ITM VOCATIONAL UNIVERSITY INT B TECH MECHANICAL

SUB: PRODUCTION TECHNOLOGY_1604501579

ASSIGNMENT- 1

Que.

1. What is production? Explain production system in detail?

Ans: Production:-

- Production is the method of turning raw material

into finished good product in manufacturing process.

 Production system:-

- The production system is a part of a larger

system – the business firm.

- The production system can be viewed as a

framework or skeleton of activities within
which the creation of value can occur.

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- At one end of the production system are the

inputs and at the other end are outputs.

- Connection the inputs and outputs are a series

of operations or processes, storage and
inspections.

- The concept of production system is applicable

to both production of component and
production of service as well.

- The production of any component or service

can be viewed in terms of a production system.

2. Define productivity? Which factor affecting productivity?

Ans: Productivity:-

- Productivity is a measure of economic

performance that compare the amount of good
and service output with the amount of inputs
used to produced those good and service.

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 Factor affecting productivity:-

a) Factors affecting national productivity:-

- Human resources.
- Technology and capital investment.
- Government regulation.

b) Factors affecting productivity in manufacturing and

service:-

- Product or system design.

- Machinery and equipment.
- The skill and effectiveness of the workers.
- Production volume.

3. How the different kind of productivity to be measured?

Ans: Kind of productivity measures:-

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1) Labour productivity:-

- The resource inputs are aggregates in term of

labour hours. This index is relatively free of
changes caused by wage rates and labour mix.

2) Direct labour cost productivity:-

- The resource inputs are aggregates in terms of

direct labour costs. This index will reflect the
effect of both wage rates and changes in the
labour mix.

3) Capital productivity:-

- Several formulations are possible. In one the

resource inputs may be changes during the
period to depreciation in another the inputs
may be the book value of capital investment.

4) Direct cost productivity:-

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- In this formulation all items of direct cost

associated with resource used are aggregated
on a monetary value basis.

5) Energy productivity:-

- In this formulation the only resource

considered is the amount of energy consumed.

6) Raw material productivity:-

- In this formulation the numerators are usually

weight of product the denominators are the
weight of raw material consumed.

4. Define the terms:

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Cost.
Accounting.
Cost accounting.
Cost control.
Ans:

 Cost:-
- Cost may be defined as the amount of
expenditure incurred on or attributable to a
given thing.

- The word cost is rarely used independently it is

always related to a particular thing e. g number
of good produced etc.

 Accounting:-

- Accounting may be defined as the are and

science of recording business transactions in
methodical manner so as to show.

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- The true state of affairs of a business at a

particular instant of time.

- The deficiency or surplus which as accrued

during a specific time period.

 Cost accounting:-

- Costing is frequently looked upon as the

operation of calculating the cost of an article as
a basis to fix its selling price.

- Costing implies the techniques and process of

ascertaining costs of given thing or items.

- Costing or cost accounting deals with the

internal affairs of a business it attempts to
show the results of the operation carried out
and emphasizes throughout the measurement
and achievement of efficiency.

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 Cost control:-

- Cost accounting helps control of expenditure or

cost.

- Cost control leads to efficiency in use of

material machinery and labour.

- The profit making capacity of a business is

guided by the efficiency with which various
costs are controlled.

- Cost control provides a basis for minimizing the

cost or cost-reduction.

5. What are the main elements of cost for industrial

enterprise?
Ans: - The costs of an industrial enterprise divided into three
principle elements:-

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1. Material.
2. Labour.
3. Expense.

 Material cost:-

a)Direct material cost:-

- A direct material is one which goes into a

salable product or its use is directly essential for
the completion of that product.

- The amount paid for or the money spent on

direct materials is known as direct material
cost.

b)Indirect material cost:-

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- An indirect material is one which is necessary in

the production process but is not directly used
in the product itself, it does not become an
integral part f the product e. g cotton waste,
greases, oils, sandpaper etc.

- The costs associated with indirect materials is

called indirect material cost.

 Labour cost:-

a)Direct labour cost:-

- The direct labour cost is the cost of labour that

can be identified directly with the manufacture
of the product and allocated to cost centers or
coat units.

- A direct labourer is one who coverts the direct

material into salable product the wages etc of
such employees constitute direct labour cost.

- The wages of a welder fabricating a structure

from a part of the total direct labour cost.

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b)Indirect labour cost:-

- It is that labour cost which cannot be allocated

but which can be appointed to or absorbed by
cost centers or cost units.

- This is the cost of the labour that does not alter

the construction, conformation, composition or
condition of the direct material but is necessary
for the progressive movement and handling of
the product to the point of dispatch.

 Expense:-

- It is a collective title which refers to all charges

other than those incurred as direct result of
employing workers or obtaining material.

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a)Direct expense:-

- These are the expense which can be identified

with and allocated to cost centers or cost units .

- Layout, design or drawing are totally consumed

on the job.

- Though they can be used again but there are

hardly any chances of their being used again.

b)Indirect expense:-

- These are the expenses which cannot be

allocated but which can be apportioned to or
absorbed by cost centers or cost units.

- Fixed expense are those costs that tend to

remain relatively constant regardless of the
volume of production.

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6. What is breakeven analysis explain its concept,

importance and scope in detail?

Ans: Concept of break even analysis:-

 Revenue and cost can be studied by directing attention

to total revenue and total cost.

 Breakeven analysis implies that at some point in the

operations, total revenue equals total cost.

 The breakeven point is therefore the volume of output

at which neither a profit is made nor a loss is incurred.

 The breakeven analysis can be carried out algebraically

or graphically.

Importance and scope of breakeven analysis:-

 Breakeven analysis helps solving the following types

of problems:

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- What volume of sales will be necessary to

cover.
- Computing costs and revenue for all possible
volume of output to fix budgeted sales.

- To find the price of an articles to give the

desired profit.

- To determine variable cost per unit.

- To compare a number of business enterprise by

arranging their earning in order of magnitude.

7. What is breakeven chart explain its limitation in details?

Ans: Breakeven chart:-

- It was one of the first synthetic tools that

become available to production management
and management accountancy.

- Modifications of the breakeven chart that

introduce risk make it an even more useful tool

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for the synthetic of the production

management field.

Limitation of breakeven chart:-

- The breakeven points is difficult to determine in

many instances because of the difficulty in
properly classifying costs as either fixed or
variable and because market condition may not
remain constant over the range of projected
capacity.

- The breakeven chart is a tool for short run

analysis it cannot be used for 8 or 10 year
projections because of the difficulty of
indicating variables in each of the costs line on
the chart.

- The total cost line representing the variables

costs added to fixes costs need not be straight
line, in actual fact, costs do not usually vary in
direct proportion.

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- The straight line which represent sales

revenue may also misrepresent the true
facts.

- The broken chart represent a static picture

whereas business operations are far from
static.

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ASSIGNMENT - 2

Que.
1. What is concept and factor governing the plant
location?

Ans: Concept:-

- A plant is place, where men, materials, money,

equipment, machinery, etc are brought
together for manufacturing pro- ducts.
-
- The problem of plant location arises when
starting a new concern or during the expansion
of the existing plant.

- Plant location means deciding a suitable

location, area, place, etc where the plant or
factory will start functioning.

- Plant location involves two major activities, first

to select a proper geographic region and
second, selecting a specific site within the
region.

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Factors:-
 Nearness to raw material:-

- It will reduce the cost of transporting raw

material from the vendor’s end to the plant.

- Especially those, plants, which consume raw

material in bulk or raw material located close to
the source of raw material.

 Transport facilities:-

- A lot of money is spent both in transporting the

raw material and the finished goods.

- Depend upon the size of raw material and

finished goods a suitable method of
transportation like roads, rails, water or air is
selected and accordingly the plant location is
decided.

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 Nearness to markets:-

- It reduces the cost of transportation as well as

the chances of the finished product getting
damaged and spoiled in the way.

- Moreover a plant being near, to the market can

catch a big share of the market and can render
quick service to the customers.

 Availability of fuel and power:-

- Because of the wide spread use of electric

power in most cases fuel has not remained a
deciding factor for plant location.

- Steel industries are located near source of fuel

(coal) to cut down the fuel transportation costs.

 Availability of water:-

- Water is used for processing, as in paper and

chemical industries and is also required for
drinking and sanitary purpose.

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- The nature of plant Water should be available

in adequate quantity and should be of proper
quality.

 Climatic condition:-

- With the development in the field of heating

ventilating and conditioning, climatic of the
region does not present much problem, of
course, control of climatic need money.

 Community attitude:-

- Success of an industry depends very much on

the attitude of the local people and whether
they want work or not.

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2. What is location economics?

Ans: Location economics:-

- An ideal plant location is one which result in

lowest production cost and least distribution
cost per unit.

- The various costs which decided the locational

economy are those of:

a) Land.
b) Building/Rent.
c) Equipment and machinery.
d) Labour.
e) Water, power and fuel.
f) Freight.
I. In- coming.
II. Out-going.
g) Raw material.
h) Taxes.

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- The economic aspects of locations are

considered or an economic analysis is carried
out to decide as to which of the possible two or
more preliminary selected locations is the
overall best location.

3. What is the advantages and disadvantages of selecting

the plant site in a city(urban site)?
Ans:

Advantages
 A city is very well
connected by rail, road,
air.
 It provides a good market
also.
 Right labour force is
available.
 Power and water is easily
available.
 It has good hospital,
marketing centers,
school, bank, recreation
clubs, etc
 The factory can be set up
in an existing available
building.
Disadvantages
 Land available for the
building is limited in
area.
 Cost of land and building
construction is high.
 Expansion of the industry
is seldom possible.
 Local taxes etc, are high.
 Labour salaries are high.
 Union problems are
more; employer relation
are not so good.

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4. What is the advantages and disadvantages of selecting

the plant site in small town(Rural area)?
Ans:

Advantage Disadvantage
 Plenty of land is available  Skilled labour is not
for building construction available.
and expansion propose.
 Unskilled labour is  Rail, road and air links
available which can be may not be there at all or
trained to suit the may not be adequate.
requirement of the
concern.
 Employee-employer  Power is not available.
relation are good; no
union problem.
 Undesirable  Rural areas are far from
manufacturing selling markets.
neighbour’s are not likely
to be present.
 Municipal and other  Hospitals, education and
regulation and taxes are amusement centers are
seldom burdensome. not available.
 Government gives  High grade executives
inducements as it wants may not like to live in
to develop the rural areas.
underdeveloped areas.

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5. Explain current Indian government policies for

relaxation in backward area?
Ans:

6. What are the objective of plant layout?

Ans: Objective:

- Material handling and transportation is

minimized and efficiency controlled.

- Work station are designed suitably and

properly.

- Suitable spaces are allocated to production

centers and service centers.

- The movement made by the workers are

minimized.

- Waiting time of the semi-finished product is

minimized.

- Working conditions are safer, better and

improved.

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- There is increased flexibility for changes is

product design and for future expansion.

- There is the utilization of cubic space.

- There is increased productivity and better

product quality with reduced capital cost.

7. What are the principle of plan layout?

Ans: Principle of plant layout:-

- Integration it means the integration of

production centers facilities like workers
machinery raw material etc.

- Minimum movement and material handling.

The number of movements of workers and
materials should be minimized.

- Smooth and continuous flow bottlenecks,

congestion points and back tracking should be
removed by proper line balancing techniques.

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- Safe and improved environment. Working

places-safe well ventilated and free from dust
noise fumes and other hazardous conditions
decidedly increase the operating efficiency of
the workers and improve their morale.

8. What are types of plant layout?

Ans: Types of plant layout:-

 Process layout:-

- It is also known as functional layout and is

characterized by keeping similar machines or
similar operations at one location.

- In other word all lathes will be at one place all

milling at another as so on that is machines
have been arranged according to their function.

 Product layout:-

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- It is also known as line layout. It implies that

various on raw material are performed in a
sequence and the machines are placed along
the product flow line.

- Machines are arranged in the sequence in

which the raw material will be operated upon.

 Combination layout:-

- A combination of process and product layouts

combines the advantages of the both types of
layouts.

- Moreover these days pure product or process

layouts are rare.

- The manufacturing sections are arranged in

process layout with manufacturing lines
occurring here and there wherever the
conditions permit.

 Fixed position layout:-

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- Layout by fixed positions of the product is

inherent in ship building, aircraft manufacture
and big pressure vessels fabrication.

- In other types of layouts discussed earlier the

product moves past stationary production
equipment whereas in this case the reverse
applied men and equipment are moved to the
material which remains at one place and the
product is completed at that placed where the
material lies.

9.

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