Om 2nd Complete

Operations Management
3-Lecture per week

1-Tutorial
K Vivek Chawla
•Method Study- Introduction, Objectives Steps, Micro-

motion Study, Cycle graph and chrono cycle graph,
Therbligs and SIMO charts.
•Work Study – Objectives, Different Techniques,
Standard Time, Allowances, Time study
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•Numerical, Performance Rating, Work sampling.
•Process and Product Life Cycle,
•Production Planning and Control, Supply chain and

Logistics Management, Production Scheduling.
•Production Cost Concepts – Introduction, Cost of

Production, Classification and analysis of Cost, break
even analysis, Make and Buy.
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•Material Requirement Planning – Introduction, MRP
objectives, Functions served by MRP
•Inventory Management - Introduction, Reasons for

Holding Inventories, Relevant Costs of Inventories,
EOQ models, Quantity Discount Models, Safety Stock,
Inventory control system,
•Selective Control of Inventory ABC analysis, VED

analysis.
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•Industrial Maintenance – Concepts of Maintenance,
Organization for Maintenance department,
•Types of Maintenance-Preventive, Breakdown and

Corrective Maintenance, Failure Analysis,
•Maintenance Performance, Replacement policies of

machines.
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•Work study
•Process of investigation of the works done in an
organization and finding the most effective way of
doing the job with efficient utilization of the
available resources (man, material, money and
machinery) within least possible time.
•Work study consists of two broad studies, i.e.

method study and time study.
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•Work study
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Objectives of Work Study
The following are the purposes of conducting work
study:
1. To standardize the method of doing a task.
2. To determine the standard time for doing a task,

for use in the wage payment/ determination.
3. To minimize the unit cost of production by
selecting proper machine tools, optimum cutting
parameters and proper process.
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Objectives of Work Study
4. To minimize the materials movement and idle
time of the workers and machines by proper layout
of the plant.
5. To eliminate the unnecessary human motions in

performing a task.
6. To utilize the facilities such as man, machine and

materials most effectively.
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Method or Motion Study
•Methods engineering is a necessary function to
ensure the most efficient methods.
•It is related to the study of methods for performing

a job to design effective and efficient work system.
•To achieve process improvements, improved

layout, better working environment and reduced
fatigue.
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•Method study is associated with the reduction of
the work content of a job or operation.
•Work measurement (WM) is mostly concerned

with the investigation and reduction of time
consumption or any ineffective time associated
with it.
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Method study and time study are interrelated to
each other.
To know the effectiveness of a method, one of the

important parameters is time consumed by a
method which can be known by time study or work
measurement.
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Steps to Conduct Method Study
Select: In this step, a job or process is selected
which is to be considered for method study.
Record: All the relevant facts/information about

the process or the job is collected through data
collection or direct observation.
Examine: All the data collected in second step are

examined properly.
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Develop: Some of the efficient and economical
methods of doing that job or process are
developed.
Evaluate or Measure: Results of different

alternative methods are evaluated and the best one
is selected.
Define: New method among the alternative is

defined and presented. K Vivek Chawla
Install: New method as standard practice is
installed and persons in applying it are trained to
use the new method.
Maintain: Control procedure is established and

maintained.
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Objectives of Method Study
The following are the objectives of method study:
1. To improve the process of doing the work.
2. To improve the plant layout.
3. To minimize the human motions and fatigue of
the operators.
4. To maximize the utility of man, machine and
material.
5. To improve the overall working environment.
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Factors Influencing the Method Study
In method study, an industrial engineer has to
consider the following factors:
1. Motion economy factors.
2. Economic factors.
3. Technical factors.
4. Human factors.
5. Operational complexity.
6. Delays.
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Symbols used in method study
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Tools Used in Method Study
The tools used for method study may be classified
under three heads as discussed below:
• Charts;
• Diagrams; and
• Photographic aids
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Operation process chart
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Micromotion Study
•Proposed by Frank B. Gilbreth.
•It is a technique of recording and analysing the
timing of the fundamental elements of an
operation or activity with a view to achieving the
best method of performing the operation.
•operation consists of minute elements or sub-
divisions.
•These elements may be repetitive or non-
repetitive. Elements are known as THERBLIG
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Micromotion Study
•THERBLIGs
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Micromotion Study
•It is an analysis technique making use of motion
pictures (videotape) taken at a constant speed.
•The film becomes a permanent record of both the

methods being used and the time consumed in
doing the work.
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Micromotion Study
•It provides a valuable technique for making
minute analyses of those operations that are short
in the cycle, contain rapid movements and involve
high production over a long period of time.
•Very useful in analysing operations such as the

sewing of garments, assembly of small parts and a
number of similar activities.
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Purposes of Micromotion Study
1. To study the nature and path of movements for

accomplishing the elements of an operation.
2. To find the most efficient way of accomplishing

the elements.
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Purposes of Micromotion Study
3. To impact training to the operators regarding
motion economy principles so that unnecessary
motion or movement by the operator may be
avoided.
4. To keep a permanent record of the most efficient

way of doing a task for new reference.
5. To collect motion time data (MTD) for calculating

synthetic time standard for different elements.
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Cycle graph:
•In this method, a small electric bulb is attached to
each part of the body which makes movement for
carrying out operations.
•The path of movement is photographed by

highspeed camera, such a record is called cycle-
graph.
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Chrono-cycle graph:
•It is an improvement over cycle graph method.
•In this method, a bulb is also attached to the

moving part of the body, but the bulb is made
slowly off and quickly on and photograph is taken.
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Chronocycle graph:
•The path of the bulb, i.e. the path of movement

appears dotted, the dots taking pear shape.
•If the movement is fast, the dots are spaced far

apart. K Vivek Chawla
• If the speed is slow, dots are closer.

Memo-motion Study
•It is a special type of micro-motion study in which
the motion pictures or video tape is taken at slow
speeds.
•Photograph is taken of the moving part of the

body similar to micro-motion study, the speed of
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the movie camera is kept considerably lower.

Memo-motion Study
•In micro-motion study, the record is made by film
operated at the speed of 16 frames per second or
by constant speed camera at 1000 frames per
minute.
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•In memo-motion study, the photograph is taken by

cameras using 50 to 100 frames per minute. (10
times less in comparison to micro motion study)
Memo-motion Study
Memo-motion is superior with respect to other
forms of time and motion study for the following
applications.
1. Single operator repetition work

2. The study of a group of men or machines
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3. Team studies
4. Utilization studies
SIMO CHART
•‘SIMO’ stands for ‘Simultaneous Motion Cycle

Chart’.
•One of the recording techniques of micro-motion

study and records simultaneously K Vivek Chawla
• Different therbligs performed by different parts of

the body of one or more operators simultaneously.
SIMO CHART
•A two-hand SIMO chart is shown
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SIMO CHART
Features:
1. The cycle time.
2. Percentage utilization of the hands or the part of
the body taking operation.
3. Total working time of the part of the body.
4. Total idle time of the part of the body.K Vivek Chawla
5. Total time for which two or more parts of the

body are involved simultaneously.
Time Study or Work Measurement
•It is related to time measurement of work required
for a job, to arrive at the best method of work,
improved planning and control.
•Work Measurement (WM) is a technique of

establishing the proper time required in performing
a job or work.
K Vivek Chawla
•Since it is concerned with measurement of time,

so it is also called time study.
•WM is concerned with investigating, reducing and
eliminating ineffective time, whatever may be the
cause.
•It is the means of measuring the time taken in the

performance of an operation or a series of K Vivek Chawla
operations in such a way that the ineffective time is

shown up and can be separated out.
The basic procedure for time study may be
summarized below as:
•Select: Select the job for study

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•Divide: Divide the operation into smaller

elements.
•Measure and Record: Measure and record the

time taken by the operator for each element.
•Determine the number of observations required:
Determine the number of such readings necessary
for getting the normal time (NT) for each element.
•Rate the performance: K Vivek Chawla
Rate the operator’s performance; determine the

allowances and then finally calculate the standard
time.
Objectives of Time Study
1. To analyse the activities for doing the job with a

view to reducing or eliminating some
unnecessary or repetitive activities so that
human effort can be minimized. K Vivek Chawla
2. To compare the time of performance by

alternative methods.
3. To standardize the efficient method of

performing a job.
4. To standardize the conditions for efficient

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performance.
5. To determine the optimum number of men and

machines.
6. To determine man and the machines ratio for

effective and efficient utilization of both.
7. To provide information and basis for production,

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planning and scheduling.

8. To balance the work of all the workers working in

a group.
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9. To determine the normal time for a job, to be

used as a basis for wage incentive schemes for the
workers.
Difference Between Motion Study and Time Study
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Work Measurement Techniques
Direct Time Study
•Direct time study (DTS) involves direct observation
of a task using a stopwatch or other chronometric
device to record the time taken to accomplish the
task. K Vivek Chawla
•The task is usually divided into work elements and

each work element is measured separately.
Direct Time Study
•The time study analyst evaluates the worker’s
performance/pace, and a record of this pace is
attached to each work element time.
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•This evaluation of the worker’s pace is called

performance rating.
Direct Time Study
The observed time is multiplied by the
performance rating to obtain the normal time for
the element or the task.
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Normal time = Observed time × (1 + Rating factor)
Standard time = Normal time + Allowance

Direct Time Study
If an activity is measured by a time measuring
device or stop watch, then number of readings
should be taken.
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Direct Time Study
For a particular element of a job, 20 observations
(as shown in Table) were taken by an observer
using a stopwatch. Check whether these number of
observations are sufficient for +/- 5% accuracy
level. Find the minimum number of observation
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required.
Direct Time Study
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Total number of observation is only 20, but the

required number of observations is 339
Synthetic Rating
•An observer records the actual time of performance
for an element.
•Performance times for such elements have been

standardized, which are known as ‘Predetermined
Motion Time Standard (PMTS)’ values.
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Synthetic Rating
•The PMTS value of the elements from such tables is
noted.
•The ratio of PMTS value of the element taken from

tables to average actual observed time for the same
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element gives the rating factor.

Synthetic Rating
•R is performance rating factor,

•P is PMTS value for the element in minutes (from
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tables), and
•A is the average actual time observed for the same
element in minutes.
Synthetic Rating
•The average actual times for the five elements of a
task were measured and shown in Table.
•The predetermined motion times for three
elements are also given.
•Calculate the performance rating factor. K Vivek Chawla
Synthetic Rating
solution
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Objective Rating
Step 1:
•The speed or pace of the operator is rated against
an objective pace standard.
•This objective pace standard is same for all the jobs
irrespective of the job difficulties and its limiting
effect on the pace.
•Base time is the time rated against pace.
B=P×T
B =Base time; P = Rated pace and T = Observed time.
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Objective Rating
Step 2:
•Base time obtained in step 1 is appraised by an
adjustment factor, referred as job difficulty factor or
job complexity factor or secondary adjustment.
•Expressed as:
NT = B × M
NT = normal time, B = base time and M = job
difficulty factor
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Objective Rating
For job difficulty factor, table can be referred or it
will be given in question.
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Objective Rating
Example : The observed time for an element is 0.24
min, the pace rating is 90 per cent and the sum of all
secondary adjustment (for job complexity) amounts
to 40 per cent, find the NT.
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Objective Rating
Example : The observed time for an element is 0.24
min, the pace rating is 90 per cent and the sum of all
secondary adjustment (for job complexity) amounts
to 40 per cent, find the NT.
Solution :
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Allowances
There are following types of allowance that are
provided in the calculation of standard time.
•Personal allowance: It includes restroom breaks,

phone calls, water fountain stops, cigarette breaks
(5 per cent typical), etc.
•Fatigue allowance: Rest allowance to overcome

fatigue due to work-related stress and conditions (5
per cent or more).
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Allowance
•Delay allowance: Machine breakdowns, foreman
instructions (5 per cent typical).
•Contingency allowance: Additional allowance due

to a problem with the task (e.g. raw material
problem). It cannot be greater than 5 per cent.
•Policy allowance: These allowances are intended to

cover special work situations that are usually
associated with a wage incentive system.
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Allowance
•Training allowance: For workers whose

responsibilities include teaching other new workers
in their jobs.
•Learning allowance: For workers who are learning

a new task or new employees who are just
beginning to work.
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Example : An operator was kept under observation
for 20 days. He was found working on 900 occasions
and abstaining including idle time was 100. He
produced 250 jobs during these days. The
observation per day was for 5 hours only and the
total number of observations was 1000. Take 110 as
performance rating for operator and 20 per cent as
allowance. Calculate the standard time.
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Objective Rating
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Work Sampling
Work sampling is a method to find the percentage
of the day of worker is working and the percentage
of the day he is idle.
The working and idle time of a worker are used to
fix up performance rate, and establish the standard
time for an operation.
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Work Sampling
Following types of work sampling
Systematic sampling: If the observations are taken

at a fixed interval of time, it is called systematic
sampling.
Random sampling: If the observations are taking

random spaced time, it is called random sampling.
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Work Sampling
Stratified sampling: If observations are taken at a

random spaced time after a finite number of
regularly spaced time intervals, it is called stratified
sampling.
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Procedure for Work Sampling
Five steps are involved in making a work-sampling
study:
(a) Identify the activity or activities that are to be

considered for the study. For example, determine
the percentage of time that equipment/worker is
working, remain idle, or under repair.
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(b) Estimate the proportion of time of the activity of
interest to the total time (e.g. that the equipment is
working 80 per cent of the time). These estimates
can be made from the analyst’s knowledge, past
data, reliable guesses of others, or a pilot work-
sampling study.
(c) State the desired accuracy in the study results.

.
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(d) Determine the speciﬁc times when each
observation is to be made.
(e) After two or three intervals during the study

period, recompute the required sample size by
using the data collected thus far.
(f) Adjust the number of observations, if

appropriate.
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Advantage of Work Sampling
1. The activities that are difficult to measure using
time study can be easily measured by work-
sampling process.
2. The men or machines can be studied in groups

with work sampling.
3. Since the observations are taken over a period of

days or weeks, therefore, day-to-day variation
cannot affect the result appreciably.
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Advantage of Work Sampling
4. The chances of getting misleading results are less
since the operators are not under direct
observation.
5. The study is less time-consuming and less tiring

for the observers.
6. No time measuring device is required.
7. The calculation is easy and less time-consuming.

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Minimum Number of Observations.
z = the corresponding value of confidence level,

σ = standard deviation,
q= percentage occurrence of an activity or delay measured,
expressed as a percentage of total number of observations
as a decimal,
p = percentage of non-occurrence of an activity,
e = accuracy in fraction, and
N = the number of observations.
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Example:
Calculate the required number of observations
necessary for an accuracy of +/- 3 per cent and
confidence level of 95 per cent and corresponding
value of confidence level is 1.65, if the total number
of observations of machines working is 3000 and
idle 1000.
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Solution:
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Example:
Pilot Study showed the percentage of occurrence of
an activity 50%. Determine the number of
observations for 95% confidence level and an
accuracy of +/- 2%.
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Example:
Pilot Study showed the percentage of occurrence of
an activity 50%. Determine the number of
observations for 95% confidence level and an
accuracy of +/- 2%.
Sol:
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Process and Product Life Cycle
Design process
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Process Life Cycle
1. Recognition and identification of need:
•Recognition of the need is a creative and sense-

related phase of design.
•This is the feeling of requirement, sense,

uneasiness and test of people.
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2. Defining the problem:
•It must include all the specifications for the thing
that is to be designed or produced.
•The specifications are the input and output
quantities, the characteristics, and dimensions of
these quantities.
•The specification includes the cost, the volume of
production, the expected life, the operating
conditions, maximum range, expected variations in
the variables and dimensions, and weight
limitations.
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3. Synthesis:
Synthesis is defined as the process of creating or
selecting configuration, materials, shapes and
dimensions for a product.
After defining the problem, synthesis is the next
steps in the process.
To determine whether the performance complies
with the specifications.
If the design or process fails in analysis or
optimization, the synthesis procedure must begin
again.
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Analysis and optimization:
•Process or design is an iterative process , pass
through several steps, evaluate and results, and
then return to an earlier phase of the procedure
repeatedly.
•Synthesize several components of a system,

analyze and optimize them, and return to synthesis
to see that what effect this has on the remaining
parts of the system, which will admit some form of
mathematical analysis.
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Evaluation:
•Evaluation is the final proof of a successful design
or process and usually involves the testing of a
prototype in the laboratory.
•Design or process is checked to know that the

design really satisfies the needs. Is it reliable?
•Will it compete successfully with other existing

products? Is it economical to manufacture and to
use? Is it easily maintained? Is it profitable for sale?
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Presentation/Communication:
Presentation is a way to communicate the design to

others. It is a selling job.
There are three methods of communication:

written, oral and graphic forms.
These methods are used by an engineer to explain

the design or process to the designated persons.
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Product Concept
•Production concept is a description of
methodology to make a product and its working
principle.
•This is a phase that realizes the needs after

identification and analysis of customer needs.
•How the identified need of customer can be

satisfied is to be answered.
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Product Concept
•Product concept consists of sketch or drawing of
product with technical description.
•In the process of concept generation, a complex

problem is broken into smaller/simpler problems
and solutions for these smaller problems are
searched internally and externally.
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Product Concept
Understanding of problem:
•A concept generation team should have a better
understanding of the problem.
•The problem is broken into smaller sub-problems.
•After breaking of the problem, critical sub-

problems are found and focused first.
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Product Concept
External search:
•The existing solutions for the problem and sub-
problems are found from external sources with the
help of experts, patents, literature and bench-
marking.
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Product Concept
Internal search:
•The knowledge of individual team members is
used to solve the problem and sub-problems.
Systematic exploration:
• All the information gathered from external or
internal sources is explored systematically.
•The fragments of solutions or information that
must be organized and analysed in a systematic
way. K Vivek Chawla
Concept Selection
Concept selection is a process of short-listing the
concept by comparing the many concepts on
the basis of the customer’s need, relative strength
and weakness.
Two phases of concept selection:

• Screening of concepts.
• Scoring or rating of concepts
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Product Life Cycle
•A new product passes through a sequence of
phases from introduction to growth, maturity and
decline.
•This sequence is known as the product life cycle

and is associated with changes in the market
situation, thus affecting the marketing strategy
and the marketing mix.
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Product Life Cycle
•The product sales and time can be plotted as a
function of the life-cycle phase as shown in Figure.
•The product life cycle depicts sales across time and

contains the familiar introductory, growth, maturity
and decline stages
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Product Life Cycle
Product life cycle
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Introduction Phase
The firm seeks to build product awareness and
develop a market for the product. The impact on
the marketing mix is as follows:
1. Product branding and quality level are
established and intellectual property protection
such as patents and trademarks is obtained.
2. Pricing may be low penetration pricing to build

market share rapidly, or high skim pricing to recover
development costs.
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Introduction Phase
3. Distribution is selective until consumers show
acceptance of the product.
4. Promotion is aimed at innovators and early

adopters.
Marketing communications seeks to build product
awareness and to educate potential consumers
about the product.
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Growth Phase
The firm seeks to build brand preference and
increase market share.
1. Product quality is maintained and additional
features and support services may be added.
2. Pricing is maintained as the firm enjoys

increasing demand with little competition.
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Maturity Phase
At maturity, the strong growth in sales diminishes.
The competition may appear with similar products.
The primary objective at this point is to defend
market share while maximizing profit.
1. Product features may be enhanced to
differentiate the product from that of
competitors.
2. Pricing may be lower because of the new

competition. K Vivek Chawla
Maturity Phase
3. The distribution becomes more intensive and

incentives may be offered to encourage preference
over competing products.
4. Promotion emphasizes product differentiation.
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Decline Phase
Firm having several options:
1. Maintain the product, possibly rejuvenating it by
adding new features and finding new uses.
2. Harvest the product—reduce costs and continue

to offer it, possibly to a loyal niche segment.
3. Discontinue the product, liquidating remaining

inventory or selling it to another firm that is willing
to continue the product. K Vivek Chawla
Morphology of
design
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Morphology of design is the study of a product
throughout its entire life cycle.
Need analysis:
Feasibility: four types of feasibility checks: social,
economic, market and environment.
Preliminary design:
Detailed design:
Planning for production:
Distribution: The product is distributed to the
distributors and retailers in this phase.
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Morphology of design
Planning for production:
Distribution: The product is distributed to the

distributors and retailers in this phase.
Consumption: Real testing of design is done by the

feedback from the customers.
Retirement/Recycling: At the end of the life of the
product, it is retired and disassembled for recycling
if it is possible K Vivek Chawla
•Standardization is the process of establishing a
technical standard, which could be a standard
specification, standard test method, standard
definition, standard procedure, etc.
•Simplification is the process of reducing variety of

a product by limiting product range, design and/or
type of material. Simplification offers boost to
standardization.
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Differentiation
Differentiation is the process of distinguishing a
product from other manufacturers already
existing in the market. The aim of differentiation is
to make it more appealing to the target market.
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Diversification
•Product diversification is the modification of a

product or service to reach a more expansive target
market.
•Unlike product differentiation, this is not about

highlighting anything, rather it is about finding a
new section of the market to attract.
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Interchangeability
•Interchangeability is the ability of an item to be

used in place of another without any alteration or
changes.
•Interchangeable items are so similar in function and

physical characteristics that they are considered
equivalent in performance and durability.
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Functions of production planning and control
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Three phases of production planning and control
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Preplanning, planning and control phases
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Objectives of Production Planning and
Control (PPC)
1. To utilize the resources effectively.
2. To ensure the steady flow of production.
3. To estimate the resources.
4. To ensure optimum inventory.
5. To coordinate activities of the departments.
6. To minimize wastage of raw materials.
7. To improve the labour productivity.
8. To help capture the market.
9. To provide a better work environment.
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Production Planning
•The production planning and control is subdivided
into preplanning, planning and control phases.
•Activities in preplanning, planning and control take

places in a time sequence.
•The preplanning is completed before production.
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Preplanning
It is the procedure followed in developing and
designing a work or production of a developing
and installing a proper layout or tools.
•Forecasting: It may be sales forecasting, technology

forecasting or demand forecasting. It sets a target
before starting the production activities.
•Order writing: It is a process to authorize one or
more persons to take charge of a particular job
or task.
K Vivek Chawla
Preplanning
It is the procedure followed in developing and
designing a work or production of a developing
and installing a proper layout or tools.
•Forecasting: It may be sales forecasting, technology

forecasting or demand forecasting. It sets a target
before starting the production activities.
•Order writing: It is a process to authorize one or
more persons to take charge of a particular job
or task.
K Vivek Chawla
Preplanning
•Product design: Standardization, reliability,
maintainability, servicing, reproducibility,
sustainability, product simplification, quality
commensuration with cost, product value, consumer
quality and needs and tastes of consumers.
•Volume decision: Volume decision is based on

forecasting.
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Preplanning
Make or buy decision: Before actual development of
a product, it is to be decided that what are to be
made inside the plant and what are to be purchased
from vendor, i.e. make or buy decision.
•Make or buy decision is based on the availability of

resources and facility inside the plant.
•If resources are available in sufficient amount, then

product to be manufactured in the plant.
K Vivek Chawla
Preplanning
Make or buy decision:
•If resources are not available inside the plant, then
vendors availability and capability is to be checked
for the production of entire product or its
components or subassembly and to be bought from
the vendor.
K Vivek Chawla
Preplanning
Factors influencing the make decision:
1. The lower cost of the components because the
firm does not have to pay for vendor’s overhead or
profit.
2. Improved availability because the firm does not
have to depend on vendors.
3. Better quality control of the components.
4. Availability of manufacturing resources to produce
the components.
5. Maintaining the design secrecy or trade secrecy.
K Vivek Chawla
Preplanning: Factors influencing the buy decision:
1. The provision of lower cost, higher quality with
faster delivery by the vendor.
2. Requirement of special machine to produce that
item.
3. Purchasing cost is lower than the manufacturing
cost.
4. Holding the patent of manufacturing of that item
by the vendor.
5. Ability of the vendor to meet the buyer’s need
regarding quality, quantity, price and delivery period.
K Vivek Chawla
Planning
•This stage decides where and when the product

shall be made.
•It includes the sequencing of operations, routing
and the time schedule for manufacturing.
•It also states procedures for material planning and
supplies, machine loading and deliveries.
K Vivek Chawla
Planning Routing:
•The path and sequence of operations are
established.
•To perform these operations, the proper class of
machines and personnel required are identified.
•Main aim of routing is to determine the best and
cheapest sequence of operations and to minimize
the idle time on the machines.
K Vivek Chawla
Scheduling:
•Scheduling provides the information that when an
activity will start and when the same will be finished.
•Working out of time that should be required to

perform each operation and also the time necessary
to perform the entire series of sequences as routed.
K Vivek Chawla
Scheduling:
Time element and priorities of a job is identified.
Not an independent decision and depends on
following factors.
1. Physical plant facilities of the type required to
process the material being scheduled.
2. Personnel who possesses the desired skills and
experience to operate the equipment and perform
the type of work involved.
3. Necessary materials and purchased parts.
K Vivek Chawla
Scheduling:
Gantt load chart
K Vivek Chawla
Scheduling:
Gantt scheduling chart
K Vivek Chawla
Forward and backward scheduling:
•Forward scheduling starts with the known
reqirements and produces a feasible schedule,
though it may not meet the due dates.
•Results in excessive work-in-process inventory.
K Vivek Chawla
Forward and backward scheduling:
•Backward scheduling begins from the due date and
schedules the final operation first.
•It is produced by working backward through the

processes.
•Resources may not be available to accomplish the

schedule.
K Vivek Chawla
Master schedule:
•Scheduling starts with preparation of master
schedule.
•Weekly or Monthly breakdown of the production

requirement for each product for a definite time
period, by having this as a running record of total
production requirements.
K Vivek Chawla
Master schedule:
•Fixes the total time required to do a piece of work

with a given machine or shows the time required to
do each detailed operation of a given job with a
given machine or process.
K Vivek Chawla
Production Control
•Production control determines whether resources
to execute the plan have been provided and if not,
takes action to correct the deficiency.
•Control initiates the plan at the right time.
•Control makes appropriate adjustments through

progressing to take care of any unforeseen
circumstances that might arise.
K Vivek Chawla
Production Control
•Measurement of actual results,
•Comparison of the same with the planned action.
•Feeding back information the planning stage to

make any adjustments required.
K Vivek Chawla
Dispatching:
•It is the execution of the planned functions.
•This authorizes to start a work, planned under the

planning functions that are mainly routing and
scheduling.
•Releasing of orders and instructions for the starting

of production in accordance with the route sheets
and schedule charts.
K Vivek Chawla
Expediting/Follow-up/Progressing:
Expediting ensures that the work is carried out as
per the plan and delivery schedules are met.
•Status reporting,
•Attending to bottlenecks,
•Controlling variations or deviations from planned

performance levels,
K Vivek Chawla
Expediting/Follow-up/Progressing:
•Following up and monitoring progress of work
through all stages of production,
•Coordinating with purchase, stores, tool room and

maintenance departments and
•Modifying the production plans and re-plan if

necessary.
K Vivek Chawla
Inspection and re-planning:
•Inspection is the process of examining an object for
identification or checking it for verification of quality
and quantity in any of its characteristics.
•Important tool for ascertaining and controlling the

quality of a product.
•An appraisal activity that compares goods or

services to a standard.
K Vivek Chawla
Supply Chain Management and Logistics
•Supply chain management (SCM) is a management
technique to coordinate all the activities, processes
and parties to ful-fil the demand of the target
customer.
•Management technique to coordinate all the

activities involved in product design and
development to ful-fil the demand of the customer,
i.e., from the supplier end to consumer end.
K Vivek Chawla
Supply Chain Management and Logistics
•Entities in a supply chain are :
Supplier,
Assembler or Manufacturer,
Distributor,
Warehousing,
Retailer,
Customer, etc.
K Vivek Chawla
•All the entities of a supply chain are interlinked with
a third party logistics service provider (3PL) and/or a
coordinator of all the activities in a supply chain, i.e.,
fourth party (4PL) service provider. Generally, 3PL is
considered as a part of 4PL.
K Vivek Chawla
•Supply chain management is a set of approaches
utilized to efficiently integrate suppliers,
manufacturers, warehouses, and stores, so that
product is produced and distributed at the right
quantities, to the right locations, and at the right
time, economically with completing all service level
requirements.
K Vivek Chawla
•Internal supply chain or supply chain at the micro
level, the main activities are to buy the raw materials
or sub components, make and assemble them, store
the finished products, distribute and sell them.
K Vivek Chawla
•Four fundamentals of supply chain (4Fs of SCM)
•First fundamental (Objective): The first fundamental
of the SCM is to achieve high levels of customer
service in target markets/segments and to optimize
total supply chain investment and cost.
•This service/cost based approach is considered as

central or the main objective of a SCM.
K Vivek Chawla
•Second fundamental (Philosophy): To create and
manage the strong link of the supply chain to
supply the right product of the right quality to the
right customer at the right time.
•Every product or service is delivered to the final

consumer through a series of (often) complex
movements between companies which comprise the
complete chain.
K Vivek Chawla
Third fundamental (Manage the Flows): For a supply
chain to achieve its maximum level of effectiveness
and efficiency, material flows, money flows and
information flow throughout, the chain must be
managed in an integrated and holistic manner,
driven by the overall service and cost objectives.
K Vivek Chawla
•Four fundamentals of supply chain (4Fs of SCM)
•Fourth fundamental (Relationships): SCM needs to
be a ‘win-win’ game based on partnership
approaches.
•This point is relevant to the interactions between

the key ‘internal’ supply chain functions of buy,
make, store, move and sell, as well as to
relationships between an organization and its
external customers and suppliers (strategic
relationship).
K Vivek Chawla
•Drivers of Supply Chain Performance
The performance of supply chain depends on a
number of factors.
These drivers are facilities, transportation, inventory,
information, sourcing and pricing.
K Vivek Chawla
•Drivers of Supply Chain Performance
•Facilities: There are a number of facilities that are
to be located as per requirement of the markets.
Mainly, two facilities, manufacturing and storage,
are very important.
•Objective of facility location-> to minimize the

transportation cost, inventory-carrying cost, and
manufacturing cost of the product with availability
of suppliers, markets, powers, raw materials, etc.
K Vivek Chawla
Drivers of Supply Chain Performance
Transportation: Transportation covers the entire
logistics services required for a supply chain and it is
an important link of a supply chain to connect the
various entities.
•It includes all modes of transportation, i.e. sea, air,
and land (rail and road) transport.
•In the scenario of global supply chain, all the multi-
national products has to be available in the market
with cost effectiveness.
K Vivek Chawla
Inventory: Inventory of raw materials, work-in-
process, and finished product, improve the
responsiveness and efficiency of a supply chain.
At the same time, inventory increases the cost of

the supply chain.
K Vivek Chawla
•Inventory is required at various points in the supply
chain to meet the uncertainty in demand and supply,
delivery lead time and incentives for larger supplies.
• Various models are available to minimize the

inventory and maximize the flexibility and agility of a
supply chain.
K Vivek Chawla
Vendor-managed inventory (VMI):
•It is an important tool of the manufacturers to
minimize the inventory at the shop floor.
•The inventory is completely managed by the vendor

and supplied to the manufacturer as per
requirement.
•But, in this situation all the vendors must be located

very near to the manufacturing plant. K Vivek Chawla
Supply Chain Information systems
E-business is concerned with the use of the Internet

to link companies with their suppliers, customers
and other supply chain partners.
•Amazon
•FLIP-CART
•ALI-BABA
K Vivek Chawla
IT plays a crucial role in SCM as a key enabler of
supply chain integration (SCI). The main role of IT in
supply chain is given below:
• To collect information on each product from
production to delivery and provide complete
visibility for all parties.
• To access any data in the system from a single-
point-of-contact,
• To analyse, plan activities, and make trade-offs
based on information from the entire supply chain.
K Vivek Chawla
Advantages are:
•Streamlining the procurement process,
•Connecting buyers and sellers,
•Coordinating SCM,
• Better post-sales-service,
•Better sales and marketing efficiencies,
•and improved inter-organizational efficiencies in
the selling company.
K Vivek Chawla
IT Based Tools for SCM
Electronic data interchange (EDI):
•EDI is the inter-organizational exchange of business
documentation/information in a structured
machine-processable form.
•It consists of standardized electronic message

formats for common business documents such as a
request for quotations, purchase orders, invoices
and other standard business correspondence
documents.
K Vivek Chawla
Electronic data interchange (EDI):
• These electronic transaction sets enable the
computer in one company to communicate with the
computer in another organization without actually
producing paper documents.
K Vivek Chawla
Enterprise resource planning (ERP):
•ERP is a system that connects different functions
within an organization, as well as an organization’s
supply chain partners (i.e. suppliers, distributors,
third party logistics providers), enabling the various
business partners and organizational entities to
share information, such as order status, product
schedules, sales records, as well as to plan
production, logistics and marketing promotions.
K Vivek Chawla
Enterprise resource planning (ERP):
•ERP is a comprehensive planning and control
framework that has evolved over a long horizon of
time.
•It finds its applications in materials requirement
planning (MRP), manufacturing requirement
planning (MRP II), relational database management
systems (RDBMS) and 4th generation computer
languages (4GL).
K Vivek Chawla
Electronic/Internet commerce:
•Internet is transforming the entire nature of supply
chains by eliminating middlemen, making commerce
more democratic and creating a frictionless
economy.
•Internet commerce is changing the manner in

which the entire supply chain is managed today.
K Vivek Chawla
Electronic/Internet commerce:
•It is reducing entry barriers for the new entrants

and the costs of operations for the existing ones at
the same time and also offering the customers a
wider choice for selection.
K Vivek Chawla
•Internet also helps in e-tendering.
• E-tendering is the process of sending RFx to

suppliers and receiving responses electronically.
•The three types of RFx commonly used for sourcing

are: RFI (request for information), RFP (request for
proposal), and RFQ (request for quotation).
K Vivek Chawla
•RFIs typically involve a potential buyer asking a

seller to provide additional information on a product
or process.
K Vivek Chawla
ERP benefits and supply chain competencies

K Vivek Chawla
Bar coding:
A bar code is a group of parallel bars (usually blocks)
of varying widths separated by light spaces (usually
white) of varying width.
A scanner is used to read the bars and spaces and

it uses software to interpret their meaning.
In the supply chain, the accurate, rapid identification

of products and use of this information in controlling
the entire process have been key factors.
K Vivek Chawla
Bar coding: A bar code is a group of parallel bars
(usually blocks) of varying widths separated. The
following are the benefits of bar code technology in
the supply chain:
(a) Rapid data entry,
(b) Enhanced data accuracy,
(c) Reduced the materials handling activities,
(d) Easy verification of orders at receiving and
shipping, and
(e) Improved customer service.
K Vivek Chawla
Information and communication technology (ICT):
•ICT also significantly enhances the supply chain
performance through faster and widespread
communication.
•Applications of radio frequency identification,

satellite communications and image processing
technologies have over-come the problems caused
by product movement and geographic
decentralization.
K Vivek Chawla
Information and communication technology (ICT):
•Improved customer service is provided in the form
of the more timely definition of tasks, quicker
transport tracing, and faster transfer of sales and
inventory information.
• The availability of shared information has led to

increase efficiency and effectiveness across the
supply chain.
K Vivek Chawla
Radio frequency identification (RFID):
The unique number, called EPC (electronic product
code), is encoded in a RFID tag. There are three
types of RFID tags; these are:
Passive tags –
Simply store data and draw power from a reader
whose electromagnetic wave induces a current
in the tag’s antenna for short-range communication
(up to 10 m).
K Vivek Chawla
Semi-Passive tags –
Use an integral battery to run the chip’s circuitry,
but draw power from the reader to communicate;
and
Active tags –
Capable of communicating over greater distances

(up to 100 m) but are currently far more expensive.
K Vivek Chawla
Active tags – are capable of communicating over
greater distances (up to 100 m) but are currently
far more expensive.
RFID tags enable us with an increased visibility and

accuracy of the asset pool.
This visibility and accuracy impacts the operating

costs, lead times, inventory visibility and accuracy,
and customer service. K Vivek Chawla
Sourcing:
•One of the main drivers of supply chain is sourcing.
The main aims of the sourcing are cost saving,
increased capacity and ability to take advantage of
offshore advantage.
•The most difficult phase of outsourcing is transition

of business processes from the company to its
suppliers to increase the innovations in technology
of the supplier and to increase the production
capacity at low cost.
K Vivek Chawla
Pricing:
•Pricing fixes the prices of goods and services in the
supply chain, It affects the behavior of consumers.
•The behavior of consumer or satisfaction level of

the consumer affects the supply chain performance.
•Pricing of a product depends on the market

structure, demand and supply, competitor’s strategy
etc.
K Vivek Chawla

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Operations Management

3-Lecture per week

•Method Study- Introduction, Objectives Steps, Micro-

•Process and Product Life Cycle,

•Production Planning and Control, Supply chain and

•Production Cost Concepts – Introduction, Cost of

•Inventory Management - Introduction, Reasons for

•Selective Control of Inventory ABC analysis, VED

•Types of Maintenance-Preventive, Breakdown and

•Maintenance Performance, Replacement policies of

•Work study consists of two broad studies, i.e.

2. To determine the standard time for doing a task,

5. To eliminate the unnecessary human motions in

6. To utilize the facilities such as man, machine and

•It is related to the study of methods for performing

•To achieve process improvements, improved

•Work measurement (WM) is mostly concerned

To know the effectiveness of a method, one of the

Record: All the relevant facts/information about

Examine: All the data collected in second step are

Evaluate or Measure: Results of different

Define: New method among the alternative is

Maintain: Control procedure is established and

•The film becomes a permanent record of both the

•Very useful in analysing operations such as the

1. To study the nature and path of movements for

2. To find the most efficient way of accomplishing

4. To keep a permanent record of the most efficient

5. To collect motion time data (MTD) for calculating

•The path of movement is photographed by

•In this method, a bulb is also attached to the

•The path of the bulb, i.e. the path of movement

•If the movement is fast, the dots are spaced far

• If the speed is slow, dots are closer.

•Photograph is taken of the moving part of the

the movie camera is kept considerably lower.

•In memo-motion study, the photograph is taken by

1. Single operator repetition work

•‘SIMO’ stands for ‘Simultaneous Motion Cycle

•One of the recording techniques of micro-motion

• Different therbligs performed by different parts of

5. Total time for which two or more parts of the

•Work Measurement (WM) is a technique of

•Since it is concerned with measurement of time,

•It is the means of measuring the time taken in the

operations in such a way that the ineffective time is

•Select: Select the job for study

•Divide: Divide the operation into smaller

•Measure and Record: Measure and record the

•Rate the performance: K Vivek Chawla

Rate the operator’s performance; determine the

1. To analyse the activities for doing the job with a

2. To compare the time of performance by

3. To standardize the efficient method of

4. To standardize the conditions for efficient

5. To determine the optimum number of men and

6. To determine man and the machines ratio for

7. To provide information and basis for production,