EXCEL ENGINEERING COLLEGE

(Autonomous)
DEPARTMENT OF AGRICULTURE ENGINEERING
Fifth Semester
20FTO04- Process Economics and Industrial Management
Regulations 2020
Question Bank
UNIT – 2 {Production and Management)
PART- A
Q. No Questions Marks CO BL
What is meant by work study?
An Work study is the investigation, by means of a consistent system of the work
1. 2 CO1 R
done in an organization in order to attain the best utilization of resources i.e.,
Materials, Machines, Men and Money.

Construct the layout which represents the sample from population?

2. 2 CO1 C

What is meant by sampling plan?

3. A sampling plan is a detailed outline of which measurements will be taken at what 2 CO1 R
times, on which material, in what manner, and by whom
List Can you list out the types of attribute sampling?

4. • Simple sampling 2 CO1 R

• Multiple sampling
• Double sampling
5. Differentiate between Time study and motion study? 2 CO1 U

Attribute sampling Variable sampling

• It is the method of measuring In this data is in variable form and the

quality that consists of noting result is rated on a continuous scale
the presence or absence of that degree of conformity
some characteristics(attribute)
in each of the units under It is about checking how much, how
 consideration good, how bad
• It checks whether the items Ex: How bad the red cake is ?
are defective or not
What type of red color it is ?
• It is mostly of yes or no
answer
Ex: whether it is red cake or not ?

What is meant by single sampling plan?

6. 2 CO1 R
A sampling inspection scheme in which a decision to accept or reject an inspection lot is
based on the inspection of a single sample.

What is meant by Double sampling plan?

A sampling inspection scheme in which a decision to accept or reject an inspection lot is

7. 2 CO1 R
based on the inspection of two samples.

What is meant by Multiple sampling plan?

8. A sampling inspection scheme in which a decision to accept or reject an inspection lot is 2 CO1 R
based on the inspection of a More than two samples.

What is meant by Process control?

9. It is defined as a way to monitor and measure the performance of a process and make 2 CO1 R
adjustments when necessary. It is a way to ensure that a process is in control.

Explain about the steps involved in control process?

Establish objectives and standards

Measure actual performance

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Compare results with standards

Taken necessary actions

Can you list out the objectives of process control?

1. Suppressing the influence of external disturbances,

2. Optimizing the performance,
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3. Increasing the productivity,
4. Cost effective.
5. Improve process effectiveness
12. Distinguish between Direct inventories and indirect inventories with examples? 2 CO1 U
 Direct Inventories Indirect Inventories

These inventories contain the items This includes the items which are
which are directly used for production indirectly used for production or
or manufacture and are a part of manufacture and are a part of
goods/service produced or provided goods/service produced or provided

Ex: Raw materials Ex: Transportation inventory

Can you list out the elements of inventories?

1. Raw materials

13. 2. Work in progress 2 CO1 R

3. Finished products
4. Consumable
5. Stores and spares
What is meant by Seasonal inventories?

Seasonal inventory is stock which is in high demand during particular times of the
14. year / seasons 2 CO1 R
Example: AC stock in terms of summer supply

What is meant by buffer inventories?

These are the inventories which held to take advantages of discounts which are
usually available for purchase of large quantities

15.
Example: A simple example of lot size is : when we buy a pack of six chocolates, 2 CO1 R
it refers to buying a single lot of chocolate.

16. Construct the layout which represents the Decoupling inventories? 2 CO1 C
 What is meant by Finished goods inventories?

This inventory includes the final products which are ready to dispatch to the
17. customers/distributors 2 CO1 R

Ex: Fully finished bike inventory which is ready for sales

List out the functions of inventories?

18. 1. It provides production economies 2 CO1 U

2. It maintains smooth and efficient production flow
What is meant by supply and demand?

Supply and demand are economic are the economic forces of the free market that
19. 2 CO1 R
control what suppliers are willing to produce and what consumers are willing and
able to purchase.

Construct the graph which represent demand and supply curve?

20. 2 CO1 C

Where D is demand curve and S is supply curve

PART- B
Q. No. Questions Marks CO BL
1 Can you list out the elements of production control and explain about the objectives and
steps involved in production control?

Elements of production control are listed as follows :

1. Control of Planning
2. Control of Materials
3. Control of Tooling
4. Control of Manufacturing Capacity
5. Control of Activities
6. Control of quantity
7. Control of Material handling
8. Control of Information

Objectives of production control

 Provision of raw material, equipment, machines and labour.

 To organize production schedule in conformity with the demand forecast.
 Proper co-ordination of the operations of various sections/departments
responsible for production.
 The resources are used in the best possible manner in such a way that the cost of
production is minimized and delivery date is maintained.

Steps involved in production control

1. Estimating/Planning
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Estimating determines what will be produced, by whom, and how. It formulates the
plan for labor, equipment, work centers, and material requirements needed for
production. It covers deciding or predicting the quantity that is required to be produced
and the cost involved in producing the same

Example: Estimating for the production of 100 bikes

2. Scheduling

Scheduling is defined as the allocation of time or schedule for each and every steps
needs to be done .Involvement of different jobs leads to fixation of the priorities by
allocating the start and the end time to each of the job . So for all the process in the
production , a start date and the end date is set in scheduling process

Example : These include Master Schedule, Operation Schedule, Daily Schedule, and
more.

3. Dispatching

Routing and scheduling are theoretical concept only and merely constitute written
documents. Till now actual production has not taken place . While under the
concept of dispatching the paperwork is transformed into the actual work as per
scheme laid down in routing and scheduling. Dispatching is the release of orders and
their instructions. It follows the routing and scheduling directions. This step ensures all
items are in place for the employees to do their jobs.
 Example: Bikes are dispatched for delivery (like amazon/ flipkart dispatching)

4. Follow-up

In this step, the team measures the actual performance from start until the end and then
compares it with the expected performance.
Areas that have problems, must get addressed. Follow-up gets to the root of the issue and
helps resolve it. For instance, if schedules are not met, is it from an unusual circumstance?
Or is it something that needs to get adjusted? The production manager may need to revise
production targets, loads, or schedules to correct the issue.

Example: we have to follow up each and every bike and check if it is delivered correctly or
not, if there is any deviation we have to take the necessary steps to resolve it

2 Explain about the steps involved in work study design with flow chart? 16 CO1 U
Schematic structure of basic components of organizations

SELECTION OF JOB:

While selecting the job the following factors should be considered.

Economical,Technical,Human reactions
Economical factors
 Cost of study
 Time loss due to investigation
 Cost associated with the implementation of changes for new model
Technical factors
 All the technical details about the job should be available
 Every machine tool will have its own capacity
Human factors
 Method study will be successful only with the cooperation of all people conserved
 Workers may resist method due to
fear of unemployment
fear of increased work load
effective communication with workers and supervisors
fear of loss of prestige
Record:

• The success of method study depends on the accuracy of recording

• The record facts should be clear and complete
• Various record techniques are used in motion study
• They are in the forms of charts, diagrams and models
• Symbols are used to record the activities
The followings are used in recordings
Types of chart Purpose

Operation process chart All the operations and inspections are

recorded
Flow process chart All the activities of men, material and
(men, material & equipment) equipment
Two handed process chart Workers both hands are recorded
independently
Multiple activity chart Activities of group of workers doing a
single job or A single worker operating
the no of machines are recorded
Flow chart Path of flow of materials is stop is
recorded
String diagram The movements of workers are recorded

Examine
• Analyze all the recorded facts , question on the purpose, place, sequence, person
and the way of completing job, process or operation
• Question techniques are used to examine
• It includes 5W and 1H

Develop

• After the examination it is necessary to convert the findings into the development
of new methods
• The development method should be
o Practical and feasible
o Safe and effective
o Economical
o Acceptable to design, production control, quality and sales department

Evaluate

• In this step the work content helps in determining the accurate work

Define
 • In this new method is design for particular job operation or process

Installation

Installation of developed method needs support of everyone concerned

• Installation consists of the following
• Selling of proposal
Communication, approval of persons involved in installation and use
• Preparation
Purchase of required machine and equipment, time for installation, planning, arranging,
trading, and rehearsing
• Commencement of new method
New method state working smoothly and satisfactory

Maintain

• After the installation of new method, it is to be maintained properly

• Periodic review is required to maintain properly
• If any deviations available during the working conditions, it is need to take
corrective actions

3 Recall about the work measurement techniques?

Work measurement techniques

• Work measurement (also called as time study) is the method of establishing the
time required by the qualified worker to carry out a specified job at a defined level
of performance.
• Work measurement is concerned with investigating, reducing and subsequently
eliminating ineffective time.
Types of work measurement techniques

Time study/ stop watch study

Synthesis
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Predetermined motion time system
(PMTS)

Analytical estimating

Work sampling
.

Time study/Stop watch study

Time study is a technique for determining the time necessary to carry out a given activity.
Time study is best suited for short-cycle repetitive jobs. Most of the production jobs can be
easily timed by a time-study.
Time study procedure consists of the following steps:
• Select the job to be timed.
• Standardize the method of doing the job.
• Select the worker to be studied.
• Record the necessary details of the job and conditions of work.
• Divide the job into elements. Here, ’element’ is a part of the job.
• Find out the time taken to do every single element.
• Keep provisions for relaxation, etc.
• Fix the standard time for doing the job.
Advantages
• Easy to calculate
• Helps in scheduling
• Serve as benchmarks
• Helps in improvements
Disadvantages
• Not suitable for non repetitive and non standardised jobs
• Not suitable for automatic machines
Synthesis method
• In synthesis method, the full job is first divided into elements (parts). Then the time
taken to do each element of the job is found out and synthesized (totaled). This
gives the total time taken for doing the full job. In this technique, the time taken to
do each element of the job is found out from previous time studies. So, this
technique gives importance to past-time studies of similar jobs. It also uses
standard data.
• For example, a job of publishing a book contains four elements viz; typing, editing,
printing and binding. The time taken for doing each element is first found out.
Suppose, typing takes 40 days, editing takes 30 days; printing takes 20 days and
binding takes 10 days. Then the time taken to do all the elements are totaled. That
is, it takes 40 + 30 + 20 + 10 = 100 days to publish a book. This information is
taken from previous time studies of other printing jobs or from the standard data.
• Synthesis technique also considers the level of performance. Level of
performance refers to the speed of performance, which is either, normal, fast, or
very-fast

Predetermined motion time system (PMTS)

• In PMTS method, basic times are set up for basic human motions. Such time
values are used to compute the time required by the job for its completion, with
fixed standard. It is a new and improved version of motion study.
• These time values are used to fix the time required for doing a job. Normally, three
times are fixed for one job. That is, one time is fixed for each level of performance.
 The level of performance may be normal, fast and very-fast.
Advantages
• It is an effective and economical method for repetitive jobs of short duration.
• It is more economical and fast compared to normal time studies.
Analytical Estimation
• Analytical estimating method or technique is used for fixing the standard time for
jobs, which are very long and repetitive. The standard-time is fixed by using
standard-data. However, if standard data is not available, then the standard time
is fixed based on the experience of the work-study engineer
• It is economical because it uses standard data for fixing the standard time of each
job.
Disadvantages
• When standard-data is not available for a job, then the standard time is fixed by
the work-study engineer. He uses his experience and judgement for estimating
the standard-time. This is not accurate compared to a scientific time study.
Work sampling
• In this technique, the workers are observed many times at random. It is done to
find out for how much time the worker is actually on the job. It checks how long he
is working and how much time he is not working (idle time).
• Work sampling method does not involve stop watch measurement. The purpose
of work sampling technique is to estimate what proportion of a worker’s time is
devoted to work-related activities.
4 Can you recall about the different types of Inventories with layout diagram? 16 CO1 R

Inventory is the accounting of items, component parts and raw materials that a company
either uses in production or sells.It is classified into two major types,
1.Direct inventories
2.Indirect inventories
Layout diagram for the classification of inventories

Direct inventories
• This includes the items which are directly used for production or manufacture and
 are a part of goods/service produced or provided
It is classified into
1. Production Inventories
2. Work in progress Inventories
3. Finished goods Inventories
4. MROInventories
5. Miscellaneous Inventories
.Production Inventories
• These inventories contains items such as raw materials, components,
subassemblies used to produce the final products
• Example : Coffee seeds

Work in progress inventories

• The components which are in progress ,neither raw materials nor finished food but
semi finished goods lying in machine is called work in progress.
• The work in progress inventory(control) helps in
1. Maintain uniform production
2. Flexibility in planning each operation
3. Reduce material handling cost
4. Checks the wastage
Example:- inventory for bike engine

Finished goods inventories

• This includes final products ready to dispatch to the customers/distributors
• This inventory helps in
1. It is economical to have inventory that constantly placing orders
2. Shortage of store may be unacceptable
3. Products can be displayed for the customers
Ex : bike inventory

MRO inventories
• M-maintenance
• R- repair
• O-Operating items
• These items such as spare parts and consumable stores that do not go into final
products but are consumable during the production process
• Example: bike battery for replacement

Miscellaneous inventories:
• All other items such as scrap, unsaleable products, stationary and other items in
office , factory and sales department
• Example : scarp materials

Indirect inventories

This includes the items which are indirectly used for production or manufacture and are not
as a part of goods/service produced or provided
Example: fuel, lubricants, tools etc
• It is classified into
1. Transportation Inventories
2. Buffer Inventories
3. Decoupling Inventories
4. Seasonal Inventories
 5. Lot size Inventories
6. Anticipation Inventories

Transportation Inventories
• Pipeline inventory, also known as pipeline stock is used to refer to those goods
that have left firms warehouse but are still in Transportation chain as they are yet
to be bought by ultimate consumers.
• Example: coal is in the stage of transportation, from coal fields to thermal power
plant

Buffer Inventories
• Safety stock inventory, sometimes called buffer stock, is the level of extra stock
that is maintained to mitigate risk of run-out for raw materials or finished goods
due to uncertainties in supply or demand
• Example :
Consider a manufacturer and wholesaler of jams and jellies. They keep extra levels of raw
materials like fruit and sugar on hand to account for disruptions from their supplier. This is
their safety stock

Decoupling Inventories
• Decoupling inventory involves separating inventory within a manufacturing
process so that the inventory associated with one stage of a manufacturing
process does not slow down other parts of the process. In simple terms,
decoupling inventory is a safety stock of sorts.

Seasonal Inventories
• Seasonal inventory is stock which is in high demand during particular times of the
year, such as during Christmas or Halloween. These periods of time often
coincide with the different seasons, and managers need to be proactive in
preparing for the waxing and waning of demand during these key times
• Example: AC stock in terms of summer supply

Lot size Inventories

• These are held to take advantages of discounts which are usually available for
purchase of large quantities
• Example : A simple example of lot size is : when we buy a pack of six chocolates,
it refers to buying a single lot of chocolate. Description: In the stock market, lot
size refers to the number of shares you buy in one transaction

Anticipation Inventories
• Anticipation inventory or speculation inventory refers to extra finished products or
raw materials a business purchases to meet an anticipated jump in demand.
• Simply it is for expected future demand
• Example : store for planned shut down
5 Explain in detail about the process of forecasting and its methods?

Forecasting is estimating the magnitude of uncertain future events and provide different
results with different assumptions.

Methods of forecasting’s are

(1) Qualitative method

• These methods are based on emotions, intuitions, judgments, personal

experiences, and opinions. This means that there is no math involved in
qualitative forecasting methods. Delphi Method, Market Survey, Executive
Opinion, Sales Force Composite are part of this type of forecasting

Delphi Method
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• The agreement of a group of experts in consensus is required to conclude in the
Delphi method. This method involves a discussion between experts on a given
problem or situation. An argument or brainstorming is done to complete that
everyone involved in the debate agrees to.

Market Survey

• In a market survey, interviews and surveys of customers are made to understand

the ask of the customer and tap the trend well in advance to deliver the right
product or service according to the changing needs of the customer.

Executive Opinion
• As the name suggests, the executives or managers are involved in such
forecasting. This method is very similar to the Delphi method; however, the only
difference here is that the executives may or may not be experts of the matter in
question, albeit they have the experience to understand the problem or situation
and formulate a forecasting method that would bring out the best possible result.

Sales Force Composite

• The information and intuition of the salesperson determine the needs of the
customer and estimate the sales in the particular region or area assigned to the
salesperson. This information is vital in forecasting the needs of the customer,
which can be used to make necessary changes in the business to meet the needs
of the customer and identify the sales volumes beforehand.
 Qualitive Forecasting

These methods depend wholly on mathematical or quantitative models. The outcome of

this method relies entirely on mathematical calculations. Time Series and Associative
Models are a part of this type of forecasting

Time Series
• Time series models look at historical data and identify patterns in the past data to
arrive at a point in the future based on these historical values. Since the historical
data has a pattern, it becomes evident that the data in the future should also have
a pattern, and this method looks at cracking the pattern in the future so that there
is very little deviance from the actual calculations and the outcomes in the real
world. Below is the example of a time series model
• Example:

Straight line method

One of the simplest methods in forecasting is the Straight Line Method; This uses
historical data and trends to predict future revenue.

Moving average method

Moving averages are averages that move with the underlying data, thereby
providing accurate information relevant to the current scenario.

Associative Models
• Associative models look at the variable that is being forecasted as being related to
other variables in the system, which means each variable is associated with the
other variable in the system. The forecast projections are made based on these
associations.
• Example: interest rate may be used to forecast the demand for home refinancing

6 Explain about the Elements of inventories and Factors which affecting the 16 CO1 U
Inventories?

Inventory is the accounting of items, component parts and raw materials that a company
either uses in production or sells.

(i)Elements of inventories

Raw materials
• It comprises of all direct materials used in product manufacturing, so it is important
to hold a raw material inventory to avoid any delay in production
Ex: sugarcane for sugar industry
Work in progress
• It refers to holding of partly finished goods and materials between manufacturing
stages
Ex:bike manufacturing under progress
Consumable
• These are the products bought by the customers more frequently like office
products such as pen,paper,files,inkcatridges etc which are consumable
Ex: pen,
Finished goods
• These are the final products which are available for the customers
Ex: A fully made bike
Stores and spares
• These are the components formed with the main product, for selling.
• They can be nuts ,bolts, clamps, screws etc
Ex: bolts and nuts

(ii)Factors affecting the inventories

Financial Factors
• Factors such as the cost of borrowing money to stock enough inventory can
greatly influence inventory management. In this case, your finances may fluctuate
according to the economy, and it is wise to keep an eye on changing interest rates
to help plan your spending.
• Other financial factors include the expenses associated with warehouse
operations and transportation costs changes in these factors may require you to
alter your inventory management processes accordingly. Fluctuations in the cost
of fuel, for example, may require you to rethink your transportation methods to
reduce costs. You may choose to purchase your own trucks or use outside
contractors for transportation, which again will change the way you manage
inventory.
Suppliers
• Suppliers can have a huge influence on inventory control. Successful businesses
require reliable suppliers in order to plan spending and arrange production. An
unreliable or unpredictable supplier can have huge knock-on effects for inventory
control. It can be a good idea to ensure you have a reliable back up supplier to
prevent product shortages or delays in the manufacturing process.
Lead time
• Lead time is the time it takes from the moment an item is ordered to the moment it
arrives. Lead time will vary widely depending on the product type and the various
manufacturing processes involved, and therefore changes in these factors can
require changes to inventory management.
Product type
• Inventory management must take into consideration the different types of products
in stock. For example, some products may be perishable and therefore have a
shorter shelf life than others. In this case inventory must be managed to ensure
that these items are rotated in line with expiration dates.

Management

• Ultimately, responsibility for managing your business’ inventory sits with you and
any co-owners. While you may have multiple employees acting as managers to
oversee inventory processes, they typically will not have the same stake in the
business as you do.
External Factors
• There are multiple external factors that may affect inventory control. For example,
economic downturns may occur and this is something that you will generally have
very little control over. Assessing the economy is a must in order to guard against
stock outs or a buildup of excess inventory.
• Other factors may include the real estate markets or the extent of local
competition. These factors are also largely out of your control, so it is a good idea
to assess the external climate regularly in order to stay prepared.
Subject In charge Course Coordinator HOD IQAC