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Manufacturing and Operations Management
Manufacturing and Operations Management
Manufacturing and Operations Management
Contents
1. Introduction to Operations Management Nature, Scope, Importance and Functions Evolution from manufacturing to operations management Evolution of the factory system manufacturing systems Quality mass customization (Contribution of Henry Ford, Deming, Cross by, Taguchi)
2. Types of industries Variety of Business Integration of Manufacturing and services scale of operations. Methods of Manufacturing Project/ Jobbing, Batch Production, Flow/ continuous production, Process production, Characteristics of each method
3. Facilities Location and Layout Strategic importance factors affecting location and layout Installation of facilities Single location, multi-location decisions, Principles and types of facilities layout.
4. Importance and functions of Production Planning and control - Introduction to PERT/ CPM Network crashing (Numerical expected for PERT/ CPM)
5. Maintenance Management Importance and Types of maintenance Maintenance planning Spare parts Management Concept of TPM
6. Inspection Cent percent inspection, Sample inspection, Operation characteristics Curves, statistical Quality control Construction and Interpretations of Control charts (X-R), n, p, c, np). Introduction to six sigma, (Numerical expected for control charts). Gap analysis for service quality assessment.
7. Productivity Work Study Objectives, Scope and Uses Methods study Flow process chart, Flow diagram and Process mapping Work Measurement Elements Performance Rating Allowances Standard Time Synthetic Time standards Work sampling (Numerical expected for standard Time)
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Introduction
The production (or manufacturing) management since long has been associated with a factory situation where goods are produced in physical sense. Definition of a Factory Factory is defined as as any premises in which persons are employed for the purpose of making, altering, repairing, finishing, cleaning, washing, breaking, demolishing or adopting for sale, any article. The above definition restricts the scope of production function. Production is the process by which goods and services are produced The essential feature of a production function is to bring together people, machines and materials to provide goods and services thereby satisfying the wants of people. Since both manufacturing and service organizations involve above mentioned features, the term production management is gradually being replaced by Operations Management.
Fig: A Conceptual model of a production (operations) System The inputs in above system are raw materials, parts, consumable, energy, engineering details, production schedules, information technology, capital or management and outputs are the produced goods, transported goods, delivered messages, and serviced customers.
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Productivity = _______ Goods and Services___________________ Capital, Manpower, Material, Machines, Land and Building The higher the productivity of production system, more efficient the production function. Another way of looking at the concept of productivity is to look at the amount of waste generated in the system. Productivity of the system can be improved by minimizing/ eliminating the waste occurring in the system.
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Manufacturing systems
A typical production system comprises of three main components i.e. inputs, transformation process and outputs. 1) Inputs are men, materials, machines, instructions, drawings, paper work etc. 2) The transformation process involves operations, mechanical or chemical to change/ convert inputs into outputs. It also includes activities that assist conversions. They are as follows: 1. Planning and control of factors of production 2. Procurement of materials 3. Receipt, storage and issue of materials 4. Material handling 5. Inspection of in-process and parts 6. Assembly and testing of products 7. Storage of finished goods 8. Authorization, retrieval etc 3) Outputs are goods and services (e.g. Products, parts, paper work, served customer etc.) The combination of operations and activities stated above, employed to create goods and services is known as manufacturing system, (or method). A manufacturing system is an independent group of sub-systems, each sub-system performing a distinct function. These systems are interrelated and require to be unified to achieve overall objectives of the organization. Manufacturing system needs to interact with both internal and external environment. The internal environment is the combination of engineering, marketing, personnel and accounts activities whereas external environment comprises of customers, competitors, suppliers, labor unions etc. The selection of the manufacturing system is a strategic decision because changes in later stage are very expensive to make. The system selected should be such that it can give the desired output, required quality and is to be cost effective. Factors influencing choice of manufacturing system There is no best manufacturing system for any product. The manufacturing system which is selected must meet two basic objectives namely: 1. It must able to meet the specifications of the final product and 2. It must be cost effective Various factors which determine the choice of the manufacturing system are as follows: a) Effect of Volume/ variety When there are many products in one or few numbers to be produced (i.e. high product variety) it requires highly skilled labor, general purpose machines, detailed and sophisticated production planning and control systems. On the other hand when one or few products to be produced in large volumes (i.e. low product variety) it enables the use of low skilled labor, highly automated mass production processes using special purpose machines and simple production planning and control system.
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b) Capacity of the plant Whether the firm should use intermittent or continuous process will depend upon the projected sales volume. Fixed costs are high for continuous process and variable costs are high for intermittent process. Intermittent process will be cheaper to install and operate at low volumes (small capacity) and continuous process will be economical to use at high volumes. (Large capacity) c) Flexibility Flexibility implies the ability of the company to satisfy varied customers requirements. Flexibility and product variety are inter-related. It requires high inventory, large manufacturing lead times and sophisticated planning and control. d) Lead Time Lead time means delivery lead time expected by the customers. It is major influencing factor in a competitive market. As a general rule, faster deliveries are expected in a competitive market. e) Efficiency Efficiency measures the speed and the cost of the manufacturing system. Depending upon the sales volume, product variety will have to be considered and the process has to be selected which will give the best efficiency in terms of machines and manpower utilization. f) Environment Environment brings in new technologies and forces for the adoption of new process of manufacturing. Similarly as market preferences change due to fashions or other reasons, the manufacturing system has to be changes accordingly.
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C] Characteristics of Jobbing Production a) Short production runs b) Skilled labor in specific trades c) Supervisor to possess knowledge of a specific process d) Limited span of control e) General purpose machines and process type of layout f) Manual materials handling g) Large work in progress h) Flexibility of production schedules i) Need to have production planning and control D] Characteristics of Mass and Flow Production a) Continuous flow of materials b) Special purpose machines and product type layout c) Mechanized materials handling d) Low skilled labor e) Short manufacturing cycle time f) Easy supervision g) Limited work in-progress h) Less flexibility in production schedules E] Characteristics of Process Production a) Special purpose machines with built-in-controls b) Highly mechanized materials handling c) Virtually zero manufacturing cycle time d) Low skilled labor e) Supervisor to be process specialist f) Negligible work-in-progress g) Limited production planning and control functions
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* * *
Let us discuss these location factors one by one: 1. Proximity to Markets Every company is in business to market and it can survive only if their product reaches the consumers on time and at the competitive price. Location the plant nearer to the market is preferred. If the product is to be exported, location near ports is desirable. It will reduce the transportation cost; shipment cost etc. 2. Proximity to source of Raw Materials Since raw materials usually constitute 50 to 60 percent of the total product cost, it is important that the firm gets its requirements of raw materials at the right time and at the reasonable price for which the plant must be located nearby to the sources of required raw materials units. If the raw materials come from a variety of locations, the plant may be situated so as to minimize total transportation costs.
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3. Infrastructural facilities It considers availability of utilities like power, water, disposal of waste etc. 4. Transportation Facilities Transportation cost to value added is a key determinant of the plant location. It includes average distance and medium of transport i.e. Rail, Road or sea and air. 5. Labor and Wages: Plant location should be such that required labor is easily available in the neighborhood. Importing labor from outside is usually costly and it causes a lot of administrative problems. Prevailing wage pattern, living costs and industrial relations are other factors to be taken into account. 6. Legislation and Taxation The policies of the State Govt. and Local bodies relating to issue of licenses, building codes, labor laws etc. are the factors in selecting or rejecting a particular community/ site. In order to balance economic growth, both central and state Govt. offer a package of incentives for setting up industries in particular locations. Exemptions from excise duty, sales tax and octroi, soft loans, subsidy in electricity charges etc. are some of the incentives offered by Govt. It will affect in minimizing the product cost. 7. Climate conditions It is an important factor for textile mills which requires high humidity. 8. Industrial and Labor attitudes Community attitudes towards supporting hostile trade union activities are an important factor. Frequent labor problems and interruptions are harmful to the plant in the long run. Political situation in the state and attitude of Govt. towards labor activities also influences selection of the site for the plant. 9. Safety requirements It is important for certain industries like 1. Nuclear power plants 2. Explosive factories 3. Location near to border areas is undesirable for such industries. 10. Community facilities (Social infrastructure) It includes accommodation, education, medical, entertainment and transport facilities. It also includes communication facilities.
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11. Community Attitudes Community attitudes towards work (people are hardworking or not) as well as their attitudes towards the incoming entrepreneurs (helpful, cooperative or not) can make or break the industry in that particular location. 12. Supporting Industries and Services Service needed by the firm as well as supporting industries to that firm should be as nearer as possible for saving the time and cost. 13. Suitability of the land Site selection should also take into account topography and soil structure of the land. 14. Availability and cost of the land: Site/ Plot size must be large enough to accommodate present required facilities, parking and access facilities and space for further expansion. 15. Waste Disposal Proper infrastructure is to be created for the disposal of waste otherwise it will create the problems like pollution of air, water etc.
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This type of layout is suitable when, 1) The products are non-standard and their quantities are small. 2) There is a wide variation in the processing times of individual operations. Advantages of Process Layout 1. Lower capital investment since general purpose and less number of machines required 2. Higher utilization of available equipment 3. Greater flexibility of equipments and workers 4. Workers attain greater skills since they have to attend to one type of machine and operations 5. Imbalance of work in one section does not affect the working of the other section 6. Variety of the jobs makes the work interesting to the workmen
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Disadvantages 1. For the given volume of production, space requirements are higher in this type of layout 2. Materials handling can not be mechanized which adds to extra cost 3. Work in process inventory is higher since jobs have to queue up for each operation 4. Routing and scheduling is difficult 5. Inspection required after each operation. This causes delays in production time 6. Setup costs are high because of frequent changes of jobs
This type of layout is suitable when: 1. Products are standard and to be produced in large quantity 2. Products have always reasonably stable demand 3. Processing times of each operation is more or less equal; E.g. Automobiles, T.V sets, food processers, radios, transformers, cement, steel etc. (i.e. for single products)
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Advantages of product Layout 1. Manufacturing cycle is small which reduces work in progress 2. Material handling is minimum (or automatic) 3. Space required is small 4. Work is simplified by breaking into elemental tasks which are mechanized wherever possible. Hence labor costs are minimized 5. Quality control is easy to exercise and more effective 6. Delivery commitments are reliable 7. Materials requirements can be scheduled easily and more accurately Disadvantages 1. The changes in the products necessitate the change in the layout of machinery 2. All machines may not be used to their full capacity 3. Manufacturing cost depends upon volume of production 4. Breakdown of any machine will stop the further process till it gets required 5. Expansion of capacity is not possible
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Importance of Production Planning & Control Production planning & control is heart of the production/ operations management function because of several reasons. a) It coordinates all phases of the production & operating system b) An efficient system o production planning & control results into better quality, optimum utilization of resources, lower level of inventories, reduction in production cycle time, faster delivery, more efficient customer service, lower cost of production, lower capital investment etc. c) It also results into higher production, economy in production, quality of goods & services, timely delivery etc. d) It also results into higher sales, more profits, increase in market share, increase in competitive advantage etc. e) Because of systematic planning & control, machinery breakdown are minimized, maintenance is improved, excess capacity & idle time is minimized. f) It contributes significantly increasing the Goodwill & image of the organization. Thus production planning & control are not only complementary to each other but they are so interrelated that they can be treated as one function. A number of scientific tools are available for planning but incase of huge projects, the planning of projects is best performed through a wellknown techniques like program Evaluation & Review Techniques (PERT) & Critical Path Method (CPM).
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PERT/ CPM
Program Evaluation & Review Techniques (PERT) & Critical Path Method (CPM) are the network techniques, which are widely used in management of very large projects. These techniques are useful in planning, scheduling & executing large but time bound projects. PERT was developed in 1950s by US Navy for scheduling the research & development work for the Polaris missiles program whose activities were full of uncertainty. In 1957 CPM techniques was developed by J. E. Kelly of Remington Raud & M. R. Walker of Dupont. Now the applications of PERT & CPM are overlapping are both are used in a single technique. Similarities of PERT & CPM 1. Basic approach of PERT & CPM is the same 2. Both belong to Network Analysis 3. All the activities & tasks are defined in the project 4. Relationship among the activities is developed to decide which activities must proceed & follow others 5. Network is drawn connecting all the activities 6. Time & cost estimates are assigned for each activity 7. The longest path is called the critical path & is computed through the network 8. Network is used for planning, scheduling, controlling & monitoring the project Importance of PERT & CPM to Management Every project manager is interested in completing the projects in time with minimum costs. So an attempt is made to schedule the project properly to save it from delays & higher costs. Hence timely completion of the projects through proper planning & scheduling is essential. This can be achieved by the use of PERT & CPM is due to their following advantages: 1. During the planning phase all the activities & events are taken into consideration & scientific approach is developed to complete the project in time without facing any crisis in scheduling 2. These techniques concentrate on the technological relations between different activities, which enable the project managers to complete the project systematically in scheduled time 3. These techniques help in selecting a plan that minimizes total cost & time required for the project 4. Responsibilities are clear for everyone to complete the project in time 5. These techniques enable the managers to revise the plan the suit the changes in the environment
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Illustration The characteristics of a project schedule are given in table. On the basis of this information: 1. Construct a network 2. Find the critical path
3. Critical Path Now there can be three paths to complete the activity from 1 to 10 1> 2 > 4 > 9 >10 = 17 days 1> 3 > 5 > 7> 8 >10 = 22 days 1> 3 > 5 > 6 > 8 >10 = 17 days Since critical path is the longest path it is: 1> 3 > 5 > 7> 8 >10 = 22 days
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PERT concept of multiple times This concept of three times estimate was evolved to reduce the extent of uncertainty 1) Optimistic Time This indicates the minimum time an activity can take if everything goes smoothly without any interruptions. It is represented by a 2) Pessimistic time This indicates the minimum time an activity can take if everything goes wrong. It is denoted by b. 3) Most likely time This indicates the time an activity can take most often is it is repeated again and again under the same conditions. It is represented by m Three time estimates are not directly entered into the network. They are transformed into an expected time (t e), using the statistical relation given below: te = a + 4m + b 6 Critical path in a big Network In a small network, it is simple process to identify the critical path by tracking and comparing all the paths in network. As the number of activities increases, it becomes very difficult and time consuming to find the critical. Therefore, in large networks, a more systematic procedure is needed to determine the critical path. The most commonly used method employs two sets of calculations: 1) Forward pass computation 2) Backward pass computation The forward pass computation begins from the start event and moves towards the end event of the project network. It determined the earliest expected time for each event, called earliest expected time for each event, called earliest time (TE). The backward pass computation begins from the end event and moves backward to the start event of the project network. It determines the latest allowable time for each event called latest event time (TL). This can be recorded as shown in the following diagram:
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Let us consider the following network to show both forward and backward pass computation
Forward pass computation (earliest event times) The following basic rules govern the computations of the earliest event times 1) The first activity of the project can be started as soon as the project is undertaken which implies that the earliest event time of the initial event (first event) is zero. That is TE1 = 0 2) Each activity of the network starts as soon as the activities preceding to it are completed. It implies that the earliest event time of a plain event equals (TE) of the preceding event plus duration of activity emanating from the preceding event. i.e.TEj = TEi + tij where TEj = the earliest event time of event j TEi = the earliest event time of event preceding to event j TEj = duration of the activity from event i to j 3) The earliest event time TE of a merge event equals largest of the sum of TE of the preceding event plus duration of the activity emanating from the preceding event. By applying these rules to our network we will get, TE1 = 0 (starting event set at zero) TE2 = TE1 + t12 = 0 + 7 = 7 TE3 = TE2 + t23 = 7 + 7 = 17 TE4 = TE3 + t34 = 14 + 2 = 16 TE5 = TE3 + t35 = 14 + 7 = 21 TE6 = TE4 + t46 = 16 + 4 = 20 TE7 = Max [TE3 + t37, TE5 + t37, TE6 + t67] = Max [ 14 + 5, 21 + 7, 20 + 7 ] = Max [19, 28, 27] Therefore TE7 = 28 TE8 = TE7 + t78 = 28 + 2 = 30
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Backward pass Computation (Latest allowable event times) Latest event time (TL) represents the latest occurrence time of the event. The following simple rules govern the computation of the latest event times. 1) Latest event time of the end event equals the earliest event time otherwise the project duration will be affected. 2) The latest event time of a plain event equals latest event time of the succeeding (head) event less duration of the activity coverging on the head event. This is , TLi = TLj tij Where, TLi = the latest allowable time of the event i TLj = the latest allowable time of the event j towards which the activity (i, j) is headed Tij = the latest allowable time of the event i to event j. 3) The latest event time of a burst event equals the smallest of the difference between the latest event time of the head event less duration of the activity converging on the head event. That is, TLi = Min (TLij tij) For the sample network it can be calculated as follows: 1) Latest event time of the event 8 (TL8) = Earliest event time since it is the end event (TE8) 2) TL7 = TL8 t78 = 30 2 = 28 TL6 = TL7 t67 = 28 7 = 21 TL5 = TL7 t57 = 28 7 = 21 TL4 = TL6 t46 = 21 4 = 17 TL3 = Min (TL4 t34, TL7 t37, TL5 t35) = Min (17 2, 28 5, 21 7) = Min (15, 23, 14)
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Therefore TL3 = 14 TL2 = TL3 t23 = 14 7 = 7 TL1 = TL2 t12 = 7 7 = 0 This can be shown as follows
Fig: Latest event time of the events Analysis of activity durations based on computations 1) Earliest starting date (ES) The earliest start time of an activity equals earliest event time (TE) of the tail event Symbolically ESij = TEj 2) Earliest finishing date It equals the earliest st starting arting time plus duration of the activity emanating from the tail event EFij = ESij + tij 3) Latest finishing date It is the latest event time of the head event LFij = TLj 4) Latest starting date It is the latest finishing time minus activity duratio duration LSij = LFij tij Identify Critical Path based on computations: Once the activity durations have been worked out, the critical path can be identified by comparing the earliest finish times and Latest finish times of the activities. Clearly activities activitie whose earliest finish times and latest finish times are equal will constitute the critical path.
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Activity Float Analysis Introduction Float is an important concept in project planning. It will help planner as follows 1. In deciding priorities in allocation of resources 2. It helps in transfer of resources from less pressing areas to more pressing areas 3. It will minimize the requirements of resources 4. It prevent peaks and valleys in requirements of resource Float of an activity represents the excess of available time over its duration Types of floats Float is mainly of three types a) Total float b) Free float c) Independent float All activities lying on the non-critical paths have total float and some of them may also have free float a) Total float (Ft) Total float signifies the maximum delay that can be permitted in the completion of the activity without affecting the project completion. It can be interpreted in two ways The maximum time available to delay the commencement of an activity The maximum expansion in the duration of the activity Total Float = (Latest occurrence time) (Earliest occurrence time) (Duration of the activity) of the succeeding event of the preceding event
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b) Free float (Ff) Free float is the amount of time an activity can be delayed without affecting the commencement of a succeeding activity at its earliest start time but may affect the float of previous activity. Free float results when all preceding activities occur at the earliest event times and all succeeding activities also occur at the earliest event times. Therefore, Free Float = (Earliest occurrence time) (Earliest occurrence time) (Duration of the activity) of the succeeding event of the preceding event Ff = TEj Tei - tij c) Independent Float (Fi) Sometimes, it may be desirable to know what spare time is present in an activity if it is started as late as possible and finished as early as possible. This characteristic is known as independent float Independent = (Earliest occurrence time) (Latest occurrence time) (Duration of the activity) Float of the succeeding event of the preceding event Fi = TEj TLi tij Network Crashing In the network system time & cost estimate are worked out for each activity. These are a normal estimate & a crash estimate. The normal estimate of time is similar to the most likely time estimate in PERT. The normal cost is the cost of finishing the project in normal time. The crash time estimate is the reduction in time achieved by applying more resources to the activity, which is to be speeded up. The crash cost is the cost of doing the job on a crash basis in order to minimize the completion time of the project. E.g. Overtime, working for seven days a week, Extra manpower, machines etc. in night shifts etc. Crashing is done only when the project is to be completed urgently even at higher costs. CPM is an attempt of crashing project to its lowest possible time at the minimum possible cost. The main steps involved in the crashing process are: 1. Locate the critical path of normal network 2. Crash the least expensive activity on the critical path to get a new critical path 3. Repeat the process till we get a critical path on which all activities are at their crash time. 4. Reverse the procedure taking into consideration the non-critical activities.
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Start un-crashing by selecting the most expensive activity to reach the least expensive activity. Illustration: The following table contains details of activities of a construction project & other relevant information. On the basis of this information: 1. Draw activity network of the project & find out critical path & total cost 2. Crash the activities step by step until all paths are critical
From this network we observe that, Critical path: 1 > 2 > 3 > 4 > 5 > 6 >7 Project time = 20 + 10 + 5 + 10 + 10 = 55 days Total cost = (600 + 200 + 300 + 400 + 300 + 300 + 600 + 500 + 400) Total cost = 3600/- Rs
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In order to shorten the activity time, those activities which are lying on the critical path are crashed one by one starting with the lowest cost slope. Step 1: Activities (1-2) & (3-4) which lye on the critical path has minimum cost slope of Rs. 40/- when both these activities will be crashed by 3 days each the resulting network will be as follows:
Critical paths: a) 1 > 2 > 4 > 5 > 7 & b) 1 > 2 > 3 > 4 > 5 > 7 Total cost = 3600 + (40 x 3) + (40 x 3) = 3600 + 120 + 120 Therefore Total cost = 3600 + 240 = Rs. 3840/Step 2: Activities (4 5) & (5 7) are lying on critical path & also they have minimum cost slope of Rs. 60/Activity (6 7) also has a cost slope of Rs. 60 /-
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Hence by crashing the activity (4 - 5) by 5 days & (5 7) by 5 days & (6 7) by 3 days although it has slack of 5 days, we get the following network.
Critical Paths: 1 > 2 > 3 > 4 > 5 > 7 1 > 2 > 4 > 6 > 7 1 > 2 > 3 > 4 > 6 > 7 Total cost = 3840 + (60 x 5) + (60 x 5) + (60 x 3) = 3840 + 300 + 300 + 180 Therefore Total cost = 3840 + 780 = Rs. 4620 / Step 3: The activities (2-4) & (2-3) on the critical path having cost slope of Rs. 50 /- & Rs. 70/respectively are crashed by 2 days each. The resulting network will be as follows
All paths are now critical paths Total cost of the project will be Total cost = 4620 + (50 x 2) + (70x2) = 4620 + 100+ 140 Therefore Total cost = Rs. 4860 / -
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Maintenance Management
Plant maintenance includes all those activities which are needed to keep the plant, machinery, tools & equipment services, buildings & all the fittings in standards working conditions. Maintenance management is defined as That function of manufacturing management which is concerned with the day to day problems of keeping the physical plant in good operation condition. It is an essential activity in every manufacturing organization. Maintenance management is such a function of manufacturing management which will never become obsolete whatever may be the technological advances. It has remained as important as it was long ago & will not lose its status even in future. Importance or Role of Maintenance Management: Maintenance management is an important service function essential for efficient production system, because of the several reasons as states below: 1. Plant maintenance on regular basis helps in maintaining & increasing the operational efficiency of plant facilities. 2. It is useful for reducing the cost of production, improving the quality & quantity of output & generating maximum sales revenue. 3. It helps organization in establishing a competitive edge & to provide reliable customer service at fair prices. 4. Proper maintenance policy helps in promoting quality Assurance system of the organization 5. It helps in increasing the efficiency of cost control system in the organization 6. Proper maintenance system is essential & important in big projects like air transport, oil refineries, heavy & explosive chemical industries etc. to keep all equipments in good working conditions. 7. Neglect of plant maintenance is not only responsible for dislocation of production process but also tends to increase the frequency of industrial accidents, which may reduce morale & productivity of the workers of the organization. Thus Maintenance management is an important service function in all modern organizations.
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Types of Maintenance
There are 5 major types of maintenance which are as follows: 1. Breakdown or Corrective Maintenance 2. Preventive Maintenance 3. Routine Maintenance 4. Predictive Maintenance 5. Planned Maintenance Lets discuss these types one by one. 1. Breakdown or Corrective Maintenance Corrective maintenance is undertaken whenever there is a breakdown of machinery or equipment leading to the work stoppage. It has been observed that the nature & time of breakdown of any type of machine is a random phenomenon, hence it cannot be completely eliminated even by most efficient preventive maintenance. The breakdown maintenance policy is suitable for those types of equipments which have relatively less downtime & repair costs. It is easy to administer & needs relatively less staff. 2. Preventive Maintenance All machines & equipments deteriorate when they are used for the purpose of production. This will result in changes in dimensions of components of that machine. It will affect the quality of output. Preventive maintenance is an activity undertaken to prevent breakdowns, reduce operating costs & improve quality & quantity of the output. It is the policy of stitch in time & implementation of the principle of Prevention is better than cure Preventive maintenance includes: i. Regular cleaning, greasing & oiling of moving parts ii. Replacement of worn out parts before they fail to operate iii. Periodic & regular overhauling of entire machine iv. Stand by provision for critical or key machines 3. Routine Maintenance It includes activities such as periodic inspection, lubrication, cleaning, repairs etc. of machinery & equipments after their service life. It includes tightening of the bolts, recharging of batteries, replacing light bulbs & tubes in the plant areas etc. Routine maintenance is classified in two categories: i. Routine Maintenance, when machine or equipment is running. Here greasing or lubrication is carried out when machine is in running condition ii. Shut down Maintenance, where maintenance work is carried out only when the machine or equipment is out of service e.g. repairing the machine after its complete failure to do the normal job.
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4. Predictive Maintenance In Predictive Maintenance, the user of the equipment senses that the equipment is going to give some trouble by hearing to the noise made by the equipment while in operation. Then immediately the equipment is stopped & maintenance is done to avoid the trouble & breakdown. Predictive Maintenance extends the service life of the equipment. If it is neglected, then the equipment may have to face a major repair work which will increase the operating & production costs. 5. Planned Maintenance Breakdown or failure of the machine to operate does not occur in a planned manner but the maintenance work can be systematically planned well in advance. The planned maintenance is also called as scheduled maintenance or productive maintenance. It includes inspection of all plant, machinery & equipments, buildings, lubrication, repairs etc according to a predetermined schedule in order to avoid actual breakdown. Planned maintenance aims to reducing machine stoppage due to sudden breakdown calling for emergency maintenance. It helps in reducing machine downtime, reducing cost of maintenance & achieves significant increase in production & productivity as compared to the unplanned maintenance.
Introduction of Inspection
Inspection is important function although it does not add any values to the product still it adds to the cost of products. Proper inspection is necessary to get the desired results. Inspection is an important tool of quality control, which aims at controlling the quality control, which aims at controlling the quality of the product. Thus inspection is said to be a sorting process on the basis of which products can be classified into acceptable or non-acceptable ones. Inspection can be defined as The process of measuring the qualities of a product or service in terms of established standards.
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Objectives of Inspection i. Maintenance of quality as per standard ii. Improvement in quality of the products iii. Minimization of the costs iv. To detect sources of weaknesses In Inspection process there are certain main steps involved & these steps are to be followed to get the desired result. Steps in Inspection 1. To identify most important characteristics of the quality of the items which are to be inspected i.e. what to inspect? 2. To decide when & where the inspection should take place i.e. When & where to inspect? 3. To find out what size of the sample be selected for detailed inspection so that the sample will be proper representation of the population under study i.e. Size of Sample? 4. To develop a sampling scheme for actually selecting the items from the lot i.e. How to select the sample? 5. To define specification limits for the acceptation or rejection of the items i.e.: To fix limits of tolerance of deviation from the standards. Functions of Inspection The main function of inspection department may be stated as follows: 1. To develop & maintain the specified standards of the quality of the product produced 2. To develop methods & techniques to carry out the inspection at minimum cost 3. To separate defective products & send them for re-operation 4. To maintain tools & equipments of inspection in good workable condition 5. To make an attempt to detect the defects at source so as to reduce scraps & defective products 6. To advise operating workforce whenever difficulties in the production process arise 7. To report top management about the sources of manufacturing problems
Types of Inspection
Inspection is of two types: 1. Cent Percent Inspection; 2. Sampling Inspection Cent Percent Inspection It is one in which each & every piece is verified against the pre-set specifications. However cent percent inspection does not mean verification of each & every quality characteristic. Only important characteristic which is necessary for satisfactory performance are verified.
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Weaknesses of Cent Percent Inspection 1. It involves huge costs & expenditure 2. It is time consuming & tedious 3. Not suitable for destructive tests quality specifications 4. It is not foolproof due to human error element Sampling Inspection In this method few samples (pieces) are taken out from the lot & they are inspected. Quality of the lot is decided on the inspection result of these samples. If the sample conforms to specifications the whole lot is accepted otherwise it is rejected. Since the acceptance is based on the inference drawn from the sample, the technique is known as acceptance sampling. Sampling Inspection however is subjected to sampling errors as there is always a chance that the sample may not be the true representative of the population from which it is drawn. It results in acceptance of a lot of bad quality or rejection of a lot of good quality. Sampling errors can be minimized by random sampling method so that every portion of the lot will have equal representation in the sample. Sampling Inspection can be conducted on wither of the two basis: a) Variable Basis In this inspection of samples is conducted in measurement (variables) basis. E.g. weight of a packet, Length of component etc. b) Attribute Basis In this inspection of sample is carried out on go & no go basis. E.g. cracks, color, appearance etc.
Defects
Defects can be broadly classified as follows: 1. Critical defect A defect that renders the item totally unfit for use 2. Major defect A defect which is not critical but affects function, effectiveness, life or appearance of the item 3. Minor defect A defect that does not materially reduce the usability of the product
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Fig: The operating characteristic curve The basic characteristic of an OC curve are: i. The OC curve is based on the assumption that if the lot is large in comparison to the sample, the probabilities of the OC curve will follow a binomial distribution ii. An OC curve drawn for sample size n & the associated number of defectives gives the probability of acceptance of sampling from the lot. iii. Zero percentage defectives are always accepted on OC curve iv. Only two points (sample size & acceptance number) on the curve are sufficient to specify an OC curve
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Parameters of an OC curve
An OC curve has four parameters: 1. Producer Risk ( ) It is the probability that a good lot will be rejected by the sampling plan. It varies in between 0.01 to 10% 2. Consumers Risk ( ) It is the probability that a bad lot will be accepted by the sampling plan 3. Acceptable Quality Level (AQL) It is the maximum percent defective (or maximum number of defects per hundred) that for the purpose of sampling inspection can be considered satisfactory as a process average. A good sampling plan should have a low producers risk for quality that is equal to or better than AQL 4. Lot Tolerance Percentage Defective (LTPD) It is the defect level for which lots are regarded as bad lots & therefore should have very low probability of acceptance. Following is the OC curve which gives graphical summary of these four parameters
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Fig: OC curve of an ideal sampling plan From the above fig its suggests that All lots less than 3% defectives have the probability of acceptance of 1.00 (certainty) (i.e. accepted) All lots greater than 3% defectives have the probability of acceptance zero (or rejected)
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A general OC curve is divided into three zones: 1. Zone of acceptance 2. Zone of indecision (inspection) 3. Zone of rejection
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Types of control charts Control charts are of two types 1. Those drawn for properties which are variables; these are called control charts by variables 2. Thos drawn for properties which are attributes; these are called control charts by attributes Control charts for Variables 1. The average chart ( - chart), which measures the central tendency of the process 2. The range chare(R chart), which measures the spread of the process Since these two charts are used together, they are commonly known as - R charts. Control charts for attributes 1. The fraction defective chart (P- chart) which records the proportion of defective items in a sample 2. The number defective chart (np-chart) which records the number of defective items in a sample 3. The defects chart (c-chart) which records the number of defects in a component/product.
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At its Core, Six Sigma revolves around the following few concepts 1. It is critical to attributes which are most important to the customers 2. It focuses on the process more specifically what it can deliver 3. It aims for stability of the process i.e. improve product quality which is the utmost expectation of the customer 4. It focuses on the design for six sigma to meet customer needs & process capability
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Step 3: Analyze In this step, the team analyzes the results of this collected data & work for improvement of the process if required. It includes identification & quantification of the sources & locations of defect causing variables within the process. Step-4: Improve The following steps are performed 1. Identification of process improvements based on the collected data & analysis 2. Designing a plan of action 3. Performing risk assessments on the potential changes 4. Implementing the plan 5. Monitoring the results for the recommended changes Step-5: Control In this step, the team reviews the entire process to ensure that the appropriate changes have been made & to identify the actions that will permanently maintain those changes. Further, steps are taken to control future process performance.
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Fig: A service Quality Model The gaps that are shown in the figure indicate the key discrepancies between the firms perceptions & actions & the customers expectations. These gaps need to be closed in order to improve the service quality.
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Explanation about these Gaps is given below: Gap 1: This gap depicts that the managements perceptions of customers expectations are different from what the customer actually expects. This happens due to : 1. Insufficient market research 2. Inadequate interaction with the customers 3. Communication gaps within the organization Gap 2: This gap represents the extent to which the service quality standards have gone wrong. This is due to: 1. Inadequate tasks standardization 2. Absence of Goal- Setting 3. Inadequate management commitment to service quality Gap 3: This is the gap between what the specifications of the company call for & what is delivered. It may be called as the service performance Gap. 1. The job or the service task is not clear to the employee 2. Role conflict 3. Poor Employee Job fit 4. Poor Technology Job fit 5. Lack of Team- work 6. Inappropriate supervisory control systems Gap 4: This is the gap between what has been promised to the customer & what is delivered to him. This can happen because of: 1. Carelessness in terms of promising to the customer more than what can be delivered 2. Inadequacy in communication between the various departments of the service organization Gap 5: This is the result of all the other gaps. It indicates as to how the customer experiences the gap between what he expected & what he is perceiving as service received. These above gaps can be minimized if the following factors can be considered by the service organization 1. Assurance of providing basic service 2. Reliability of what you promise to deliver 3. Foster two- way communication 4. Customer Relationship Management
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Uses of the work study 1. It helps in increasing productivity & efficiency 2. It determines the standards of performance 3. It helps in increasing the output & reducing 4. It enables to develop improved work place layout 5. It helps in achieving better manpower & capacity planning for the organization 6. It provides a standard of performance to measure labor efficiency 7. It helps in maintaining healthy industrial relations 8. It provides job satisfaction to employees
Under method study extensive use of the charts & diagrams is made to record the facts on account of their simplicity & economy.
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Process charts are generally drawn for the material which goes from the raw material stage to the finished product stage. Sometimes they may refer to the activities performed by the worker in getting a certain process done. This can be shown with the help of following example:
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Process charts do not refer to the material & men or machine simultaneously. Each one of the activities can be analyzed to find whether it could be: 1. Eliminated or 2. Reduced in time or 3. Substituted by some other activities or 4. Put elsewhere in the sequence etc The ultimate goal is to simplify the procedure to minimize the process cost. Men & Machine charts These charts can be used to study the joint operations & activities of men & machines. These charts can help in identifying busy & idle time of both men & machines. These charts help in identifying busy & idle time of both men & machines. They provide basis for the work measurement & operational analysis.
Work Measurement
Work Measurement is mainly concerned with the determination of the total time required to perform a unit of work. Definition: The work measurement may be defined as The techniques applied to determine the amount of time necessary for a qualified worker to perform a particular task. The amount of time required to complete a given job is expressed as time standard, work standard, labor standard, labor standard, production standard or standard time. The standard time is the amount of time a qualified worker working at the normal rate of speed, will require to perform the specified task. It is expressed in terms of minutes per unit or output per hour. Objectives of Work Measurement This technique aims at achieving the following objectives 1. To fix standard time for each job scientifically, this will help to workout realistic schedules & manpower requirements 2. To carry out sound comparison of alternative methods on the basis of time 3. To develop improved planning & control of activities or operations 4. To generate effective incentive scheme by linking them with target times 5. To develop reliable basis for the control of labor costs 6. To achieve proper balancing in work distribution 7. To provide basis for forecasting future manpower & related costs Elements of Work Measurement An element is a distinct part of a specified job. On the basis of observation, convenience, measurement & analysis there are right types of elements which are as follows: Repetitive Elements: These are the elements which occur in every cycle of the given task. E.g. Loading & Unloading
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Occasional Elements: These elements which do not occur in every cycle of the task, but may occur at random or at regular intervals. E.g. breaking of threads in Textile unit Constant Elements: These elements which may occur in every cycle or not but they are identified in specification & time from cycle to cycle. E.g. switching on-off machine Variable Elements: These are the elements where the time of performance varies with characteristics of products such as weight, size etc of the product. E.g. Loading & Unloading time of product Manual Elements: It is the element performed by the worker. Machine Elements: The element which is automatically performed by machine is the machine element. E.g. Pressing, Forging etc. Governing Elements: When two elements are present at the same time in a given cycle then that element which takes a longer time is called as Governing elements. E.g. boiling of water while setting out teapot & cups Foreign Elements: Those elements that are observed during the study but do not form the necessary parts of the given activity of the cycle are known as foreign elements. E.g. An operator stopping the machine when he wants to talk with his friend. Thus the study of elements is an important part of the work measurement. Benefits of Work Measurement: 1) Developing a basis for alternative methods 2) Correcting manpower requirements for different tasks 3) Useful in preparation of accurate work schedules 4) Planning & scheduling to meet delivery dates 5) Estimating production cists accurately 6) Assessment of Labor cost accurately 7) Developing new better & more efficient methods 8) Training new employees for specific elements of job/ task 9) Checking progress of workers & taking necessary steps if required
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Performance Rating:
All the operators do not work at the same pace as same work at a faster rate while others work at a slower rate. Hence, while establishing the time standard for the work performance some speed allowance has to be made in the time values obtained through time study. The determination of relative speed at which an operator id working is called as rating. Rating the speed of the operator is a matter of subjective judgment of a time study analyst. Various techniques are used to measure the performance rating such as wasting hour rating, 100% rating etc. Assessment of Relaxation & other Allowance When basic times of the various elements of the job added together, we get normal time for the job as a whole. But it may not be equal to the standard time, because of lack of continuous work by employees. Hence some extra time has to be added to the normal time to estimate the standard time. In other words some allowance have to be made for the normal work due to interruption, fatigue, personal needs etc.
Standard Time
Standard time is the total time in which a job should be completed at standard performance i.e. standard time = Basic time + Allowance
480 400 80 minutes 80 x 100 400 20% of normal time = 2 + 20 x 2 = 2 + 0.20 x 2 = 2 + 0.4 = 2.40 minutes 100
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b) Quantity to be produced per day Time available for the day = = Standard time per piece = Therefore, Qty to be produced/ day = = c) Operators efficiency Qty actually produced Qty to be produced Therefore, Efficiency
= = = = =
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b) Assessment of Allowances for output Standard: The output standards besides relaxation allowance include allowances for delays & interruptions incidental to the work. Such delays can be economically measured with work sampling technique. c) Fixation of output standards Output standards for short-cycle-repetitive-jobs can be set economically with time study & allied work measurement techniques. Work sampling is useful for setting output standards for long cycle jobs & operations involving team work. This technique is also useful in measurement of work load. d) Testing the accuracy of the output standards Work sampling is used to check the accuracy of the output standards in combination with work measurement techniques. Advantages of Work sampling: 1. Training is not required 2. More than one task can be studied simultaneously 3. More suitable than time study & work measurement
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