IMST Unit-3 Dip ME 5.1

Diploma ME 501 Industrial Management & Smart Technologies Unit-3 2021
Unit-3 Topics Covered

 Plant Location
 Plant Layout
 Types of Plant Layout
 Types of Production System
 Production Planning and Control (PPC)
 Demand Forecasting
 Methods of demand forecasting
 Functions of Production Planning and Control
 Production Planning
 Routing, Scheduling ,Dispatching and Follow up
 Break-Even analysis
 Supply Chain Management
 Network Techniques
 CPM Network System
 PERT
Plant Location/Facility Location:

The location where firms setup their operations is called as facility location.
Retailers and shopping center developers have earn the secret of success which is non other than
location.
Need for Selection of facility locations;

1) To start new business
2) to expand the business and present location is not sufficient
3) to have new branches
4) When place to be changes due to completion of lease period
5) Due to social, political and economical reasons
Importance of Plant Location

1. Location of facility decides the production technology and cost structure. Like location in under
developed country will have labour intensive technology.
2. Location depends on size and nature of business. A large scale industry needs huge investment
and option for extension and cannot be shifted in future.
3. Location affects the firms ability to serve the customers quickly and efficiently.
4. Location affects the competitive advantage.
5. Optimum location reduces transportation cost, labour cost, taxes etc.
FACTORS AFFECTING THE LOCATION DECISION

Technical:
1. Location must have area suitable to meet the plant capacity planned.
2. In addition enough space should be available for future expansion of the capacity of the plant.
K.RavieKumar M.B.A, M.Sc.Psy, (Ph.D), Dept of Management Studies, Guntur Engineering College 1
Climatic condition:
1. Extreme hot conditions
2. Extreme cold conditions
3. Areas with history of floods
Economical:
1. Availability of power
2. Availability of water
3. Nearness to market
4. Nearness to raw materials
5. Manpower availability
Industrial environment:
1. Industrial units of the same industry
2. Industrial unit of other industrial sectors
3. Availability of service providers
Social:
1. Good housing facilities.
2. Recreation and entertainment facilities.
3. Schools and colleges.
4. Medical facilities.
5. Noise, gas or dust pollution in the region.
6. Law and order situation.
Other factors:
1. Proximity to airport
2. Proximity to sea port
3. Good banking facilities
4. Good network of roads and rails.
Political
1. Labor unrest.
2. Militancy in the region (Kashmir, Naxal areas).
3. Political differences – Dabhol Power Project in Maharashtra
Government policies
1. If the area has the clearance of the government for setting up the industrial unit.
2. If incentives are given by the government for new ventures.
3. If the area is backward area and government has plans to build infra-structure and roads etc.
Sources of information for deciding on the location

1. Industry associations such as ASSOCHAM, CII (Confederation of industry), CMA (Cement
Manufacturers Associations).
2. Ministry of Industry.
3. Local municipality.
4. Research organizations.
5. Ministry of information
6. Consultants
7. Metrological Department (weather, climatic conditions).
Plant Layout:
Plant layout means the disposition of the various facilities (equipments, material, manpower, etc.) and
services of the plant within the area of the site selected previously. Plant layout begins with the design of
the factory building and goes up to the location and movement of a work table. All the facilities like
equipments, raw materials, machinery, tools, futures, workers, etc. are given a proper place. In deciding
the place for equipment, the supervisors and workers who have to operate them should be consulted.
Objectives of Plant Layout:

1. Material handling and transportation is minimized and efficiently controlled.
2. Bottlenecks and points of congestions are eliminated (by line balancing) so that the raw material
and semi-finished goods move fast from one work station to another.
3. Work stations are designed suitably and properly.
4. Suitable spaces are allocated to production centres and service centres.
5. The movements made by the workers are minimized.
6. Waiting time of the semi-finished products is minimized.
7. Working conditions are safer, better (well ventilated rooms, etc.) and improved.
8. There is increased flexibility for changes in product design and for future expansion.
9. There is the utilization of cubic space (i.e., length, width and height).
10. There are improved work methods and reduced production cycle times.
11. Plant maintenance is simpler.
12. There is increased productivity and better product quality with reduced capital cost.
13. A good layout permits materials to move through the plant at the desired speed with the lowest
cost.
Principles of Plant Layout:

(a) Integration:
It means the integration of production centres facilities like workers, machinery, raw material etc., in a
logical and balanced manner.
(b) Minimum Movements and Material Handling:
The number of movements of workers and materials should be minimized. It is better to transport
materials in optimum bulk rather than in small amounts.
(c) Smooth and Continuous Flow:
Bottlenecks, congestion points and back tracking should be removed by proper line balancing
techniques.
(d) Cubic Space Utilization:

Besides using the floor space of a room, if the ceiling height is also utilized, more materials can be
accommodated in the same room. Boxes or bags containing raw material or goods can be stacked one
above the other to store more items in the same room. Overhead material handling equipment save a lot
of valuable floor space.
Types of facility Layout/Plant Layout:
Process Layout:
It is also known as functional layout and is characterised by keeping similar machines or similar
operations at one location (place). In other words, all will be at one place, all milling machines at another
and so on, that is machines have been arranged according to their functions. This type of layout is
generally employed for industries engaged in job order production and non-repetitive kind of
maintenance or manufacturing activities.
Advantages:
1. Wide flexibility exists as regards allotment of work to equipment and workers.
2. Better utilization of the available equipment.
3. Comparatively less number of machines are needed, thus involving reduced capital investment.
4. Better product quality, because the supervisors and workers attend to one type of machines and
operations.
5. Varieties of jobs coming as different job orders make the work more interesting for the workers.
6. Workers in one section are not affected by the nature of the operations carried out in another
section. For example, a lathe operator is not affected by the rays of the welding as the two
sections are quite separate.
Disadvantages of Process Layout :

1. For the same amount of production, process layout needs more space.
2. Automatic material handling is extremely difficult.
3. More material-in-process remains in queue for further operations.
4. Completion of same product takes more time.
5. Work-in-process inventory is large.
6. Production control becomes difficult.
7. Raw material has to travel larger distances for being processed to finished goods. This increases
material handling and the associated costs.
8. It needs more inspections and efficient co-ordination.
Product Layout:
It is also known as line (type) layout. It implies that various operations on raw material are performed in
a sequence and the machines are placed along the product flow line, i.e., machines are arranged in the
sequence in which the raw material will be operated upon. This type of layout is preferred for continuous
production, i.e., involving a continuous flow of in-process material towards the finished product stage.
Advantages:
(1) Less space requirements for the same volume of production.
(2) Automatic material handling, lesser material handling movements, times and costs.
(3) Less in-process inventory.
(4) Product completes in lesser time.
(5) Better co-ordination and simple production planning and control.
(6) Smooth and continuous work flow.
(7) Less skilled workers may serve the purpose.
Disadvantages
1. Since the specified product determines the layout, a change in product involves major changes in
layout and thus the layout flexibility is considerably reduced.
2. The pace or rate of working depends upon the output rate of the slowest machine. This involves
excessive idle time for other machines if the production line is not adequately balanced.
3. Machines being scattered along the line, more machines of each type have to be purchased for
keeping a few as stand by, because if one machine in the line fails, it may lead to shut down of
the complete production line. This is how product layout involves higher capital investments.
4. Though it involves less supervision as compared to process layout, sometimes it (inspection)
becomes difficult when one inspector has to look after many (say all welding) machines in two or
more production lines.
5. It is difficult to increase production beyond the capacities of the production lines.
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. Most of the manufacturing sections are
arranged in process layout with manufacturing lines occurring here and there (scattered) wherever the
conditions permit. A combination layout is possible where an item is being made in different types and
sizes.
In such cases machinery is arranged in a process layout but the process grouping (a group of number of
similar machines) is then arranged in a sequence to manufacture various types and sizes of products. The
point to note is that, no matter the product varies in size and type, the sequence of operations remain
same or similar. For example, files, hacksaws, circular metal saws, wood saws, etc. can be manufactured
on a combination type of layout.
Fixed Position Layout:

Layout by fixed position 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 applies; men and equipment are moved to the
material, which remains at one place and the product is completed at that place where the material lies.
Advantages:
1. It is possible to assign one or more skilled workers to a project from start to finish in order to
ensure continuity of work.
2. It involves least movement of materials.
3. There is maximum flexibility for all sorts of changes in product and process.
4. A number of quite different projects can be taken with the same layout.
Disadvantages:
1. It usually involves a low content of work-in-progress.
2. There appears to be low utilization of labour and equipment.
3. It involves high equipment handling costs.
PRODUCTION SYSTEM
The production system of an organization is that part, which produces products of an organization. It is
that activity whereby resources, flowing within a defined system, are combined and transformed in a
controlled manner to add value in accordance with the policies communicated by management.
The production system has the following characteristics:

1. Production is an organized activity, so every production system has an objective.
2. The system transforms the various inputs to useful outputs.
3. It does not operate in isolation from the other organization system.
4. There exists a feedback about the activities, which is essential to control and improve system
performance.
JOB SHOP PRODUCTION

1. Job shop production are characterized by manufacturing of one or few quantity of products
2. designed and produced as per the specification of customers within prefixed time and cost. The
distinguishing feature of this is low volume and high variety of products.
3. A job shop comprises of general purpose machines arranged into different departments.
4. Each job demands unique technological requirements, demands processing on machines in a
certain sequence.
Characteristics
1. High variety of products and low volume.
2. Use of general purpose machines and facilities.
3. Highly skilled operators who can take up each job as a challenge because of uniqueness.
4. Large inventory of materials, tools, parts.
5. Detailed planning is essential for sequencing the requirements of each product, capacities for
each work centre and order priorities.
Advantages
1. Because of general purpose machines and facilities variety of products can be produced.
2. Operators will become more skilled and competent, as each job gives them learning
opportunities.
3. Full potential of operators can be utilized.
4. Opportunity exists for creative methods and innovative ideas.
Limitations
1. Higher cost due to frequent set up changes.
2. Higher level of inventory at all levels and hence higher inventory cost.
3. Production planning is complicated.
4. Larger space requirements.
BATCH PRODUCTION
Batch production is defined by American Production and Inventory Control Society (APICS) “as a form
of manufacturing in which the job passes through the functional departments in lots or batches and each
lot may have a different routing.” It is characterised by the manufacture of limited number of products
produced at regular intervals and stocked awaiting sales.
Characteristics
Batch production system is used under the following circumstances:
1. When there is shorter production runs.
2. When plant and machinery are flexible.
3. When plant and machinery set up is used for the production of item in a batch and change of set
up is required for processing the next batch.
4. When manufacturing lead time and cost are lower as compared to job order production.
Following are the advantages of batch production:

1. Better utilization of plant and machinery.
2. Promotes functional specialisation.
3. Cost per unit is lower as compared to job order production.
4. Lower investment in plant and machinery.
5. Flexibility to accommodate and process number of products.
6. Job satisfaction exists for operators.
Following are the limitations of batch production:

1. Material handling is complex because of irregular and longer flows.
2. Production planning and control is complex.
MASS PRODUCTION
Manufacture of discrete parts or assemblies using a continuous process are called mass production. This
production system is justified by very large volume of production. The machines are arranged in a line or
product layout. Product and process standardization exists and all outputs follow the same path.
Characteristics
Mass production is used under the following circumstances:
1. Standardization of product and process sequence.
2. Dedicated special purpose machines having higher production capacities and output rates.
3. Large volume of products.
4. Shorter cycle time of production.
5. Lower in process inventory.
6. Perfectly balanced production lines.
7. Flow of materials, components and parts is continuous and without any back tracking.
8. Production planning and control is easy.
9. Material handling can be completely automatic.
Advantages
Following are the advantages of mass production:
1. Higher rate of production with reduced cycle time.
2. Higher capacity utilisation due to line balancing.
3. Less skilled operators are required.
4. Low process inventory.
5. Manufacturing cost per unit is low.
Limitations
Following are the limitations of mass production:
1. Breakdown of one machine will stop an entire production line.
2. Line layout needs major change with the changes in the product design.
3. High investment in production facilities.
4. The cycle time is determined by the slowest operation.
CONTINUOUS PRODUCTION
Production facilities are arranged as per the sequence of production operations from the first operations
to the finished product. The items are made to flow through the sequence of operations through material
handling devices such as conveyors, transfer devices, etc.
Characteristics
Continuous production is used under the following circumstances:
1. Dedicated plant and equipment with zero flexibility.
2. Material handling is fully automated.
3. Process follows a predetermined sequence of operations.
4. Component materials cannot be readily identified with final product.
5. Planning and scheduling is a routine action.
Advantages
Following are the advantages of continuous production:
1. Standardization of product and process sequence.
2. Higher rate of production with reduced cycle time.
3. Higher capacity utilization due to line balancing.
4. Manpower is not required for material handling as it is completely automatic.
5. Person with limited skills can be used on the production line.
6. Unit cost is lower due to high volume of production.
Limitations
Following are the limitations of continuous production:
1. Flexibility to accommodate and process number of products does not exist.
2. Very high investment for setting flow lines.
3. Product differentiation is limited.
Demand Forecasting
For an organization to provide customer delight it is important that organization can understand what
customer wants and how much does they want. If an organization can gauge future demand that
manufacturing plan becomes simpler and cost effective.
The process of analyzing and understanding current and past information to understand the future
patterns through a scientific and systemic approach is called forecasting. And the process of estimating
the future demand of product in terms of a unit or monetary value is referred to as demand
forecasting.
The purpose of forecasting is to help the organization manage the present as to prepare for the future by
examining the most probable future demand pattern. However, forecasting has its constraint for example
we cannot estimate a pattern for technologies and product where there are no existing pattern or data.
The types of qualitative forecasting methods:
1. Executive opinions: The opinions of experts from different departments are considered and averaged
to forecast future sales. This method of forecasting can be done easily and quickly without the necessity
of elaborate statistics. But the main disadvantage is that it depends on individual opinions that may not
be unanimous and can vary from individual to individual which could lead to wrong forecasting.
2. Delphi technique: In this method, panels of experts are selected and are individually questioned
about the upcoming events. They do not form a group. For long-range forecasting, this method is
beneficial and very effective. The main disadvantage of this method is that from the returns there is a
lack of and low reliability.
3. Consumer surveys: In this method, the survey is conducted directly on the customers on their
purchases. The surveys can be done through telephone contacts, personal interviews or questionnaires to
obtain data from the customers. This method requires extensive statistical analysis to test consumer
behavior.
4. Sales force polling: In this method, the forecast is done based on the opinions of salespeople who
have steady interactions with the clients. As they are closest to the customers, they can better predict the
requirements of the customers for the future market. The main advantage of this forecasting method is
that it is very simple to use and understand. The information can be segregated easily into different
categories. But the drawback is that the salespeople can be either optimistic or pessimistic about their
predictions and this could lead to inaccurate forecasting
Types of quantitative forecasting methods:
1. Trend projection
Trend projection uses your past sales data to project your future sales. It is the simplest and most
straightforward demand forecasting method.
It’s important to adjust future projections to account for historical anomalies. For example, perhaps you
had a sudden spike in demand last year. However, it happened after your product was featured on a
popular television show, so it is unlikely to repeat. Or your ecommerce site got hacked, causing your
sales to plunge. Be sure to note unusual factors in your historical data when you use the trend projection
method.
2. Econometric
The econometric method requires some number crunching. This technique combines sales data with
information on outside forces that affect demand. Then you create a mathematical formula to predict
future customer demand.
The econometric demand forecasting method accounts for relationships between economic factors. For
example, an increase in personal debt levels might coincide with an increased demand for home repair
services.
3. Barometric Method
The Barometric Method of Forecasting was developed to forecast the trend in the overall economic
activities. This method can nevertheless be used in forecasting the demand prospects, not necessarily the
actual quantity expected to be demanded.
Often, the barometric method of forecasting is used by the meteorologists in weather forecasting. The
weather conditions are forecasted on the basis of the movement of mercury in a barometer. Based on this
logic, economists use economic indicators as a barometer to forecast the overall trend in the business
activities.
Production planning
Production planning involves the means by which a manufacturing plan is determined, information
issued for its execution, data collected and recorded, which will enable the plant to be controlled through
all its stages. A few definitions are given here in order to have clear understanding of the term
‘Production Planning’.
“Production planning is a series of related and co-ordinated activities performed by not one but a
number of different departmental groups, each activity being to systematize in advance the
manufacturing efforts in its area.” —Bethel, At water. Smith others
Objectives of Production Planning:

1. To achieve coordination among various departments relating to production.
2. To make adequate arrangement of men, money, materials, machines tools, implements and
equipment relating to production.
3. To decide about the production targets to be achieved by keeping in view the sales forecast.
4. To keep production operation continuous.
5. To achieve desired share of the market.
6. To fix right type of man for right type of job.
7. To achieve the desired level of profit.

8. To make all arrangements to remove possible obstacles in the way of smooth production.
9. To achieve economy in production cost and time.
10. To initiate production on modern lines.
11. To operate the plant at planned level of efficiency.
12. To develop alternative plans in order to meet any emergency or contingency.
Need for Production Planning from Text Book
Production planning functions

The main functions of production planning are:
Estimating
Involves deciding the quantity of products to be produced and cost involved in it on the basis of sales
forecast.
Estimating manpower, machine capacity and materials required (bill of material is the basis) to meet the
planned production targets. These are the key activities before budgeting of resources (e.g.-production
budget is the basis for materials budget, capital equipment budget and manpower budget)
Routing
This is the process of determining the sequence of operations to be performed in the production process.
Routing determines what work must be done, where and how.
Routing information is provided by product or process engineering function and it is useful to prepare
machine loading charts and schedules.
Route sheet
A route sheet is a document, providing information and instructions for converting the raw materials into
finished parts or products. It defines each step of the production operation and lays down the precise path
or route through which the product will flow during the conversion process.
Route sheets contain the following information:

1. The operations required and their desired sequence.
2. Machine or equipment to be used for each operation.
3. Estimated set up time and operation time per piece (standard time)
4. Tools, jigs and fixtures required for the operation.
5. Detailed drawings of parts, sub-assemblies and final assemblies.
6. Specification, dimensions, tolerances, surface finishes and quality standards to be achieved.
7. Specification of raw materials to be used.
8. Cutting speed, feed, depth of cut, etc., to be used on machine tools for the operations to be
carried on.
9. Inspection procedure and metrology tools required for inspection.
10. Packing and handling instructions during the movement of parts and sub assemblies through the
operation stages.
Scheduling
Involves fixing priorities for each job and determining the starting time and finishing time for each
operation, the starting dates and finishing dates for each part, sub-assembly and final assembly
.Scheduling lays down a time table for production, indicating the total time required for the manufacture
of a product and also the time required for carrying out the operation for each part on each machine or
equipment.
Objectives of scheduling are:

1. To prevent unbalanced use of time among work centers and departments
2. To utilize labor such that the output is produced within established lead time or cycle time so as
to deliver the products in time and complete production at minimum total cost.
Loading
Facility loading means loading of facility or work centre and deciding, which jobs to be assigned to
which work centre or machine? Loading is the process of converting operation schedules into practice
.Machine loading is the process of assigning specific jobs to machines, men or work centers based on
relative priorities and capacity utilization.
A machine loading chart (Gantt chart) is prepared showing the planned utilization of men and machines
by allocating the jobs to machines or workers as per priority sequencing established at the time of
scheduling.
Loading ensures maximum possible utilization of productive facilities and avoid bottlenecks in
production. It is important to avoid either over loading or under loading the facilities, work centers or
machines to ensure maximum utilization of resources.
Dispatching:
This is the execution phase of planning. It is the process of setting production activities in option through
release of orders and instructions. It authorizes the start of production activities by releasing materials,
components, tools, fixtures and instruction sheets to the operators.
1. To assign definite work to particular machines, work centers and men.

2. To issue required material from stores; and also to issue jigs and fixtures and make them
available at correct point of use.
3. Release necessary work orders, time tickets, etc., to authorize timely start of operations.
4. To record start and finish time of each h=job on each machine (or) by each man.
Expediting:
This is the control tool that keeps a close observation on the progress of the work. It is a logical step after
dispatching which is called follow-up (or) progress. It coordinates extensively to execute the production
plan. Professing function can be divided into three parts, i.e. follow-up of materials, follow-up of work-
in progress and follow-up of assembly.
1. Identification of bottlenecks and delays and interruptions because of which the production
schedule may be disrupted.
2. To devise action plans (remedies) for rectifying the errors.
3. To ensure that production rates are in the line with schedule.
Break Even Analysis

A break-even analysis is an economic tool that is used to determine the cost structure of a company or
the number of units that need to be sold to cover the cost. Break-even is a circumstance where a
company neither makes a profit nor loss but recovers all the money spent.
The break-even analysis is used to examine the relation between the fixed cost, variable cost, and
revenue. Usually, an organisation with a low fixed cost will have a low break-even point of sale.
Break-Even Point (Units) = Fixed Costs ÷ (Revenue per Unit – Variable Cost per Unit)
Importance of Break-Even Analysis

 Manages the size of units to be sold: With the help of break-even analysis, the company or the
owner comes to know how many units need to be sold to cover the cost. The variable cost and the
selling price of an individual product and the total cost are required to evaluate the break-even
analysis.
 Budgeting and setting targets: Since the company or the owner knows at which point a
company can break-even, it is easy for them to fix a goal and set a budget for the firm
accordingly. This analysis can also be practised in establishing a realistic target for a company.
 Manage the margin of safety: In a financial breakdown, the sales of a company tend to
decrease. The break-even analysis helps the company to decide the least number of sales required
to make profits. With the margin of safety reports, the management can execute a high business
decision.
 Monitors and controls cost: Companies’ profit margin can be affected by the fixed and variable
cost. Therefore, with break-even analysis, the management can detect if any effects are changing
the cost.
 Helps to design pricing strategy: The break-even point can be affected if there is any change in
the pricing of a product. For example, if the selling price is raised, then the quantity of the
product to be sold to break-even will be reduced. Similarly, if the selling price is reduced, then a
company needs to sell extra to break-even.
Components of Break-Even Analysis

 Fixed costs: These costs are also known as overhead costs. These costs materialise once the
financial activity of a business starts. The fixed prices include taxes, salaries, rents, depreciation
cost, labour cost, interests, energy cost, etc.
 Variable costs: These costs fluctuate and will decrease or increase according to the volume of
the production. These costs include packaging cost, cost of raw material, fuel, and other materials
related to production.
Uses of Break-Even Analysis

 New business: For a new venture, a break-even analysis is essential. It guides the management
with pricing strategy and is practical about the cost. This analysis also gives an idea if the new
business is productive.
 Manufacture new products: If an existing company is going to launch a new product, then they
still have to focus on a break-even analysis before starting and see if the product adds necessary
expenditure to the company.
 Change in business model: The break-even analysis works even if there is a change in any
business model like shifting from retail business to wholesale business. This analysis will help
the company to determine if the selling price of a product needs to change.
Break Even Chart
Supply Chain Management (SCM)

Supply chain management is the management of the flow of goods and services and includes all
processes that transform raw materials into final products. It involves the active streamlining of a
business's supply-side activities to maximize customer value and gain a competitive advantage in the
marketplace.
Consumers also want a high standard of customer support. If goods are not distributed on time, supply
chain management branches of a company have to assure them that they will get their products as soon
as possible. SCM also has a huge impact on the bottom line of a company.
A good supply chain management can improve the efficiency of plants, warehouses, and transportation
vehicles. Cash flow is directly increased because the delivery of a product is in a timely manner, and
consumers can purchase their goods.
5 Parts of SCM
In SCM, the supply chain manager coordinates the logistics of all aspects of the supply chain which
consists of five parts:
 The plan or strategy

 The source (of raw materials or services)
 Manufacturing (focused on productivity and efficiency)
 Delivery and logistics
 The return system (for defective or unwanted products)
Importance of Supply Chain Management
REDUCE OPERATING COSTS

1. Decreases Purchasing Cost – Organizations generally prefer quick distributions of costly
products and raw materials to avoid expensive inventory
2. Decrease Production Cost – A reliable supply chain delivers materials to assembly plants and
avoid any costs that may occur due to delays.
IMPROVE CUSTOMER SERVICES

1. Right quantity and quality – Customer expects delivery of right quantity and quality of
products.
2. On-time delivery – Customers expect to receive the correct product mix and quantity to be
delivered on time. A reliable supply chain can help in avoiding any bottlenecks and ensure
customers get their products in the promised time frame
3. Services – After sales services is one of the important aspects in any business. If any kind of
problem occurs in the product, customer expects it to be fixed quickly. A right supply chain
ensures that customers get the service they want.
 Network Techniques
 CPM Network System
 PERT
These 3 Topics will explained through Notes along with problems

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Diploma ME 501 Industrial Management & Smart Technologies Unit-3 2021

Unit-3 Topics Covered

Plant Location/Facility Location:

Need for Selection of facility locations;

Importance of Plant Location

FACTORS AFFECTING THE LOCATION DECISION

Sources of information for deciding on the location

Objectives of Plant Layout:

Principles of Plant Layout:

(d) Cubic Space Utilization:

Types of facility Layout/Plant Layout:

Disadvantages of Process Layout :

Fixed Position Layout:

The production system has the following characteristics:

JOB SHOP PRODUCTION

Following are the advantages of batch production:

Following are the limitations of batch production:

The types of qualitative forecasting methods:

Types of quantitative forecasting methods:

Objectives of Production Planning:

7. To achieve the desired level of profit.

Need for Production Planning from Text Book

Production planning functions

Route sheets contain the following information:

Objectives of scheduling are:

1. To assign definite work to particular machines, work centers and men.

Break Even Analysis

Importance of Break-Even Analysis

Components of Break-Even Analysis

Uses of Break-Even Analysis

Break Even Chart

Supply Chain Management (SCM)

 The plan or strategy

Importance of Supply Chain Management

REDUCE OPERATING COSTS

IMPROVE CUSTOMER SERVICES

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