Cours File IM

8/6/2019 Cours File IM

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Prepared by: Dr. Vandana Mittal,Dr.Ansar-Ul-Haque,Dr.Raj Kumari,Ms Surat Pyari & Ms Anuja Agarwal

INDUSTRIAL MANAGEMENT

I unit-

Introduction : Concept, Development, application and scope of Industrial Management.

Productivity : Definition, measurement, productivity index, types of production system, Industrial Ownership.

MANAGEMENT

Traditional Author says that management is an art of getting things done through people where as modern authors says

that management is a process of accomplishing certain objectives through the utilization of human and other resource.

MANAGEMENT FUNCTIONS

PLANNING ORAGANISING DIRECTING

STAFFING

IMPORTANCE OF MANAGEMENT

For the accomplishment of the goals.

For effective utilization of the resources.

Sound Organization.

Providing vision &Foresight.

For the harmony in work. To help employees in achieving personal objective.

Development of the society and nation.

INDUSTRIAL MANGEMENT

Industrial management is now a branch of engineering which facilitates creation of management system and

integrates same with people and their activities to utilize the resources.

Industrial management is structured approach to mange the operational activities of the organization.

SCOPE OF INDUSTRIAL MANGEMENT

1. Related to Designing of the production system.(see notes)

2. Relating to analysis & control of production operation.(see notes)

APPLICATION OF THE INDUSTRIAL MANGEMNT

1. Planning Function

For Designing Conversion System

For Scheduling Conversion System


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2. Organizing Function

Organizing for conversion

Structuring of Operation Staffing

Job & Work Design.

For Production & Operation Standard.

For Payment system.

3. Controlling Function

Quality

Quantity

Time

Inventory

Cost

Maintenance

PRODUCTIVITY

Production is transformation of inputs into the output of commodity in a specific period of time with the given

technology.

Production implies the creation of form, place and time utilities of different usable commodities and service.

Productivity measures the efficiency of the production system. Or productivity may be defined as ratio between output

and input.

Output means the amount produced or the number of items produced.

Input are the various sources employed like land. Building, equipment, machinery, material, labor, etc

Output

Productivity =

Input

PRODUCTIVITY INDEX

Performance Achieved (Effectiveness)

PRODUCTIVITY INDEX=

Input Resources Consumed (Efficiency)

Efficiency is the ratio of actual output attained to the standard expected output. It measures of how well the

resources are utilized to accomplish the target or result.

Effectiveness is the degree of accomplishing the objectives


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Production System

The production system can be viewed as a framework or skeleton of activities within which the creation of value

can occur.

The difference between the value of input and the value of output represent the value created through

production activities.

At the one end of the production system are the input and at the other end are output.

Connecting the input and output are a series of operations or processes, storage and inspections represent the

simplified production system.

PRODUCTION SYSTEM

Input Receiving Reports

Row material Inventory Reports

Operation - 1 Schedules

Production Manager

Operation 2 Route Sheets

Production Reports

Operation 3 Time and Cost Record

Final inspection Inspection Reports

Finished goods storage Inventory ReportsOutput Shipping Orders

INPUT OUTPUT MODEL (ANALYSIS OF PRODUCTION SYSTEM)

It is one of the basic models of the production system.

Production system is the set of interconnected input output element.

It is made up of three component parts namely Input, Output and Process.

A wide variety of inputs are transformed so that they give out a set of output.

The transforming process can be complicated and the design of an actual input and output system for

manufacturing may be expensive and difficult.


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Purpose to Increase Productivity:

FOR MANAGEMENT

To produce good earning (profit).

To clear the debt or loans acquired from different sources.

To sell more. To stand better in the market.

FOR WORKERS

HIGHER WAGES.

Better Working Conditions.

Higher standard of living.

Job Security and Satisfaction

FOR CUSTOMER

To reduced price of the article.

MATERIAL

MEN

ENERGY

PLANT &

FACILITIES

GOODES & SERVICES

INPUT OUTPUTPRODUTION

PROCESS

INPUT PRODUTION PROCESS

OUTPUT


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INDUSTRIAL OWNER SHIP

Sole Proprietorship State & Central Govt .

Partnership Joint Stock Company Co operative Organization

Sole Proprietorship

Sole Proprietorship is that form of Industrial ownership in which Individual Exercise & enjoy all rights related to business

in his own interest.

Merits

Easy Formation

Easy to Operate

Secrecy

Simplicity

Demerits

Limited Resources

Lack of Continuity

Unlimited Liability

Limited Managerial Ability

Partnership

Partnership may be defined as the relation between person who has agreed to share the profits of a business

carried on by all or any of them acting for all.

Merits

Legal Entity Risk Sharing

More Funds

Continuity

Mutual Agency

Demerits

Unlimited Liability


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Limited Resources

Possibility Of Conflict

Lack of Public Interest

Joint Stock Company

A joint stock Company means an association of several people who contributed money or moneys worth to a

joint or common stock & employ it in same business & share among themselves the profit or loss arising from it.

Merits

Limited Liability

Transfer of Interest

Perpetual Existence

Scope for Management

Professional Management

Demerits

Complexity in Formation

Lack of Secrecy

Impersonal Work Environment

Numerous Regulation

Delay In Decision Making

Co Operative Undertaking

The Co Operative society is voluntary association of person, who join together with the motive of welfare of the

members and society.

Merits

Limited liability

Economy in Operation

Support From Government

Stable Existence

Ease of Formation

Demerits

Limited Resources

Inefficiency in Management

Lack Of Secrecy

Government Control

Difference Of Opinion


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II unit-

Management Function : Principles of Management- Management Tools time and motion study, work simplification-

process charts and flow diagrams, Production Planning, Specification of Production requirements.

Management Function: Management

Management is generic. Management principles are general rather than specific to a type of firm ororganization. However, management is universal only if the manager has become familiar with the specificsituation in which it is applied. Production technology, customer characteristics and the culture of the industryare examples of specifics that managers need to learn to be effective in applying their generic managementskills. Management is creative problem solving. This creative problem solving is accomplished through four functions of management: planning, organizing, leading and controlling. The intended result is the use of an

organization's resources in a way that accomplishes its mission and objectives.

Planningis the ongoing process of developing the business' mission and objectives and determining how theywill be accomplished. Planning includes both the broadest view of the organization, e.g., its mission, and thenarrowest, e.g., a tactic for accomplishing a specific goal.

Organizing is establishing the internal organizational structure of the organization. The focus is on divisioncoordination, and control of tasks and the flow of information within the organization. It is in this function thamanagers distribute authority to job holders.

Staffing is filling and keeping filled with qualified people all positions in the business. Recruiting, hiring,training, evaluating and compensating are the specific activities included in the function. In the family business

staffing includes all paid and unpaid positions held by family members including the owner/operators.

Directingis influencing people's behavior through motivation, communication, group dynamics, leadership anddiscipline. The purpose of directing is to channel the behavior of all personnel to accomplish the organization'smission and objectives while simultaneously helping them accomplish their own career objectives.

Controlling is a four-step process of establishing performance standards based on the firm's objectives,measuring and reporting actual performance, comparing the two, and taking corrective or preventive action asnecessary.

The American Luther Gulick and Brit Lydnall Urwick expanded Fayol's list to seven executive management

activities summarized by the acronym POSDCORB:

planning: determine objectives in advance and the methods to achieve them;organizing: establish a structure of authority for all work;staffing: recruit, hire and train workers; maintain favourable working conditions;directing: make decisions, issue orders and directives;coordinating: interrelate all sectors of the organisation;reporting: inform hierarchy through reports, records and inspections;budgeting: depend on fiscal planning, accounting and control.
http://www.ag.ohio-state.edu/~mgtexcel/Planning.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Planning.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Organize.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Organize.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Staffing.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Staffing.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Direct.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Direct.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Control.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Control.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Control.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Direct.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Staffing.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Organize.htmlhttp://www.ag.ohio-state.edu/~mgtexcel/Planning.html


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Each of these functions involves creative problem solving. (Figure 4.2 from Higgins, page 118) Creative problem solving

is broader than problem finding, choice making or decision making. It extends from analysis of the environment within

which the business is functioning to evaluation of the outcomes from the alternative implemented

Henri Fayol, the father of the school of Systematic Management, was motivated to create a theoretical foundation for a

managerial educational program based on his experience as a successful managing director of a mining company. In his

day, managers had no formal training and he observed that the increasing complexity of organisations would require more

professional management.

Principles of Management

A principle refers to a fundamental truth. It establishes cause and effect relationship between two or morevariables under given situation. They serve as a guide to thought & actions. Therefore, management principlesare the statements of fundamental truth based on logic which provides guidelines for managerial decisionmaking and actions. These principles are derived: -

a. On the basis of observation and analysis i.e. practical experience of managers.b. By conducting experimental studies.

There are 14 Principles of Management described by Henri Fayol.

1. Division of Labora. Henry Fayol has stressed on the specialization of jobs.b. He recommended that work of all kinds must be divided & subdivided and allotted to various

persons according to their expertise in a particular area.c. Subdivision of work makes it simpler and results in efficiency.d. It also helps the individual in acquiring speed, accuracy in his performance.e. Specialization leads to efficiency & economy in spheres of business.

2. Party of Authority & Responsibilitya. Authority & responsibility are co-existing.b. If authority is given to a person, he should also be made responsible.c. In a same way, if anyone is made responsible for any job, he should also have concerned

authority.d. Authority refers to the right of superiors to get exactness from their sub-ordinates whereas

responsibility means obligation for the performance of the job assigned.e. There should be a balance between the two i.e. they must go hand in hand.f. Authority without responsibility leads to irresponsible behavior whereas responsibility without

authority makes the person ineffective.


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3. Principle of One Bossa. A sub-ordinate should receive orders and be accountable to one and only one boss at a time.b. In other words, a sub-ordinate should not receive instructions from more than one person

because

- It undermines authority- Weakens discipline

- Divides loyalty- Creates confusion- Delays and chaos- Escaping responsibilities- Duplication of work- Overlapping of efforts

c. Therefore, dual sub-ordination should be avoided unless and until it is absolutely essential.d. Unity of command provides the enterprise a disciplined, stable & orderly existence.e. It creates harmonious relationship between superiors and sub-ordinates.

4. Unity of Direction

a. Fayol advocates one head one plan which means that there should be one plan for a group ofactivities having similar objectives.

b. Related activities should be grouped together. There should be one plan of action for them andthey should be under the charge of a particular manager.

c. According to this principle, efforts of all the members of the organization should be directedtowards common goal.

d. Without unity of direction, unity of action cannot be achieved.e. In fact, unity of command is not possible without unity of direction.

Basis Unity of command Unity of direction

Meaning It implies that a sub-ordinate should receiveorders & instructions from only one boss.

It means one head, one plan for a group ofactivities having similar objectives.

Nature It is related to the functioning of personnels. It is related to the functioning ofdepartments, or organization as a whole.

Necessity It is necessary for fixing responsibility of eachsubordinates.

It is necessary for sound organization.

Advantage It avoids conflicts, confusion & chaos. It avoids duplication of efforts and wastage


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of resources.

Result It leads to better superior sub-ordinaterelationship.

It leads to smooth running of the enterprise.

Therefore it is obvious that they are different from each other but they are dependent on each other i.e. unity ofdirection is a pre-requisite for unity of command. But it does not automatically comes from the unity ofdirection.

5. Equitya. Equity means combination of fairness, kindness & justice.b. The employees should be treated with kindness & equity if devotion is expected of them.

c. It implies that managers should be fair and impartial while dealing with the subordinates.d. They should give similar treatment to people of similar position.e. They should not discriminate with respect to age, caste, sex, religion, relation etc.f. Equity is essential to create and maintain cordial relations between the managers and sub-

ordinate.g. But equity does not mean total absence of harshness.h. Fayol was of opinion that, at times force and harshness might become necessary for the sake of

equity.

6. Ordera. This principle is concerned with proper & systematic arrangement of things and people.b. Arrangement of things is called material order and placement of people is called social order.

c. Material order- There should be safe, appropriate and specific place for every article and everyplace to be effectively used for specific activity and commodity.

d. Social order- Selection and appointment of most suitable person on the suitable job. Thereshould be a specific place for every one and everyone should have a specific place so that theycan easily be contacted whenever need arises.

7. Disciplinea. According to Fayol, Discipline means sincerity, obedience, respect of authority & observance

of rules and regulations of the enterprise.

b. This principle applies that subordinate should respect their superiors and obey their order.c. It is an important requisite for smooth running of the enterprise.d. Discipline is not only required on path of subordinates but also on the part of management.

e. Discipline can be enforced if -

- There are good superiors at all levels.- There are clear & fair agreements with workers.- Sanctions (punishments) are judiciously applied.

8. Initiativea. Workers should be encouraged to take initiative in the work assigned to them.b. It means eagerness to initiate actions without being asked to do so.


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c. Fayol advised that management should provide opportunity to its employees to suggest ideas,experiences& new method of work.

d. It helps in developing an atmosphere of trust and understanding.e. People then enjoy working in the organization because it adds to their zeal and energy.f. To suggest improvement in formulation & implementation of place.g. They can be encouraged with the help of monetary & non-monetary incentives.

9. Fair Remuneration

a. The quantum and method of remuneration to be paid to the workers should be fair, reasonable,satisfactory & rewarding of the efforts.

b. As far as possible it should accord satisfaction to both employer and the employees.c. Wages should be determined on the basis of cost of living, work assigned, financial position of

the business, wage rate prevailing etc.d. Logical & appropriate wage rates and methods of their payment reduce tension & differences

between workers & management creates harmonious relationship and pleasing atmosphere ofwork.

e. Fayol also recommended provision of other benefits such as free education, medical &residential facilities to workers.

10.Stability of Tenure

a. Fayol emphasized that employees should not be moved frequently from one job position toanother i.e. the period of service in a job should be fixed.

b. Therefore employees should be appointed after keeping in view principles of recruitment &selection but once they are appointed their services should be served.

c. According to Fayol. Time is required for an employee to get used to a new work & succeed todoing it well but if he is removed before that he will not be able to render worthwhile services.

d. As a result, the time, effort and money spent on training the worker will go waste.e. Stability of job creates team spirit and a sense of belongingness among workers which ultimately

increase the quality as well as quantity of work.11.Scalar Chain

a. Fayol defines scalar chain as The chain of superiors ranging from the ultimate authority to the

lowest.b. Every orders, instructions, messages, requests, explanation etc. has to pass through Scalar chain.c. But, for the sake of convenience & urgency, this path can be cut shirt and this short cut is known

as Gang Plank.d. A Gang Plank is a temporary arrangement between two different points to facilitate quick &

easy communication as explained below:


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In the figure given, if D has to communicate with G he will first send the communicationupwards with the help of C, B to A and then downwards with the help of E and F to G which willtake quite some time and by that time, it may not be worth therefore a gang plank has beendeveloped between the two.

e. Gang Plank clarifies that management principles are not rigid rather they are very flexible. Theycan be moulded and modified as per the requirements of situations

12.Sub-Ordination of Individual Interest to General Interesta. An organization is much bigger than the individual it constitutes therefore interest of the

undertaking should prevail in all circumstances.b. As far as possible, reconciliation should be achieved between individual and group interests.c. But in case of conflict, individual must sacrifice for bigger interests.d. In order to achieve this attitude, it is essential that -

- Employees should be honest & sincere.- Proper & regular supervision of work.- Reconciliation of mutual differences and clashes by mutual agreement. For example,for change of location of plant, for change of profit sharing ratio, etc.

13.Espirit De Corps (can be achieved through unity of command)a. It refers to team spirit i.e. harmony in the work groups and mutual understanding among the

members.b. Spirit De Corps inspires workers to work harder.c. Fayol cautioned the managers against dividing the employees into competing groups because it

might damage the moral of the workers and interest of the undertaking in the long run.d. To inculcate Espirit De Corps following steps should be undertaken -

There should be proper co-ordination of work at all levels Subordinates should be encouraged to develop informal relations among themselves. Efforts should be made to create enthusiasm and keenness among subordinates so that

they can work to the maximum ability. Efficient employees should be rewarded and those who are not up to the mark should be

given a chance to improve their performance. Subordinates should be made conscious of that whatever they are doing is of great

importance to the business & society.e. He also cautioned against the more use of Britain communication to the subordinates i.e. face to

face communication should be developed. The managers should infuse team spirit &belongingness. There should be no place for misunderstanding. People then enjoy working in theorganization & offer their best towards the organization.

f.14.Centralization & De-Centralization

a. Centralization means concentration of authority at the top level. In other words, centralization isa situation in which top management retains most of the decision making authority.

b. Decentralization means disposal of decision making authority to all the levels of theorganization. In other words, sharing authority downwards is decentralization.

c. According to Fayol, Degree of centralization or decentralization depends on no. of factors likesize of business, experience of superiors, dependability & ability of subordinates etc.

d. Anything which increases the role of subordinate is decentralization & anything which decreasesit is centralization.

e. Fayol suggested that absolute centralization or decentralization is not feasible. An organizationshould strike to achieve a lot between the two.


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Management tools

Classic Tools

There's an elusive balance between chasing after each new management tool or method, and ignoring the factthat we have actually learned some things about management over the past 100,000 years. The best tools are

those which stand the test of time, and which give you a lot of leverage over common problems.

Quality Control Charts Other Quality Management Tools

Pie charts

Bar charts

Run Charts

Radar Charts

Scatter Plots

Histograms

Pareto Charts

Normal Test Plots

Process Capability Calculations

Control Charts

Relations Diagram

Pathway

Affinity Diagrams

Brainstorms

Building Consensus

Cause and Effect Diagrams

Flowcharts

Force Field Diagrams

Tree Diagrams

Pie Charts

Pie charts are used to show classes or groups of data in proportion to the whole data set. The entire pierepresents all the data, while each slice represents a different class or group within the whole.
http://www.skymark.com/resources/tools/pie_charts.asphttp://www.skymark.com/resources/tools/bar_charts.asphttp://www.skymark.com/resources/tools/run_charts.asphttp://www.skymark.com/resources/tools/radar_charts.asphttp://www.skymark.com/resources/tools/scatter_plots.asphttp://www.skymark.com/resources/tools/histograms.asphttp://www.skymark.com/resources/tools/pareto_charts.asphttp://www.skymark.com/resources/tools/normal_test_plot.asphttp://www.skymark.com/resources/tools/process_capability.asphttp://www.skymark.com/resources/tools/control_charts.asphttp://www.skymark.com/resources/tools/relations_diagram.asphttp://www.skymark.com/resources/tools/pathway.asphttp://www.skymark.com/resources/tools/affinity_diagram.asphttp://www.skymark.com/resources/tools/brainstorming.asphttp://www.skymark.com/resources/tools/building_consensus.asphttp://www.skymark.com/resources/tools/cause.asphttp://www.skymark.com/resources/tools/flowchart.asphttp://www.skymark.com/resources/tools/force_field_diagram.asphttp://www.skymark.com/resources/tools/tree%20diagram.asphttp://www.skymark.com/resources/tools/tree%20diagram.asphttp://www.skymark.com/resources/tools/force_field_diagram.asphttp://www.skymark.com/resources/tools/flowchart.asphttp://www.skymark.com/resources/tools/cause.asphttp://www.skymark.com/resources/tools/building_consensus.asphttp://www.skymark.com/resources/tools/brainstorming.asphttp://www.skymark.com/resources/tools/affinity_diagram.asphttp://www.skymark.com/resources/tools/pathway.asphttp://www.skymark.com/resources/tools/relations_diagram.asphttp://www.skymark.com/resources/tools/control_charts.asphttp://www.skymark.com/resources/tools/process_capability.asphttp://www.skymark.com/resources/tools/normal_test_plot.asphttp://www.skymark.com/resources/tools/pareto_charts.asphttp://www.skymark.com/resources/tools/histograms.asphttp://www.skymark.com/resources/tools/scatter_plots.asphttp://www.skymark.com/resources/tools/radar_charts.asphttp://www.skymark.com/resources/tools/run_charts.asphttp://www.skymark.com/resources/tools/bar_charts.asphttp://www.skymark.com/resources/tools/pie_charts.asp


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Bar Charts

Bar Charts, like pie charts, are useful for comparing classes or groups of data. In bar charts, a class or group canhave a single category of data, or they can be broken down further into multiple categories for greater depth ofanalysis.

Run Charts

Run charts (often known as line graphs outside the quality management field) display process performance overtime. Upward and downward trends, cycles, and large aberrations may be spotted and investigated further. In arun chart, events, shown on they axis, are graphed against a time period on thex axis. For example, a run chartin a hospital might plot the number of patient transfer delays against the time of day or day of the week. Theresults might show that there are more delays at noon than at 3 p.m. Investigating this phenomenon could


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unearth potential for improvement. Run charts can also be used to track improvements that have been put intoplace, checking to determine their success. Also, an average line can be added to a run chart to clarifymovement of the data away from the average.

Radar Charts

Radar charts are useful when you want to look at several different factors all related to one item. Radar chartshave multiple axes along which data can be plotted. For example, you could use a radar chart to compile dataabout a wide receiver on a professional football team. On one axis, you could plot the percentage of passescaught. Another axis would show his yards per completion; another, his completions per 100 plays; another,blocks made; and a final axis might show his interceptions.

Scatter Plots

Scatter Plots (also called scatter diagrams) are used to investigate the possible relationship between twovariables that both relate to the same "event." A straight line of best fit (using the least squares method) is oftenincluded.


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Histograms

A histogram is a specialized type of bar chart. Individual data points are grouped together in classes, so that youcan get an idea of how frequently data in each class occur in the data set. High bars indicate more points in aclass, and low bars indicate less points. In the histogram show above, the peak is in the 40-49 class, where thereare four points.

Pareto Charts

Vilfredo Pareto, a turn-of-the-century Italian economist, studied the distributions of wealth in differentcountries, concluding that a fairly consistent minorityabout 20%of people controlled the large majority about 80%of a society's wealth. This same distribution has been observed in other areas and has been termedthe Pareto effect.


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Normal Test Plot

Normal Test Plots (also called Normal Probability Plots or Normal Quartile Plots) are used to investigatewhether process data exhibit the standard normal "bell curve" or Gaussian distribution.

Process Capability

The capability of a process is some measure of the proportion of in-specification items the process produceswhen it is in a state of statistical control.

For valid process capability calculations, all data must be from an in-control process, with respect to both themean and standard deviation. Make sure to check this data in a variables control chart to make sure that allpoints in the x bar, s or R charts are in control. If they aren't, your capability indices in the statistics dialog boxare not valid.

Control Charts

Every process varies. If you write your name ten times, your signatures will all be similar, but no two signatureswill be exactly alike. There is an inherent variation, but it varies between predictable limits. If, as you aresigning your name, someone bumps your elbow, you get an unusual variation due to what is called a "specialcause". If you are cutting diamonds, and someone bumps your elbow, the special cause can be expensive. Formany, many processes, it is important to notice special causes of variation as soon as they occur.


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Other Quality Management Tools

Relations Diagram (or Interrelationship Digraph)

Relations Diagrams are drawn to show all the different relationships between factors, areas, or processes. Why

are they worthwhile? Because they make it easy to pick out the factors in a situation which are the ones whichare driving many of the other symptoms or factors. For example, a relations diagram of urban poverty mightstart out something like this:

Instead of one item following another in a logical sequence, each item is connected to many other piecesshowing that they have an impact on each one. Once all the relevant connections between items have beendrawn, the connections are counted. Those with the most connections will usually be the most important factorsto focus on.

Project Pathways for Management

One of the common features of modern management thinking is its focus on methodologies for problem-solving. Dr. Deming used the Plan-Do-Check-Act cycle. Marshall-Qualtec espouses a seven-step problem


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solving model. The Juran Institute has a slightly different method. So does Executive Learning Inc. That said,all the approaches, while different in the details, are very similar overall.The pathway, embodied in software, isa key means of keeping a team focused and on-track. It also provides an easy way for managers of manyprojects or departments to keep tabs on the status and progress of work.

Affinity Diagram

The affinity diagram, or KJ method (after its author, Kawakita Jiro), wasn't originally intended for qualitymanagement. Nonetheless, it has become one of the most widely used of the Japanese management andplanning tools. The affinity diagram was developed to discovering meaningful groups of ideas within a raw listIn doing so, it is important to let the groupings emerge naturally, using the right side of the brain, rather thanaccording to preordained categories.

To create an affinity diagram, you sort the brainstormed list, moving ideas from the brainstorm into affinity setsand creating groups of related ideas. As you sort ideas:

1. Rapidly group ideas that seem to belong together.

2. It isn't important to define why they belong together.

3. Clarify any ideas in question.

4. Copy an idea into in more than one affinity set if appropriate.

5. Look for small sets. Should they belong in a larger group?

6. Do large sets need to be broken down more precisely?

7. When most of the ideas have been sorted, you can start to enter titles for each affinity set.

Brainstorming

Creative thinking requires tools such as the brainstorm and the affinity diagram. Brainstorming is simply listingall ideas put forth by a group in response to a given problem or question. In 1939, a team led by advertising

executive Alex Osborn coined the term "brainstorm." According to Osborn, " Brainstorm means using the braintostorm a creative problem and to do so "in commando fashion, each stormer audaciously attacking the sameobjective." Creativity is encouraged by not allowing ideas to be evaluated or discussed until everyone has rundry. Any and all ideas are considered legitimate and often the most far-fetched are the most fertile. Structuredbrainstorming produces numerous creative ideas about any given "central question". Done right, it taps thehuman brain's capacity for lateral thinking and free association.

Brainstorms help answer specific questions such as:

What opportunities face us this year?

What factors are constraining performances in Department X?

What could be causing problem Y?

What can we do to solve problem Z?

Building Consensus

The word consensus comes to us from Latin roots meaning "shared thought". Consensus does not implycomplete agreement, but does involve seeking a decision with which everyone is reasonably comfortable. Toaccomplish this, everyone will need a fair opportunity to be heard and latent issues must be explored to the


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satisfaction of the group. Many different tools can be used to build consensus. In fact, all the tools used inquality management contribute to consensus. For example, a well-run brainstorming session can get lots ofideas out onto the table and give everyone a chance for input. Still, most groups approach a point where theymust choose between options, or try to narrow a list from many items to just a few. For this, effective toolsspecifically for building consensus are used.

Cause & Effect DiagramThe cause & effect diagram is the brainchild of Kaoru Ishikawa, who pioneered quality management processesin the Kawasaki shipyards, and in the process became one of the founding fathers of modern management.

The C&E diagram is also known as the fishbone diagram because it was drawn to resemble the skeleton of afish, with the main causal categories drawn as "bones" attached to the spine of the fish, as shown below.

Flowcharting

Flowcharts are maps or graphical representations of a process. Steps in a process are shown with symbolicshapes, and the flow of the process is indicated with arrows connecting the symbols. Computer programmerspopularized flowcharts in the 1960's, using them to map the logic of programs. There are many varieties offlowcharts and scores of symbols that you can use. Experience has shown that there are three main types that

work for almost all situations:

High-level flowcharts map only the major steps in a process for a good overview.

Detailed flowcharts show a step-by-step mapping of all events and decisions in a process.


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Deployment flowcharts which organize the flowchart by columns, with each column representing a person or department involved in aprocess.

The trouble spots in a process usually begin to appear as a team constructs a detailed flowchart.

Although there are many symbols that can be used in flowcharts to represent different kinds of steps, accurateflowcharts can be created using very few (e.g. oval, rectangle, diamond, delay, cloud).

Force Field Analysis

Force Field Analysis is a simple but powerful technique for building an understanding of the forces that willdrive and resist a proposed change. It consists of a two column form, with driving forces listed in the firstcolumn, and restraining forces in the second.


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The force field diagram is derived from the work of social psychologist Kurt Lewin. According to Lewins

theories, human behavior is caused by forces beliefs, expectations, cultural norms, and the like within the"life space" of an individual or society. These forces can be positive, urging us toward a behavior, or negativepropelling us away from a behavior. A force field diagram portrays these driving forces and restraining forcesthat affect a central question or problem. A force field diagram can be used to compare any kind of opposites,actions and consequences, different points of view, and so on.

Tree Diagram

The tree diagram is one of the 7 Management and Planning Tools described by Shigeru Mizuno. It is used tofigure out all the various tasks that must be undertaken to achieve a given objective. If you use it carefully andthoroughly, it will give you a better understanding of the true scope of a project, and will help your teamfocuses on specific tasks that are needed to get something done.

Time and motion study

A time and motion study (or time-motion study) is a business efficiency technique combining the Time Study

work of Frederick Winslow Taylor with the Motion Study work of Frank and Lillian Gilbreth (not to beconfused with their son, best known through the biographical 1950 film and bookCheaper by the Dozen). Afterits first introduction, time study developed in the direction of establishing standard times, while motion studyevolved into a technique for improving work methods. The two techniques became integrated and refined into awidely accepted method applicable to the improvement and upgrading of work systems. This integratedapproach to work system improvement is known as methods engineering.

Time and motion study have to be used together in order to achieve rational and reasonable results. It isparticularly important that effort be applied in motion study to insure equitable results when time study is usedIn fact, much of the difficulty with time study is a result of applying it without a thorough study of the motionpattern of the job. Motion study can be considered the foundation for time study. The time study measures the

time required to perform a given task in accordance with a specified method and is valid only so long as themethod is continued. Time studies are applied today to industrial as well as service organizations, includingbanks, schools and hospitals. Once a new work method is developed, the time study must be changed to agreewith the new method.

Methods-Time Measurement (MTM) is a predetermined motion time system that is used primarily inindustrial settings to analyse the methods used to perform any manual operation or task and, as a byproduct ofthat analysis, set the standard time in which a worker should complete that task.

Methodology

The rating, or Levelling, system used was the Westinghouse or LMS system so called after its originators

Lowry, Maynard and Stegemerten. This system considers four factors independently:

SkillProficiency in following the given method EffortThe will to work ConditionsThe general work surroundings Consistencyof performance

Each factor is assigned an alpha rating, e.g. B-, C+, A, etc. which has a numeric value which is appliedlater. This reduces the possibility of clock rating and ensures that all factors are considered in the composite

rating. Appendix 1 shows the model for Causes of Difference in Output on which the LMS system is based.
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Layout, distances, sizes of parts and tools and tolerances were accurately measured and recorded on the shopfloor to complement the later analyses.

The films were then projected frame-by-frame and analysed and classified in to a predetermined format ofBasicMotions. These Basic Motions were Reach, Grasp, Move, Position, Release, etc. A motion was taken to beginon the frame in which the hand first started performing the motion and was taken to end on the frame in whichthe motion was completed. This allowed a time for each recorded motion to be calculated in seconds, by means

of a frame count, and then levelled to a common performance.

Plots of the levelled times for the various motions were drawn. Analysis determined the best definitions oflimits of motions and their major, time-determining variables, and resulted in, more or less, the structure whichthe manual motions of MTM-1 have today. Later work, using Time Study, gave the table of Body Motions.

MTM is complementary to other Industrial Engineering charting analytical techniques; it does not replace themIt should be used after broader techniques have established the Necessity and Purpose, Place, Sequence, Personand Means of the tasks to be evaluated.

Unit

The unit in which movements are measured for MTM is TMU (time measurement unit): 1 TMU = 36milliseconds ; 1 hour = 100,000 TMU

1 TMU = 0.036 second

Work Simplification

Work simplification describes the making of daily tasks easier in order to reduce strain, or to decrease the

amount energy required to complete an activity. Work Simplification is a scientific approach to study workprocesses with a view to simplifying the process such that the work process becomes more efficient and

effective and thereby raises productivity and reduces wastage of labor effort, materials, space, time and energy

in the process of producing a good or delivering a service.

Work simplification techniques range from low-tech (such as using no-scrub cleaners) to high-tech (such as

using voice recognition software for typing).

Some examples include:

Using an automated can opener instead of the manual version Lengthening a short handle on a dustpan to avoid bending Using pre-pressed clothes that eliminate the need for ironing Sliding heavy objects or using a wheeled cart to avoid lifting Putting an automatic toilet cleaner in the bowl

Work simplification can be useful for people who wish to remain independent for as long as possible, even if

they have a chronic health condition.
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Allow for FlexibilitySimplification and Harmonization by its very definition allows for flexibility for the UN

Country Team and national partners to apply those Simplification and Harmonization measures that are

appropriate to their country situation and that take into account the financial management capacities available

for implementation and that empower recipient countries.

Contribute to Capacity BuildingThe Simplification and Harmonization must be an instrument towards

increased national capacities. It needs to be built around national systems and processes and must complement

the directions on aid coordination that governments in programme countries are pursuing.Link with other Simplification and Harmonization InitiativesSimplification and Harmonization process envisages

close collaboration with country offices and national partners, and must factor in and mutually build on the various efforts

at Simplification and Harmonization, notably of the OECD-DAC, World Bank and Regional Banks, the EU and others.

This will ensure synergy and complementarities.

Include other agencieswhile the various Simplification and Harmonization measures pertain largely to the four

ExCom agencies that have adopted a common Country Programme approach, a number of the recommendations could

apply to all the UN funds and programmes and specialized agencies at the country level. The gradual adoption of some of

the elements of the programme approach by the various other agencies might enable them to align with the other

measures.

Work Simplification has generated billions of dollars through effectiveness and efficiency for organizations that focused

on their people and gave them tools for continuous improvement. Over the past two decades, the glamour of electronics

has seduced many organizations into treating their people as expenses rather than resources. For those organizations

whose leaders truly believe that their people are their most valuable resource, the tools of Work Simplification are still

available - and better than ever.

In 1946, ASME did something that was even then a long time in the making. They established a set of symbols as the

ASME Standard for Operation and Flow Process Charts. Twenty-five years earlier Frank and Lillian Gilbreth had

presented "Process Charts - First Steps in Finding the One Best Way" at the Annual Meeting of ASME in 1921. By the

time the symbols were standardized they had evolved into a solid set of five symbols that covered every aspect of work, in

any work environment, that can be used with very little confusion. The first process charts appeared as a series of symbols

strung down a page in sequential order. This was (and still is) a simple and effective way to track the flow of a person or a

piece of material through a work process.- Operation. An operation occurs when an object is arranged or prepared for another step, assembled or disassembled or

intentionally changed.

- Transportation. A transportation occurs when an object is moved from one location to another.

-Inspection. An inspection occurs when an object is verified for quality or quantity in any of its characteristics.

-Delay. A delay occurs when an object waits for the next planned action.

- Storage. A storage occurs when an object is kept and protected against unauthorized removal.

These days, processes change so fast that many organizations have failed to keep up. Their work is undocumented and as

changes are made the complexity mounts. The simple and effective approach of Work Simplification has more to offer

than it ever had. However, its use is not widespread. It appears that many organizations are focusing their attention on

purchasing solutions for their business rather than mastering their work themselves. Where the purchased solutions lead to

downsizing, the corporate memory is discarded leaving the organization dependent on those from whom they purchased

their processes.

The Work Simplification approach utilizes the corporate memory rather than discarding it. It counters increasing

complexity with continuous improvement and enables the work force to be the masters of their processes. It is on the

program at many universities and it is being applied in increasing numbers of organizations across the US and Canada; in

South America, Europe and Australia as these companies seek to regain control of their operations.

New methods for studying work are introduced on a regular basis. Usually they focus effectively on one or another aspect

of improvement but they often fail because they do not deal rigorously with the work itself. This is a good time to look

back and discover again a simple tool that visually displays processes in a universal language that can be readily


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understood by anyone who wants to understand.

Today, if you are pursuing six sigma or lean manufacturing; if you are using Kazan or value stream mapping, if you are

managing your supply chain, developing a b2b strategy, establishing an electronic commerce presence, managing day to

day internal operations or documenting your processes for certification or audit, understanding the fundamental steps in

your work processes will help you get those things done. Work Simplification helps you get therefaster, cheaper and

better!

Flowchart

A flowchart is a type ofdiagram that represents an algorithm or process, showing the steps as boxes of variouskinds, and their order by connecting these with arrows. This diagrammatic representation can give a step-by-step solution to a given problem. Process operations are represented in these boxes, and arrows connecting themrepresent flow of control. Data flows are not typically represented in a flowchart, in contrast with data flowdiagrams; rather, they are implied by the sequencing of operations. Flowcharts are used in analyzing, designingdocumenting or managing a process or program in various fields.

Flowcharts used to be a popular means for describing computer algorithms and are still used for this purposeModern techniques such as UML activity diagrams can be considered to be extensions of the flowchart. In the1970s the popularity of flowcharts as an own method decreased when interactive computer terminals and third-generation programming languages became the common tools of the trade, since algorithms can be expressedmuch more concisely and readably as source code in such a language, and also because designing algorithmsusing flowcharts was more likely to result in spaghetti code because of the need for gotos to describe arbitraryjumps in control flow. Often pseudo-code is used, which uses the common idioms of such languages withoutstrictly adhering to the details of a particular one.

Flowchart building blocks

Symbols

A typical flowchart from older basic computer science textbooks may have the following kinds of symbols:

Start and end symbols

Represented as circles, ovals or rounded rectangles, usually containing the word "Start" or "End", or

another phrase signaling the start or end of a process, such as "submit enquiry" or "receive product".

Arrows

Showing what's called "flow of control" in computer science. An arrow coming from one symbol and

ending at another symbol represents that control passes to the symbol the arrow points to.

Generic processing steps

Represented as rectangles. Examples: "Add 1 to X"; "replace identified part"; "save changes" or similar.

Subroutines

Represented as rectangles with double-struck vertical edges; these are used to show complex processing

steps which may be detailed in a separate flowchart. Example: PROCESS-FILES. One subroutine may have
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multiple distinct entry points or exit flows (see coroutine); if so, these are shown as labeled 'wells' in the

rectangle, and control arrows connect to these 'wells'.

Input/output

Represented as a parallelogram. Examples: Get X from the user; display X.

Prepare conditional

Represented as a hexagon. Shows operations which have no effect other than preparing a value for a

subsequent conditional or decision step (see below).

Conditional or decision

Represented as a diamond (rhombus) showing where a decision is necessary, commonly a Yes/No

question or True/False test. The conditional symbol is peculiar in that it has two arrows coming out of it,

usually from the bottom point and right point, one corresponding to Yes or True, and one corresponding

to No or False. (The arrows should always be labeled.) More than two arrows can be used, but this is

normally a clear indicator that a complex decision is being taken, in which case it may need to bebroken-down further or replaced with the "pre-defined process" symbol.

Junction symbol

Generally represented with a black blob, showing where multiple control flows converge in a single exit

flow. A junction symbol will have more than one arrow coming into it, but only one going out.

In simple cases, one may simply have an arrow point to another arrow instead. These are useful to

represent an iterative process (what in Computer Science is called a loop). A loop may, for example

consist of a connector where control first enters, processing steps, a conditional with one arrow exiting

the loop, and one going back to the connector.

For additional clarity, wherever two lines accidentally cross in the drawing, one of them may be drawn

with a small semicircle over the other, showing that no junction is intended.

Labeled connectors

Represented by an identifying label inside a circle. Labeled connectors are used in complex or multi-

sheet diagrams to substitute for arrows. For each label, the "outflow" connector must always be unique,

but there may be any number of "inflow" connectors. In this case, a junction in control flow is implied.

Concurrency symbol

Represented by a double transversal line with any number of entry and exit arrows. These symbols are

used whenever two or more control flows must operate simultaneously. The exit flows are activated

concurrently when all of the entry flows have reached the concurrency symbol. A concurrency symbol

with a single entry flow is afork; one with a single exit flow is ajoin.
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It is important to remember to keep these connections logical in order. All processes should flow from top tobottom and left to right.

Data-flow extensions

A number of symbols have been standardized to represent data flow, rather than control flow. These symbolsmay also be used in control flow charts (e.g. to substitute for the parallelogram symbol), but they generally havelittle currency:

ADocumentrepresented as a rectangle with a wavy base; A Manual inputrepresented by quadrilateral, with the top irregularly sloping up from left to right. An

example would be to signify data-entry from a form; AManual operation represented by a trapezoid with the longest parallel side at the top, to represent an

operation or adjustment to process that can only be made manually. AData File represented by a cylinder.

Types of flowchart

Example of a system flowchart.

Sterneckert (2003) suggested that flowcharts can be modelled from the perspective of different user groups

(such as managers, system analysts and clerks) and that there are four general types:

Document flowcharts, showing controls over a document-flow through a system Data flowcharts, showing controls over a data flows in a system System flowcharts showing controls at a physical or resource level Program flowchart, showing the controls in a program within a system

Notice that every type of flowchart focuses on some kind of control, rather than on the particular flow itself. Inaddition, many diagram techniques exist that are similar to flowcharts but carry a different name, such as UMLactivity diagrams.

SoftwareAny drawing program can be used to create flowchart diagrams, but these will have no underlying data modelto share data with databases or other programs such as project management systems or spreadsheets. Some toolsoffer special support for flowchart drawing. Many software packages exist that can create flowchartsautomatically, either directly from source code, or from a flowchart description language. On-line Web-basedversions of such programs are available.

Functional flow block diagram
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Functional Flow Block Diagram Format.

A Functional Flow Block Diagram (FFBD) is a multi-tier, time-sequenced, step-by-step flow diagram of asystems functional flow.The FFBD notation was developed in the 1950s, and is widely used in classicalsystems engineering. FFBDs are one of the classic business process modeling methodologies, along with flowcharts, data flow diagrams, control flow diagrams, Gantt charts, PERT diagrams, and IDEF.

FFBDs are also referred to as Functional Flow Diagrams,functional block diagrams, andfunctional flows.

Development of functional flow block diagrams

Figure 2: Development of Functional Flow Block Diagrams

FFBDs can be developed in a series of levels. FFBDs show the same tasks identified through functionaldecomposition and display them in their logical, sequential relationship. For example, the entire flight missionof a spacecraft can be defined in a top level FFBD, as shown in Figure 2. Each block in the first level diagram
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can then be expanded to a series of functions, as shown in the second level diagram for "perform missionoperations." Note that the diagram shows both input (transfer to operational orbit) and output (transfer to spacetransportation system orbit), thus initiating the interface identification and control process. Each block in thesecond level diagram can be progressively developed into a series of functions, as shown in the third leveldiagram on Figure 2.

These diagrams are used both to develop requirements and to identify profitable trade studies. For example

does the spacecraft antenna acquire the tracking and data relay satellite (TDRS) only when the payload data areto be transmitted, or does it track TDRS continually to allow for the reception of emergency commands ortransmission of emergency data? The FFBD also incorporates alternate and contingency operations, whichimprove the probability of mission success. The flow diagram provides an understanding of total operation ofthe system, serves as a basis for development of operational and contingency procedures, and pinpoints areaswhere changes in operational procedures could simplify the overall system operation. In certain cases, alternateFFBDs may be used to represent various means of satisfying a particular function until data are acquired, whichpermits selection among the alternatives.[8]

Building blocks

An overview of the key FFBD attributes:

Graphical explanation of a "function block" used in these diagrams. Flow is from left to right.

Function block: Each function on an FFBD should be separate and be represented by single box (solid line). Eachfunction needs to stand for definite, finite, discrete action to be accomplished by system elements.

Function numbering: Each level should have a consistent number scheme and provide information concerningfunction origin. These numbers establish identification and relationships that will carry through all FunctionalAnalysis and Allocation activities and facilitate traceability from lower to top levels.

Functional reference: Each diagram should contain a reference to other functional diagrams by using a functionalreference (box in brackets).

Flow connection: Lines connecting functions should only indicate function flow and not a lapse in time orintermediate activity.

Flow direction: Diagrams should be laid out so that the flow direction is generally from left to right. Arrows areoften used to indicate functional flows.

Summing gates: A circle is used to denote a summing gate and is used when AND/OR is present. AND is used toindicate parallel functions and all conditions must be satisfied to proceed. OR is used to indicate that alternativepaths can be satisfied to proceed.

GO and NO-GO paths: G and bar G are used to denote go and no-go conditions. These symbols areplaced adjacent to lines leaving a particular function to indicate alternative paths.

Function symbolism

A function shall be represented by a rectangle containing the title of the function (an action verb followed by anoun phrase) and its unique decimal delimited number. A horizontal line shall separate this number and the title,
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as shown in see Figure 3 above. The figure also depicts how to represent a reference function, which providescontext within a specific FFBD. See Figure 9 for an example regarding use of a reference function.

Figure 3. Function Symbol

Figure 4. Directed Lines

Directed lines

A line with a single arrowhead shall depict functional flow from left to right, see Figure 4.[9]

Logic Symbols

The following basic logic symbols shall be used.[9]

AND: A condition in which all preceding or succeeding paths are required. The symbol may contain a singleinput with multiple outputs or multiple inputs with a single output, but not multiple inputs and outputs combined(Figure 5). Read the figure as follows: F2 AND F3 may begin in parallel after completion of F1. Likewise, F4may begin after completion of F2 AND F3.
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Figure 5. "AND" Symbol Figure 6. "Exclusive OR" Symbol

Exclusive OR: A condition in which one of multiple preceding or succeeding paths is required, but not all. Thesymbol may contain a single input with multiple outputs or multiple inputs with single output, but not multipleinputs and outputs combined (Figure 6). Read the figure as follows: F2 OR F3 may begin after completion of F1Likewise, F4 may begin after completion of either F2 OR F3.

Inclusive OR: A condition in which one, some, or all of the multiple preceding or succeeding paths are required.Figure 7 depicts Inclusive OR logic using a combination of the AND symbol (Figure 5) and the Exclusive ORsymbol (Figure 6). Read Figure 7 as follows: F2 OR F3 (exclusively) may begin after completion of F1, OR(again exclusive) F2 AND F3 may begin after completion of F1. Likewise, F4 may begin after completion ofeither F2 OR F3 (exclusively), OR (again exclusive) F4 may begin after completion of both F2 AND F3

Figure 7. Inclusive OR Logic

Contextual and Administrative Data

Each FFBD shall contain the following contextual and administrative data:

Date the diagram was created Name of the engineer, organization, or working group that created the diagram Unique decimal delimited number of the function being diagrammed Unique function name of the function being diagrammed.

Figure 8 and Figure 9 present the data in an FFBD. Figure 9 is a decomposition of the function F2 contained inFigure 8 and illustrates the context between functions at different levels of the model.
http://en.wikipedia.org/wiki/File:7_Inclusive_OR_Logic.jpghttp://en.wikipedia.org/wiki/File:6_Exclusive_OR_Symbol.jpghttp://en.wikipedia.org/wiki/File:5_AND_Symbol.jpghttp://en.wikipedia.org/wiki/File:7_Inclusive_OR_Logic.jpghttp://en.wikipedia.org/wiki/File:6_Exclusive_OR_Symbol.jpghttp://en.wikipedia.org/wiki/File:5_AND_Symbol.jpghttp://en.wikipedia.org/wiki/File:7_Inclusive_OR_Logic.jpghttp://en.wikipedia.org/wiki/File:6_Exclusive_OR_Symbol.jpghttp://en.wikipedia.org/wiki/File:5_AND_Symbol.jpg


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Figure 8. FFBD Function 0 Illustration

Figure 9. FFBD Function 2 Illustration

PRODUCTION PLANNING AND SCHEDULING

After taking decisions about the type of business, its location, layout etc. the entrepreneur steps into the

shoe of production manager and attempts to apply managerial principles to the production function in an

enterprise.

Production is a process whereby raw material is converted into semi finished products and thereby adds

to the value of utility of products, which can be measured as the difference between the value of inputs

and value of outputs.

Production function encompasses the activities of procurement, allocation and utilization of resources. The

main objective of production function is to produce the goods and services demanded by the customers in

the most efficient and economical way. Therefore efficient management of the production function is ofutmos

importance in order to achieve this objective.

Production system is a system whose function is to convert a set of inputs into a set of desired outputsProduction system is depicted under with help of chart Production management involves the

managerial decisions regarding design of the product and design of the production system i.e

determination of production processes and production planning and control.
http://en.wikipedia.org/wiki/File:9_FFBD_Function_2_Illustration.jpghttp://en.wikipedia.org/wiki/File:8_FFBD_Function_0_Illustration.jpghttp://en.wikipedia.org/wiki/File:9_FFBD_Function_2_Illustration.jpghttp://en.wikipedia.org/wiki/File:8_FFBD_Function_0_Illustration.jpg


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PRODUCT DESIGN

Product design is a strategic decision as the image and profit earning capacity of a small firm depends

largely on product design. Once the product to be produced is decided by the entrepreneur the next step

is to prepare its design. Product design consists of form and function. The form designing includes

decisions regarding its shape, size, color and appearance of the product. The functional design involves

the working conditions of the product. Once a product is designed, it prevails for a long time therefore

various factors are to be considered before designing it. These factors are listed below: -

(a) Standardization(b) Reliability(c) Maintainability

(d) Servicing(e) Reproducibility(f) Sustainability(g) Product simplification(h) Quality Commensuration with cost(i) Product value(j) Consumer quality(k) Needs and tastes of consumers.

Above all, the product design should be dictated by the market demand. It is an important decision and thereforethe entrepreneur should pay due effort, time, energy and attention in order to get the best results.

Broadly one can think of three types of production systems which are mentioned here under: -

(a) Continuous production

(b) Job or unit production(c) Intermittent production

(a) Continuous production: - It refers to the production of standardized products with a standard set

of process and operation sequence in anticipation of demand. It is also known as mass flow production or

assembly line production.


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This system ensures less work in process inventory and high product quality but involves large investment in

machinery and equipment. The system is suitable in plants involving large volume and small variety ofoutput e.g. oil efineries reform cement manufacturing etc.

(b) Job or Unit production: - It involves production as per customer's specification each batch

or order consists of a small lot of identical products and is different from other batches. The system requires

comparatively smaller investment in machines and equipment. It is flexible and can be adapted tochanges in product design and order size without much inconvenience. This system is most suitable

where heterogeneous products are produced against specific orders.

(c) Intermittent Production: Under this system the goods are produced partly for inventory and partly

for customer's orders. E.g. components are made for inventory but they are combined differently for different

customers. . Automobile plants, printing presses, electrical goods plant are examples of this type of

manufacturing.

The nature of the process of production required by these three different types of production system are

distinct and require different conditions for their working. Selection of manufacturing process is also a

strategic decision as changes in the same are costly. Therefore the manufacturing process is selected at

the stage of planning a business venture. It should meet the basic two objectives i.e. to meet the

specification of the final product and to be cost effective.

The manufacturing process is classified into four types.

(i) Jobbing Production: - Herein one or few units of the products are produced as per the requirement

and specification of the customer. Production is to meet the delivery schedule and costs are fixed

prior to the contract.

(ii) Batch Production: - In this, limited quantities of each of the different types ofproducts are

manufactured on same set of machines. Different products are produced separately one after the other.

(iii) Mass or flow production: Under this, the production run is conducted on a set of machines arrangedaccording to the sequence of operations. A huge quantity ofsame product is manufactured at a time and isstocked for sale. Different product will require different manufacturing lines. Since one line can produceonly onetype of product, this process is also called as line flow.

(iv) Process Production: Under this, the production run is conducted for an indefinite period.

Following factors need to be considered before making a choice of manufacturingProcess.

a) Effect of volume/variety: This is one of the major considerations in selection of manufacturing process. When

the volume is low and variety is high, intermittent process is most suitable and with increase in volume and

reduction in variety continuous process become suitable. The following figure indicates the choice of process as

a function of repetitiveness. Degree of repetitiveness is determined by dividing volume of goods by variety.

b) Capacity of the plant: Projected sales volume is the key factor to make a choice between batch and

line process. In case of line process, fixed costs are substantially higher than variable costs. The reverse is

true for batch process thus at low volume it would be cheaper to install and maintain a batch process and


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line process becomes economical at higher volumes.

c) Lead time: - The continuous process normally yields faster deliveries as compared to batch process.

Therefore lead-time and level of competition certainly influence the choice of production process.

d) Flexibility and Efficiency: - The manufacturing process needs to be flexible enough to adapt

contemplated changes and volume of production should be large enough to lower costs.

Hence it is very important for entrepreneur to consider all above mentioned factors before taking a

decision regarding the type of manufacturing process to be adopted as for as SSI are concerned they usually

adopt batch processes due to low investment.

Production planning and control can facilitate the small entrepreneur in the following ways

(1) Optimum Utilisation of Capacity:With the help of Production Planning and Control [PPC] the entrepreneur can schedule his tasks and

production runs and thereby ensure that his productive capacity does not remain idle and there is no unduequeuing up of tasks via proper allocation of tasks to the production facilities. No order goes unattended and nomachine remains idle.

(2) Inventory control:Proper PPC will help the entrepreneur to resort to just- in- time systems and thereby reduce the overallinventory. It will enable him to ensure that the right supplies are available at the right time.

(3) Economy in production time:PPC will help the entrepreneur to reduce the cycle time and increase the turnover via proper scheduling.

(4) Ensure quality:A good PPC will provide for adherence to the quality standards so that quality of output is ensured.

To sum up we may say that PPC is of immense value to the entrepreneur in capacity utilization and inventorycontrol. More importantly it improves his response time and quality. As such effective PPC contributes to time,quality and cost parameters of entrepreneurial success.

PRODUCTION PLANNING AND CONTROL

Once the entrepreneur has taken the decisions regarding the product design and production processes and

system, his next task is to take steps for production planning and control, as this function is essentially

required for efficient and economical production. One of the major problems of small scale enterprises

is that of low productivity small scale industries can utilise natural resources, which are otherwise lying.

Planned production is an important feature of the small industry. The small entrepreneur possessing the

ability to look ahead, organize and coordinate and having plenty of driving force and capacity to lead

and ability to supervise and coordinate work and simulates his associates by means of a programme of human

relation and organization of employees, he would be able to get the best out of his small industrial unit.

Gorden and Carson observe production; planning and control involve generally the organization and

planning of manufacturing process. Especially it consists of the planning of routing, scheduling, dispatching


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inspection, and coordination, control of materials, methods machines, tools and operating times. The

ultimate objective is the organization of the supply and movement of materials and labour, machines utilization

and related activities, in order to bring about the desired manufacturing results in terms of quality,

quantity, time and place.

Production planning without production control is like a bank without a bankmanager, planning

initiates action while control is an adjusting process, providing corrective measures for planned development.

Production control regulates and stimulates the orderly how of materials in the manufacturing process

from the

beginning to the end.

STEPS OF PRODUCTION PLANNING AND CONTROL

Production Planning and Control (PPC) is a process that comprises the performance of some

critical; functions on either side, viz., planning as well as

control.Production planning: Production planning may be defined as the technique of foreseeing every step in a longseries of separate operations, each step to be taken at the right time and in the right place and each operation tobe performed in maximum efficiency. It helps entrepreneur to work out the quantity of material manpower,machine and money requires for producing predetermined level of output in given period of time.Routing: Under this, the operations, their path and sequence are established. To perform these operations theproper class of machines and personnel required are also worked out. The main aim of routing is to determinethe best and cheapest sequence of operations and to ensure that this sequence is strictly followed. In smallenterprises, this job is usually done by entrepreneur in self in a rather adhoc manner. Routing procedureinvolves following different activities.(1) An analysis of the article to determine what to make and what to buy.(2) To determine the quality and type of material(3) Determining the manufacturing operations and their sequence.(4) A determination of lot sizes(5) Determination of scrap factors(6) An analysis of cost of the article(7) Organization of production control forms.


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Scheduling: It means working out of time that should be required to perform each operation and also the timenecessary to perform the entire series as routed, making allowances for all factors concerned. It mainly concernswith time element and priorities of a job. The pattern of scheduling differs from one job to another which isexplained as below:

Production schedule: The main aim is to schedule that amount of work which can easily be handled by plantand equipment without interference. Its not independent decision as it takes into account following factors.(1) Physical plant facilities of the type required to process the material being scheduled.(2) Personnel who possess the desired skills and experience to operate the equipment and perform the type ofwork involved.(3) Necessary materials and purchased parts.Master Schedule: Scheduling usually starts with preparation of master schedule wh

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