INDUSTRIAL MANAGEMENT

MODULE 2
 Definition of quality and it dimensions.
 Quality planning- three prong approach.

 Quality management system- ISO9000

 Quality audit

 Total quality management(TQM)

QUALITY
 Quality is a relative term.
 Used with reference to the end use of
product.
 Quality is a customers determination, not
a producers or suppliers determination.
 Quality depends on the perception of a
person in a given situation.
DEFINITIONS…..
 Conformance to requirement.- by Philip
B Crosby.
 William Edwards Deming defined quality
as continous improvement.
 Fitness for use- by Joseph Moses Juran
 Most economical most useful and always
satisfactory to the customer- by Kaoru
Ishikawa.
THE WORD QUALITY HAS VARIETY OF
MEANINGS….
Fitnessfor purpose.
Conformance to requirements.
Grade
Degree of preference
Degree of excellence
Measure of fulfillment of promises.
QUALITY CHARACTERISTICS
 Apperance
 Performance

 Life

 Reliability

 Taste

 Odour

 Maintainability
FOUNTAIN PEN
 It should hold sufficient quantity of ink.
 It should regulate the flow of ink into the rib

 It should mark the characters on the paper

 It should not tear the paper

 It should be of convenient size.

 Good appearance

 It should prevent ink from drying when not in use.

 It should not be slippery.

 It shall hold securely to the pocket.

 Should not be too expensive.

 Have a reasonable life

 Should sustain reasonable shock.

DIMENSIONS OF QUALITY.
 Suitability- for specific application
 Reliability-it should give efficient and consistent
performance.
 Durability- it should have desired life.

 serviceability

 Affordability- it should be economical.

 Aesthetic look- it should look attractive.

 Perceived quality

 Conformance to standards.
 .
QUALITY OF DESIGN.
 Type of customers in the market- conduct market survey.
1) Consuming habits of people
2) The prices thet are willing to pay.
3) The choice of design of the peroduct which neets the
needs of the customer.
 Profit consideration
 Environmental conditions

 Special requirements of the product.

 Higher quaaslity of design means higher product.

QUALITY OF CONFORMANCE
QUALITY PLANNING.
The process of establishing quality objectives and
developing the plans for meeting those objectives.
1) Determine who are the customers.
2) Determine the needs of the customer
3) Develop product features according to
customers needs.
4) Develop process.
5) Transfer the resulting plans to the
operating forces.
OBJECTIVES OF QUALITY PLANNING.
 To produce quality products and services which
meet customers needs.
 To define quality standards and to prepare product
specifications.
 To prepare guidelines on various elements
effecting quality.
 To establish quality objectives and developing
plans for achieving these objectives.
 To review and evaluate product designs with a
view to improve quality.
 To develop quality control techniques and
methods.
THREE PRONG APPROACH TO QUALITY
PLANNING

Product planning
Managerial and operational
planning.
Documentation
MANAGERIAL AND OPERATIONAL
PLANNING
 Preparing organisational structure
 Preparing organisational procedure

 Preparing process.

 Preparing of resources needed to implement quality

management.
DOCUMENTATION
 Drawing
 Specifications

 Blue prints

 Inspection instructions

 Test procedures

 Work instructions

 Quality manual
QUALITY MANAGEMENT SYSTEM.
 MANAGEMENT SYSTEM: a system to
establish policy and objectives and to
achieve those objectives.
 Quality management system
 Financial management system
 Environmental management system.
System must clarify to the organization
What to do ?
Who will do it ?
How the work will be done?
When to do it??

etc……
TO ASSURE THE QUALITY ONE
HAS TO ENSURE THE
QUALITY….
QUALITY THUS BEGINS
WITH STANDARDS….
NEED FOR STANDARDIZATION
Standardization is temporary
crystallization of the best acceptable
solution to a recurring problem,
formulated in a scientific and
systematic fashion by pooling the
knowledge of all those who are
concerned with the problem, and is
subjected to review and revision by
common consent.
LEVELS OF
STANDARDIZATION….
Company/inplant standards
National standards like BIS
Regional standards like euro-
norms and
International standards like ISO
standardization
 Company standardization is now an
important effective management tool for
improving quality and productivity.
 Quality and standardiation are the to
essential pre-requistes for a company to
market its products and services in the
competitive business environment.
 Quality thus begins with standards.
QUALITY MANAGEMENT SYSTEM
 A management system to direct and control an
organization with regard to quality.
 A system to establish quality policy and quality
objectives and to achieve those objectives.
 QMS can assist organizations in enhancing
customer satisfaction.
 The ISO 9000 family defines standards on
quality management systems which can assist
organizations in achieving this objective
S
QMS approach encourages
organizations to analyse customer
requirements, define the process that
contribute to the achievement of a
product which is acceptable to the
customer, and to keep these
processes under control.
CONCEPT AND ROLE OF ISO 9000

BS 5750 standard- known as

management standard because it
did not specify what to
manufacture, but how to manage
the manufacturing process.
In 1987, the British government
persuaded the international
standards organization to adopt
BS 5750 as an international
standard.
BS 5750 became ISO 9000
INTERNATIONAL STANDARDS
ORGANIZATION -ISO
 ISO is the international organization for
standardisation, is founded in 1946, with the
objective of promotion and development of
international standards and related activities,
including conformity assessments such as
testing, inspection, laboratory accrediation,
certification, and quality assessments for
facilitating international exchange of goods and
services.
ISO 9000
 ISO 9000 is a family of standards for
quality management systems,
 ISO 9000 is maintained by ISO.
 Head quarter in Geneva and is
administrated by accreditation and
certification bodies.
 ISO 9000 series standards have been
adopted by some 45 countries.
Itsequivalent standards in the Indian
context is the BUREAU OF INDIAN
STANDARDS (BIS) 14000 SERIES.
 Thefirst series of ISO 9000 standards
were released in 1987.
 There were 5 core standards and various
guidance standards for interpretation of
mandatory requirements for the specific
industries.
 As part of continual improvement, ISO 9000
series of standards are reviewed and revised
once in five years.
 The first such revision took place in 1994.
ISO 9000 SERIES ARE GENERIC IN
NATURE…
 Organization of any size and any sector can apply these
standards.
 Engineering sector( BHEL, Crompton, Greaves, Land T,
etc…)
 Process sectors (Hindalco, SAIL, TISCO, Ranbaxy etc)

 Education sectors( NIIT, Aptech)

 Medical sector(Core’s nursing home)

 Automotive sector( TELCO, Maruti, Eicher)

 Software sectors (ICS, NUT)

 It has been used by companies of small size and by very

large corporations.
WHOM DOES ISO-9000 HELP
 organizations, whom want to promote their
products in international markets.
 Organizations in creating confidence to the
customers regarding the product quality, which
improves profits.
 Organizations, in withstanding the competitions
from other producers of product in the global
market.
 Customers, in getting good quality products.

 Organizations, in expanding their business

throughout the world wide.
 ISO 9000 is a series, or family, of quality management
standards, while ISO 9001 is a standard within the
family. The ISO 9000 family of standards also contains
an individual standard named ISO 9000. This standard
lays out the fundamentals and vocabulary for quality
managemSO 9000 was first published in 1987 by the 
International Organization for Standardization (ISO), a
specialized international agency for standardization
composed of the national standards bodies of more than
160 countries. The standards underwent major revisions
in 2000 and 2008. The most recent versions of the
standard, ISO 9000:2015 and ISO 9001:2015, were
published in September 2015.ent systems (QMS).
 The popularity of the ISO 9000 series paved the way for
other management system standards, including: 
 ISO 14000: Environmental management systems

 ISO 26000: Guidance on social responsibility

 ISO 31000: Risk Management Principles and Guidelines

ELEMENTS OF ISO 9000
 Management responsibility
 Quality system

 contract review

 Design control

 Document control

 Purchasing

 Purchaser-supplied product

 Product identification and traceability

 Process control

 Inspection and testing

 Control Inspection, measuring and test equipment

 Inspection and test status
 Control of non-conformity product.

 Corrective action

 Handling, storage, packing and delivery

 Quality records

 Internal quality audits.

 Training

 Servicing

 Statistical techniques.
 The following criteria must be fulfilled: 
 The company has a brief but comprehensive Quality
Policy. 
 This Quality Policy should be included in the Quality
Manual as well as being on public display. 
 Quality Objectives have been established by
management and there is a statement outlining the intent
to deliver against these objectives. 
 The Quality Policy is communicated throughout the
organization.
 All employees, at all levels, receive the same message
from management. All statements relating to quality that
are in documents, training manuals, advertising
literature, etc. must be consistent with the Quality
Statement. 
 Any changes must be issued in a controlled manner and
must be properly communicated to all employees. 
 Trained personnel are available to operate the necessary
procedures. 
 No unregistered or overdue equipment is used. 

 Evidence is provided which confirms that procedures are

effective. 
 All weighing machines are calibrated. 

 Procedures allow for the use of personal equipment or

equipment on loan or trial. 
 Equipment which does not need to be calibrated is
identified. 
THIS CLAUSE DEALS WITH INSPECTION AND TEST
STATUS. THERE NEEDS TO BE AN INDICATOR THAT
STATES WHAT TESTS A PRODUCT HAS BEEN
THROUGH AND WHETHER IT PASSED OR FAILED. 
In order to satisfy this part of the requirement, the
company must: 
 Have a system or method for identifying the inspection
and test status of the product at all relevant stages in the
process. 
 Ensure that the system used is defined as part of the
process specification or is written documented work
instructions. 
 Ensure that the personnel who operate processes related
to this segregation system are trained in the discipline
required to maintain it. 
 Ensure that only products that have passed the required
inspection and tests are shipped, put into use, or
installed. 
ISO 9000 SERIES
 There are 5 standards in ISO 9000 series, ISO 9000
TO ISO 9004
1. ISO 9000-(IS 14000)
QUALITY MANAGEMENT AND QUALITY
ASSURANCE STANDARD.
2. ISO 9001:1987 (IS 14001:1988)
MODEL FOR QUALITY ASSURANCE IN
DESIGN/DEVELOPMENT, PRODUCTION,
INSTALLATION AND SERVICING.
Ex: heat exchangers, coolers,, filters, …. For process
industries…
3. ISO 9002:1987 (IS: 14002:1988)
MODEL FOR QUALITY ASSURANCE IN PRODUCTION
AND INSTALLATION.
EX: civil structures, construction of bridges.
4. ISO 9003:1987 (1S:14003:1988)
MODEL FOR QUALITY ASSURANCE IN FINAL
INSPECTION AND TEST.
Ex: domestic appliances, petroleum products, components of
automobiles.
5. ISO 9004: 1987 (IS:14004:1991)
QUALITY MANAGEMENT AND QUALITY SYSTEM
ELEMENTS GUIDELINES
STEPS FOR INSTALLATION OF ISO
9000

1. Preparatory step
2. Implementation step
3. Registration and certification
step.
PREPARATORY STEP.
 Quality awareness training is conducted
 Prepare necessary quality documents

 Analyse the existing practices and procedures.

 Design and develop standard procedures of

manufacturing.
 Documentation in a systematic and orderly
manner in the form of written policies and
procedures.
2. IMPLEMENTATION STEP
Implementing the documented quality
system into practice in the
organization.
Internal audit and evaluation
A third or external party audit
Conduct pre- registration.
3. REGISTRATION AND
CERTIFICATION STEP
 Apply for the registration
 Certification body will conduct an
adequacy audit and compliance audit.
 The certification body will issue a
certificate, attached to which is a
definition of the scope of activities which
have been assessed.
QUALITY AUDIT
 To study the quality of the existing systems and find out
the non conformity with the quality system.
 To suggest the corrections to be done in different areas
and operations.
 To propose and implement methods as per ISO
standards.
 To evaluate a supplier before entering a contract with
him.
 To suggest best procedures and practices.

 To reduce the loss of money due to duplication of

activities, high repairs, high scraps, and so on.
TYPES OF AUDITS
Adequacy audit
Compliance audit
System audit
Product audit
First party audit
Second party audit
Third party audit.
BENEFITS BY BECOMING ISO:9000
COMPANY
 ISO:9000 series of standards enable to meet the
requirements of an internationally uniform quality
system.
 If indian industry adopts the ISO:9000 standards, it
would enhance foregin exchange.
 It enables the company to build customer confidence.

 It reduces the need for assessment by multiple buyers.

 In our country some concessions for import have been

given as per export and import policy of 1992-1997.
 To adopt ISO:9000 standards it is necessary to establish
and maintain sound quality assurance system. This
results in improvement in efficiency, and reduction in
inspection; scrap and rework.
 Adoption of ISO9000 helps to enhance quality image of
the company.
 Motivates the employees and develops pride in them for
achieving excellence.
 The suppliers not having registered ISO:9000 quality
system may be required to pay higher insurance
premium.
 Enables the company to control of its production quality
and delivery schedules, cut waste and down time, and
boost productivity.
 It enables the company to offer the very best service to
its customers.
 It also gives a measure of product liability proteection.
ISO:9000 HELPS THE COMPANY TO
 Defien clearly
DISADVANTAGES
 The implemetation of ISO:9000 series of standards is
very much demanding on resources.
 The formulating and documenting of the system is time
consuming.
 Assesment and registration are also expensive.
TOTAL QUALITY MANAGEMENT
 TQM means qua.ity in every aspect of company’s
operation.
 What Is Total Quality Management (TQM)?
 Total quality management (TQM) is the continual process of
detecting and reducing or eliminating errors in manufacturing,
streamlining supply chain management, improving the customer
experience, and ensuring that employees are up to speed with
training. Total quality management aims to hold all parties
involved in the production process accountable for the overall
quality of the final product or service.
 TQM was developed by William Deming, a management
consultant whose work had a great impact on Japanese
manufacturing. While TQM shares much in common with the
Six Sigma improvement process, it is not the same as Six Sigma.
TQM focuses on ensuring that internal guidelines and process
standards reduce errors, while Six Sigma looks to reduce defects.
 otal quality management (TQM) is the continual process of
detecting and reducing or eliminating errors in
manufacturing, streamlining supply chain management,
improving the customer experience, and ensuring that
employees are up to speed with training. 
 The focus of the process is to improve the quality of an
organization's outputs, including goods and services, through
continual improvement of internal practices. 
 Total quality management aims to hold all parties involved in
the production process accountable for the overall quality of
the final product or service.
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 While TQM originated in the manufacturing sector, its
principles can be applied to a variety of industries. With a
focus on long-term change over short-term goals, it is
designed to provide a cohesive vision for systemic
change. With this in mind, TQM is used in many
industries, including, but not limited to, manufacturing,
banking and finance, and medicine.
 These techniques can be applied to all departments within
an individual organization as well. This helps ensure all
employees are working toward the goals set forth for the
company, improving function in each area. Involved
departments can include administration, marketing,
production, and employee training.
MODULE 3
NETWORK ANALYSIS

Network is a combination of activities

and events of a project.
OBJECTIVES OF NETWORK ANALYSIS
 Minimisation of total cost of a project
 Minimiation of total time of a project

 Minimiation of cost of a project for a given total time

 Minimiation of time of a project for given cost

 Minimization of idle resources.

 Minimization of production delays, interuptions and

conflicts
 Planning, scheduling, and controlling projects.
A project is a collection of well
defined tasks called activities and
when all these activities are
carried out, the project is said to
be completed.
 For completing a foundation
 1) layout(digging)

 2)placing side boards.

 3)concreting
PERT
CPM
 UNETICS

 LESS

 TOPS

 SCANS

THESE TWO NETWORK TECHNIOQUES

HELP MANAGERS TO PLAN,SCHEDULE,
MONITOR, AND CONTROL LARGE AND
COMPLEX PROJECTS.
USES OF NETWORK TECHNIQUES FOR
MANAGEMENT
 NT help the management in planning the complicated
projects, controlling working plan and also keeping the
plan up to date.
 Help to reaching the goal with minimum time and least
cost
 Help in forecasting probable project duration and the
associated cost.
 Have resulted in better managerial control, better
utilization of resources, and better decision making.
 NT have resulted in saving of time or early completion
of the project which in turn results in earlier return of
revenue and increase in profit.
APPLICATIONS OF NETWORK
TEHNIQUES
 Construction of bulidings, bridges, factories, and
irrigation projects.
 Administration

 Manufacturing

 Maintenance planning

 Research and development

 Inventory planning

 marketing
DIFFERENT PHASES IN THE APPLICATION OF
NETWORK TECHNIQUE
 PLANNING
 SCHEDULING

 CONTROLLING
RESOURCE ALLOCATION AND
UPDATING IN A NETWORK TECHNIQUE.
 Labour
 Finance

 Equipment

 space
ACTIVITY
 An activity is a task associated with a project.
 It is a physically identifiable part of a project
which consumes time and resources.
 Activity is the work to be undertaken to
materialise a specific event.
 Therefore an activity is the actual performance
of a task.
 Ex: lay pipe line is an activity.

 An activity is denoted by a capital letter or by 2

numbers.
START AND TERMINAL
ACTIVITIES
Activities which have no
predecessors are called start activities.
Activities which have no successors
are called terminal activities
DUMMY ACTIVITY
EVENT
 Events represent instants in time when certain
activities have been started or completed.
 In other words an event describes start or
completion of a task.
 An event or node in a network diagram is a
junction of two or more arrows representing
activities.
 Event is a point in time and does not consume
any resources.
Ex: pipe line laid is an event.
 Events are represented by circles.
TAIL EVENT
 A tailevent is the one which marks the
beginning of an activity.
HEAD EVENT
 All the activities have an ending marked
by an event. Such an event is known as
head event.
 SUCCESSOR EVENTS
 PREDECESSOR EVENTS.
REPRESENTATION OF
ACTIVITIES AND EVENTS.
 Activitiesare represented by simple
arrows in a network diagram.
 Length of arrow does not represent either
the magnitude of work or the time
required for its completion.
 The length of the arrows is chosen to suit
the convinience.
 Events are represented by circles.
 The numbers assigned to the events are
marked within the circles.
 Thus an activity can be denoted by a
capital letter or by two numbers. Activity
is represented by arrow. That arrow starts
from a circle and ends in a circle. The two
circles are respectively tail and head
events.
EXAMPLES FOR ACTIVITY
 Prepare budget
 Lay railway track

 Mix concrete

 Assemble parts

 Test pipe line

 Prepare estimate

 Survey the site

 Collect data and prepare check list

 Install pump
EXAMPLES FOR EVENTS
 Design completed
 Material received at site

 Lathe installed

 Payment made

 Show room inaugurated

 Specifications prepared.
SYMBOLS USED IN PERT AND CPM
NETWORK RULES
 Between 2 events one and only one activity can be
shown.
 Starting event is called tail event.

 Ending event is called head event.

 Length of an activity or angle of the activity do not have

any significance.
 If more than one activity is to be shown between same 2
event, then dummies are used.
 2 diff. Activity cannot have the same starting and ending
event. If the starting event is same ending evengt should
differ and vice-versa
 If n activities have to be shown between 2 event,, then
(n-1) dummies are used.
 Error of cycling should be avoided in networks.

 If several activities converge in an event it is called a

merge event.
 Several activities diverge from an event is called burst
event.
 Error of redundacy or unnecessary representation should
be avoided in networks.
 Dangling activity or free or unconnected activity

 Unnecessary use of dummies should be avoided.

PROCEDURE FOR
NUMBERING THE EVENTS
USING FULKERSON’S RULE
 Step 1: Number the start or initial event as 1.
 Step2: From event 1, strike off all outgoing
activities. This would have made one or more
events as initial events. (event which do not have
incoming activities.) number that event as 2.
 Step 3: Repeat step 2 for event 2, event3, and till
the end event. The end event must have the
highest number.
EARLIEST EVENT TIME (TE)
The earliest occurrence time or
earliest event time is the earliest
at which an event can occur.
Earliest occurrence off an event
say 2 is denoted by E2.
LATEST EVENT TIME (TL)
The latest allowable occurrence time or
the latest event time is the latest time
by which an event must occur to keep
the project on schedule.
Latest occurrence of an event say 2 is
denoted by L2.
START AND FINISH TIMES OF AN
ACTIVITY.

EARLIEST START TIME

EARLIEST FINISH TIME
LATEST START TIME
LATEST FINISH TIME
EST
 The EST of an activity is the earliest time
by which it can commence.
 This is naturally equal to the earliest event
time associated with the tail event of the
activity.
 EST=earliest occurrence of the tail event
of the activity.
EFT
 Ifthe activity proceeds at its early time and takes
the estimated duration for completion, then it
will have an early finish.
 Hence EFT for an activity is defined as the
earliest time, by which it can be finished.
 This is equal to the earliest start time plus
estimated duration of the activity.
 EFT=EST + Activity duration
LATEST FINISH TIME (LFT)
 The LFT for an activity is the latest time
by which an activity can be finished
without delaying the completion of the
project.
 LFT= latest expected time of head event
 SO FOR AN ACTIVITY 2-3

LFT=L3
LATEST START TIME (LST)
LST of an activity is the latest time by
which an activity can be started
without delaying the completion of
the project.
LST=LFT-activity duration;
SLACK AND FLOAT
 Slack is the term associated with events.
 It denotes the flexibility range within
which an event can occur.
 ie, slack of an event is the difference
between the earliest event time and latest
event time
 Slack of the event 2 is L2-E2.
The term float is associated with the
activity times.
Float denotes the range within which activity
starts time or finish time may fluctuate without
affecting the completion of the project
1) Total float
2) Free float
3) Independent float
4) Interfering float
TOTAL FLOAT
 Total float is the time spent by which the
starting(or finishing) of an activity can be
delayed without delaying the completion of the
project.
 In certain activities, it will be found that there is
a difference between maximum time available
and the actual time required to perform the
activity. The difference is known ad the total
float.
 Total float of an activity is the excess of the
maximum available time over the activity time.
Thus, total float= LFT-EFT OR LST-EST
FREE FLOAT
Free float is that portion of positive float that can be used
by an activity without delaying any succeeding activity.
The concept of free float is based on the possibility that all
the events occur at their earalist time.( i,e all activity
start as early as possible.)
Free float= EST OF SUCCESSOR- EFT of the present
activity.
Thus it is excess of the available time over the required
time when the activity, as well as its successor activity
start as early as possible.
INDEPENDENT FLOAT
 The independent float is defined as the excess of
minimum available time over the required activity
duration.
 That is independent float is the amount of time an
activity could be delayed if preceding activities finish at
their latest and subsequent activities start at their
earliast.
 Independent float is equal to the free float minus tail
event slack.
 If the tail event slack is zero, free float and independent
float are equal
 Itis to be noted if a negative value of
independent floaat is obtained, then
independent float is taen as zero.
 Independent float=EST for subsequent
activity-LFT for preceding activity-
duration
INTERFERING FLOAT
 Itis just another number given to the head
event slack specially in CPM networks
which are activity oriented.
 Interfering float is equal to the difference
between total float and the freefloat.
CRITICAL PATH
 While analysing a network of activities, it is often
necessary to estimate the total project time.
 The total project time is the maximum of the elapsed
times among all paths originating from the initial event
and terminating event, indicating completion of the
project.
 Therefore critical path is that sequence of activites which
determines the total project time.
 In a project network there may be a number of paths
starting from the intial event and ending in terminal
event.
 these paths connects activity.
Among these paths that which is
longer on the basis of final
duration is called the critical path.
 a critical path is one which
connects activities having zero
float.
CRITICAL ACTIVITY
 An activity whose float is zero is called
critical activity.
 So any delay in the start of critical will
cause a further delay in the completion of
entire project.
 Activities lying on the critical path are
critical activities.
CRITICAL PATH METHOD (CPM)
1)List all the activities and draw a network diagram.
2)Find the earliest event time and latest event time of each
event and show in the network diagram.
3) Calculate earliest start time, earliest finish time, latest
start time, and latest finish time for each activity.
4)Determine the float for each activity.
5) Identify the critical activity.( having zero floats.)
6) Draw double lines in the network diagram passing
through critical activities. The double lines shows the
critical path.
Calculate the total project duration which is the sum of
durations of critical activities.
FORWARD PASS(EARLIEST START TIME
RULE)
 1) EARLIEST OCCURRENCE OF INITIAL EVENT=
0, as there is no predecessor event.
E1=0
2) earliest occurrence of an event when
there is only one immediate predecessor
activity= earliest occurrence of
predecessor event+ duration of the
predecessor activity.
E3= E2+ duration of the activity B
 3) earliest occurrence of an event when there are
many predecessor activities= maximum value
selected from the (earliest occurences of all the
predecessor events+ duration of each of the
corresponding predecessor activity.)
 4) earliest start time of an activity = earliest
occurrence of the tail event.
BACKWARD PASS( LATEST FINISH TIME
RULE)
 Latest occurrence of terminal event= earliest occurrence
of the terminal event, if there is no successor event.
 L10=E10, WWHWNE LAST EVENT IS 10

 Latest occurrence of an event when there is only

immediate sucessor= latest occurrence of the sucessor
event- duration of the sucessor activity.
PROGRAM EVALUATION AND REVIEW
TECHNIQUE.
 It is a project management tool used to schedule,
organize and coordinate tass within a project.
 It is basically a method to analyze the tasks involved in
completing a given project, especially the time needed to
complete each task and to identify the minimum time
neede to complete the total project.
 PERT is based on the assumption that an activity
duration follows a probablity distribution instead of
being a single value.
 three time estimates are required to compute the
parmeters of an activity duration.
 1) pessimistic time, tp

 2)most likey time, tm

 3)optimistic time, to
QUANTITATIVE
TECHNIQUES
IN
MANAGEMENT
LINEAR PROGRAMMING
PROBLEM
MATHEMATICAL
FORMULATION AND
SOLUTION BY GRAPHIC
METHOD.
 programming problem in general deals with
determining optimal allocation of limited
resources to meet given objectives.
 A LLP includes a set of simultaneous linear
equations or inequalities which represent the
restrictions related to the limited resources and
a linear function which expresses the objective
function representing the total profit or cost.
 The term linear means that all the relations in
the problem are linear and the term
programming refers to the process of
determining a particular programme or plan of
action.
 Linear programming may be defined as a
method of determining an optimum programme
of interdependent activities in view of available
resources.
 The objective of LPP is to maximise profit or
minimise cost, as the case may be, subject to a
number of limitations known as constraints.
 For this an objective function is constructed
which represents total profit or total cost as the
case may be.
 The constraints are expressed in the form of in
equalities or equations.
 Booth the objective function and constraints are
linear relationship between the variables.
 The solution to a linear programming
problem shows how much should be
produced or sold or purchased which will
optimize the objective function and satisfy
the constraints.
 Linear programming technique is used to
achieve the best allocation of available
resources.
 Available resources may be man hours,
machine hours raw materials etc.
APPLICATIONS OF LINEAR
PROGRAMMING IN INDUSTRY AND
MANAGEMENT
 Product mix
 Product smoothing

 Media selection

 Travvelling salesman problem

 Capital investment

 Transportation problem

 Assignment problem

 Blending problem

 Communication industry

 Rail road industry

 Staffing problem
BASIC ASSUMPTIONS
 Proportionality
 Additivity

 Divisibility

 Certainty

 Finiteness

 optimality
REQUIREMENTS FOR EMPLOYING LPP
 Definition of the objective
 Quantitative measurement of the elements of problem

 Alternatives

 Constraints

 Non negative restrictions

 Linearity

 finiteness
ESSENTILAL INGRADIENTS OR
CHARACTERICTICS OF LPP.
 OBJECTIVE FUNCTION
 LINEAR CONSTRAINTS

 FEASIBLE SOLUTION

 OPTIMAL SOLUTION
QUESTION 1
A manufacturer of furniture makes two
products, chairs and tables. Processing of
these products is done on two machines A
and B. A chair requires 2 hours on machine A
and 6 hours on machine B. A table requires 5
hours on machine A and no time on machine
B. There are 16 hours of time per day
available on machine A and 30 hours on
machine B. Profit gained by the manufacturer
from a chair is Rs 1 and from a table is Rs 5
respectively. Formulate the problem into a
LPP in order to maximize the total profit.
QUESTION 2
A home resourceful decorator manufactures
two types of lamps say A and B. Both lamps
go through two technicians first a cutter and
second a finisher. Lamp A requires 2 hours
of the cutter’s time and 1 hour of the
finisher’s time. Lamp B requires 1 hour of
cutter’s and 2 hours of finisher’s time. The
cutter has 104 hours and finisher has 76
hours of available time each month. Profit n
the lamp A is Rs. 6 and on the B lamp is Rs.
11. Formulate a mathematical model.
QUESTION 3