedure to obtain the desired output in a given time at optimum cost in conformance )ith specified standard of quality, and control is essential to ensure that manufacturing ta#es place in the manner stated in the plan. *n7entor& $ontro%: 3nventory control deals )ith determination of optimal inventory levels of ra) materials, components, parts, tools4 finished goods, spares and supplies to ensure their availability )ith minimum capital loc# up. 'aterial requirement planning %'R"& and just in time %53T& are the latest techniques that can help the firm to reduce inventory. 0ua%it& assuran$e and $ontro%: 6uality is an important aspect of production system and it must ensure that services and products produced by the company conform to the declared quality standards at the minimum cost A total quality assurance system includes such aspects as setting standards of quality, inspection of purchased and sub+ contracted parts, control of quality during manufacture and inspection of finished product including performance testing etc. 1or:-stud& and 6o( design: 1or#+study, also called time and motion study, is concerned )ith improvement of productivity in the existing jobs and the maximi(ation of productivity in the design of ne) jobs. T)o principal component of )or#+study are! 'ethod study and 1or# measurement 'ethod study has been defined %2/ 7879& as the systematic recording and critical examination of the existing and proposed )ays of doing )or#, as a means of developing and applying easier and more effective methods and reducing costs. 'ethod study )hen applied to production methods yields one or more of the follo)ing benefits! 3mproved )or# environment 3mproved facility layout 2etter utili(ation of facilities :reater safety 0esser materials handling /mooth production flo) 0o)er )or#+in+process ;igher earnings for the )or#men

3aintenan$e and rep%a$ement: 'aintenance and replacement involve selection of optimal maintenance "reventive and.or brea#do)n& policy to ensure higher equipment availability at minimum maintenance and repair cost. "reventive maintenance, )hich includes preventive inspection, planned lubrication, periodic cleaning and up#eep, planned replacement of parts, condition monitoring of the equipment and machines, etc. is most appropriate for critical machines. Cost redu$tion and $ost $ontro%:

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*ffective production management must ensure minimum cost of production and in this context cost reduction and cost control acquires significant importance. There are large number of tools and techniques available that can help to ma#e a heavy dent on the production cost.

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0.No. 2: 1 at is (at$ produ$tion5 1 at are its :e& $ ara$teristi$s5 Compare t ese $ ara$teristi$s !it t ose o8 pro6e$t produ$tion5 Ans!er: 2atch production is one of manufacturing methods )here limited quantity of each type of product is authori(ed for manufacture at a time. 3t is characteri(ed by the manufacture of a limited number of products produced at periodic intervals and stoc#ed in )arehouses as finished goods a)aiting sales. Typical examples of such batch production are process industries such as pharmaceuticals, paints, chemicals, medium and heavy engineering industry engaged in the manufacture of electric motors, s)itch gear, heave motor vehicles, internal combustion engines4 manufacturer of readymade garments etc. ,haracteristics of batch production! > ort Runs: /hort production runs and frequent changes of setup also characteri(e batch production. The equipment and the assembly setup is used for a limited number of parts or assemblies and is then changes to ma#e a different product. The production is generally made to stoc#. 3n project production, each project has a definite beginning and a definite end. >:i%%ed %a(or in spe$i8i$ trades: The labor force is expected to possess s#ill in one specific manufacturing process! turning, milling, drilling, )elding, grinding, hobbling, fitting etc. The operator may perform simpler machine setups but the separate machine tool setter performs those involving complex operations. Requirement of resources for a project production is not uniform. :enerally resource requirement %men, materials, money etc& in the beginning of the project is lo), )hich builds up fast )ith the progress of project as more and more resources are absorbed, then it levels off until there is gradual cutbac# as the project approaches completion. >uper7isor to possess :no!%edge o8 a spe$i8i$ pro$ess: The supervisors have considerable #no)ledge of a specific process. /upervisor in the grinding section for example, may not expert in turning and drilling )or# but is expected to possess #no)ledge of different types of grinding operations. /imilarly, a supervisor in the gear shop is expected to have sound #no)ledge in )or#ing of different types of gear cutting machines. ?imited span o8 $ontro%: The amount of supervision required in batch production is lo)er than that of jobbing production. The ration of direct )or#men to supervisors is more or less a function of batch si(e. The smaller the batch, the lo)er is ration of direct )or#ers to supervisors, and vice+versa. This is because smaller lots require each supervisor to spend a great deal of his time in allocating ne) )or#, giving instructions, follo) up on the shop floor for proper movement of materials, identifying delays and interruptions and arranging, in consultation )ith planning, )or# load in his section to #eep his men busy. 3n project production layout is fixed. 1here the output of a project is a product, such products are generally characteri(ed by immobility during transformation. perations on such products are carried out in fixed position assembly type of layout, )hich can be observed in production of ships, locomotive, aircraft, construction of roads. buildings etc. Genera%-purpose ma$ ines and pro$ess t&pe o8 %a&out: "lant and equipment is procured and arranged to obtain maximum flexibility. :eneral+purpose machines and handling equipment capable of performing variety of operations )ith minimum setup times are installed in lieu of variety of products. The machines are arranged to give process layout by function. /imilar machines capable of doing similar types of operations are grouped together and #ept at one place. "resses, for example, are put together and #ept at one place4 gear+cutting machines are located at the fourth place and so on. *ach group of machines is usually designated as a )or# center or a section or a shop.

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3anua% materia%s

and%ing:

'aterials$ handling in batch production as compared to jobbing production is small. 3ndividual components and parts are placed in trolleys or trays and are transported as unit loads. 'aterials handling may be mechani(ed by deploying po)er driven truc#s. 3anu8a$turing $&$%e time a88e$ted due to @ueues: The manufacturing cycle time is smaller than jobbing production but is much more than mass and flo) production. The batches of )or# tend to queue up at different machines due to differing cycle times, batch si(es and sequence of operations. ?arge !or:-in-progress: 1or# in progress is large due to varying )or# content of different components, imbalance in manufacturing times, formation of queues bet)een the machines. ;%eAi(i%it& o8 produ$tion s$ edu%es: <isruptions due to machine brea#do)ns or absenteeism do not seriously affect production as job can be shifted to another machine or another operator. 3n project production, cost of overruns is high. ften delays ta#e place in the completion of the projects. /uch delays are generally very expensive due to escalation in the cost of factors of production and incident of penalties. Need to a7e produ$tion p%anning and $ontro%:

=unctions of production planning and control in batch production unit are more complex than those in jobbing production or mass and flo) production! 'aterials control and tools control functions are important. /ome #ind of replenishment system needs to be used to ensure routine replenishment. <etailed operational layouts and route sheets are prepared for each part of the product. 0oading and scheduling needs to be detailed and more sophisticated since every machine requires to be individually scheduled "rogressing function is very important to collect information on progress of )or#. A separate progress card to be maintained to record progress of each component. *xpediting is generally necessary since quite often jobs, due to imbalances in )or# contents, tend to lag behind.

3n project production because of large number of activities, involvement of different agencies and strict precedence requirements, scheduling and control assumes great importance. /ome net)or# planning techniques li#e "*RT and ,"' have been found useful to overcome the problems.

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0.No. 3<a=: 1 & are %o$ationa% de$isions important5 1 at 8a$tors s ou%d (e ta:en into a$$ount ! i%e de$iding %o$ation o8 a unit to manu8a$ture !as ing ma$ ines5 Ans!er: 0ocational decisions generally arise )hen! A ne) manufacturing %or servicing& unit is to be set up. *xisting plant operations are difficult to expand due to poor selection of site earlier. The gro)th of the business ma#es it advisable to establish additional facilities in ne) territories. The product development has over )eighted the advantages of the existing plant. There is emergence of ne) social %chronic labor problems& political %political instability or economic conditions that suggest a change in the location of the existing plant. The changes in the industrial "olicy of the :overnment, favoring decentrali(ing and dispersal of industries to achieve overall development of the country, do not permit expansion of the existing plant.

=actors governing plant location! "lant location studies are conducted in three phases! :eneral territory selection ,ommunity selection /ite selection

ProAimit& to mar:et: *very company is in business to mar#et and it can survive only if their product reaches the consumers on time and at the competitive price. The ratio of selling costs to sales generally increases )ith distance. Therefore, in the choice of location o the plant, the factor of proximity to the mar#et is given the highest priority. 0ocating a plant nearer to the mar#et is preferred if! The The The The product is fragile. product is susceptible to spoilage. promptness of service is required. product is relatively inexpensive and transportation costs add significantly to the cost.

2read, soap factories, etc. require the mar#et to be nearby. 3f factory cannot be started in 2ombay, it may be started in Thane, -alyan or "oona. 3f the product is exported, location near ports is desirable. This is particularly important for producers )ho sell bul#y commodities, )hich incur high transportation costs >earness to mar#et not only lo)ers transportation costs but also gives many other benefits namely! A good many administrative problems, )hich cause perpetual headaches and add to costs, are avoided. 0iaison )ith dealers or )hole sellers can be maintained economically and easily ther costs such as commission to middlemen, )hich at times run as high as ?@ to A@ percent can be reduced significantly. ,ustomer$s accounts do not remain outstanding for settlement. This recovery is easy and less time saving )hich itself reduces selling costs.

ProAimit& to sour$e o8 ra! materia%s: /ince ra) materials usually constitute A@ to B@ percent of the total product cost, it is important that the firm gets its requirements of ra) materials at the right time and at the reasonable price for )hich the plant must be located in the neighborhood of some source )hich can meet the ra) materials requirement of the unit "roximity to supply of ra) materials factor assumes still greater importance if ra) materials are of perishable nature or if they are expensive to transport, or if their )eight is substantially reduced by processing. "roximity to sources of ra) materials is equally important for small units. This is because usually small units are not considered important customers. They get least priority and in the event of scarcity are the one to be struc# off first from the list. The availability of materials to small units to a large extent thus depends on their follo) up and personal visits to the supplier$s plant )hich is possible only if the buyer$s plant is close by.

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*n8rastru$ture 8a$i%ities: 3nfrastructure facilities consider availability of utilities li#e po)er )ater, disposal of )aste etc. These form the life+blood of many types of industries )ithout )hich there facilities may come to a stand still. Cnderestimating the need of any one of the utilities can be extremely costly and inconvenient. ,ertain industries, for example, aluminium, steel, etc are po)er intensive and must be located close to the sites of po)er generation failing )hich the shortage of, or increase in cost of generating po)er may spell problems for their survival. /imilarly, chemical process industries li#e paper and pulp, cement, steel, sugar laundries, metal plating, food preparation etc. requires perennial source of )ater. 'ineral content of )ater may also be an important factor. Treatment of )ater is an expense to be considered )hile comparing economics of different locations. <rainage facilities are important for process industries other)ise disposal of process )aster can create lot of difficulties. #ransport 8a$i%ities: Transportation cost to the value added is a #ey determinant of the plant location. The structure of the transportation cost depends on %i& ,haracteristics of the commodity %ii& average distance of shipment %iii& medium of shipment! rail, road, and air sea. The need for transport arises because ra) materials and fuel are to be moved to factory site and finished goods are to be transported from factory to mar#ets. ther things being equal since transport cost has a major effect on product cost, the regions )ell served by transport facilities are most suitable for industrial locations. ?a(or and !ages: "lant location should be such that required labor is easily available in the neighborhood. 3mporting labor from outside is usually costly and it causes lot of administrative problems. Availability of required labor locally is better since problem of arranging accommodation and other related problems do not arise. /ince normally )or#ers )ith specific s#ills are required, some sort of training facility should also be available in the neighborhood. /#illed employees are easily available if 3T3$s, or *ngineering colleges are there in the neighborhood. ?egis%ation and taAation: The policies of the state :overnment and 0ocal 2odies relating to issue of licenses, building codes, labor la)s, etc. are the factors in selecting.rejecting a particular community.site. 3n order to disperse industries and ensure balanced economic gro)th, both ,entral and /tate government offer a pac#age of incentives for setting up industries in particular locations. *xemption from excise duty, sales tax and octroi, soft loans from financial institutions, subsidy in electricity charges, etc. are some of the incentives offered. /ince taxes and duties levied by the /tate :overnment and 0ocal bodies substantially influence product cost, the incidence of such taxes.levies must be ta#en into account )hile selecting a community.site. C%imati$ $onditions: ,limatic factors may not have a major influence these days because of modern air conditioning facilities available today. ;o)ever, it may be important factor for certain industries li#e textile mills, )hich require high humidity. *ndustria% and %a(or attitudes: ,ommunity attitudes to)ards supporting hostile trade union activities are an important factor. 0ocating facilities in a certain region.community may not be desirable as frequent labor problems and interruptions are harmful to the plant in the long run. "olitical situation in the state and attitude of the government to)ards labor activities also influences selection of the site for the plant.

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>a8et& re@uirement: /afety factor may be important for certain industries such as! >uclear po)er plants and *xplosive factories 0ocation of such industries close to border areas is undesirable. Communit& 8a$i%ities <or so$ia% in8rastru$ture=: ,ommunity facilities imply accommodation, educational, entertainment and transport facilities. Accommodation is needed unless the employees are local residents. Accommodation should be easily available, comparatively cheap and near some public transport stop. The location area should be fully developed, be accessible by road and should have a convenient and efficient public transport system operating bet)een the area and the to)nship to enable employees, officials, customers and suppliers to ma#e easy trips for their )or# Communit& attitudes: ,ommunity attitudes to)ards )or# %i.e. )hether the people in the location are hard )or#ing or other)ise& as )ell as their attitudes to)ards the incoming entrepreneurs %helpful and cooperative or other)ise& can ma#e or mar an industry. 0ocation decisions, therefore, must ta#e such factors also into account particularly )hile setting up labor+intensive units. >upporting industries and ser7i$es: 0ocation factors should also include proximity of services needed by the firm. A firm desirous of getting some or all parts made from outside or some of the operations done from outside must see that such sub+ contractors are located in the neighborhood. :etting a job done from units located at far off places )ill mean not only additional transportation cost but also time consuming and costly. Also if units are too far off, the control on quality of )or# done by them cannot be exercised. >uita(i%it& o8 t e %and: /ite selection should also ta#e into account topography and soil structure of the land. The soil structure must be capable of bearing loads of foundations. Though modern building techniques can overcome the limitations of the soil, but if considerable improvement is required then selection of a lo) cost and may ultimately turn out to be expensive. A7ai%a(i%it& and $ost o8 t e %and: /ite si(e %"lot si(e& must be large enough to accommodate the present production facilities, par#ing and access facilities but also leave sufficient room for future expansion. As a general rule, a site five times the actual plant si(e is considered minimum for all these things including future expansion. 9$onom& sur7e& o8 t e site se%e$tion: An ideal location is one )here the cost of obtaining materials and processing them into finished product plus the cost of distributing the finished product to customers is minimum. ne of the most commonly used approaches consists of follo)ing steps! "repare a list of all relevant factors. *stimate expenses on materials, transport, )ages, po)er etc for each location on each of the above factors. ,ollect data on intangible factors li#e community facilities, community attitudes etc. Analy(e the tangible data for each location and calculate rate of return on investment. /elect provisionally a locational based on financial data. ,ompare the intangible data for the different locations and select the optimal location considering intangible data.

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0.No. 3<(=: 1 at are o(6e$ti7es o8 a good %a&out5 Dis$uss an& siA prin$ip%es o8 a good %a&out5 Ans!er: bjective of a good plant layout nly through an efficient layout, the organi(ation can attain the follo)ing objectives! *conomy in handling of materials, )or#+in+process and finished goods. 'inimi(ation of product delays. 0esser )or#+in+progress and minimum manufacturing cycle time. *fficient utili(ation of available space. *asy supervision and better production control. :reater flexibility for changes in product design and for future expansion. 2etter )or#ing conditions by eliminating causes of excessive noise, objectionable odor smo#e etc.

"rinciples of a good layout! O7era%% integration o8 8a$tors: A good layout is one that integrates men, materials, machines and supporting activities and others in a )ay that the best compromise is obtained >o layout can satisfy each and every principle of a good layout. /ome criterion may conflict )ith some other criterion and as a result no layout can be ideal it has to integrate all factors into the best possible compromise. 3inimum mo7ement: A good layout is one that permits the minimum movement bet)een the operations. The plant and machinery in case of product layout and departments arranged as per sequence of operations of most of the products. in case of process layout should be

/ince straight line is the shortest distance bet)een any t)o points, men and materials as far as possible should be made to move along the straight path A door may be made in a )all or a hole may be drilled in a ceiling if that eliminates or reduces material handling in place of stairs or a distant door.

Bni-dire$tion 8%o!: A good layout is one that ma#es the materials move only in the for)ard direction, to)ards stage of completion, )ith any bac#trac#ing. /ince straight line is the shortest distance bet)een any t)o, points, materials as far as possible should be made to move on the principle of straight+line flo). And )hen straight line flo) is not possible, other flo)s li#e C+shaped flo), circular flo) or (ig (ag flo) may be adopted, but the layout may ensure that materials move in the for)ard direction %=ig D.8& To ensure for)ard flo), equipment if necessary may be duplicated.

988e$ti7e use o8 a7ai%a(%e spa$e: A good layout is one that ma#es effective use of available space both hori(ontal and vertical 2ac#trac#ing and duplicated movements consume more time, involve un+necessary materials handling, add to cost and lead to inefficiency. Ra) materials, )or#+in+progress and finished goods should be piled vertically one above another rather than being stre)n on the floor. "allets or equivalents should be made use of to pile up several layers one above another Area belo) the )or# tables or in the cupboards built into the )all are )elcome since they reduce requirement of space Page 11 of 27

200309032 Production / Operations Management

3aAimum 7isi(i%it&: A good layout is one that ma#es men, machines and materials ready observable at all times.

All departments should be smoothly integrated, convenient to service and easy to supervise *very piece of positioning or screening or partitioning should be scrutini(ed and carefully planned. /pecial cupboards, enclosures, offices, partitions etc. should be avoided except )hen their utility is established beyond doubt.

3aAimum a$$essi(i%it&: A good layout is one that ma#es all servicing and maintenance point readily accessible.

'achines should be #ept sufficiently apart and )ith reasonable clearance from the )all so that lubrication, adjustment and replacement of belts, removal of parts at the time of repairs etc can be done conveniently by the maintenance staff. Area in front of electrical panels and fire extinguishers should be #ept free from obstructions.

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0.No. -: Co! does produ$tion p%anning di88er 8rom produ$tion $ontro%5 1 at are t e :e& 8un$tions o8 produ$tion p%anning and $ontro%5 Ans!er: "roduction planning Es production control. P%anning <P%anning t e !or:= "lanning involves collection and maintenance of data regarding time standards, materials and their specifications, machines and their quantities, tools and their process capabilities, dra)ings and operational layouts etc. "lanning is seeing that requirements tool, machines, men, instructions, authori(ation and the li#e+)ill be available at the right time and in the right quantities and are of proper quality. "lanning involves preparations of load charts and fitting various )or# orders into uncommitted time available on the company$s facilities %men or machines&. "lanning involves preparation of all necessary forms and paper )or#. "lanning involves designing suitable feed bac# as to )hat may happen. "lanning involves for)arding thin#ing regarding the remedial action to be ta#en if the job falls behind schedule. "lanning therefore is a centrali(ed Activity %in the office& and includes such functions as materials control, tools control, process planning and scheduling. Contro% <1or:ing t e P%an= ,ontrol involves dissemination of data preparation of reports regarding output, machine and labor efficiency, percent defectives etc.

,ontrol is seeing the requirements are actually made available at the right place and in the right quantities.

,ontrol involves actual seeing that the jobs are started and completed as per schedule prepared by the scheduling cell of the "",. ,ontrol involves actual issue of forms and paper )or#. ,ontrol involves #eeping trac# of )hat is happening and collecting information as to )hat has happened. ,ontrol involves suggesting remedial action )hen the job is falling behind schedule. ,ontrol is thus a diffused activity %in the shops& and includes functions such as dispatching, progressing and expediting.

=unctions

f "roduction "lanning And ,ontrol!

"roduction planning and control is normally assigned t)o sets of functions! Regular functions are those, )hich are generally assigned to "", in most of the organi(ations through the importance of the function, may vary from industry to industry. ptional functions are those, )hich may be assigned to "", depending upon policy of the management of the firm.

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Regular =unctions Es

ptional =unctions Optiona% ;un$tions ,ost *stimation concerns preparations of pre+production cost estimates to be used by sales department for quotation purposes %Alternatively this may be assigned to ,osting <epartment or 3ndustrial *ngineering <epartment& 1or# measurement concern fixation of time to be allo)ed to a qualified )or#man to carry out a specific tas#, under specified conditions and at the defined level of performance. 1or# measurement employs scientific, )ell+#no)n techniques li#e time study, )or# sampling standard data, production study, analytical estimating etc. %Alternatively, )or# measurement function may be assigned to 3ndustrial *ngineering department. /ub+,ontract concerns offloading of certain )or# on outside vendors for economic reasons or to augment the existing manufacturing facilities %/ub+contract )or# alternatively& be handled by 'aterials.purchase <epartment&

Common or Regu%ar ;un$tions rder "reparation includes activities li#e ma#ing of )or# orders, converting )or# orders to shop orders, preparing auxiliary orders and releasing such orders to those concerned to authori(e their activities 'aterials control concerns preparations of materials estimates, indenting non+stoc# materials, ascertaining availability of materials purchased to stoc#, continual follo)+up )ith purchase and stores for timely receipt of materials, and advising stores to allocate required quantities or available materials %alternatively on their receipt& against specific shop orders. "rocess planning or Routing concerns fixation of method of manufacture! operations and their sequence, machine tool for each operation, jigs and fixtures, measuring instruments and gauges etc. to enable shops to produce goods of the right quality at the lo)est cost. Tools control concerns preparations of estimates of cutting tools %/tandards as )ee# As non+standards tools&, gauges and measuring instruments, jigs and fixtures etc indenting non+stic# tooling! follo) up )ith tool room for timely manufacture of jigs and fixtures4 periodical replenishment of )orn+ out+non+consumable tooling %e.g. )or# arbors, collets, copying masters, Allen #eys, spanners, etc. /cheduling concerns preparation of machine loads, fixation of calendar dates of various operations to be performed on a job, coordination )ith sales to confirm delivery dates of ne) items and periodical preparation of dispatch schedules of regular items. <ispatching concerns preparation and distribution of shop orders and manufacturing instructions to the concerned department as their authority to perform the )or# according to the predetermined schedule. "rogressing concerns collection of data from manufacturing shops, recording of progress of )or#, and comparing progress against plan. *xpediting concerns intensive progress chasing to identify delays and interruptions )hich may hold up production, devising cures from time to time to #eep rate of production in line )ith the schedule, communicating possible failure in delivery commitments to sales department.

,apacity planning concerns estimation of requirements of men and machines as the basis of decision ma#ing to meet the firm$s increased volume of business %/ome companies prefer to assign this function to *ngineering department.

<emand forecasting concerns ma#ing projection of company$s product mar#et. Though, long term forecasts are given by /ales <epartment but short term forecasts required for materials planning, machine loading, sub contracting etc may be prepared by "", department

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0.No. .: 1 at is pre7enti7e maintenan$e5 1 & it is (etter t an Brea:do!n 3aintenan$e5 1 at are t e :e& a$ti7ities o8 Pre7enti7e 3aintenan$e5 Ans!er: "reventive maintenance anticipates failures and adopts necessary actions to chec# failures before they occur. 3t includes activities li#e inspection, lubrication, cleaning un#eeps, minor adjustments and replacements found necessary at the time of inspection etc. "reventive maintenance can be either! running maintenance or shut do)n maintenance. Running maintenance includes maintenance activities e.g. minor adjustments in machines revealed through inspections, lubrication, cleaning and up#eep etc., )hich are carried out )hen the machine is still running. /hutdo)n maintenance includes preventive maintenance activities such as minor component replacement )hose needs are identified through inspections, )hich require stoppage of machines. "reventive inspection is one of the #ey activities of preventive maintenance )hich is usually performed by ma#ing use of human senses )atch %eye&, listen %ear&, touch %hand, leg, body smell %nose& and taste %tongue&. 2ut the trend is changing to)ards use of condition monitoring instruments. /uch maintenance. "ractice is #no)n as predictive maintenance or condition based maintenance.

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0.No. ): 1 at is met od stud&5 Des$ri(e t e pro$edura% steps to de7e%op easier and e88e$ti7e met ods5 Ans!er: 'ethod study is the systematic recording and critical examination of existing and proposed )ays of doing )or#, as a means of developing and applying easier and more effective methods and reducing costs. 'ethod study is an organi(ed approach and its investigation rests on the follo)ing six basic steps outlined in the bloc# diagram! /elect Record *xamine <evelop 3nstall 'aintain the )or# to be analy(ed. all facts relating to the existing method. the recorded facts critically but impartially. the most economical method commensurate )ith plant Requirements the ne) method as standard practice. the ne) method.

>e%e$tion o8 t e 6o( /elections of the jobs to be studied for methods improvement by the method study practioner is a managerial responsibility and it %selection& may be based on economic technical or human consideration. *conomic consideration justifies selection based on the economic )orth %i.e. money saving potential& of the job. Technical consideration identifies jobs, )hich require studies to overcome manufacturing difficulties %excessive rejection, relaxation in prefixed performance standards, inability if the shops to stic# to specified machining parameters such as speeds, feeds, depth of cut etc., inconsistent quality etc.& ;uman consideration in job selection is usually given )eight+age )hile introducing method study practices for the first time. Re$ording o8 8a$ts /ystematic recording is the most crucial step in method improvement. /ince recording by long hand %or by descriptive method& has its limitations, it is not recommended for use in method study. 3nstead, five symbols and eight charting conventions are used to record facts relating to the job under study. =ive typical symbols are , FF, , < and E and eight charting conventions concern composition of the chart, reject, re)or#, repletion, change of state, introducing of ne) material, combined events and numbering of events. The document on )hich details of the process are recorded by the above referred symbols and conventions is called chart. There are four basic types of chart! %i& operation process chart %ii& =lo) process chart %iii& multiple activity charts and %iv& t)o handed process chart. 2esides charts, t)o types of diagrams+flo) diagram and string diagram are dra)n )hen recording details of an existing layout. Travel chart is another typical chart, )hich is used to record frequency of movements %)eight x distance& bet)een )or# centers.departments. Repetitive short cycle operation that involves quic# hand . feel motions %i.e. microscopic motions& may be studied )ith micro motion study. :libreth, founder father of micro motion study, also developed photographic techniques called cyclograph and chronocylegraph to record path of the motions of the members of the body. Criti$a% eAamination ,ritical examination aims to analy(e the facts critically and thereby give rise to alternatives, )hich form the basis of selection and development of easier, and effective methods. ,ritical examination is conducted through a systematic and methodical questioning process. *ach activity recorded on the chart, )hether it relates to processing or inspection, or material handling, or to any other aspect, is pic#ed up one at a time and is examined minutely. The questioning process is considered under five major heads, namely the purpose, the place, the sequence, the person and the means. These five aspects in critical examination are referred to as five governing considerations. De7e%opment and se%e$tion: <evelopment and selection stage concerns short listing of ideas generated at the critical examination stage, testing each short listed idea for its technical and economic feasibility, and ma#ing selection among

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the alternatives )herever choice exists. To develop ideas and to ascertain their technical and economical feasibility, the method study practioner needs to solicit the cooperation of personnel from different departments of the company. Earious techniques available for the development and selection purpose are! cost benefit analysis, brea#+even analysis, investment analysis and critical path analysis. *nsta%%ation 3nstallation %or implementation& of the proposed method involves preparation of project report on recommendations ma#ing oral presentation to the top management, securing approval of the decision ma#er, assisting line management during implementation, arranging training of )or#men, and getting jobs %operations& retime after implementation, arranging training of )or#men, and getting jobs %operations& retimed after implementation. 3aintenan$e 'aintenance phase is the follo) up phase after implementation, )hich serves as a monitoring and control mechanism. 3t helps to ensure that the revised methods are set into concrete and )or#men do not revert bac# to old methods. 3t also provides an opportunity to the practitioner to assess the effectiveness of the approach follo)ed by him and ma#es changes in the methodology %if required&.

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0.No. 9<a=: 1 at desira(%e $onditions need to (e present to (e present to guarantee su$$ess o8 an in$enti7e s$ eme5 Ans!er: A good )age incentive plan should have the follo)ing characteristics. Administrati7e simp%i$it&: The incentive system should be simple and must be easily understood by the )or#ers and their representatives. An incentives scheme, )hich can be understood, only by engineers and mathematicians or a scheme )hich involves the use of complex formulate or references and cross+ references is sure to fail. The incentive scheme should be such that )or#men can calculate their o)n earnings easily and quic#ly. 3inimum $%eri$a% !or:: The system should fit into existing system of production and cost control. 3t should not involve any significant addition to the clerical )or#. 3aAimum $o7erage: The system should cover as many )or#men as possible. A scheme if applied to a fe) )or#men creates a demorali(ing effect on the morale of those not covered by the scheme. Dire$t 3ncentive payments should increase at least in direct proportion to the increase in output by the operator. There are t)o reasons! =irstly because it is more difficult to producer extra units and secondly because saving in the overheads are far greater at higher levels of production. Period o8 Pa&ment The period of payment should be as short as possible Ade@uate guaranteed minimum our%& rate The scheme must ensure adequate guaranteed minimum hourly rate to all incentive )or#ers regardless of their output. /uch an hourly guaranteed rate is normally referred to as the guaranteed base rate. The guaranteed base rate must be realistic and should be at least equal to the hourly rate payable to a non+incentive )or#er doing similar job in the industry. 3ncentive earnings of the )or#ers should never be regarded as a substitute for poor )ages. A$$urate and &et attaina(%e per8orman$e standards "erformance standards should be set through systematic )or# measurement studies. The experts to that there is no dispute or malpractice and yet the standards are attainable so that a )or#er )or#ing at normal pace can attain them should base the standards of measurement on the assessment. =urther the incentive plan should be such that it provides an opportunity to all average )or#ers to earn reasonable earnings. Consisten$& o8 t e standards /tandards once fixed should not be changed unless there is a permanent change in methods, or change in equipment, or change in material and plan should provide for the provisions to modify the performance standards. *n(ui%t $ e$: on pro$ess re6e$tions A good incentive scheme should exercise a chec# on the operator against achieving higher bonus by poor )or#manship. "ayment should be made only for pieces declared acceptable by the inspection department and a )or#man constantly producing substandard pieces should be liable for disciplinary action. Pa&ment o8 partia%%& $omp%eted 6o(s The problem of payment for the incomplete )or# arises only in case of long cycle jobs. situations do arise )hen the jobs are of very long cycle duration and cannot be finished )ithin the bonus period. /imilarly, a semi+finished job may require to be handed over by one operator to another at the end of shift, or prior to having a holiday. The scheme should clearly spell out as ho) assessment of )or# done by the )or#men on the same job )ill be carried out and ho) disputes arising out of such assessment )ould be resolved. Page 18 of 27

200309032 Production / Operations Management

Pa&ment o8 *d%e #ime Adequate safeguards must be provided to compensate the operator for the time lost due to reasons beyond his control. A good incentive scheme should ensure that an operator does not suffer financial loss for reasons attributable to the managerial )ea#ness, e.g.! lac# of material due to bad buying, brea#do)ns of the machines due to poor maintenance practices, non+availability of )or# etc. Thus an operator rendered idle because of factors attributable to the management should be given a lieu bonus. >a8eguards The scheme should be fair not only to the employees but also to the employer. /afeguarding clauses as under should be incorporated to protect. 'anagement$s right to change a standard )hen there are changes in methods. 'aterials and machines 'anagement$s right to )ithdra) or discontinue temporarily a scheme during bad period. 'anagement$s right to initiate disciplinary action against operators )ho continually produce sub+standard articles. 'anagement$s right to initiate disciplinary action against employees )ho, time and again, do not achieve minimum standard of production even in the presence of fair and accurate standards. 'anagement$s right to initiate disciplinary action against employees )ho, time and again are found using speeds and feeds higher than those recommended in the process sheet %or operational layouts&

3aAimum $ei%ing on t e earnings The system should have built+in+control against higher earnings beyond a certain limit. =irstly, the system should discourage )or#ers to )or# beyond a certain limit other)ise too attractive an incentive scheme may induce the )or#er to )or# more and more and thereby adversely affect his health. /econdly, the system should ensure that in case of loose standards the company does not lose financially. Consisten$& o8 P%an The plan should be consistent over a period of time. =requent changes in the plan ma#e it$s functioning difficult. =aith in plan is lost if there are frequent revisions. A$$eptan$e o8 ?a(or Bod& The scheme should finally have acceptance of the labor body. The body of )or#ers$ representatives to prevent any misunderstanding and ill feeling later on must accept the basic incentive plan and its provisions. Continuous Bse The scheme should be in continuous use. The temporary use of the scheme in good times and its discontinuation in bad times ma#es it$s functioning difficult. De8ine 9nd Resu%ts The plan must result in reduction in per unit labor cost.

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0.No. 9<(=: A !e%der !or:ing under t e Ca%se& P%an $omp%eted t e 8o%%o!ing 6o(s in an D s i8t. # e standard time 8or ea$ 6o( is gi7en in t e ta(%e (e%o!: Eo( No. 5+7@8? 5+779A 5+7A?9 5+7A7H #ime #a:en ;rom #o @G!@@A' @H!@@A' @H!@@A' 88!@@A' 88!7@A' 8?!7@"' 8?!7@"' @?!7@"' @?!7@"' @7!7@"' >tandard #ime 7 A ? ? Remar:s

ours

2et)een 88!@@A' I 88!7@A' 1or#man has lunch brea#. 5ob could not be done as )or#man )hile moving a trolley fell do)n and got badly hurt. is 6o( !ise (onus and earning 8or t e da&5

*8 t e !or:man is paid Rs. D0 per da&" $a%$u%ate Ans!er: According to ;alsey system 2onus J %%Ts I Tt& x R& . ? 1here Ts J /tandard time for specific job Tt J Time ta#en for that job R J ;ourly rate of an employee According to above formula bonus is *mployee$s hourly rate%R& J 9@. 9 J 8@ Eo( No. 5+7@8? 5+779A 5+7A?9 5+7A7H Total 2onus <aily pay <aily 1age >tandard #ime 7 A ? ? J A K 8A J ?@ J 9@ #ime #a:en ? ? ? >ot completed

Bonus F <#s G #t= R H 2 A 8A @ @

J /tandard ;ours L ;ourly Rate K 2onus J 9 L 8@ K ?@ J 9@ K ?@ J 8@@

1or#man$s earning for the day J Rs. 8@@.+

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0.No. ,0<a=: 1 at are I-R C arts5 Co! are t e& made and used in $ontro%%ing a pro$ess5 Ans!er: M+R chart is a pair of chart consisting of a average %called M chart& and a range ,hart %called R chart& placed one belo) another on a piece of graph paper. The M chart is used to control the mean value of the characteristic an R+chart is used to restrict the range of variations in the values. M+ R charts are dra)n )hen the characteristics are measurable. *ach chart consists of three values! a central line, upper control limit and lo)er control limit. The central line represents the arithmetic average of the sample means )hich equals the mean of the population, u. The upper and lo)er control limits are located at three standard deviation on either side of the central line. /amples of fixed si(e are dra)n at regular intervals and measurements are ta#en. The samples )ise values of the mean and range are plotted in their respective M and R charts. The spread of sample points in the charts is studied to decide the remedial action %if any& to be ta#en. The M chart analyses )hether or not the mean of the quality ,haracteristics is )ithin control )hile R+chart analyses )hether or not the variability is )ithin control. /teps to prepare M+R chart! A pre+requisite to the preparation of the chart is the decision on the follo)ing aspects! 6uality ,haracteristics refer to the property of the product, )hich is to be assessed. The quality characteristics must be capable of being measured. 3n case of more than quality characteristics, separate chart is made for each quality characteristic. /ample si(e refers to number of pieces comprising each sample. /ample si(e is an important decision. 3t is a common practice to use sample of n J D or A to have lo) appraisal cost. 0arge samples such as n J 8A or ?@ are used if the process standard deviation is large. /ample "opulation refers to the number of samples to be collected to construct a control chart. The number of samples must be sufficient. Csually, ?@ samples each of si(e D or A are enough to have good estimates of the process average %M& and dispersion %R&. Time 3nterval measures the time gap bet)een consecutive samples. Time interval, as a genera rule, should be proportional to the average frequency of out+of+control conditions. 3t is a fairly complex decision since a number of factors such as cost economy, susceptibility of the process to disturbances4 convenience of the inspector etc. requires to be considered.

The ma#ing of M+R ,harts involves the follo)ing /teps! /tep 8! ,ollect <ata ,ollect sufficient samples spread over a reasonable period. *ach sample must be of equal si(e. 'easure each component comprising the sample for the given quality characteristic Record individual measurements on a )or# data sheet.

/tep ?! ,alculate mean %M& and Range %R& of each sample The mean )hich is )ritten as M %M bar& is average of each sample and is btained by totaling the individual measurements of the units comprising the sample and dividing the total by the sample si(e %number of units in each sample& The range, )hich is )ritten as R, is obtained as the difference bet)een the highest and the lo)est measurement of a sample. The values of M and R are recorded sample )ise either on the extreme right of the individual measurements on the data sheet or in a separate table.

/tep 7! ,alculate grand Average %M& and mean Range %R& The grand average, )hich is )ritten as M %M double bar& is the average of the sample averages and is obtained by dividing the total of the averages of all the samples by the total number of samples.

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The mean range, )hich is )ritten as, R %R bar& is the average of the ranges and is obtained by dividing the total of the ranges of the samples by the total number of samples. /tep D! /et up ,ontrol chart for the average

/et up a control chart )ith the central line dra)n at M %M double bar&, upper control limit located M K A?R %R bar& and the lo)er control limit set up at M+A?R. " l o t t h e a ve ra g e s t o s e e ) h e t h e r t h e p r o c e s s ) a s u n d e r c o n t r o l ) h e n s am p l e s ) e r e d ra ) n . 3f all points fall )ithin the control limits, the process is said to be under control 3f process is not under control %indicated by some points falling outside the control limits&, eliminate points outside the control limits and compute ne) trial control limits for the remaining points. Repeat step D %d& until all points fall )ithin the control limits ,ontrol limits in a particular situation should be revised from time to time as additional data is accumulated.

/tep A! ,alculate control limits of the range chart The control chart for range chart is set up )ith central line as R, upper control limit %C,0R& located at <DR above the central line and lo)er control limit %0,0& at <7R belo) the central line "lot the value of the range of each sample. 3f all points fall )ithin the control limits no modification is necessary unless it is desired to reduce the process dispersion 3f range chart exhibits lac# of control indicated by some points falling outside the control limits, eliminate those points out of control and compute ne) trial control limits Repeat step A %d& until all points fall )ithin the control limits. ,ontrol limits in a practical situation should be revised time to time as additional data is accumulated.

/tep B! Cse control chart ,ollect samples of fixed si(e at specified intervals of time. 'easure each unit of the sample for the quality characteristics4 calculate mean and the range of each sample. "lot the values of M and R of each sample in their respective charts /tudy the trend of the points to interpret and suggest remedial action

0.No. ,0<(=: ABC Compan& produ$es a so%7ent" ! i$ must $ontain 3 per$ent o8 a%$o o%. *t tries to maintain t e a$tua% per$entage at 3 + 0.3 per$ent. *t tests our%& in samp%es o8 8i7e. # e 8o%%o!ing ta(%e s o!s t e resu%ts o8 %ast 8i7e samp%es. >et up a $ontro% $ art 8or mean and eAamine ! et er t e pro$ess is under $ontro%5 A& /olution! %i& ,ollect data %ii& ,alculate mean %M bar& and range%R bar& /ample >o. 8 ? 7 D A %iii& Arithmetic 'ean %M& ?.H? ?.H9 7.@B 7 7 Range%R& @.7 @.8 @.8 @ @.?

,alculate grand average and the mean range M J J %?.H? K ?.H9 K 7.@B K 7 K 7& . A ?.HH? Page 22 of 27

200309032 Production / Operations Management

R %iv&

J %@.7 K @.8 K @.8 K @ K @.?& . A J @.8D /et Cp control chart for the average ,entral 0ine ,0x %M& J ?.HH? J J J J M K A? x R ?.HH? K @.AGB9 x @.8D 7.DGB M + A? x R ?.HH? + @.AGB9 x @.8D ?.A@G

Cpper ,ontrol 0imit %C,0x& J 0o)er ,ontrol 0imit %0,0x& J

%v&

/et up a range chart ,entral line ,0r %R& J @.8D <7 x R @ x @.8D @ <D x R ?.88D x @.8D @.?HAHB

0o)er control limit %0,0r& J J J 0o)er control limit %C,0r& J J J

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0.No. ,2<a=: 1 at is $riti$a% pat 5 1 at does it signi8&5 Co! is it identi8ied5 Ans!er: ,ritical path analysis, an important aid to planning, scheduling and coordinating the activities if large scale projects. 3s a synthesis of t)o independent techniques! "rogramme *valuation and Revie) Technique %"*RT& and ,ritical "ath 'ethod %,"'&. Though the t)o techniques )ere developed independently, they are only superficially different. The t)o methods have many features in common and are no) combined into a technique called ,ritical "ath Analysis %,"A& or >et)or# Analysis. There are three basic different bet)een a "*RT net)or# and ,"' net)or#! "*RT is event oriented )hile ,"' is activity oriented %i.e. "*RT prepares net)or# from events )hile ,"' builds if from activities& "*RT provides for an allo)ance for uncertainty )hile ,"' does not %i.e. "*RT ma#es three time estimates for each activity )hile ,"' ma#es one time estimate& Activity time in ,"' technique are related to costs )hile it is not so in "*RT since it is event oriented

/ignificance of critical path! ,ritical path analysis offers several advantages. 3t! =orces through pre+planning. *ach and every activity compromising the project is identified and recorded. >othing is left to memory or chance )hich prevents crises in scheduling 3ncreases coordination of tas#s as technological relationship bet)een the activities suggests )hich activities can run simultaneously and )hich should succeed others. ;elps computations of different project duration$s for different level of resources and thereby select a plan that minimi(es total project cost. 3ndicates optimal start and finish times of each activity of the project. <efines areas of responsibility of different departmental heads for timely execution of the project. =acilitates progress reporting and limits unnecessary discussion at the progress meetings. 3dentifies troubles spot often in advance and apply remedial measures. *nables the plan to be revised in accordance )ith changes.changing circumstances. ;elps to exercise control by exception and prevents cost overruns.

A "roject comprises a series of activities and the identification of the individual activities requires #no)ledge and experience of the men responsible for the planning of the project. *ven the preliminaries+ mere listing of the activities+ma#e the operating personnel! Thin# of details about the project )ell in advance. bserve critically the )ay in )hich the various activities interact or compete for scarce resources 3mprove upon the original plans even before net)or# is formally dra)n and analy(ed.

A project, therefore, must be torn into a set of identifiable activities. There are no set rules but general guidelines are as under! An activity should represent the smallest unit of the operation or set of operations over )hich management desires control. An activity should represent an operation or set of operations, )hich can be performed using a particular #ind of equipment or a special s#ill. =or example in construction project, plumbing is considered as one activity )hile )iring can be considered as another activity since the first activity requires plumbers and the second activity needs electricians. Page 24 of 27

200309032 Production / Operations Management

0.No. ,2<(=: *mp%ementation o8 a 7a%ue $ ange proposa% <VCP= re@uires se7en a$ti7ities ! ose t ree estimates prepared (& 7a%ue ana%&sis s&ndi$ate gi7en (e%o!: Dra! t e net!or: diagram and 8ind t e eApe$ted duration o8 t e pro6e$t5 Ans!er: Three estimates by value analysis and expected time as per the calculation is given belo) *xpected time J % ptimistic time K D x 'ost li#ely time K "essimistic time& . B Activity 8+? 8+7 8+D ?+A 7+A D+A D+B A+B ptimistic %a& @? @? @? @8 @D @? @? @7 'ost 0i#ely %m& @7 @D @B @8 @A @7 @A @A "essimistic %b& 8@ @B 8@ @8 8? @D @9 87 *xpected Time %Te& J %a K Dm K b&. B D D B 8 B 7 A B

Te J %a K Dm Kb& . B 1here a J ptimistic time, m J most li#ely time, b J pessimistic time =or activity %8+?& a J ?, m J 7, b J 8@ Te J %? K D x 7 K 8@& . B 4
) 3 )

?D . B
.

JD 6

>et)or# <iagram!

3
)

=rom the above diagram it is identified that! 8 is the starting point of the project B is the ending point of the project

Earious paths of the project and their lengths are! "ath 8+?+A+B 8+7+A+B 8+D+A+B 8+D+B 0ength of individual activity DK8KB DKBKB BK7KB BKA Total 0ength 88 8B 8A 88

3t is identified that critical path is 8+7+A+B as it has more length among all paths.

<uration for the project is 8B )ee#s %i.e. DKBKB&

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Eariance %Ei& Eariance of critical path! E %8+7& E %7+A& E %A+B& ;ence E E /tandard >ormal <eviation %N&

%b Ia& M %b I a& B B D.H 8B . H ?A . H E %8+7& K E %7+A& K E %A+B& A %T I Tcp& .

J J J J J J

1here J /tandard deviation of critical path i.e. /quare+root of variance of critical path J J J 8H I8B . A 7 . ?.?7B 8.7D

The approximate probability value )hen N J 8.7D is @.H@HH The probability of completion of critical path by the schedule time of 8H )ee#s J H8O

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0.No. ,3: # e operator engaged on an assem(%& operation per8ormed t e 8o%%o!ing !or: e%ements. Gi7en (e%o! are t e indi7idua% e%ementa% times and a7erage rating. 9%ement A 2 , < * , @.?? @.8D @.7G @.8@ @.8? 2 @.?D @.89 @.7A @.@H @.87 C&$%e #ime 3 @.?9 @.8A @.7G @.8? @.88 Rating @.?B @.87 @.77 @.8@ @.88 . @.?A @.8A @.77 @.8@ @.87 9@ 8@@ 8?@ H@ 8@@

*. Ca%$u%ate norma% time o8 a 6o(5 **. Ca%$u%ate standard time o8 t e 6o( assuming re%aAation a%%o!an$e o8 ,.J and $ontingen$& a%%o!an$e o8 .J5 Ans!er: i= Norma% #ime o8 a 6o(: Average ,ycle time J J >ormal Time J J J %@.?? K @.?D K @.?9 K @.?B K @.?A& . A @.?A % bserved time x Rating& . 8@@ @.?A x 9@ . 8@@ @.?

/imilarly, average cycle time and normal time for all the elements are calculated and tabulated as belo) *lement A 2 , < * Average ,ycle Time @.?A @.8A @.7A @.8@? @.8? J J Rating 9@ 8@@ 8?@ H@ 8@@ >ormal Time @.? @.8A @.D? @.@H89 @.8?

Total >ormal Time Total >ormal Time ii= >tandard #ime o8 a 6o(: Relaxation Allo)ance

@.? K @.8A K @.D? K @.@H89 K @.8? @.H989

J J

8A @.8DG7 A @.@DH8

@.H989 . 8@@

,ontingency Allo)ance J J /tandard Time J J J ;ence /tandard Time J

@.H989 . 8@@

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200309032 Production / Operations Management

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