Department of Mechanical Engineering

Industrial Management

Department of Mechanical Engineering

Syllabus
CVR COLLEGE OF ENGINEERING
(Autonomous)
IV Year B.Tech. ME II-Sem

Industrial Management
UNIT I
INTRODUCTION TO MANAGEMENT: Entrepreneurship and organization-nature and importance of management,
Functions of management, Taylors scientific Management Theory, Fayols Principles of management. Maslows Theory of
Human Needs Douglas McGregors Theory X and Theory Y, Herzbergs Two-Factor Theory of Motivation, system
Approach to Management, Leadership Styles, Social responsibilities of Management.
UNIT II
Designing Organizational Structures: Departmentalization and decentralization, Types of Organizational Structures-line
Organization , Line and Staff Organization, functional Organization, committee Organization, matrix Organization, Virtual
Organization, Cellular Organization, Team structure, boundary less organization, inverted pyramid structure lean and flat
organization structure and their merits, demerits and suitability.
UNIT III
Operations Management: Principles and Types of Plant Layout-Methods of production (Job, batch and Mass production),
Work Study Basic procedure involved in Method Study and Work Measurement
Statistical Quality Control: X chart, R chart, C chart, P chart, (simple problems), Acceptance Sampling, Demings
contribution to quality,
UNIT IV
A)
B)

Material Management: Objectives, Need for Inventory Control, EOQ, ABC Analysis, Purchase procedure, Store
Management and Stores Records Supply Chain Management
Marketing: Functions of Marketing, Marketing Mix, Marketing Strategies based on Product life Cycle., Channels
of Distribution
UNIT V
Human Resource Management (HRM): Evolution of HRM, Concepts of HRM, Basic functions of HR Manager:
Manpower Planning, Recruitment, Selection, Training and Development, Placement, Wage and salary Administration,
Promotion, Transfer, Separation, Performance Appraisal, Grievance Handling and Welfare Administration, Job Evaluation
and Merit Rating.
UNIT VI
Project Management: (PERT/CPM): Network Analysis, Evaluation and Review Technique (PERT), Critical Path Method
(CPM), Identifying critical path, Probability of completing the project within given time, Project Cost Analysis, Project
Crashing. (Simple problems)
UNIT VII
Strategic Management: Mission, Goals, Objectives, Policy, Strategy, Programmes, Elements of corporate planning process,
Environmental Scanning, SWOT Analysis, Steps in Strategy Formulation and Implementation, generic Strategy Alternatives.
UNIT VIII
Contemporary Management Practices: Basic Concepts of Just -In-Time (JIT) systems, Total Quality Management (TQM),
Six sigma and capability maturity modal (CMM) levels, Value Chain Analysis, Entrepreneurship Resource Planning (ERP),
Performance Management, business process Outsourcing (BPO), Business process re-engineering 5s Model, Demings
PDCA, Kaizen, Poka-Yoke, Muda, Bench marking, Balanced Score Card.

1.

TEXT BOOKS
Aryasri: Management Science, TMH, New Delhi, 2009.

Department of Mechanical Engineering

2.
1.
2.
3.
6.
7.
8.
9.

O.P.Khanna:Industrial Management
REFERENCE BOOKS
Stoner, Management, Person, 2009.
Kotler philipand Keller Kevin Lane: Marketing Management PHI, 2009.
Koontz, Weihrich, and Aryasri: Principles of Management, TMH, 2009.
4. Thomas N.Duening & John M. Ivancevich Management, Principles and Guidelines, Cengeage, 2009.
5. Kaniska Bedi, Production and Operations management, Oxford University Press, 2009.
Memoria & S.V. Ganker, Personnel Management, Himalaya, 2009.
Schermerhon: Management, Wiley, 2009.
Parnell: Stragic Management, Biztantra, 2009.
L.S.Srinath: PERT/CPM, Affiliated East-West Press, 2009.
10. William J.Stevenson & Ceyehun Ozgur: Introduction to Management Science, TMH, 2007.

Lecture schedule

Name of the Faculty: M Prem Swarup

Branch: Mech. Engg.

Subject title: Industrial Management

Subject code:

Number of periods per week: 5

Number of credits: 4

Academic year & semester: 2014 - 15 (IV Year II semester)

Sl.No

Unit/Chapter as
per course
structure
UNIT I

Topic to be covered

Lecture
Hours

Department of Mechanical Engineering

Introduction to Management

Entrepreneurship and
organization-nature and
importance of management

Functions of management

Taylors scientific Management

Theory, Fayals Principles of
management

Maslows Theory of Human

Needs, Douglas McGregors
Theory X and Theory Y

Herzbergs Two-Factor Theory 1

of Motivation, system Approach
to Management
Leadership Styles, Social
2
responsibilities of Management.

7
UNIT II

Departmentalization and
decentralization, Types of
Organizational Structures-line
Organization

Line and Staff Organization,

Functional Organization

10

Committee Organization,
Matrix Organization

11

Virtual Organization, Cellular

Organization,

12

Team structure, boundary less

organization
Inverted pyramid structure lean
and flat organization structure
and their merits, demerits and
suitability.

Principles and Types of Plant

Layout-Methods of production
(Job, batch and Mass
production)

Work Study Basic procedure

involved in Method Study and
Work Measurement-Statistical

Quality Control: X chart, R

chart, C chart, P chart, (simple
problems),

13

UNIT III

14

15
4
16

Department of Mechanical Engineering

INTRODUCTION TO THE SUBJECT

Industrial Management is the important field in the Industrial Engineering and is an
evergreen field expanding boundlessly. It has been the area of interest for many, more to
engineering persons, with the growing number of multinationals operating in various
developing countries like India and their companies turning multinationals, opportunities for
the present generation are vast.
An Engineer with a management background is a demand all over. He is the
professional most sought after as he is the embodiment of right mix of the skills of rationality
and decision-making.
Everyone is a manager in one or the other way. We manage day to day works to
achieve our personal goals. The same management skills are applied in the organizational
context to achieve organizational goals. In this process, it is necessary to co-ordinate men,
material, money, and machines against in background of several controllable factors such as
technology, competition and so on. This makes management a complex job and the primary
key for such a complex job lies in careful understanding of the basic concepts of
management.

Program Educational Objectives

OBJECTIVE: Be able to describe the most well-known theories and perspectives on management.
Basic understanding the relationship between organizational structure, technology and the conditions
of the organizational environment, contemporary organizational forms, Industrial Management
revolves around effective leadership of innovation, operations and marketing in existing and emerging
industries. It also focuses on the dominating theories on management and the organizing of industrial
activities.

Department of Mechanical Engineering

UNIT I
PART A (Short questions)
1.
2.
3.
4.
5.

Why Management is necessary and important in organizations?

What are the three strategies suggested by Tom Peters to deal with chaos?
What is organization structure?
What is Planning and when it ends?
Who is the father of scientific management and what are the theories contributed by
Douglas McGregor?
6. What are Hawthorne experiments?
7. What is the importance of establishing vision in an organization?
8. What is the concept of Therblig and who postulated it?
9. What are the four stages of the scientific approach suggested by Taylor?
10. What is the contribution of scientific management for work study and other
productivity related techniques?

PART B (Descriptive Questions)

1. Explain the importance of management. Are management and administration are
same? Similar?
2. Explain the nature and feature of management.
3. Why management is considered as both art and science?
4. What does a modern manager need to know, in the words of Tom Peters, for better
management?
5. Mention the different needs as identified by Abraham Maslow. Give examples.
6. What were the conclusions from Hawthorne experiments?
7. What are the assumptions of Douglas McGregor about the behavior of managers?
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Department of Mechanical Engineering

8. State and explain Henry Fayols principles of management. In them identify any four
principles which you consider are very signicant.
9.

UNIT II
PART A (Short questions)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

What is unity of command span and in which type of organization it prevails?

What is an organization and what are informal organizations?
What do you mean by Break-Even? Explain in brief.
How an organization can achieve the objective of making their employees
creative?
Name different types of organizations and its importance.
What are organizational levels?
What is the difference between command and control type organization and
motivate and support type of organization?
What are ameba organizations?
How a structured organization helps in achieving the goal/objective of an
organization?
What is change management and how it is achieved in an organization?

PART B (Descriptive Questions)

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Department of Mechanical Engineering

1.

Evaluate the, a. Line and staff and staff organization

b.
Matrix organization
c.
Flat organization
d.
Committee organization
What do understand by organizational hierarchy
Differentiate between flat and tall organizations
Explain the significance of informal organization
What you understand by Organizational manual.
Differentiate between organization and organizing.
Discuss the matrix organization structure and explain its strategic advantages and
also disadvantages.

2.
3.
4.
5.
6.
7.

UNIT III

PART A (Short questions)

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
8

How a good Plant layout can contribute to a companys productivity and

profitability?
What is a Plant Layout? and in which kind of layout the degree of flexibility is
relatively very high and why?
What are agglomeration economies?
When do you deploy Work sampling and explain its significance.
What is the formula for calculating standard time?
What is an activity sampling?
What is an operation process chart?
What is a therblig and briefly explain its importance in micro motion study?
Explain about SIMO charts which are used in micro motion studies.
What is the difference between a p chart and x-chart?

Department of Mechanical Engineering

PART B (Descriptive Questions)

1.
2.
3.
4.

Enumerate the basic types of Plant Layouts. Use suitable diagrams supplementing
your narration.
Explain in brief the factors determining the location of an industrial plant.
How the productivity effects with plant layout? Discuss.
Write about the Factors affecting the plant location and compare the sites of rural
and urban for plant layouts
Define the term Work Study and state its objectives. What benefits do you derive
from work study?
Define the method study. How do you carry it out?
What do you understand by work measurement? Explain how do you determine
standard time?
Discuss any two techniques of recording the current method of doing the job.
A work sampling study was conducted for 200 hours in the machine shop to
estimate standard time. The total numbers of observations record were 5000, out
of which 4500 revealed working activity. The total number of articles produced
during the given period was 500.determine standard time considering
a_ an average performance rating of 1.6
b_ fatigue allowances of 20 per cent of nominal time.
What is the importance of Statistical Quality Control in an organization?Discuss.

5.
6.
7.
8.
9.

10.

UNIT IV
PART A (Short questions)
1.
2.
3.
4.
5.
6.
7.
8.
9.

What are the objectives of Material Management?

What is the importance of Inventory control? Explain in brief.
What is an EOQ and explain in brief its significance.
What are different types of analyses done in Materials Management?
What is a Product Life Cycle and how does a reverse bath-tub curve illustrates it.
What is the difference between Sales and Marketing?
What are different types of distribution channels prevailing in the market?
What are the basic functions of Marketing? Explain in brief.
What is a Marketing Mix and what is its significance?
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Department of Mechanical Engineering

10. What is the kind of coordination required between Purchase and Stores departments in
an organization?

PART B (Descriptive Questions)

1. What are the broad objectives of materials manager in a manufacturing organization? and
How do you apply system concept as a materials manager in an organization?

UNIT V

PART A (Short questions)

10

Department of Mechanical Engineering

1.
2.
3.
4.
5.
6.
7.

Materials may consist of raw materials, work in progress and finished goods.
The process of recording stores balances after every receipt and issue is called
perpetual inventory control.
The statement just containing the quantity particulars of materials is called bin
card.
Economic order quantity is based on the aggregate of carrying cost and ordering
cost.
The quantity of order at which the total cost is minimum is called EOQ.
The time taken to replenish the stocks is called total cost.
The technique of reducing the costs analyzing the functional worth of a product
is called inventory control

PART B (Descriptive Questions)

1.
2.
3.
4.

What are the aims of the material management organization set-up. Explain its
inter
relationship.
What is materials planning? Explain different techniques of material planning.
Explain the factors governing the material planning.
Explain the following :

5.
6.
7.
8.
9.
10.
11.

integrated material management

forecasting material requirement
material control
What is budgeting? Differentiate between budget and budgetary control.
Describe purchasing procedure to be adopted for a medium size industry.
Describe the system of purchase of equipment and stores in an industry
Explain different steps commonly used in purchasing

11

Department of Mechanical Engineering

UNIT VI
PART A (Short questions)
1.
2.
3.

The task or activity which does not consume resources, yet is shown to indicate a
logical sequence in a network, is called dummy activity.
PERT is event oriented.
An activity with a specific goal occupying a specific period of time is called
project.
In milestone chart, every bar shown in Gantt chart is divided into certain
number of milestones.
A programme is called a project.
All such events carrying a zero slack or minimum slack fall under critical path.
In beta distribution, standard deviation is equal to optimistic time estimate.
The allowable delay for an event without causing delay of the project completion
is called slack.
The event which is not tied into the network is called dangler.
The time estimate which assumes no hindrances in its completion is called
Optimistic Time.
Cost slopes indicate the priorities for crashing.
The crashing of an activity may lead to a change in the critical path.
The additional cost per additional unit of time assuming a linear rate of
approximation is called cost slope.
Rent or advertisement is an example for indirect costs.
Direct costs are those, which vary with the number of activities in the project.
Total cost is the aggregate of direct, indirect costs.
Normal cost is the cost incurred if the project goes as per schedule.
Crash time is associated with the minimum possible time for an activity.
Indirect costs are always fixed per given unit of time in the short run.
Direct cost change directly in proportion to the number of activities involved in
the project.

4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

PART B (Descriptive Questions)

1.
i)
ii)
iii)
iv)
v)
vi)
2.
Event
A
B
C
D
E
F
12

Write short notes on the following,

Gantt chart
Milestone chart
Average time estimate
Critical path
PERT verses CPM
Net work analysis
Draw the network for the following project and number the events:
Preceded By
Event
Preceded By
Start Event
G
E
A
H
G,E
B
I
H
B
J
D,F,H
D
K
C,J
B
L
K
M
J

Department of Mechanical Engineering

3.
Draw a PERT network for the following project:
is the first event and J the end event
J is a successor event to F
C and D are successor events to B
D is a predecessor event to G
E and F occur after event C
E precedes F
C restrains the occurrence of G and G precedes H
H follows F
H precedes J.

4.
Which of the following two time estimates are reliable?
Estimate By
Km
T
P
1822
22
Q
2736
30
5.In a construction company, the construction engineer spends on inspection different periods
of time at different sites. More often he inspects from ten minutes to one hour. Twenty
minute-inspections are more frequent than inspections of any other duration. If each
inspection were an activity in a PERT project what would be the expected duration of each
inspection? What estimate would you give for its variance? In scheduling the project, how
much time would you allocate for the inspection?

13

Department of Mechanical Engineering

UNIT VII
PART A (Short questions)
PART B (Descriptive Questions)
1.
2.
3.
4.
5.

14

Explain the concept of statistical quality control. Explain how you can construct
control charts
for the variables.
What do you understand by acceptance sampling? Explain the concepts of single
and double
sampling plans.
What is Process control?
Write about R-charts.
Write about the following,
a). Acceptance sampling
b). Process capability
c). Sampling risks
d). Variables and attributes

Department of Mechanical Engineering

UNIT VIII

PART A (Short questions)

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
11.
15

Personal manager is a line manager in the issues related to staff selection.

The guide to management action d HRM is business needs.
An organization is said to have an enabling culture when its employees innovate
and make things happen.
The top management relies on personnel manager for developing vision and
culture for the organization.
Facilitation constitutes prized management skills in HRM.
The key relation of labour management in personnel, according to storey, is
pluralist in personal to customer in HRM.
Manpower planning ends with feedback and control.
The decision-makers, to search for the optimum strategy use manpower plans.
Manpower plans have their deep roots in the corporate objectives.
One of the goals of manpower plans is to make best use of its manpower
resources.
The succession strategy identifies the career plans of the key positions in the
organization.
Staff development strategy addresses the training, development and progress
needs of the entire workforce in the organization.
Redundancy means separation or dismissal of the employee from the job.
The process of evaluating the relative merit of the persons on a given job is
Called management by objectives.
The type of person required to be selected for a given job is outlined by job
specification.
Job evaluation is the outcome of the sustained efforts of far-sighted, progressive,
and professional chief executives.
The results of proactive organization culture could be used as a basis for salary
fixation or promotion.
The technique of assessing systematically the relative worth of each job is called
job assessment.

Department of Mechanical Engineering

18.

The process of evaluating the relative merit of the persons on a given job is
called management by objectives.
Point rating method of job evaluation breaks the job down into factors, sub
factors, merit rating and points.

19.

PART B (Descriptive Questions)

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Name any four HRM activities in the Indian context.

What led to the development of HRM or HRD
Explain, in brief how globalization enhanced the need for the HRM function.
What is personnel management?
What you understand by grievance handling?
What are the traits observed in the process of merit rating?
Explain the need of for training in organization.
Explain any four advantages of job evaluation.
What is the link between job evaluation and wage and salary administration?
Differentiate personnel and industrial relations from HRM.
Define personnel management. Analyze how it continues to be an integral part of
the organization.

Model Question Paper

UNIT-I
Explain the importance of management. Are management and administration are
same? Similar?
Explain the nature and feature of management.
Why management is considered as both art and science?
What does a modern manager need to know, in the words of Tom Peters, for better
management?
Mention the different needs as identified by Abraham Maslow. Give examples.

1.
2.
3.
4.
5.

UNIT-II
Evaluate the, a. Line and staff and staff organization
b.
Matrix organization
c.
Flat organization
d.
Committee organization
What do understand by organizational hierarchy?
Differentiate between flat and tall organizations.
Explain the significance of informal organization
What you understand by Organizational manual?

1.

2.
3.
4.
5.
1.
2.
3.
4.
5.

UNIT-III
What is meant by Plant Layout? Explain its systems and evaluate the same
Explain in brief the factors determining the location of an industrial plant.
How the productivity effects with plant layout? Discuss.
Write about the Factors affecting the plant location
compare the sites of rural and urban for plant layouts

1.
2.

UNIT-IV
Write about t he benefits of work study
Define the method study. How do you carry it out?

16

Department of Mechanical Engineering

3.
4.
5.

What do you understand by work measurement? Explain how do you determine

standard time?
Discuss any two techniques of recording the current method of doing the job.
A work sampling study was conducted for 200 hours in the machine shop to
estimate standard time. The total numbers of observations record were 5000, out
of which 4500 revealed working activity. The total number of articles produced
during the given period was 500.determine standard time considering a_ an
average performance rating of 1.6; b_ fatigue allowances of 20 per cent of
nominal time.

UNIT-V
What are the aims of the material management organization set-up? Explain its
inter-relationship.
What is a material planning? Explain different techniques of material planning.
Explain the factors governing the material planning.
Explain the following : Integrated material management Forecasting material
requirement material control
What is budgeting? Differentiate between budget and budgetary control.
UNIT-VI
Write short notes on the following,
Gantt chart
Milestone chart
Average time estimate
Critical path
PERT verses CPM
Net work analysis

1.
2.
3.
4.
5.
1.
i)
ii)
iii)
iv)
v)
vi)

2.
Draw the network for the following project and number the events:
Event
Preceded By
Event
Preceded By
A
Start Event
G
E
B
A
H
G,E
C
B
I
H
D
B
J
D,F,H
E
D
K
C,J
F
B
L
K
M
J
3.
Draw a PERT network for the following project:
A is the first event and J the end event
J is a successor event to F
C and D are successor events to B
D is a predecessor event to G
E and F occur after event C
E precedes F
C restrains the occurrence of G and G precedes H
H follows F
H precedes J.
17

Department of Mechanical Engineering

1.

1.
2.
3.
4.
5.
6.

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

In a construction company, the construction engineer spends on inspection

different periods of time at different sites. More often he inspects from ten
minutes to one hour. Twenty minute-inspections are more frequent than
inspections of any other duration. If each inspection were an activity in a PERT
project. What would be the expected duration of each inspection? What estimate
would you give for its variance? In scheduling the project, how much time would
you allocate for the inspection?
UNIT-VII
Explain the concept of statistical quality control. Explain how you can construct
control charts
for the variables.
What do you understand by acceptance sampling? Explain the concepts of single
and double
sampling plans.
What is Process control?
Write about R-charts.
Write about the following,
a). Acceptance sampling b). Process capability c). Sampling risks d). Variables
and attributes
UNIT-VIII
Write short notes on Human Resource Management.
Name any four HRM activities in the Indian context.
What led to the development of HRM or HRD
Explain, in brief how globalization enhanced the need for the HRM function.
What is personnel management?
What you understand by grievance handling?
What are the traits observed in the process of merit rating?
Explain the need of for training in organization.
Explain any four advantages of job evaluation.
What is the link between job evaluation and wage and salary administration?
Differentiate personnel and industrial relations from HRM.
Define personnel management. Analyze how it continues to be an integral part of
the organization.

Previous Question Papers

Program Outcomes

18

Department of Mechanical Engineering

OUTCOMES : Student should be able to describe the role of the company in the society, the
different business cultures, and how companies are organized and managed from a business concept
to ongoing operations with the support of strategic planning, formulation of objectives and
management control, central theories within the field of industrial management, such as costing,
investment analysis, the transactions of a company; how they are accounted for, how information can
be analyzed, and used for annual report and a fiscal declaration for a company.

19