Operations Management I

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R M Harindranath MBA MCA (Ph D) MCT

• Operations Management I
• For Confederation of Indian Industry (CII)
• Session II
• Chapter 4,5 and 6

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• Chapter 4 Introduction to Work Study

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Work-Study

• Work-Study technique as a branch of management is
  essential for Improved productivity.
• Development of work study
• To achieve preplanned objectives most
  efficiently, the manger must use scientific
  technique for evaluation of inputs, outputs and
  process
• Urgent necessity to improve and enlarge the scope
  of time and motion study. The developments led to
  the concept of modem discipline of work study.
• The US equivalent term for work-study is Motion
  and Time Study
• US equivalent term for work-study is Motion and
  Time Study
• Work study is concerned with finding better ways
  of doing work and avoiding waste In all Its forms

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Evolution and Development

• Earliest known practical application of Work
  Study was by Robert Owen of the UK.
• He concentrated on the needs of the worker, and
  while increasing productivity, helped raise the
  standard of living of the worker.
• F.W. Taylor who evolved the principles of Time
  Study
• F W Taylor broke up the work into elements, and
  from the analysis of these elements he determine
  the time of each to be allowed for a job

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Evolution and Development

• Frank Bunker Gilbreth (1869-1924), along with his
  wife Lillian, developed the principles of Motion
  Study.
• The scientific approach to the study of work,
  through a close investigation of motion patterns,
  resulted in the elimination of wasteful movements
  and, consequently - fatigue
• Concerned with devising the most economical
  methods of work and the most effective layout.
• Time study as subsidiary factor

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Evolution and Development

• Contributions of F W Taylor Gilbreth were
  developed by consultants, primarily by charles E
  Bedaux
• Time and motion study was increasingly being used
  to set time standards for financial incentives
  schemes
• Time and Motion Study has proved ineffective for
  two reasons
• Arbitrary methods of fixing timings were resented
  by the trade unionists
• Some of the practices of time study are
  questionable

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Work-Study Definitions

• 'Work Study is a term used to embrace the
  techniques of Method Study and Work Measurement,
  which are employed to ensure the best possible
  use of human and material resources in carrying
  out a specified activity.
• British Standard Institute is "Work Study is a
  generic term for those techniques, particularly
  Method Study and Work Measurement, which are used
  in the examination of human work in all its
  contexts and which lead systematically to the
  Investigation of all factors which affect the
  efficiency and economy of the situation being
  reviewed, in order to effect improvement".

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Work-Study Definitions

• Russel Currie, the "father of modem work study"
  defines "Work study is the systematic, objective
  and critical examination of all the factors that
  govern the operational efficiency of any
  specified activity In order to effect
  Improvement".
• A comprehensive definition of work-study would
  beit is a modem industrial discipline comprising
  several scientific techniques that evaluate the
  effectiveness of any work system in order to
  raise the level of productivity, and provide
  greater satisfaction at work.

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Work study

• Work-study helps in the two fundamental functions
  of management, which are organization and
  control.
• It is also equally important to ensure that
  direction, co-ordination, and control is really
  effective.
• Work-study can be effectively applied to
  organizational problems
• The organizational structure. Including staffing
  and channels of control
• Span of control, allocation of responsibilities,
  quantum of decentralization
• System of controlling decisions and channels of
  processing.

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Facts about Work Study

• Work study is based on facts, and not on
  opinions.
• It is advisory, and not executive.
• It Is not an axe it may even advise increases.
• Work study is not imposed, but comes when
  requested and it must come from within.
• It depends, for its success, on the active
  co-operation of the men on the job.
• It is not a cure-all it merely recommends
  Improvements
• It is not infallibleit is only impartial.
• Lastly, it is not exclusive even finance
  departments can use it.
•  
•  

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Objectives of Work Study

• The objective of work-study is to assist
  management to obtain the optimum use of the human
  and material resources available to the
  organization for the work upon which it is
  engaged
• The objective has three aspects
•  The most effective use of plant and equipment.
• The most effective use of human effort.
• The evaluation of human work.
  ,

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 Work Study and Management

• Work-study is a management tool and it can only
  succeed If it has the backing of higher
  management
• Aim and scope are clearly understood by all
  concerned
• It Is a staff function practitioners has no
  authority

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Work Study and Supervisors

• Supervisors' confidence is achieved by educating
  the supervisor on the techniques of Method Study
  and Work Management.

• Work Study and the Worker
• Misunderstands the work study function
• Another dodge by management to make them work
• If it has to be successful, they have to
  convince the trade union representatives

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 Method Study

• Method study Is the systematic recording,
  analysis and critical examination of existing and
  proposed ways of doing work and the development
  and applications of easier and new production
  methods
• Application of Method Study
• Improved layout of office, working area or
  factory
• Improved design of plant and equipment
• Improved use of material, plant, equipment and
  manpower
• Most effective handling of material
• Improved flow of work
• Standardization of methods and procedures
• Improved safety standards
• Better working conditions
• Improved achievement with less effort
• Productive and effective utilization of human
  effort
• Economy of expenditure

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Method Study
Select Select the work to be studied
Record Record all the relevant facts of the present (or proposed) method by direct observations.
Examine Examine the facts critically by following the critical examination procedure on special critical examination sheets.
Develop Develop the best methods i.e., most practical, economic and effective method, under prevailing circumstances.
Install Install that method as standard practice
Maintain Maintain that standard practice by regular, routine check.
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Recording and Charting

• Data or relevant facts pertaining to the existing
  method must be collected and recorded
• The method of recording will vary with the type
  and nature of data
• One objective of method study is to eliminate
  unnecessary writing and form filling
• Graphical presentation of the data usually makes
  it easier to grasp the implication of the facts
  and to highlight the points needing further
  Investigation.
• The recording may trace the movements of men,
  material or details of various processes

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Recording Techniques
Charts They Record
Graphs Tables Outline Process Chart Flow Process Chart Two-Handed Process Chart Multiple Activity Chart Information on limiting factors of the situation, background Principal operations and Inspection of the process. Activities of men, material or equipment Movement of (two) hands or limbs of the operator. Simultaneous/inter-related activities of operators and/or machines, on a common time scale.
Diagrams They Record
Flow Diagram Path of men, materials and equipment on a scaled model.
String Diagram Same as above except for the variation that It uses string to trace the path.
Two and three Dimensional Models and templates Planning of layout of work place or plant.
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Recording Techniques
Photographic Aids They Record
Cyclograph and chrono cycle graphs High speed, short cycle movements.
Simultaneous Motion Cycle Chart (SIMO) Movement of parts of the body of the operator expressed In terms of therbUgs on a common time scale.
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WORK MEASUREMENT

• Work measurement also known as time study, refers
  to techniques employed for timing an operator or
  activity
• The purpose for determining the standard time to
  perform a given task, under given set of
  conditions
• It is obviously a waste of time to measure the
  work content of a job until one is certain that
  the method is satisfactory
• Work measurement follows from method study
• work measurement Is still considered by
  progressive firms as Indispensable In the fields
  of costing, planning and loading.

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WORK MEASUREMENT

• Work measurement can be defined as the
  application of technique designed to establish
  proper time for a qualified worker to carry out a
  specified job by a prescribed method at a defined
  level of performance
• The defined level of performance is that optimum
  rate of output that can be achieved by a
  qualified worker on an average for a working day
  or shift, after making due allowance for the
  necessary time required for rest.

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Unit of work

• A unit of work consists partly of work and partly
  of relaxation, the proportion of relaxation to
  work varying with the nature of the job. In
  current practice

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.Objective

• The main objective of work measurement is to
  obtain the standard against which the
  performance of an operator may be measured for
  the purpose of
• a) Correct loading of labour
• b) Correct loading of plant and machinery
• c) Maintenance of sound Incentive schemes
• d) Initial costing of the product and subsequent
  control of these costs
• e) Assisting the future planning of the
  department
• f) Assisting method study In the choice of
  better and quicker methods

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Performance Rating

• All operators do not work at the same pace.
• Rating the speed of an operator is a matter of
  judgement on the part of the time study analyst
  and is one of the areas in time study
• The Westinghouse System, the rating takes into
  account four factors namely skill, effort,
  working condition and consistency
• The most widely used system of rating is the
  overall 100 rating scale

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Allowances

• A human being is not a machine
• In order to determine a fair and just time
  standard, some allowances must be made
• Allowances may fall into one of the following
  categories
• a) Relaxation allowances ( 10-12)
• b) Contingency allowances for work or delays (
  5)
• c) Unoccupied time allowances
• d) Interference allowances
• e) Company policy allowances.
• Minimum relaxation- allowance for man and woman
  should be 10 and 12 respectively

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Allowances

• Contingency Allowance
• It is a small allowance of time which may be
  Included in a standard time to meet the
  legitimate expected items of work or delays
• Unoccupied time allowance
• Unoccupied time is the period during machine
  controlled time when a worker is neither engaged
  on inside work nor taking authorized rest.
• Interference allowance
• An operator attends to more machines at a time
  and the Interference allowance

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• End of chapter IV

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• Chapter V Introduction to Production Planning
  and control

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What is PPC ?

• The highest efficiency in production is obtained
  by manufacturing the required quantity of
  product, of the required quality, at the required
  time, by the best and cheapest method
• To obtain the above target, management employs
  PPC tool to coordinate all manufacturing
  activities

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Planning

• Planning begins with an analysis of the forecast
  and confirmed orders
• A scheme for utilization the firms resources can
  be outlined so that the desirable targets may be
  most efficiently attained
• Production planning for new established
  products are separately identified
• WIP finished goods stocks need to be planned
  taken into account
• Decision to manufacture to stock or order
• Production plan sets sub-targets for various
  depts in predetermined time periods

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MRP- Manufacturing Resources Planning

• Also known as single stage planning
• The main factor in determining release times is
  the lead time to produce a product
• Lead time is the total time from when the product
  is released into the system to the time it is
  finished
• MRP is based on an assumption that the lead time
  of the product is a non random constant
• MRP models determine release times of the product

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Aggregate production planning (APP)

• Also known as multistage planning
• Process of determining
• Timing qty of production
• Inventory Level
• No of workers employed
• Amount of overtime used for up 12 months ahead

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• Operations are performed in accordance with the
  details set in the production plan.
• Control initiates and supervises operations with
  the aid of a control mechanism that feeds back
  information about the progress of the work
• Hence, production planning and control may be
  summarily defined as the direction and
  coordination of the firm's material and physical
  facilities toward the attainment of pre-specified
  production goals, in the most efficient available
  way.

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PPC Classification

• Materials
• Raw materials, as well as standard finished parts
  and semi-finished products must be available
  when required
• The above point indicate that each production
  operation will start on time
• Duties include the specification of materials
  (both with respect to dimensions and quality),
  quantities and availability, delivery dates,
  standardization and reduction of variety,
  procurement and inspection
• This function also covers the procurement of
  semi-finished products from sub-contractor

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PPC Classification

• Methods
• To analyze possible methods of manufacture and to
  try to define the best method compatible with a
  given set of circumstances and facilities
• It covers both the general study and selection of
  production processes for the manufacture of
  components or assemblies
• Determining the sequence of operations and the
  division of the product into assemblies and
  subassemblies

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PPC Classification

• Machines and equipment
• Detailed study of equipment replacement policy
• Maintenance policy, procedure, and schedules are
  also functions connected with managerial
  responsibility for equipment
• Tools management
• Manpower
• Adequate workforce with necessary skills are
  required

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PPC Classification

• Routing
• Each stage in production is broken down to define
  each operation in detail
• Routing prescribes the flow of work in the plant
  and is related to considerations of layout, of
  temporary storage locations for raw materials and
  components, and of materials handling systems.
• Routing is a fundamental production function on
  which all subsequent planning is based.. This is
  generally achieved by route-card or travel card
  etc.,

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PPC Classification

• Estimating
• Operation times can be worked out
• This function involves the extensive use of
  operation analysis in conjunction with methods
  and routing, as well as work measurement.

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PPC Classification

• Loading Scheduling
• Machines have to be loaded according to their
  capability of performing the given task and
  according to their capacity
• Machine loading is carried out in conjunction
  with routing for smooth work flow
• Scheduling determines utilization of equipment
  and manpower and hence the efficiency of plant
  Scheduling

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PPC Classification

• Expediting
• Dispatching initiates the execution of production
  plans, whereas expediting maintains them.
• This function has to keep close liaison with
  scheduling
• Inspection
• The control of quality is often detached from the
  production planning and control department

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PPC Classification

• Evaluating
• An essential link between control and future
  planning, is that of evaluating
• Feedback mechanism on a longer term basis
• Past experience can be evaluated with the view to
  improving utilization of methods and facilities
• Divorce part of it from production planning and
  control and to establish it as a separate
  department in its own right

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PPC Classification

• Pre-Planning
• Analysis of data and outline of basic planning
  policy baaed on sales reports, market research,
  and product development and design
• This stage is concerned with problems of
  equipment buy and replacement, new processes and
  materials, layout, and work flow.
• Collecting data on the "4 M's," i.e., on
  materials, methods, machines, and manpower,
  mainly with respect to availability, scope, and
  capacity

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PPC Classification

• Planning
• A thorough analysis of the "4 M's" is first
  undertaken to select the appropriate materials,
  methods, and facilities by means of which the
  work can be accomplished
• There are two aspects of planning a short-term
  one, concerned with immediate production
  programs, and a long-term phase, where plans for
  the more distant future are considered and shaped

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PPC Classification

• Control
• Control of inventories, control of scrap,
  analysis of work in process, and control of
  transportation are essential links of this stage
• This stage is affected by means of dispatching,
  inspection, and expediting.

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 Documents used in PPC

• Master production schedule
• Master process sheets
• Job cards/Routing/Dispatching cards
• Materials requisitions
• Man-power utilization cards
• Planned maintenance schedules
• Summary of rejections/reworks
• Suitable graphical/pictorial information sheet
• Production hold up/stork-out information sheet
• Anticipated production hold-up data sheet

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End of chapter V