Productivity

Productivity is a measure of how efficiently goods or services are produced. In operations

management, it's crucial to understand and improve productivity to gain a competitive edge.

Factors Affecting Productivity

Several factors can influence productivity in an organization. Here's a breakdown of some key
ones:

Factor Description

Workforce Skills A skilled and well-trained workforce can perform tasks more efficiently,
and Training reducing errors and rework.

Utilizing advanced technology and well-maintained equipment can improve

Technology and production speed and accuracy. For instance, using computerized machinery
Equipment can automate repetitive tasks, while proper equipment maintenance
minimizes downtime.
 Efficiently designed processes minimize waste and optimize workflow. This
Process Design involves streamlining steps, eliminating unnecessary activities, and
ensuring a smooth flow of materials and information.

A safe, comfortable, and well-organized work environment can boost

Work employee morale and productivity. Factors like proper lighting, temperature
Environment control, and ergonomic workstations can contribute to a positive work
environment.

Effective leadership, clear communication, and employee motivation can

Management significantly impact productivity. Managers who set clear goals, provide
Practices regular feedback, and empower employees can create a work environment
conducive to high productivity.

Using high-quality materials reduces defects and rework, leading to higher

Material Quality productivity. Lower-quality materials are more prone to breakage,
malfunctions, and other issues that can disrupt production.

Productivity Measurement
Measuring productivity is essential for tracking progress and identifying areas for
improvement. Here are some common methods used in operations management:

Method Description

This is the simplest method and measures the output per unit of labor input.
Labor Productivity For example, it can be calculated as the number of units produced per labor
hour.

This method considers a broader set of inputs besides labor, such as capital
Multifactor
(machinery, equipment) and materials. It provides a more comprehensive
Productivity
picture of productivity changes.

Total Factor This method measures the change in output relative to a combined change
Productivity (TFP) in all inputs. It helps assess how efficiently an organization is using all its
resources to produce goods or services.

Total productivity
model Tangible inputs and outputs

By understanding the factors affecting productivity and implementing effective measurement

techniques, organizations can identify areas for improvement and make data-driven decisions
to optimize their operations and achieve a sustainable competitive advantage.

Work Study
Work study is a systematic approach used in operations management to analyse and improve
work methods, ultimately leading to increased efficiency and productivity expand more It
comprises two key components:
1. Method Study:
Method study focuses on critically examining the "how" of a task with the objective of
designing the most efficient and effective way to complete it expand more Here's a breakdown
of the typical steps involved:
• Select the Job: Identify the specific task or process you want to analyze.
• Record Everything: Document all the steps involved in the current method, including
materials used, tools needed, and the sequence of activities.
• Examine Critically: Question each step. Is it necessary? Can it be combined with
another step? Can a different tool or approach be used more effectively?
• Develop the Most Economic Method: Brainstorm and propose alternative methods
that eliminate unnecessary steps, minimize waste, and optimize the use of resources.
Consider factors like ergonomics, safety, and quality.
• Install the New Method: Implement the chosen improved method and provide training
to workers.
• Maintain the Standard Practice: Monitor the new method and make adjustments as
needed to ensure it remains efficient and effective.
By following these steps, method study helps identify and eliminate inefficiencies, leading to
a smoother, more streamlined work process.
2. Work Measurement:
Work measurement focuses on determining the "how much" aspect of work, specifically the
amount of time a qualified worker should take to complete a defined task using a prescribed
method. This helps establish:
• Standard time: The average time it should take a qualified worker, working at a normal
pace, to complete a task following the most efficient method.
• Workload: The expected amount of work a worker can complete within a given period.
Here are some common techniques used in work measurement:
• Time Study: Observing and recording the time taken to complete a task by a qualified
worker, then applying statistical adjustments to arrive at a standard time.
• Work Sampling: Taking random observations of workers at specific intervals
throughout a workday to determine the proportion of time spent on different activities
expand more
• Predetermined Motion Time Systems (PMTS): Assigning predetermined standard
times to basic human motions (reach, grasp, move, etc.) to build up the standard time
for a complete task.expand_more
Work measurement allows for setting realistic production targets, calculating labor costs, and
identifying potential bottlenecks in the production process.
Together, Method Study and Work Measurement:
 • Improve efficiency by eliminating unnecessary steps and optimizing work methods.
• Reduce waste and improve resource utilization.
• Set realistic production targets and schedules.
• Motivate and reward workers by establishing fair and achievable benchmarks.
• Provide a foundation for continuous improvement in operations.
By combining the focus on method improvement (method study) with the ability to quantify
time (work measurement), work study is a powerful tool for organizations in various industries
to achieve optimal productivity and gain a competitive edge.

Production Technology

Production technology encompasses a wide range of techniques, tools, and processes used in
manufacturing and other industries to create goods and services. It involves everything from
the design and development of products to the methods and machinery used for their
production.

Key aspects of production technology include:

Design and Engineering: This involves the initial conception and planning of a product,
including its specifications, materials, and intended functions. Computer-aided design (CAD)
and computer-aided engineering (CAE) software are often used in this stage.
Manufacturing Processes: Various techniques are employed to transform raw materials or
components into finished products. This can include casting, molding, machining, forming,
welding, and assembly processes.
Automation and Robotics: Automation technologies, such as robotics and programmable logic
controllers (PLCs), are increasingly used to improve efficiency, precision, and consistency in
production processes.
Materials and Tooling: The choice of materials and tooling is critical in production technology.
Advances in materials science have led to the development of new materials with improved
properties, while precision tools enable high-quality and efficient manufacturing.
Quality Control and Assurance: Quality control measures are implemented throughout the
production process to ensure that products meet predefined standards and specifications. This
may involve inspections, testing, and process monitoring.
Supply Chain Management: Production technology also encompasses the management of
supply chains, including procurement of raw materials, inventory management, and logistics.
Lean Manufacturing and Continuous Improvement: Concepts such as lean manufacturing and
continuous improvement methodologies like Six Sigma are often employed to streamline
processes, eliminate waste, and optimize efficiency.
Sustainability and Environmental Impact: Increasingly, production technology considers
environmental factors and aims to minimize waste, energy consumption, and pollution. This
includes initiatives such as recycling, energy efficiency measures, and the use of renewable
resources.
Digitalization and Industry 4.0: The integration of digital technologies, such as the Internet of
Things (IoT), big data analytics, and artificial intelligence (AI), is transforming production
processes through real-time monitoring, predictive maintenance, and data-driven decision-
making.
Safety and Ergonomics: Ensuring the safety of workers and optimizing ergonomics in the
workplace are integral parts of production technology. This involves designing workspaces and
processes to minimize risks and improve the well-being of employees.
Overall, production technology plays a crucial role in driving innovation, efficiency, and
competitiveness across various industries, from manufacturing and automotive to electronics
and healthcare.

Types of manufacturing process

There are several types of manufacturing processes, each with its own unique characteristics,
advantages, and disadvantages. Here are some of the most common types of manufacturing
processes:
1. Casting: Casting is a manufacturing process that involves pouring molten metal or
liquid material into a mold to create a specific shape. This process is used to produce
complex shapes with high accuracy and repeatability. Casting is commonly used in the
production of parts for cars, airplanes, and other machinery.
2. Forming: Forming is a manufacturing process that involves shaping a material into a
specific shape using mechanical or hydraulic forces. This process is used to produce
parts with complex shapes and high precision. Forming includes processes like
bending, forging, and rolling.
3. Machining: Machining is a manufacturing process that involves removing material
from a workpiece using cutting tools to create a specific shape. This process is used to
produce parts with high precision and accuracy. Machining includes processes like
drilling, milling, and turning.
4. Joining: Joining is a manufacturing process that involves connecting two or more parts
together to create a larger assembly. This process is used to create complex structures
with high strength and durability. Joining includes processes like welding, brazing, and
soldering.
5. Additive: Manufacturing: Additive manufacturing, also known as 3D printing, is a
manufacturing process that involves building a part layer by layer using a digital model.
This process is used to produce complex parts with high precision and accuracy.
Additive manufacturing is commonly used in the production of prototypes and small
batches of parts.
6. Assembly: Assembly is a manufacturing process that involves putting together
individual parts to create a larger product. This process is used to create complex
products with multiple components. Assembly includes processes like riveting,
screwing, and gluing.

Plant location
Plant location refers to the choice of region and the selection of a particular site for setting
up a business or factory.
An ideal location is one where the cost of the product is kept to minimum, with a large
market share, the least risk and the maximum social gain. It is the place of maximum net
advantage or which gives lowest unit cost of production and distribution.
 Need for Locating a Plant It arises when:
➢ The business in newly started
➢ The expansion to the existing plant is not possible
➢ A firm wants to establish new branches
➢ The landlord does not renew the existing lease
➢ Economic or social reasons like: Inadequate power supply Government regulations, etc.
Importance of the Right Location
➢ Location Decision is a long term decision
➢ Location Decision is difficult to revise or reverse
➢ The location of plant fixes the production technology-Options between labour intensive
or capital / machine intensive production technologies.
➢ The location of plant fixes the cost structure.
➢ It affects the fixed and variable costs.
➢ Location of a facility affects the company’s ability to serve its customers quickly and
conveniently.
➢ Location determines the nature and size of the business

Layout planning
 Layout planning in manufacturing and service organizations involves the physical
arrangement of various resources available in the system to improve the performance
of the operating system, there by providing better customer service.
 A plant layout involves:
➢ Planning and arranging manufacturing machinery, equipment and service for the first
time in completely new plants;
➢ The improvements in layouts already in use in order to introduce new methods and
improvements in manufacturing procedures.

Objectives
 Provide enough production capacity
 Reduce material handling cost
 Reduce risk to personnel
 Utilize labour efficiently
 Increase employee morale
 Reduce accidents
 Utilize available space efficiently and effectively
 Provide ease of supervision
 Provide for employee safety and health
 Allow ease of maintenance
 Improve productivity
 Allow high machine and equipment’s utilization
Factors Influencing Layout Planning
 The pattern of layout varies from industry to industry, location to location and plant to
plant. Different types of layout are in use.
 Primarily the layout of a plant is influenced by the relationship among materials,
machinery and men.
 Other factor such as the type of product, the type of workers, the type of industry and
the management policies also influence the layout.

Type of Layout
➢ Process layout or functional layout or job shop layout
➢ Product layout or line processing layout or flow-line layout
➢ Fixed position layout or static layout
➢ Cellular manufacturing (CM) layout or Group Technology layout
➢ Combination layout or Hybrid layout
Process layout

 Process layout also called the functional layout. The process layout involves a
grouping together of like machines in one department. For example machine
performing drilling operations are fixed in the drilling department; machines
performing casting operations are fixed in the drilling department and so on.
 Work has to be allotted to each department in such a way that no machine in any
department is idle. This type of layout is best suited for intermittent type of production.
 Advantages:
➢ Reduced investment of machines as they are general purpose machine.
➢ Greater flexibility in the production.
➢ Better and more efficient supervision
➢ This type of layout results in better utilization of men and machines.
➢ There is full utilization.
 Disadvantages:
➢ There is difficulty in the movement of materials.
➢ This type of layout requires more floor space.
➢ There is difficulty in production control.
➢ Production time is more.

Product layout
➢ Product layout is also called the straight line layout. It involves the arrangement of
machines in one line, depending upon the sequences of operations. Materials are fed
into the first machine and finished products come out of the last machine.
In product layout if there are more than one product line of production, there are many lines
of machines. The investment on machines in a straight line layout is higher than the
investment in a functional layout
 Advantages:
➢ There is economy in manufacturing time.
➢ This type of layout facilities better production control.
➢ This type of layout requires less area.
➢ Work-in progress is reduced
 Disadvantages:
➢ Product layout is known for its inflexibility.
➢ There is difficulty of supervision
➢ Expansion is also difficult
➢ Any break down of equipment can disrupt the whole system.

Fixed position layout

In this type of layout the materials or major components remains in a fixed location, and
tools, machinery and men as well as other pieces of material are brought to the location.
➢ It is also called the fixed location layout, this type is followed in the manufacturing of
bulky and heavy product, such as locomotives, ships etc.
➢ The construction of building requires a fixed location layout because men, cements,
sand, bricks, steel, woods etc are taken to be site of the construction.
➢ Another example is that of hospitals, where doctors and nurses and medicines and other
input are taken to patient.
 Advantages:
➢ Men and machines can be used for a wide variety of operations.
➢ The investment on layout is very small.
➢ The high cost of and difficulty in transporting a bulky product are avoided.

Cellular manufacturing (CM)

➢ In cellular manufacturing (CM) machines are grouped into cells, and the cells
function somewhat like a product layout within a larger shop or process layout.
➢ Each cell in the CM layout is formed to produce a single parts family-a few parts, all
with common characteristics, which usually means that they require the same
machine and same settings.
 Advantages:
➢ Lower work-in-process inventories
➢ Reduced material handling costs
➢ Shorter flows time in production
➢ Simplified production planning
➢ Increased operators responsibilities
Improved visual control
Combination layout or Hybrid layout
 The application of the principles of product layout, process layout or fixed location
layout are difficult to across. A combination of the product and process layout is
noticed in most industrial establishments.
 In soap manufacturing plants, the machinery manufacturing soap is arranged on the
product line but ancillary services such as heating, the manufacturing of glycerine, the
power house, the water treatment planed are arranged on a functional basis.