UNIT 2

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UNIVERSITY SYLLABUS
Management Function: Principles of Management
Management Tools time and motion study, work simplification- process charts and flow diagrams,
Production Planning, Specification of Production requirements.
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MANAGEMENT FUNCTIONS
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MANAGEMENT FUNCTIONS
The management process is methodology of getting the things done. The logic of management process is that
particular functions are performed in a sequence through time.
Management functions are
1. Forecasting.
2. Planning.
3. Organizing.
4. Staffing.
Leadership
Communication
5. Directing
Motivation
Supervision
6. Coordinating.
7. Controlling.
8. Decision making
1. Forecasting.
- Forecasting is necessary preliminary to planning.
- Forecasting begins with sales forecast followed by production forecast and forecast for cost, finance, purchase,
profit or loss etc.
2. Planning.
Planning is a process by which a manager anticipates the future and discovers the alternative course of action.
Planning involves what is to be done?;
How, when and where it is to be done?
Who is to do it? and
What results are to be evaluated?
Without proper planning, the activities of an enterprise may become confused, and ineffective. e.g. If a
refrigerator company making concern does not plan in advance how many refrigerators and of what capacities
are to be made before the summer starts? and thus if it does not procure necessary material, tools, supplies in
time, it cannot reach the production targets.

3. Organizing.
Indusrtial Management

Unit-2

By: Mayank Pandey

Organizing is the process by which the structure and allocation of jobs is determined.
The process of organizing involves:i. Divide the work into component activities.
ii. Assign people to task.
iii. Define responsibilities.
iv. Delegate authority.
v. Establish structural relationship to secure coordination.
4. Staffing.
Staffing is the process by which managers select, train, promote, and retire their subordinates.
Developing and placing of qualified people in the various jobs in the organization.
The aim is to have appropriate persons to move into vacated positions or new positions.
5. Directing:
Actual performance of subordinates is guided toward common goals of the enterprise.
directing involves motivating, guiding, and supervising subordinates towards company objectives.
Directing includes:
Giving instructions to subordinates.
Guiding the subordinates to do the work.
Supervising the subordinates to make certain that the work done by them is as per the plans
established.
Directing involves functions as
(a) Leadership,
(b) Communication,
(c) Motivation, and
(d) Supervision.
(a) Leadership:
Leadership is to inspire confidence and trust in their subordinates.
Get maximum cooperation from them.
Guide the activities of subordinates in organized efforts.
(b) Communication:
It is the process by which ideas are transmitted received and understood by others.
Communication may be verbal or written orders, reports, instructions etc.
Ineffective communication leads to confusion, misunderstanding, and dissatisfaction.
(c) Motivation:
Inspiring the subordinates to do work, or
To achieve company objectives effectively and efficiently.
(d) Supervision:
To ensure that
The work is going on as per schedule and
The workers are doing as they are directed to do.
6. Coordinating.
Achieving harmony of individual effort towards the accomplishment of company objectives.
Coordinate the activities of subordinates
Regulate their communications.

7. Controlling.
Indusrtial Management

Unit-2

By: Mayank Pandey

Controlling is the process that measures current performance and guides it towards some predetermined goal.

The process of controlling involves

i. Observe continuously and study the periodic results of performance.
ii. Compare this performance with the present standard.
iii. Ascertain the exact causes of deviations.
iv. Initiate and implement the corrective action.
8. Decision making:

It is the process by which a course of action is chosen from available alternatives for the purpose of
achieving desired results.
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FAYOLS GENERAL PRINCIPLES OF MANAGEMENT
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1 Division of work: Work specialization can result in efficiencies and is applicable to both managerial and
technical functions. Yet there are limitations to how much that work should be divided.
2. Authority: Authority is the right to give orders and the power to exact obedience. It derives from the formal
authority of the office and from personal authority based on factors like intelligence and experience. With
authority comes responsibility.
3. Discipline: Discipline is absolutely necessary for the smooth running of an organization, but the state of
discipline depends essentially on the worthiness of its leaders.
4. Unity of command: An employee should receive orders from one superior only.
5. Unity of direction: Activities aimed at the same objective should be organized so that there is one plan and
one person in charge.
6. Subordination of individual interest to general interest: The interests of one employee or group should
not prevail over the interests and goals of the organization.
7. Remuneration: Compensation should be fair to both the employee and the employer.
8. Centralization: The proper amount of centralization or decentralization depends on the situation. The
objective is the optimum use of the capabilities of personnel.
9. Scalar chain: A scalar (hierarchical) chain of authority extends from the top to the bottom of an organization
and defines the communication path. However, horizontal communication is also encouraged as long as the
managers in the chain are kept informed.
10. Order: Materials should be kept in well-chosen places that facilitate activities. Similarly, due to good
organization and selection, the right person should be in the right place.
11. Equity: Employees should be treated with kindness and justice.

Indusrtial Management

Unit-2

By: Mayank Pandey

12. Stability of personnel tenure: Because time is required to become effective in new jobs, high turnover
should be prevented.
13. Initiative: Managers should encourage and develop subordinate initiative to the fullest.
14. Esprit de corps: Since union is strength, harmony and teamwork are essential.
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PRODUCTION PLANNING AND CONTROL
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Production planning and control is essentially required for efficient and economical production. Production
planning and control can facilitate the small entrepreneur in the following ways.
1. Optimum Utilisation of Capacity: No order goes unattended and no machine remains idle.
2. Inventory control: To ensure that the right supplies are available at the right time.
3. Economy in production time: To reduce the cycle time and increase the turnover via proper scheduling.
4. Ensure quality: Quality of output is ensured.
Steps of Production Planning and Control
Production Planning and Control (PPC) is a process that comprises. Functions on either side, viz., planning
as well as control.
Production Planning and Control

Production Control

Production Planning

Planning

Dispatching

Routing

Following up

Scheduling

Inspection

Loading

Corrective

Production Planning: To work out the quantity of material, manpower, machine and money requires for
producing predetermined level of output in given period of time.

Indusrtial Management

Unit-2

By: Mayank Pandey

Aggregate Planning The objective of aggregate planning is to find out the most economical method of
using production resources to meet fluctuating demands of production output. The planning period varies
from a week to a year or so. The planning consists of finding alternative combinations of labour force, time
subcontracting and varying inventory levels.

Routing: Routing procedure involves following different activities.

1. The operations to be carried out on a job.
2. The machine or work centre to be used.
3. The details of operations to be performed.
4. The sequence of operations from raw material to finished product.
Objective of Routing The main objective of routing is to prduce the job most economically which depend
upon the following factors:
1. Types of machines or work centre available.
2. Capacity of each work center.
3. Labour required for each work centre.
4. Availability of tools and other resources.
5. Efficiency of work centre and labour.
6. Types and quantities of jobs to be produced.
Scheduling: 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.
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. 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.
Production schedule: 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.
Loading: Loading determines who will do the work as routing determines where and scheduling determines
when it shall be done.
Production Control: Production control is the process of planning production in advance of operations,
establishing the exact 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 initiating
the necessary follow-up to have the smooth function of the enterprise.

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 o tools and fixtures necessary for each operation.
3. Beginning or 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.
Indusrtial Management

Unit-2

By: Mayank Pandey

6. Inspecting or supervision of work.

The following documents are issued to different departments.
1. Job order or work order or shop order.
2. Material issue order
3. Tool order
4. Move order
Final delivery notification
Follow up: Every production programme involves determination of the process of work, removing
bottleneck in the flow of work and ensuring that the productive operations are taking place in accordance
with the plans. All problems or deviations are investigated and remedial measures 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.
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SPECIFICATION OF PRODUCTION REQUIREMENT
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1. Part Drawing (Production Drawing).
2. Machining Detailed and Sequences.
3. Materials for the components.
4. Quality level required.
5. Production Quantity.
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WORK STUDY
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Work Study implies the study of human work. Work study investigates the work done in organization and it
aims at finding the best and most efficient way of using available resources men, material, machine and money.
Work Study & Productivity:

Indusrtial Management

Unit-2

By: Mayank Pandey

Objectives of Work Study

1. Improved working process and standardized.
2. Less fatigue to the operator.
3. Efficient utilization of men material.

4. To evaluate human work.

5. To reduce ineffective time due to management &
workers.

Benefits of Work Study

1. Improved Productivity.
2. Higher efficiency in productivity.
3. Manufacturing cost is reduced.
4. Quicker and accurate delivery dates.

5. Good employee- employer relationship.

6. Job satisfaction to workers.
7. Higher wages and incentives to workers.

Method Study or (Motion Study)

Method study is systematic recording and critical examination of existing and proposed ways of doing work, as
a means of developing and applying easier and more effective methods and reducing costs.
Objectives of Method Study
1. The improvement of process and procedures
2. The improvement of factory, shop and workplace
layout and of the design of plant and equipment.
3. Economy in human efforts and reduction of
unnecessary fatigue.

Economic Consideration

4. Improvement in use of materials, machines &

manpower
5. To find out the best way of doing a job.
6. To standardize the best method
7. Effective material handling

Technical Consideration

Human Reactions

1. Operation involving
great deal of manpower
condition

1.Bottlenecks holding
production

1. More acceptable if it can

Improve working

2. Highly fatigued work

2. Movement of material over

long distances
between shops

2. Reduce the efforts and fatigue

of workers

3. Operations involving
repetitive work

3. Inconsistency in quality

Indusrtial Management

Unit-2

By: Mayank Pandey

Work Measurement
Work measurement is concerned with elimination of ineffective time and establishment of time standards for a
job.
Work measurement is a technique to establish the time for a qualified worker to carryout a specified job at a
definite level of performance.
Uses of Work Measurement
1. To reveal the existence of ineffective time
2. To compare the efficiency of alternative method.
3. To determine with the help of man machine chart the number of machine an operator can run.
4. To set the time standard for carrying out the work.
5. As a basis for realistic and fair incentive scheme.
Time Study
Time study is a work measurement technique for recording the times performing a certain specific job or its
elements carried out under specified conditions, and for analyzing the data so as to obtain the time necessary for
an operator to carry it out at a defined rate of performance.
Indusrtial Management

Unit-2

By: Mayank Pandey

Time Study Equipments

1. Stop Watch: A fly back decimal- minute stopwatch is most commonly used stop watch.
2. The Study Board: Time study board is flat board, of plywood or plastic sheet, having fittings to hold stop
watch and time study forms.
3. Time Study Forms: Time study forms are printed forms of standard size constant information like product
name, operation number description of operation, time study observers name etc are preprinted on the top of
the sheet-

Time Study Form

Product-------Operation No----------Description of-------------------Operation
No. of Cycles 5(say)
Standard time found-----Element
Observed time
Description
1 2 3 4 5

Time Study ------------Observer

Date-------------------

Average
observed
Time

Rating
factor

Normal
Time

All Std.
Time

Procedure for Collecting Time Study Data

The following are the procedural steps in stop Watch time study:1. Identify the operation to be studied
2. Obtain the improved procedure from method study departments.
3. Collect and check necessary equipment
4. Select the worker to be observed for Time Study
5. Explain the worker the objective of Time Study
6. Explain the worker the improved procedure.
7. Break the operation into small elements.
8. Determine the number of observations to be timed for each element.
9. Conduct the observation and record them on time study form
10. Rate also the performance of the worker during step.
11. Calculate normal time from observed time by using performance rating factor
Observed time * Rating factor
Normal time=________________________________
100
12. Add process allowance, rest and personal allowance and special allowances to normal time in order to
obtain standard time.

Indusrtial Management

Unit-2

By: Mayank Pandey

Conversion of observed Time to Standard Time

Observed Time

Apply Performance Rating Factor

Normal Time

Add allowance like

Personal allowance process allowance
Standard Time

Advantages of Time Study

1. Standard labour cost per unit of product can be calculated.
2. Comparisons of actual and standard production.
3. Enable further improvement in work methods, training necessity and better workplace layout.
Limitations of Time Study
1. Not suitable for non- repetitive jobs.
2. Not suitable for highly automated work place
3. May affect operators morale if output standard is not attained.
4. While rating a worker error may come due to subjectivity involved in it.

Indusrtial Management

Unit-2

By: Mayank Pandey