INTRODUCTION TO

PRODUCTIVITY
THEORY
Total Hours;32
In Term Test;2hrs
 MODULE CONTENTS;
UNIT:1 Introduction
 Introduction to industrial Engineering, Productivity, Measurement of Productivity

Unit;2 Work Study

 Introduction to work study
 The basic procedure of work study
 Work study for Establishing the standard time for a given activity

Unit;3 Method Study

 Introduction to Method Study
 Procedure for Method Study
 Principles of motion economy
 Filming Techniques and micro motion analysis
 Recording techniques
 Construction of process chart
 Sampling process
 Critical Examination analysis
 Primary, Secondary, Tertiary Stages
 Search for alternatives
 Steps involved in evaluation of alternatives
SUGGESTIVE READINGS;
 Work study by ILO and FDDI Study material.

MODULE ASSESSMENT;
 Nature of Assessment; Theory

Assessment;
 In semester(40%); Written Test
 End semester (60%); written Exam
 Assignment (20%); Theory Based/ Presentation
 Industrial Engineering:
Introduction
•The American Institute of Industrial Engineers (AIIE) has defined the Industrial
Engineering as “Concerned with design, improvement and installation of
integrated systems of people, materials, equipment and energy.

•Industrial Engineering is going to play a pivotal role in increasing the

productivity. It is the engineering approach to the detailed analysis of the use and
cost of the resources of an organization. The main resources are men, money,
materials, equipment and machinery.

•The Industrial Engineer carried out such analysis in order to achieve the
objectives (to increase productivity or profits etc.) and policies of the
organization.

Main function of an Industrial Engineer;

•Design of a system and management of that system
•Productivity Improvement
Productivity Improvement means:
•More efficient use of resources
•Less waste per unit of input supplied
•Higher levels of output for fixed levels of input supplied

The inputs are:

•Human efforts
•Energy
•Materials
•Invested capital

Present state of Industrial Engineering:

•Value Engineering
•Operation Research
•CPM (cost per mile)and PERT (Programme Evolution Review Techniques)
•Human Engineering(Ergonomics)
•System Analysis
•Advances in Information Technology and Computer Packages
•Mathematical and statistical Tools
• Activities of Industrial Engineering:

• Selection of Processes and Assembling Methods

• Selection and Design of Tools and Equipment

• Design of Facilities including Plant location layout of Buildings, Machines and

Equipments, Material Handling System, Raw Materials and Finished Goods

Storage Facilities.

• Design and improvement of Planning and Control System for Production,

Inventory, Quality and Plant Maintenance and Distribution Systems.

• Developing a Cost Control System such as Budgetary Control, Cost Analysis and

Standard Costing.

• Development of Time Standard, Costing and Performance Standards

• Development and Installation of Job Evaluation System

• Installation of Wage Incentives Schemes

• Design and Installation of Value Engineering and Analysis System

• Operation Research including Mathematical Techniques and Statistical Analysis

• Performance Evaluation
• Organization and Methods

• Project Feasibility Studies

• Supplier Selection and Evaluation
Objective of Industrial Engineering:
• To establish methods for improving the operations and controlling the
production costs
• To develop programs for reducing those costs
Technique of Industrial Engineering :
• Method Study
• Time Study
• Motion Study
• Financial and non-financial Incentives
• Value Analysis
• Production, Planning and Control
• Inventory Control
• Job Evaluation
• Material Handling Analysis
• Ergonomics (Human engineering)
• System Analysis
• Operation Research Techniques
• Other Techniques
 DEFINITION OF PRODUCTIVITY

• The concept of productivity has evolved over the years to repre- sent more
than an efficiency ratio. From cost and quality issues, its scope has expanded
to embrace social concerns - such as job creation, job security, poverty
alleviation, resource conservation, social responsibility - to business
excellence, governance, and en- vironmental protection (referred to as Green
Productivity or GP by the APO). Today, other productivity concepts that have
evolved include social productivity and knowledge productivity. There are
several ways of understanding productivity, but there are at least two essential
definitions often used and espoused by the APO.

• Productivity is the relationship between the quantity of output (goods and

services produced) and the quantity of input (i.e., re- sources such as labor,
materials, machinery, and energy) that are used in production.
Productivity is concerned with how efficiently goods and services
are produced and the value created by the production process. If a product is
made at the lowest cost with high quality and can be sold competitively in the
market at a price higher than its cost of production, then its productivity level
is considered high. The objec- tive of productivity is to maximize output and
minimize input.

Productivity = Efficiency + Effectiveness

The other element of the productivity equation is effectiveness. This relates

to the attainment of the desired goals or outcomes set by the producer of a
product or service. If the customers are highly satisfied in using the product
or service, this could mean higher rev- enues and repeat orders for the
product or service. It could also mean higher return on investments for
investors and even a better image or reputation for the company or organization.
 IMPACT OF PRODUCTIVITY

• Productivity is an integrated concept, a combination of principles from

various disciplines such as science, engineering, economics, finance, and
psychology. Productivity improvements or enhancements are generally
achieved through collaborative efforts that target specific issues affecting an
organization. In short, achieving improved productivity involves a managed
and systematic process; it does not happen by coincidence or accident.
Improvements may be planned once at the end of a staged process,
incrementally from step-wise initiatives, or in spurts through breakthroughs or
innovations.

• The Productivity Management Framework in Figure 1 is a good wayof

illustrating the cycle of managing productivity in an organization.
 CHECK ACTION

Productivity Improvement/
  Countermeasure
Measurement

Productivity
Management Cycle PLAN

Productivity Productivity

Improvement Improvement Plan

Productivity Labor-Management
Improvement
Techniques Cooperation

Productivity
Gainsharing
• The framework starts with CHECK, assessing the organization’s present
condition or productivity level. After checking or assessing, the next step is
ACTION. At this stage, the organization looks for countermeasures to remedy
the problem or improve the present condition. The next step is PLAN, wherein
the organization will determine what productivity improvement program or
project it will implement. The final step is DO, when an organization starts to
implement the planned productivity initiative or intervention. If the
implemented program results in an increase in productivity level, the
management may opt to share the gains of improvement through productivity
gainsharing. After implementing any productivity improvement activity or
intervention, the organization will again CHECK on the status of improvement.
The cycle continues.
 PRODUCTIVITY INITIATIVES
In this handbook, the productivity-improving or enhancing initia- tives, which can be in
the form of a basic principle, tool, technique, method, practice, guideline, model, or
approach that had been espoused by the APO in the past years, are presented in a
simplified framework to allow users a quick grasp of how they are used and how they
fit into the larger picture of an organization’s productivity goals. They may be grouped
into the following four Ps, which repre- sent areas of concern in any organization that is
aspiring to achieve productivity improvements - people, product, policy, and process.
1.People-focused: When a productivity-enhancing initiative aims to directly raise the
efficiency and effectiveness of a worker.

2.Product-focused: When a productivity-enhancing initiative aims to improve the

quality and responsiveness of a product to consumer demand.

3.Process-focused: When a productivity-enhancing initiative aims to make the

planning, design, production, and delivery of goods and services more efficient and
effective.

4.Policy-focused: When a productivity-enhancing initiative aims to improve the overall

environment for production and/or consumption of goods and services.
   

 
 

    Competitiveness
   

 
 

Sustainable
Policy
People Product Process
 

Development
 
Economic
Growth
• Table 1 summarizes the 31 common productivity-enhancing initia- tives
that are included in this handbook, first, classified according to their
impact areas, and second, arranged alphabetically for easier reference.
The initiatives with four stars indicate that they are cross- cutting in their
applicability in an organization.
• Table 1. List of Productivity-enhancing Initiatives Included in the
• Handbook
 P r o d u c t i v i t y - e n h a n c in g Impact Area
I n it ia t iv e s
P rod uct P ro c e s s P e o p le P o lic y

C r o s s - c u t t in g

1. 5S/Good Housekeeping ’ ’ ’ ’
2. 7 Wastes ’ ’ ’ ’
3. Benchmarking ’ ’ ’ ’
4. Green Productivity ’ ’ ’ ’
5. Kaizen ’ ’ ’ ’
6. Knowledge Management
7. Quality ’ ’ ’
Circles/Work
Improvement
Teams

Product

8. 3Rs: Reduce, Reuse, Recycle ’

9. Customer Satisfaction Index ’
10. Eco-design ’
11. Hazard Analysis and Critical ’
Control Points (HACCP)
12. Niche Marketing ’
13. Quality Management System ’
14. Supply Chain Management ’
 P r o d u c t iv i t y - e n h a n c in g Impact Area
I n it ia t iv e s
P ro d u ct P ro c e ss P e o p le P o lic y

P ro c e s s

15. Business Process ’

Reengineering ’
16. Just-in-time Production ’
System
’
17. Preventive/Productive
Maintenance
18. Six Sigma

P e o p le

19. Employee Suggestion ’

Schemes ’
20. Lean (Toyota) Management ’
System
’
21. OHSAS 18000
’
22. Social Accountability (SA)
8000
23. Workplace Cooperation
P o lic y

24. Balanced Scorecard ’

25. Business Excellence ’
Framework ’
26. Corporate Social ’
Responsibility
’
27. Energy Conservation/
Management ’

28. Environmental Management ’

System ’
29. Global Agricultural Practices
(GAP)
30. ISO 9000 Quality Management
System
 Cross-cutting ProductivityInitiatives
1. 5S/Good Housekeeping
• 5S or Good Housekeeping involves the principle of waste elimina- tion through
workplace organization. Derived from the Japanese words seiri, seiton, seiso,
seiketsu, and shitsuke, in English they can be roughly translated as sort, set in
order, clean, standardize, and sustain. The cornerstone of 5S is that untidy,
cluttered work areas are not productive. It is a core element of "lean thinking" and
"visual workplace,” which creates a fundamental platform for world-class
manufacturing. 5S provides the foundation for all quality improve- ment programs.

2. 7 Wastes
• A waste is an activity that does not add any value to the product or service. This is
one of the ways in which organizations waste or lose money, as the customer
certainly does not need it and will not pay for it. Taiichi Ohno, an engineer at
Toyota, came up with seven categories of wastes, which cover all the ways in
which manufacturing organizations waste money. These seven wastes (called
muda in Japanese) are: waiting, transporting, processing, inventory, motions,
defects/rework, and overproduction.
3. Benchmarking
• Benchmarking is a business excellence tool for finding, adapting, and
implementing leading practices to achieve superior perfor- mance and a
powerful performance management tool that can be used to generate both
incremental change and wide-ranging strategic reforms. It is also a learning
process in which information, knowledge, and experience about leading
practices are shared through partnerships between organizations. It allows an
organiza- tion to compare itself with others and, in the process, step back from
itself and reflect.

4. Green Productivity (GP)

• GP is a strategy for ensuring environmental protection while making business
profitable. It aims to enhance productivity while improving environmental
performance of an organization through the application of appropriate
productivity and environmental management tools, techniques, and
technologies to reduce the environmental impact of an organization's activities,
goods, and services.
5. Kaizen
• Kaizen, a Japanese word meaning “improvement” that calls for never-ending effort
to improve and invites each and every person in an organization to take part, is
known as the single-most impor- tant concept in Japanese management. It has
been key to the competitive success of Japanese manufacturing industries. Prob-
lem-solving under the Kaizen concept is seen as a cross-functional, systematic, and
collaborative approach. It is a strategy that puts every member of an organization,
from top management down, continuously on the watch for improvement options.
This is done using systematic reviews and auditing procedures, brainstorming, and
group decision tools to see where improvement opportunities may lie. All
operations of an organization are subject to improve- ment, and the Kaizen
approach is that nothing has improved suf- ficiently to stop improving it.

• The Kaizen approach employs various tools such as 5S, quality control circles, total
quality control, total preventive maintenance, just-in-time inventory, standard
work, and automation, among others. These have all been useful in improving the
three productivity dimensions of cost, quality, and speed. For example, the core
concept of Kaizen is to eliminate muri (overload), muda (waste), and mura
(inconsistency) from the worksite through efficient utilization of labor, materials,
and equipment.
6. Knowledge Management (KM)
• KM refers to a range of practices used by organizations to identify, create,
capture, and distribute knowledge for reuse, awareness, and learning across the
organization. KM programs are usually linked to organizational objectives and
are intended to lead to the achievement of specific outcomes such as shared
intelligence, improved performance, competitive advantage, and higher levels
of innovation. The objective of KM is to make the best use of the knowledge
assets available to an organization, turning them into a powerful driver for
competitiveness. In the APO KM framework, KM is defined as “an integrated
approach of creating, sharing, and applying knowledge to enhance
organizational productivity, profitability, and growth.”

• The rise of KM coincides with the emergence of the so-called knowledge-based

economy. In the new economic era, traditional production factors such as land
and capital are being replaced by the intangible asset of knowledge as the
critical input for corporate competitiveness.
7.Quality Circles/Work Improvement Teams
• Quality circles (QCs) have been a popular employee-involvement technique
among organizations pursuing excellence since the ap- proach was first
introduced in Japan in 1962. The philosophy behind QCs is based on quality
guru Armand V. Feigenbaum’s belief that quality control planning could only
succeed with “quality-mind- edness” from top management down to workers.
Since 1951, QCs have evolved into a structured system to harness the collective
wis- dom of everyone in an organization.

8. Reduce, Reuse, Recycle (3Rs)

3Rs is one of the techniques included in the GP approach. These are activities
that form the basis for waste reduction and produc- tion process optimization.

•Reduce means using fewer inputs, including raw materi- als and energy, so
that the pressure on the environment will be less, leading to less waste
•Recycle involves returning part of the waste stream to the system, either to be
used for the same type of product for which it was originally manufactured, or
to be remanu- factured into something new
• Reuse focuses on returning a part of the waste stream of a product to be used
repeatedly for the same purpose.
• 3Rs can be more than just an activity or a program. They can become a
corporate philosophy shared by every member of the organiza- tion, not only
leading to improved productivity and environmental indices, but also helping to
create a better work environment.
9. Customer Satisfaction Index (CSI)
• CSI is a method of monitoring customer satisfaction and taking ac- tion to
improve it. A number of different methods have been devel- oped such as:

• Net Promoter score, which is a management tool that can be used to gauge the
loyalty of a firm's customer relationships.

• Kano model, which is a theory of product development and customer

satisfaction developed in the 1980s by Pro- fessor Noriaki Kano.

• SERVQUAL or RATER, which is a service-quality framework incorporated into

customer satisfaction surveys to indicate gaps between customer expectations
and experiences.

• J.D. Power and Associates, which is an organization that measures customer

satisfaction and is known for its top- box approach and automotive industry
rankings.
10. Eco-design
• Eco-design is a method of designing products that takes into ac- count their
impact on the environment at all stages of their life cy- cle. This means
attempting to lower the environmental impact and improving the performance
of products.

• The life cycle of a product is usually divided into procurement, manufacture, use,
and dispos- al. Thus, eco-design includes environmental objectives as part of the
design objectives to be achieved. Eco-design may, for exam- ple, result in the
choice of a recyclable or biodegradable material for packaging or the
development of products such as detergent that is effective in cold water to
reduce the energy consumption of washing machines.
11. Hazard Analysis and Critical Control Points (HACCP)
• The HACCP concept is a systematic approach to the identification, assessment,
and control of hazards. It is very simple because it only identifies potential
food safety problems and determines where they could be controlled and
prevented. The main objective of HACCP is to enhance assurance in food
safety in order to prevent food-borne illnesses more efficiently. Additionally, it
reduces cost of control and wasted food and it protects the reputation of food
pro- cessors and the entire industry.
• Accessible from Hazard Analysis and Critical Control Point Systems Concepts
and Applications, WHO Mediterranean Zoonoses Control Programme.

12. Niche Marketing

• Niche marketing is a marketing approach that is focused on a small yet
perceived as lucrative group of potential customers, not usually served by
mainstream or traditional markets or providers. Thus, niche marketing is
about finding and serving profitable market segments and designing custom-
made products and services for them.
13. Quality Management System (QMS)
• QMS is that part of an organization’s overall management system that ensures
that customer expectations for quality in products and services are met or
exceeded continually. This includes the development of a formalized quality
policy, a planning phase outlining the structures, responsibilities, and procedures
for quality within an organization, and the verification of those procedures. QMS
allows the organization to take control of the quality of its products and services.
It allows putting a plan in place for consistency, allowing an organization to
determine when corrective actions are needed. QMS is a quality and productivity
tool, and therefore benefits the whole organization. Benefits can also extend to
the supply chain if applied throughout, improving product quality and the
relationships between suppliers, clients, and end customers.
14. Supply Chain Management (SCM)
• A supply chain is the network of raw material producers, component
manufacturers, final product manufacturers, wholesalers and distributors,
retailers, and customers, interconnected by several types of flows, including
material, information, finance, and people. The Association for Operations
Management (APICS) dictionary defines SCM as the “design, planning, execution,
control, and monitoring of supply chain activities with the objective of creating
net value, building a competitive infrastructure, leveraging worldwide logistics,
15. Business Process Reengineering (BPR)

BPR is the fundamental rethinking and radical redesigning of busi- ness processes
to achieve dramatic improvements in critical and contemporary measures of
performance such as cost, quality, ser- vice, and speed. Since its implementation,
many enterprises, from high-tech industries (e.g., semiconductors) to traditional
ones (e.g., footwear and apparel), and from assembly-line sectors to logistics
operations, have been applying BPR to improve their productivity and
competitiveness in order to face severe global competition and to combat
economic decline over the past two decades. The key to BPR is to look at the
business processes from scratch and determine how an organization can best
rebuild those processes to improve their performance.
16. Just-in-Time (JIT) Production System/Quick Response Team
JIT is one of the most important components of the Toyota Production System. JIT
is a production technology system that promotes economic efficiency with a
central principle of "produce(ing) appropriately what is necessary, just as much as
needed, when needed".

The main goal of JIT is to keep the stock at the necessary minimum during the
production process, that is to say, a complete balance between order and
production. Generally speaking, there are various production processes between
receiving orders and shipment of products, and as a result, prolonged lead-time is
often unavoidable. Prolonged lead-time can lead to opportunity loss, especially for
general mass-produced products.

JIT can also be understood as an inventory strategy for improving the return on
investment of a business by reducing in-process inventory and its associated costs.
17. Preventive/Productive Maintenance (PPM)
• Preventive maintenance means taking measures in advance, be- fore corrective
action is needed with regard to the functioning of equipment. Productive
maintenance is when the result of the main- tenance of equipment is measured
(normally in economic terms, e.g., cost-benefit analysis) and the result is
positive (e.g., tuning your car regularly will not only prevent damage, it will also
save fuel costs. If the fuel saving is superior to the tuning costs, that is pro-
ductive maintenance).

• Together, they are referred to as PPM. Total productive maintenance is a

systematic approach to productive maintenance. PPM is useful as a means for
enhancing productivity, minimizing down time, and maximizing efficiency. It
involves keep- ing equipment operating at peak performance levels to help re-
duce waste.
18. Six Sigma
• Six Sigma was first launched in 1987 by Motorola after it gave the company over
ten-fold improvements. R. Tomkins defines Six Sigma as "a program aimed at
the near elimination of defects from every product, process, and transaction".
Others defined it as a strategic initiative to boost profitability, increase market
share, and improve customer satisfaction through the use of statistical tools
that can lead to breakthrough quantum gains in quality.

• If deployed cor- rectly, Six Sigma has the ability to generate a host of benefits
for business companies, e.g., improving process speed, raising quality levels,
reducing costs, increasing revenues, and deepening cus- tomer relationships,
among others.

• Six Sigma is widely regarded as a strategic paradigm for management

innovation and for the sur- vival of business companies. It is used in a variety of
industries and business models, from manufacturing to services.
19. Employee Suggestion Schemes (ESS)
ESS is popular among many organizations striving for world-class business
excellence and functions. This employee involvement method taps their
knowledge for ideas for improvement. The tra- ditional method focuses on
suggestions with a high impact, and handsome rewards are given to employees
whose suggestions have a significant effect on the financial performance of the or-
ganization. Very often, few suggestions are received since highly innovative
suggestions are rare and hard to come by.

20.Lean Management System (Toyota Management System);

The Lean Production System or Lean Manufacturing is primarily based on the
concept of “lean” or doing more with less, i.e., less time, inventory, space, labor,
and money. The main source of Lean Production System is the Toyota Production
System (TPS), which was developed by the Toyota Motor Company after the
Second World War. In the 1980s, as western executives began taking note of Toy-
ota's success, academia also begun studying and writing about the benefits of this
seemingly revolutionary production system.
• Two of these academics were James P. Womack of the Massachusetts In-
stitute of Technology and Daniel T. Jones of the University of Cardiff in Wales,
who are widely credited for coining the term "lean manu- facturing" to
describe the Toyota Production System in the west. In essence, the terms
"Toyota Production System" and "Lean Production System" mean the same
thing and can be used interchangeably.

21.Occupational Health And Safety Standard (OHSAS) 18000

OHSAS 18000 consists of a series of two standards, OHSAS 18001 and OHSAS
18002, which provide requirements and guidelines, respectively, for implementing
a safety and health management standard. Based on the British Standard BS 8800,
OHSAS 18000 was developed by a group of standard bodies, certification bodies,
registrars, and consultants, and was first published in 1999. It is not an ISO
standard. Although the OHSAS 18000 standards were not developed through the
ISO or by using the ISO consensus process, they have gained wide acceptance. In
2002, amendments were made to both standards to consider user demands and
to better align these standards with ISO 14001 and ISO 9001.
22. Social Accountability (SA) 8000
• The SA 8000 is a global social accountability standard for decent working
conditions based on international workplace norms of the ILO conventions, the
Universal Declaration of Human Rights, and the UN Convention on the Rights of
the Child. The standard was developed by Social Accountability International,
which was es- tablished in 1997. The SA 8000 standard and verification system is a
credible, comprehensive, and efficient tool for assuring humane workplaces.

23.Workplace Cooperation (WPC)

• WPC is a broad concept connoting mutual commitment between labor and
management to “working together and working smarter.” Specifically, its goal is to
develop an ideal situation where management and workers are full partners in
identifying problems at the workplace, crafting solutions to those problems, and
implementing the agreed-upon solutions. The WPC concept encompasses an
underlying philosophy and process, procedures, and organizational structures. The
idea is that greater cooperation between labor and management on matters of
mutual concern can create a more satisfying and productive workplace. The
process involves employee participation in day-to-day decision- making that affects
their jobs. The structures and procedures enable the partners to redesign work to
encourage group problem-solving, open information sharing, teamwork, and skill
development.
 Policy-related Productivity Initiatives
24.Balanced Scorecard (BSC)
BSC is an approach to performance measurement that was introduced by Dr.
Robert Kaplan and Dr. David Norton of Harvard Business School in 1992. The
approach combines traditional financial measures with non-financial measures that
drive business outcomes, so that organizations can focus on the future and act in
their long-term best interest. This method provides managers with better and more
relevant information about the activities they are managing, increasing the
likelihood of organizational objectives, and vision and mission being achieved.

The BSC approach also involves a strategic management system that enables
managers to focus on the important performance metrics that drive success and
balances the financial perspective with customer, process, and employee
perspectives. Measures are often indicators of future performance. BSC was
intended to help overcome some of the weaknesses of previous management ap-
proaches and provide clear prescription as to what companies should measure in
order to link the individual, department, and overall performance to the company's
strategy.
25. Business Excellence (BE) Framework
• BE frameworks are widely used around the world to enhance the productivity
and quality of organizations, share best practices, and recognize achievements.
It is estimated that some 80 countries have national awards based on these
frameworks. The most well- known are the BE frameworks adopted from the
Malcolm Baldrige National Quality Award of the USA, and the European
Foundation for Quality Management Excellence Award.

• The BE frameworks used in Singapore and other APO member economies are
closely aligned with or based on these models. Research has found that
organizations that have adopted BE frameworks enjoy better financial
performance, customer satisfaction, and productivity compared with their
competitors. In the USA, BE award winners have generally outperformed their
peers by a factor of 6.5 to 1 in terms of stock market performance. They also
experienced increased sales, income, and total assets. In Europe, a study of
120 BE award winners found that they outperformed companies that were
similar in size and operating in the same industries over an 11-year period.
26. Corporate Social Responsibility (CSR)
• CSR is a concept that organizations have an obligation to consider not only in
the interests of customers, employees, and shareholders, but also of societies,
communities, and environment in all aspects of their operations. This
obligation is seen to extend beyond their statutory obligation to comply with
legislation. The responsibility stems from the fact that business and society are
interdependent; the wellbeing of one depends on the wellbeing of the other.

• Many organizations are now taking their corporate environment responsibility

as a part of their CSR and including it in their CSR reporting. The World
Business Council for Sustainable Development in its publication Making Good
Business Sense used the following definition: "Corporate Social Responsibility
is the continuing commitment by business to behave ethically and contribute
to economic development while improving the quality of life of the workforce
and their families as well as of the local community and society at large".
27. Energy Conservation/Management
• Energy Conservation/Management is a series of activities/pro- grams designed
to prevent, mitigate, and correct energy leaks or loss throughout an
organization. These activities include:

• Energy Conversion: Avoiding energy loss during energy trans- fer operation
• Transfer: Reducing unwanted energy transfer (e.g., irradiat- ed heat) or
redesigning to benefit from energy transfer (e.g., steam recovery)
• Energy Utilization: Improving the efficiency with which energy is used and how
it should be used
• Energy Recovery: Using energy from waste streams (potential or actual) to
feed other processes
28. Environmental Management System (EMS)
• EMS is a set of processes and practices that enables an organization to reduce
its environmental impact and increase its operating efficiency. In other words,
EMS is the part of the overall management system that addresses the impact of
an organization's activities, products, and services on the environment. EMS is
often based on the plan-do-check-act (PDCA) model. The ISO 14000 series of
standards is the world's most widely recognized for a systematic approach to
environmental management.
29. Good Agricultural Practices (GAP)
• GAP refers to the package of recommendations and available knowledge to
address environmental, economic, and social sustainability for on-farm
production and postproduction processes, resulting in safe and healthy food
and nonfood agricultural products.

• The adoption of GAP will ensure a clean, safe working environment for
employees while eliminating the potential contamination of food products. GAP
may consist of guidelines addressing the issues of site selection, adjacent land
use, fertilizer use, water sourcing and use, pest control and pesticide
monitoring, harvesting practices (including worker hygiene, packaging, storage,
field sanitation, and product transportation), and cooler operations.
30. ISO 9000 Quality Management System (QMS)
 ISO 9000 is a family of standards developed by the ISO that pro- vides a
standardized model for a QMS. ISO 9001 is the specification standard in this
series. ISO 9000 is primarily concerned with quality management, which means
ensuring a certain standard of quality in products and services to meet
customer quality requirements. An organization can self-declare its compliance
with the requirements or obtain external validation, usually by third-party
registration or certification.

31. National Quality Award/Business Excellence Award

 National quality awards are sometimes used interchangeably with
business excellence awards due to their similarities. In some cases,
business excellence awards are used to engage the private sector fully
because profit and commercial success are more important concerns
than organizational performance excellence. Such awards recognize
business enterprises with excellent records or consistency in gaining the
competitive advantage.
 Industrial Engineering
Introduction
The American Institute of Industrial Engineers (AIIE) has defined the Industrial
Engineering as “Concerned with design, improvement and installation of
integrated systems of people, materials, equipment and energy.”
Industrial Engineering is going to play a pivotal role in increasing the
productivity. It is the engineering approach to the detailed analysis of the use
and cost of the resources of an organization. The main resources are men,
money, materials, equipment and machinery.
The Industrial Engineer carries out such analysis in order to achieve the
objectives (to increase productivity or profits etc) and policies of the
organization.
Main function of an Industrial Engineer

 Design of a system and management of that system

 Productivity Improvement
 Productivity Improvement means:
 More efficient use of resources
 Less waste per unit of input supplied

 Higher levels of output for fixed levels of input supplied

 The inputs are:

 Human efforts
 Energy
 Materials
 Invested capital
• Present state of Industrial Engineering:
 Value engineering
 Operation research
 CPM and PERT
 Human Engineering(Ergonomics)
 System analysis
 Advances in Information Technology and Computer packages
 Mathematical and statistical tools
•Activities of Industrial Engineering:
Selection of processes and assembling methods.

Selection and design of tools and equipment.

Design of facilities including plant location layout of buildings, machines and

equipment's material handling system, raw materials and finished goods storage
facilities.

Design and improvement of planning and control system for production, inventory,
quality and plant maintenance and distribution systems.

Developing a cost control system such as budgetary control, cost analysis and
standard costing.

Development of time standard, costing and performance standards.

Development and installation of job evaluation system.

 Installation of wage incentives schemes.

 Design and installation of value engineering and analysis system.

 Operation research including mathematical techniques and statistical analysis.

 Performance evaluation.

 Organization and methods.

 Project feasibility studies.

 Supplier selection and evaluation.

• Objective of Industrial Engineering:

 To establish methods for improving the operations and controlling the
production costs.

 To develop programs for reducing those costs

•Technique of Industrial Engineering :
 Method study
 Time study
 Motion study
 Financial and non-financial incentives
 Value analysis
 Production, planning and control
 Inventory control
 Job evaluation
 Material handling analysis
 Ergonomics(Human engineering)
 System analysis
 Operation research techniques
 Other techniques
• Applications of Industrial Engineering :
 In health services

 In government organizations
 In banking
 Others such as marketing, finance, purchasing, industrial relations etc
 Motion and Time study
• Work study:
Work study investigates the work-done in an organization and it aims at
finding the best and most efficient way of using available resources. i.e.
men, material, money and machinery.

• Method study:
Method study is the systematic recording and critical examination of
existing and proposed ways of doing work, as a mean of developing and
applying easier and more effective methods and reducing costs.

• Work measurement:
Work measurement is the application of techniques designed to establish
the time for a qualified worker to carry out a specified job at a defined level
of performance.
• Necessity of work study:
 Work study is a means of enhancing the production efficiency
(productivity) of the firm by elimination of waste and unnecessary
operations.

 It is a technique to identify non value adding operations by investigation

of all the factors affecting the job.

 It is the only accurate and systematic procedure oriented technique to

establish time standards.

 It is going to contributes to the profit as the saving will start immediately

and continue throughout the life of the product.

 It has got universal application

• Advantages of work study:
 It helps to achieve the smooth production flow with minimum interruptions.

 It helps to reduce cost of the product by eliminating waste and unnecessary

operations.

 Better worker-management relations.

 Meets the delivery commitment

 Reduction in rejections and scrap and higher utilization of resources of the

organization

 Helps to achieve better working conditions

 Better work place layout

 Improves upon the existing the process or methods and helps in standardization
and simplification

 Helps to establish the standard time for and operation of job which has got
application in man power planning, production planning.
Procedure:
Select a job or process to be studied

Record details of job using- recording technique

Examine record facts by asking who, what, when, why

Develop most economical method

Measure work and set standard time to do the job

Define new method and standard time

Install new method as a standard practice

 Method study:
Method study is the systematic recording and critical examination of
existing and proposed ways of doing work, as means of developing and
applying easier and more effective methods and reducing costs.

• Objective:
 To improve work methods and procedures.

 To determine the best sequence of doing work.

 To smoothen material flow with minimum of backtracking and to improve
layout.
 To improve the working conditions and hence to improve labour efficiency
.
 To improve plant utilization and material utilization.
 Elimination of waste and unproductive operations.
 To reduce the manufacturing costs through reducing cycle time of
operations.
Procedure:
Select work which can be studied

Record all facts about the job

Examine the facts critically (purpose, place, sequence, person)

Develop a record of an improved method under prevailing condition

Define method, procedure, layout, equipment, working condition, materials,

quality instructions

Install improved method, plan arrange and implement

Maintain verify at regular intervals that the improved method is in use

•Method study procedure:
•  

1. Select the work worth studying and define the objectives to be achieved.

 An objective may be to reduce the manufacturing cost or to reduce

bottlenecks or to reduce fatigue incurred by the workers in order to increase
their efficiency.

2. Record all the relevant information's pertaining to the existing method in

details and in the form of a chart to obtain a more clear picture about the
same. Recordings can be done with the help of;
A. Process charts
Out line process charts
Flow process charts, (Man, Material& Equipment Type)
Two handed process chart
Multiple activity charts

B. Diagrams
Flow diagram
String diagram
Cycle graph
Chronocycle graph
 C. Motion and Film analysis
SIMO chart

D. Models

3. Examine the recorded events critically and in sequence Critical

examination involves answer to a no. of Questions.
• The basic questions are
• Purpose à What is done?
• Person à Who does it?
• Place à Where it is done?
• Means à How it is done?
• Sequence à When is it done? alternative ways of doing, best method
of doing.
4.Develop the best method as resulted from critical examination and
record it. The developed method should be
 Practical and feasible
 Safe and effective
 Economical
 Acceptable to design, production control and sales department
5. Install the developed method or the improved method. It
involves planning arranging and implementing.
6. Maintain the new method i.e. ensure the proper functioning of the
installed method by periodic checks and verification.

Selection of the job for method study: 

Cost is the main criteria for selection of a job, process and
department for method analysis. The job is selected such that
 Improvement in quality with lesser scrap

 Increased production through better utilization of resources

 Elimination unnecessary operations and movements
 Improved layout leading to smooth flow of material and a balanced
production line.

 Improved working conditions

The job should be selected for the method study based upon the following
considerations;
1. Economic aspects:
(i) bottleneck operations
(ii) Production lot of scrap or defective
(iii) Poor utilization of resources
(iv) Excessive movement of materials

2. Technical aspects:
(i) knowledge of technical
(ii) Job having consistent quality
(iii) Operations generating lot of scrap
(iv )Frequent complaint from work regarding the job

3. Human considerations:
(i) workers complaining about unnecessary and tiring work
(ii)More frequency of accidents
Recording techniques:
After selecting the job to be studied, then record all facts relating to the existing
method.

Method study symbols:

Operation

Inspection

Transportation

D Delay
1. Operation:
An operation occurs when an object is intentionally changed in one or more of its
characteristics.
 An operation takes the object one stage ahead towards completion.
 Ex – turning, drilling, chemical reaction, lifting and loading.

2. Inspection:
• An inspection occurs when an object is examined and compared with standard
for quality and quantity.
• Ex – visual observation for finish, count of quantity of incoming material
3. Transportation :
• Transport indicates the movement of workers materials or equipments from one
place to another.
• Ex – movement of material from one station to another, workers travelling to bring
tools

4. Delay D:
• A delay occurs when the immediate performance of the next planned things does
not take place.
• Ex – Work waiting between consecutive operations Workers waiting at tool cribs
• Operators waiting for instructions from superviser
5.Storage :
• A storage occurs when the object is kept in an authorized custody
and is protected against unauthorized removal.
• Ex—materials kept in stores to be distributed to various work
centers.
•Recording Technique:
1. Charts
2. Diagrams
3. Templates and models
 
1. Charts:
1.Operation process chart (Outline process chart)
2. Flow process charts
(i) Man type
(ii) Material type
(iii)Equipment type
3. Multiple activity chart
4. Two handed process chart
5. Travel chart
6. SIMO chart

2. Diagrams:
1. Flow and string diagrams
2. Models and templates
3. Cycle-graph and chrono-cycle graph
• 3. Charts: Most popular method of recording facts.

1. Operation process chart (outline process chart):

•  

 Charts are generally represented by symbols because symbol

produces a better picture and quick understanding of the facts.
 An outline process chart gives the bird’s eye view of the whole
process by recording only the activities and inspection involved in
the process. It uses only two symbols and . It helps
visualizing various possibilities of alternation and improvement

• Manufacture of pipe assembly:

Shown in below diagramme.
1. Flow process chart (Man type): Writing a lett er
1 To officer’s cabin

1 Take dictation

2 To his own seat

2 Prepare for typing

3 Types letter

1 Checks for mistake

4 Place in file for signature

3 To officer’s cabin

5 Places file for signature

1 During checking and signature

4 Back to own seat

6 Type envelope

7 Put letter in envelope

8 Keep letter in out tray

• Man and material type:
Man in inspection department Material in goods receiving

To goods receiving 1 Await arrival of man

1 Locate component To inspection dept.

2 Pick out component 1 Set on the bench

To inspection dept. 1 Inspection

3 Set the component to bench 2 Measure dimension

1 Visual inspection 3 Stamped

4 Measure and record length To stores

5 Put inspection seal 1 Stores

To stores

6 Enter in stock

Return to inspection dept.

• Advantage
 To reduce the distance travelled by men

 To avoid waiting time and unnecessary delays

 To reduce the cycle time by combining or eliminating operations
 To fix up the sequence of operations
 To relocate the inspections stages

3. Two handed process chart:

It is the most detailed type of flow chart in which activities of the workers
hands are recorded in relation to one another.
Assembly of nut and bolt

Left hand Right hand

Reach for bolt Reach for nut

1 Grasp bolt head 1 Grasp nut

Carry to central position Carry to central position

Hold bolt 2 Place nut on bolt

Hold bolt 3 Screw nut

2 Transfer assembly to right hand 4 Grasp assembly

Carry to box

5 Release assembly

Return hand to central

position
• Flow diagram:
Flow diagram shows the path of movements. In the path of movements,
there are often undesirable features such as congestion, back tracking and
unnecessary long movements. To record these unnecessary features,
representation of the working area in the form of flow diagrams.
• Critical examination:
•  

The objective of critical examination of recorded facts of an existing or

proposed method is to determine the reasons of each event and to make a
systematic list of all the possible improvements for later development.
It is conducted through a systematical and methodical questioning process.

Primary questions Secondary question

1. Purpose What else could be done?

2. Means how else could it be?
3. Sequence where else could it be?
4. Place when else could it be?
5. Person who else could it be?
• Development and selection of new method:
For development of new method
 Eliminate all unnecessary operations
 Combine operations and elements
 Change the sequence of operations
 Simplify the necessary operations
• Steps:
 Evaluation
 Investigation
 Selection

• Installation of the proposed method:

 Preparation of change proposal to management
 Steps to prepare its implementation on acceptance of proposal
 To get formal approval from management
 To implement the accepted proposal
• Maintain the method:
 Follow up is required after implementation. 
 Monitoring and control
 Audit of the savings
 Review of the approach
 Evaluation of effectiveness of proposed method
 • Work measurement
• Time study: 
The application of techniques designed to establish the time for a qualified workers
to carry out a specific job at a define level of performance.
OR
The study may be the study of the amount of time required to complete a unit of
work under existing working conditions, using the specified method and machinery,
by an operator, able to do the work in proper manner at standard pace.
• Objectives:
 

 Determines the time required doing a job, thus it compares alternative methods
and establishes. The fastest method.

 Decides manpower required for a job, correct initial manning.

 Decides equipment requirements.

 Provides information for effective production planning and control.

 
 Aids in calculating exact date of delivery.
 Decides realistic labour budgeting.
 Cost reduction and cost control.
 Results in effective labour control.

• Techniques of work measurement:

 
1. Time study(stopwatch technique)
2. Synthesis
3. Work sampling
4. Analytical estimating
5. Predetermined motion and time study

• Steps in making time study:

 

1. Select the work to be studied.

2. Obtain and record all the information available about the job, the operator
and working conditions likely to affect the time study work.
3. Breakdown the operation into elements.

4. Measure the time by means of a stopwatch, taken by the operator to

perform each element of the operation.

5. Assess the operators effective speed of work relative to the observer’s

concept of normal speed. This is called performance rating.

6. Adjust the observed time by rating factor to obtain normal time for each
element.
𝑜 𝑏 𝑒 𝑠 𝑒 𝑟 𝑣 𝑒 𝑑 𝑡i𝑚 𝑒 × 𝑟 𝑎 𝑡i𝑛 g
Normal time =
100
7. Add suitable allowances to compensate fatigue, personal needs,
contingencies etc togive standard time for each element.

8. Complete allowed time for the entire job by adding elemental standard
times considering frequency of occurrence of each element.
9. Make a detailed job description describing the method of which the standard
time is established.

10. Test and review standards where necessary.

Procedure for time study :

Select

Obtain and record

Define

Measure

Extend

Determine

Compute
 SWOT Analysis
• How to Develop a Strategy For Success
•  Use SWOT Analysis to assess your organization's current position before you
decide on any new strategy.
• Find out what's working well, and what's not so good. Ask yourself where you
want to go, how you might get there – and what might get in your way. These
are big issues, and you'll need a powerful but simple technique to help you:
SWOT Analysis.
• This article, video and infographic will help you to discover what SWOT
Analysis is, how to carry one out, and how to apply its benefits to the max.

• What Is a SWOT Analysis?

• SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a
SWOT Analysis is a technique for assessing these four aspects of your business.
• You can use SWOT Analysis to make the most of what you've got, to your
organization's best advantage. And you can reduce the chances of failure, by
understanding what you're lacking, and eliminating hazards that would
otherwise catch you unawares.
• Better still, you can start to craft a strategy that distinguishes you from your
competitors, and so compete successfully in your market.
• Strengths
• Strengths are things that your organization does particularly well, or in a way that
distinguishes you from your competitors. Think about the advantages your
organization has over other organizations. These might be the motivation of your
staff, access to certain materials, or a strong set of manufacturing processes.

• Your strengths are an integral part of your organization, so think about what
makes it "tick." What do you do better than anyone else? What values drive your
business? What unique or lowest-cost resources can you draw upon that others
can't? Identify and analyze your organization's Unique Selling Proposition  (USP),
and add this to the Strengths section.

• Then turn your perspective around and ask yourself what your competitors might
see as your strengths. What factors mean that you get the sale ahead of them?

• Remember, any aspect of your organization is only a strength if it brings you a

clear advantage. For example, if all of your competitors provide high-quality
products, then a high-quality production process is not a strength in your market:
it's a necessity.
• Weaknesses
• Now it's time to consider your organization's weaknesses. Be honest! A SWOT
Analysis will only be valuable if you gather all the information you need. So, it's
best to be realistic now, and face any unpleasant truths as soon as possible.

• Weaknesses, like strengths, are inherent features of your organization, so focus

on your people, resources, systems, and procedures. Think about what you
could improve, and the sorts of practices you should avoid.

• Once again, imagine (or find out) how other people in your market see you. Do
they notice weaknesses that you tend to be blind to? Take time to examine
how and why your competitors are doing better than you. What are you
lacking?
• Opportunities
• Opportunities are openings or chances for something positive to happen, but
you'll need to claim them for yourself!

• They usually arise from situations outside your organization, and require an
eye to what might happen in the future. They might arise as developments in
the market you serve, or in the technology you use. Being able to spot and
exploit opportunities can make a huge difference to your organization's ability
to compete and take the lead in your market.

• Think about good opportunities you can spot immediately. These don't need to
be game-changers: even small advantages can increase your organization's
competitiveness. What interesting market trends are you aware of, large or
small, which could have an impact?

• You should also watch out for changes in government policy related to your
field. And changes in social patterns, population profiles, and lifestyles can all
throw up interesting opportunities.
• Threats
• Threats include anything that can negatively affect your business from the
outside, such as supply chain problems, shifts in market requirements, or a
shortage of recruits. It's vital to anticipate threats and to take action against them
before you become a victim of them and your growth stalls.

• Think about the obstacles you face in getting your product to market and selling.
You may notice that quality standards or specifications for your products are
changing, and that you'll need to change those products if you're to stay in the
lead. Evolving technology is an ever-present threat, as well as an opportunity!

• Always consider what your competitors are doing, and whether you should be
changing your organization's emphasis to meet the challenge. But remember that
what they're doing might not be the right thing for you to do, and avoid copying
them without knowing how it will improve your position.

• Be sure to explore whether your organization is especially exposed to external

challenges. Do you have bad debt or cash-flow problems, for example, that could
make you vulnerable to even small changes in your market? This is the kind of
threat that can seriously damage your business, so be alert.
• How to Use a SWOT Analysis
• Once you've examined all four aspects of SWOT, you'll likely be faced with a
long list of potential actions to take. You'll want to build on your strengths,
boost your weaker areas, head off any threats, and exploit every opportunity.

• But, before you leap into action, look for potential connections between the
quadrants of your matrix. For example, could you use some of your strengths to
open up further opportunities? And, would even more opportunities become
available by eliminating some of your weaknesses?

• Now it's time to ruthlessly prune and prioritize your ideas, so that you can focus
time and money on the most significant ones. Refine each point to make your
comparisons clearer. For example, only accept precise, verifiable statements
such as, "Cost advantage of $10/ton in sourcing raw material x," rather than,
"Better value for money.“

• Carry through the options you generate to later stages in your strategy
formation process and apply them at the right level – for example, at a product
or product-line level, rather than at the much vaguer whole-company level.
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