Industrial engineering is an engineering profession that is concerned with the

optimization of complex processes, systems, or organizations by developing,

improving and implementing integrated systems of people, money, knowledge,
information, equipment, energy and materials
 As a management engineer in a hospital, an IE may help doctors and nurses
make the best use of their time in treating patients. 

 As an ergonomist in a television manufacturing plant, an IE may change the tools

workers use to assemble televisions to reduce the risk of repetitive stress
injuries. 

 As an operations analyst for an airline, an IE may design a bar coding system for
identifying and transporting passengers luggage to ensure that it does not get
lost. 

 As a quality engineer for a public gas and electric company, an IE may improve
customer satisfaction by designing a process to schedule service calls around the
availability of the customer.
Layout: the configuration of departments, work
centers, and equipment,
Whose design involves particular emphasis on
movement of work (customers or materials) through the
system
Importance of layout
Requires substantial investments of money and effort
Involves long-term commitments
Has significant impact on cost and efficiency of short-
term operations
Product Layout
Layout that uses standardized processing operations to
achieve smooth, rapid, high-volume flow
 Auto plants, cafeterias
Process Layout
Layout that can handle varied processing requirements
 Tool and die shops, university departments

Fixed Position Layout

Layout in which the product or project remains
stationary, and workers, materials, and equipment are
moved as needed
 Building projects, disabled patients at hospitals
Combination Layouts
 Flow Shop or Assembly Line Work Flow

Raw materials Station Station Station Station Finished

or customer 1 2 3 4 item

Material Material Material Material

and/or and/or and/or and/or
labor labor labor labor
 A U-Shaped Production Line

Advantage: more compact, increased communication

facilitating team work, minimize the material handling
 Process Layout
Milling

Assembly
& Test Grinding

Drilling Plating

Process Layout - work travels

to dedicated process centers
S No Area of focus Agenda
1. Machine • Manual labor be replaced by machines
• Reliable machines
• Automation
2. Management • Motivated workforce
• Better planning and co-ordinations
• Effective control of processes
3. Process • Computerization of system
• Use of Management Information System (MIS)
• Improvement in scheduling
• Better material flow
4. Work Design • Improved job design
• Better work method
• On-job training
5. Work Environment • Better lighting and illumination
• Better ventilation
• Safe work place
• Total Quality Management (TQM)
S No Area of focus Agenda
6. Program • Quality circle
• Suggestion schemes
• Incentive schemes
• Revise pay or policy
7. Technology • Acquire new technology such as Electro chemical machining (ECM) etc.
• Acquire computer controlled machines such as CNC
• Use automated guided vehicle (AGV) for material transportation
8. Manufacturing Strategy • Change the manufacturing system from functional to cellular layout if it is a batch
production unit
• Adopt stockless production strategy and Just-in-time (JIT) framework in production
unit
• Keep work place clean and environment friendly
9. External Environment • Better political stability
• Boosting economy and purchasing capacity of buyers
• Globalization and open market economy
 promote robust design practices
Robustness: the insensitivity of the product performance to small variations in the
production or assembly process => ability to support product quality more reliably and
cost-effectively.
 Control the product complexity
 Improve the product maintainability / serviceability
 (further) standardize the employed components
Modularity: the structuring of the end product through easily segmented
components that can also be easily interchanged or replaced => ability to support
flexible production and product customization;increased product
serviceability.
 Improve job design and job safety
 Environmental friendliness: safe and environmentally sound products,
minimizing waste of raw materials and energy, complying with environmental
regulations, ability for reuse, being recognized as good corporate citizen.
Forecasting models
 Production Planning and Control
The Production Control System

Demand Sales and

order entry Customer
forecasting

Aggregate Materials Shop-floor Shipping

planning requirement scheduling Production and
planning and control receiving

Inventory
Inventory Vendors
management
 Production Planning and Control
Main Functions
Forecasting to predict customer demand on various products
over a given horizon.

Aggregate Planning to determine overall resources needed.

Materials Requirement Planning to determine all required

components and timing.

Inventory Management to decide production or purchase

quantities and timing.

Scheduling to determine shop-floor schedule of various

components.
Forecasting models
Forecasts are estimates of the occurrence,
timing or magnitude of future events and
forecasting is a technique, which is used for
estimating.

Forecasting give operations manager a rational

basis for planning and scheduling activities, even
though actual demand is quite uncertain.
Everyday the managers have to take decisions in
the face of uncertainty, without knowing what I see that you will
would happen in future. The manager strive to get an A this semester.
reduce this uncertainty and make better estimates
of what is likely to happen in future. This is what
forecasting aims to accomplish. Thus, whether it
is inventory control, marketing strategy
formulation, financial planning, production
planning or any other such area of operations,
managers have to employ the tool of forecasting
 Uses of
Forecasts
Accounting Cost/profit estimates

Finance Cash flow and funding

Human Resources Hiring/recruiting/training

Marketing Pricing, promotion, strategy

MIS IT/IS systems, services

Operations Schedules, MRP, workloads

Product/service design New products and services

 Elements of a Good Forecast

Timely

Reliable Accurate

l se
g fu u
i n Written to
n sy
a
M
e Ea
Forecasting Process

“The forecast”

Step 6 Monitor the forecast

Step 5 Prepare the forecast
Step 4 Gather and analyze data
Step 3 Select a forecasting technique
Step 2 Establish a time horizon
Step 1 Determine purpose of forecast
CLASSIFICATION OF FORECASTING
TECHNIQUES
Forecasting
Techniques

Qualitative Quantitative
Models Models

Delphi
Method
Time Series Causal
Sales Force Models Models
Composite
Moving Simple
Consumer Average Regression
Panel Survey
Exponential
Smoothing
Multiple
Trend Regression
Projection
 Forecast
Variations

Irregular
variation

Trend

Cycles

Seasonal variations
Moving average – A technique that averages a
number of recent actual values, updated as new
values become available.
n

 A i
MAn = i=1

n
The demand for tires in a tire store in the past 5
weeks were as follows. Compute a three-period
moving average forecast for demand in week 6.
83 80 85 90 94
Weighted moving average – More recent values in a series are
given more weight in computing the forecast.

Example:
 For the previous demand data, compute a weighted average
forecast using a weight of .40 for the most recent period, .30 for
the next most recent, .20 for the next and .10 for the next.
 If the actual demand for week 6 is 91, forecast demand for week 7
using the same weights.
 Exponential Smoothing
Ft = Ft-1 + (At-1 - Ft-1)
National Mixer Inc. sells can openers. Monthly
sales for a seven-month period were as follows: Month Sales
 Forecast September sales volume using each of (1000)
the following: Feb 19
 A five-month moving average
Mar 18
 Exponential smoothing with a smoothing
Apr 15
constant equal to .20, assuming a March forecast
of 19. May 20
 A weighted average using .60 for August, .30 for Jun 18
July, and .10 for June.
Jul 22
Aug 20
 Error Measures
Error - difference between actual value and predicted value
Mean Absolute Deviation (MAD)
 Average absolute error
Mean Squared Error (MSE)
 Average of squared error
 Mean Absolute Percent Error (MAPE)
 Average absolute percent error
  Actual  forecast
MAD =
n
2
 ( Actual  forecast)
MSE =
n -1

Actual  Forecast
 Actual
 100
MAPE 
n
Aggregate production planning
 Aggregate planning
Aggregate planning is the process of planning the quantity and timing of output
over the intermediate time horizon (3 months to I year). Within that time frame,
the maximum capacity of a production facility is relatively fixed. Given a forecast,
planners are concerned with making the best possible use of the organization’s
labour, materials and capital resources to respond to expected demand-which
might be higher or lower than expected.
Figure 8.2 indicates a simplified aggregate plan and master schedule. The
aggregate plan simply expresses the end product (motors), the MS specifies
precisely how many of which type (size) of motors will be produced, and when.
This detail is necessary to plan for the material and capacity requirements.
Fig8.2
NATURE OF AGGREGATE PLANNING DECISIONS
The different capacities which are generally used to manufacture products are as
listed below.
•Regular time production capacity
•Subcontracting capacity
•Overtime capacity
•Hiring and firing capacity

AGGREGATE PLANNING STRATEGIES

One can use any one or a combination of the following strategies for smoothing
fluctuations in demand. Strategies can be pure or mixed.
Building and utilization inventory through constant work force
•Varying the size of work force
•Overtime utilization
•Subcontracting
•Making changes in demand pattern
Cumulative output/demand AGGREGATE PLANNING METHODS

Cumulative
production
Cumulative
demand

1 2 3 4 5 6 7 8 9 10
MASTER SCHEDULING PROCESS
FUNCTIONS OF MASTER SCHEDULE
•Translate aggregate plans into specific end items
•Evaluate alternative schedules
•Generate material requirements
•Generate capacity requirement
•Facilitate information processing
•Maintain valid priorities
•Effective utilize capacity
MRP & Capacity planning
Capacity is a measure of the productivity capability of a facility per unit of time.
Capacity decision begin with the initial facility layout and extended to aggregate
planning, MS, CRP, and capacity control activities.

Rated Capacity = (no. of m/cs) (m/c hrs) (% of utilization) (system

efficiency)

Ex: A work center operates 6 days /week on a 2 day shift per day basis (8 hrs per
shift) and has 4 m/cs with the same capacity. If the m/cs are utilized 75% of the
time at a system efficiency of 90%, what is the rated output in standard hrs per
week?
Sol:
RC = (4) ( 8 * 6 * 2) (0.75) (0.9) = 259 standard hr/week
Capacity Variables:

Controllable factors are labour, facilities, machines, tooling, shifts, overtime,

subcontracting, preventive maintenance and number of setups

Less controllable factors are absenteeism, labor performance, machine brake

downs, material shortages, scrap and rework and un expected problem.
Work Study
• British Standard Glossary (BSG)
defines, “Work study is a generic term
for those techniques, particularly
method study and work measurement,
which are used in the examination of
human work in all its contexts, and
which lead systematically to the
investigation of all the factors which
affect the efficiency and economy of the
situation being reviewed, in order to
effect improvement.”
• Work study is simply the study of work.
It is the analysis of work into smaller
parts followed by rearrangement of
these parts to give the same
effectiveness at a better cost.
• Work study is used to associate two
sets of techniques which are distinct
approaches but yet interdependent.

1. Method Study
2. Work measurement
 Method Study
• British Standard Glossary (BSG) defines, “Method study is the systematic recording and
critical examination of existing and proposed ways of doing work, as a mean of
developing and applying easier and more effective methods and reducing costs.”
• Method study is concerned with “the way in which work is done (i.e. method)”. It is
used to simplify the way to accomplish a work and to improve the method of
production.
• Method Study aims to determine the most effective method of performing a job, the
most logical layout of manufacturing facilities, the smooth flow of men and materials
throughout the organization and the right placement of inspection stages to enable
processing of a job through the smallest possible time and the least possible cost.
• There is a continuous need for analyzing existing method even if they are developed to
be most efficient and effective because best method today may not be the best method
after some period. Subsequent investigations may reveal that more economical material
is available, more efficient machines, tools, jigs, fixtures have been designed, better
inspection methods have been evolved, more satisfactory material handling
equipments can now be procured and so on.
Method Study - Purpose & Benefits
Purpose/Benefits of method study
• To evolve creatively and innovatively improvement in processes and procedures.
• To determine the correct sequence of operations and avoid duplication (if any).
• To improve layout, smoothen material flow, reduce backtracking and avoid obstacles.
• To reduce unoccupied time of the operator and thereby obtain effective use of human
efforts.
• To improve utilization of the equipment and thereby reduce manufacturing cycle time
per piece.
• To select material of right specifications, cut down process waste, reduce defectives,
and thereby reduce raw material consumption per unit of production.
• TO achieve economy in human effort and reduction of unnecessary fatigue.
• To develop a better physical working environment.
Method Study - Procedure
Procedure of method study
1. Select - A specific job will be chosen to be examined.
2. Record - The current performance of the job is observed, facts are recorded and
documented. The important features taken into consideration are:
• Activities performed
• Operators involved
• Equipment and tools used
• Materials processed or moved

3. Examine - The job is then examined and its components are challenged on their
feasibility and necessity (purpose, place, sequence, method).
4. Develop - After this alternative methods are developed, documented and the most
suitable will be selected, becoming the base for the new Work Instructions.
5. Install - The new method is installed as standard practice and the operators will be
trained on those new Work Instructions.
6. Maintain - Control procedures to measure the performance, as well as preventing
drifting back to previous methods of work will also be introduced.
Work Study - Benefits
• It helps in optimum use of plant, equipment, manpower and material.
• It helps in establishing the standard of performance.
• It helps in developing standard work methods.
• It helps in establishing the most efficient and effective utilization of human effort.
• It helps in synchronizing various resources like men and machine.
• It helps in the evaluation of human work.
• It helps in efforts towards productivity improvement
• It helps in the elimination of wasteful efforts, useless material handling, etc.
• It helps in job simplification and work standardization.
• It is helpful in developing plant safety schemes, equipment utilization, plant layout and
conductive work environment.
Method Study - Procedure
Selection of the Job
Selection of the jobs to be studied for methods improvement by the method study practitioner is
a managerial responsibility and it (selection) may be based on economic, technical or human
consideration.

1. Economic consideration:- It justifies selection based on economic worth (i.e. money

saving potential of the job.
2. Technical consideration:- It identifies jobs which require studies to overcome
manufacturing difficulties (excessive rejection, relaxation in prefixed performance
standards, inability of the shops to stick to specified machining parameter such as
speeds, feeds, depth of cut etc., inconsistent quality etc.)
3. Human consideration:- It is usually given weightage while introducing method study
practices for the first time.
Method Study - Procedure
Recording of Facts
• Recording by long hand (descriptive method) has its limitations, it is not
recommended for use in method study. Instead, five symbols and eight charting
conventions are used to record facts relating to the job under study.

• Method Study Symbols

1. Operation 3. Transport

2. Inspection 4. Delay

5. Storage
Method Study - Procedure
Recording of Facts
Method Study Symbols

1. Operation:- An operation occurs when there is a distinct change in physical or chemical

characteristic of an object or, when there is an addition or subtraction or, when there is
consumption of physical effort or, when information is given or received. An operation is
represented by a circle.

2. Inspection:- An inspection occurs when the object is verified against predetermined

standards of quality or quantity, or both. Inspection, unlike operation, does not take the
object one step forward towards completion. It merely verifies whether or not the object has
undergone the required operation as per specifications. Inspection is represented by square.

3. Transport:- An transport occurs when the object is moved from one place to another.
Example- Movement of materials or trolley. Transport is represented by an arrow.
Method Study - Procedure
Recording of Facts
Method Study Symbols

4. Delay:- A delay occurs when the object is held up resulting in delay in the start of next event
i.e. next operation, inspection or transport. Delay is represented by a letter D.

5. Storage:- A storage occurs when the object is kept in an authorized custody and is protected
against unauthorized removal. Storage is represented by an inverted triangle.
Method Study - Procedure
Recording of Facts
Recording Methods

Information Recording Techniques:

Different methods of information recording for the existing method are

• Charts
• Diagrams
• Templates and Models
• Photographic aids (Micromotion study)
• Graphic Techniques (cyclegraph and choronocyclegraph)
Method Study - Procedure
Recording of Facts
Recording Methods
Charts

Charts:

Charts are the most popular method of recording data. The activities comprising the job
are recorded by means of symbols and charting conventions. The different type of
charts are.

• Operation Process Chart: to give a bird’s eye view of entire process.

• Flow Process Chart:
• Man type (or operator process chart): Show detailed sequence of activities performed by the
workman.
• Material type (or product process chart): Show detailed sequence of activities performed on
the materials.
• Equipment type: Show detailed sequence of activities performed by the equipment.
• Multiple Activity Chart: to study man machine utilization, determine number
of machines to be manned by an operator and the like.
• Two Handed Process Chart (Operator Chart): to study work bench layout.
• Travel Chart: Study the movement of materials, men or equipment.
Process Chart
A Process Chart is a graphic means of representing the activities that occur during a
manufacturing or servicing job.
There are several types of process charts. These can be divided into two groups.
(i) Those which are used to record a process sequence (i.e. series of events in the order in
which they occur) but do not depict the events to time scale. Charts falling in this
group are
• Operation process chart
• Flow process chart – (man / material / equipment type)
• Operator chart (also called Two Handed Process Chart)

(ii) Those which record events in the sequence in which they occur on a time scale so that
the interaction of related events can be more easily studied. Charts falling in this group
are
• Multiple activity chart
• Simo chart
Operation Process Chart
Operation Process Chart:

• An operation process chart provides the chronological sequence of all operations and
inspections that occur in a manufacturing or business process.
• An operation process chart gives the detailed step by step account of what is done to the
materials from beginning of the first stage to the last (finished product stage).
• Only operations and inspections performed on the material are depicted on this chart &
transports, delays and storages are not included.
• The operation process chart can be compared to a map of a city where one can have a fair
idea of the layout of the city from its map but one cannot know from it about the lanes and
by-lanes & their inhabitants.
Flow Process Chart
Flow Process Chart:
• A flow process chart sets out the sequence of flow of work of a product, or any part of it
through the section or the department or the factory by recording the events under review.
• It is prepared in a manner similar to that of operation chart except that in addition to
symbols for ‘operation’ and ‘inspection’, symbols for ‘transport’, ‘delay’ and storage are also
shown.
• Separate flow process charts are prepared for components of the assembly (usually one flow
process chart is prepared for each major component of he assembly) . This implies that the
operation process chart is normally in multiple lines while flow process chart is usually in a
single line.
• Flow process charts are of three types: product or material type (also known as product
process chart) which shows the events that occur to material, the operator or man type (also
known as operator process chart) that depicts the activities performed by the man, & the
equipment type which exhibits the activities performed by the equipment.
• An important and valuable feature of this chart is its recording of non-productive hidden
costs, such as delays, temporary storages, unnecessary inspections, and unnecessary long
distances traveled. When the time spent on these non productive activities is highlighted,
analyst can take steps to minimize it and thus reduce costs.
Multiple Activity Chart
Multiple Activity Chart:

• A multiple activity chart is chart on which the activities or more than one subject are
recorded to indicate their inter-relationship in a given cycle.

• Worker-Machine process chart and gang process chart fall in the category of multiple activity
charts.

• A worker-machine chart is used for recording and analyzing the working relationship
between operator and machine on which he works. It is drawn to time scale. Analysis of the
chart can help in better utilization of both worker and machine time. The possibility of one
worker attending more than one machine is also sought from the use of this chart.

• A gang process chart is similar to worker-machine chart, and is used when several workers
operate one machine. The chart helps in exploring the possibility of reducing both the
operator time and idle machine time.
Two Handed Process Chart
Two Handed Process Chart :

• It is also called Left Hand – Right Hand chart or Operator Process Chart and shows the
activities of hands of the operator while performing a task.

• It uses four elements of hand work: Operation, Delay (Wait), Move and Hold.

• Its main advantage lies in highlighting un-productive elements such as unnecessary delay and
hold so that analyst can take measures to eliminate or shorten them.
Simo Chart
Simo Chart:

• A Simo chart is another Left-Hand Right-Hand chart with the difference that it is drawn to
time scale and in terms of basic motions called therbligs. It is used when the work cycle is
highly repetitive and of very short duration.
Diagrams
Diagrams:
• Every business activity requires movement of men and materials form one location to
another. Every movement is not essential & some of them may be avoided by rearrangement
of the facilities within the department or by changing the sequence of activities.

• Operation process chart indicate the sequence of events but do not show movements while
flow process charts do record movements but they do not provide a visual picture. The
problems concerning movements can be better visualized by drawing a diagram which may
be either a flow diagram or string diagram.

• A diagram gives pictorial view of the layout of workplace or floor on which locations of
different equipment, machines, etc. are indicated. The movement of subject (man or
material) is then indicated on the diagram by a line or a string. The diagrams are valuable in
highlighting the movement so that analyst can take steps to simplify or reduce it and thus
effect saving in time or reduction in collisions / accidents.

• Two types of diagrams are common: Flow diagram and string diagram.
Flow Diagrams
Flow diagram:
•Flow diagrams are the scale plans on which the movements of an object are traced by lines. It
shows the relative position of the machine tools, work benches, storage racks, inspection
benches etc. on a scaled diagram on which are marked the paths followed by the workmen and
materials.
String Diagrams
String diagrams:
•String diagrams are the scale plans on which the movements of an object are traced by means
of a string. Its advantage over flow diagram is that repetitive movements between work stations
which are difficult to be traced on a flow diagrams can be conveniently shown on string diagram.
Templates and 3-D models
• Two-dimensional cut outs made from thin card sheet representing machinery, furniture, etc.
can be used for developing new layouts and methods. The templates may have pieces of
permanent magnet attached to them, so that when used on iron board; they remain glued
on the board whenever placed.

• A scaled 3-D model of a working area helps easy understanding of lighting, ventilation,
maintenance and safety aspects that may be important in a method. Such models are often
of great value in demonstrating the advantages of the proposed changes to all concerned.
However, their use is limited because of higher cost involved. Some computer softwares are
available which help in constructing the layout and possibility of visualizing the working of
process in a systematic way.
Work Measurement
• British Standard Glossary (BSG) defines, “Work measurement is the application of
techniques designed to establish the time for a qualified worker to carry out a specific
job at a defined level of performance.”

• Work Measurement is a term which covers several different ways of finding out how
long a job or part of a job should take to complete.

• WM is the means of measuring the time taken in the performance of an operation or

series of operations in such a way that the ineffective time is shown up and can be
separated out.

• WM is also used to set standard times to carry out the work, so that any ineffective
time is not included later.
Work Measurement - Purpose & Benefits
Purpose of Work Measurement
• To reveal the nature and extent of ineffective time, from whatever cause so that action
can be taken to eliminate it.
• To set standard time for various operations.
• For determining idle or rest time of operator.
• Rate operator performance.
• Gain information to calculate overall production capabilities and Data for capacity
planning.

Benefits of method study

• Knowledge about Standard Times is gained
• Ability to estimate total work content
• Operators can be appraised on factual grounds
Work Measurement - Techniques
Techniques of Work Measurement

• Time study - The study with the stop watch.

• Work sampling - It helps to figure out the amount of time occupied by different
activities associated with men or machines.
• Analytical Estimating
• Synthesis from standard data - It is the compilation of known elements which have
been observed by the stop watch studies.
• Predetermined Motion Time Systems (P.M.T.S.) - The time required to do a job is
synthesized by combining the predetermined times for different elements of the
job.

The first two techniques involve direct observations whereas the rest are data based
and analytical in nature.
Work Measurement - Procedure
Procedure of Work Measurement
1. Select: The work to be studied and determine the objectives of the study.
2. Record: All the relevant data relating to circumstances in which the work is being
done.
3. Examine: The recorded data and the detailed breakdown to ensure the most effective
methods and motions are being used and unproductive elements are separated from
productive elements.
4. Measure: The time required to complete each element using appropriate work
measurement techniques and calculate the time required to com pile the work cycle
which is known as basic time.
5. Compile: The standard time for the operation or work cycle.
6. Define: Precisely the series of activities and method of operation for which the time
has been compiled and issue the time standards for the activities and methods
specified.
Time & Motion Study
• A time and motion study is used to reduce the number of motions in performing a task
in order to increase productivity & to make sure that the job being evaluated does not
include any unnecessary motion by the worker.
• Manufacturing engineering students are being prepared to design work stations,
develop efficient and effective work methods, establish time standards, estimate labor
costs, develop effective tooling, and layout manufacturing facilities. However, the most
important thing is to learn how to train production workers in these skills and
techniques so they can become motion and time conscious.
• Motion study is for cost reduction, and time study is for cost control. Motion study is
the creative activity of motion and time study.
• Motion study is design, while time study is measurement.
• Frederick W. Taylor and his followers developed and refined the Time Study & Frank B.
Gilbreth and his wife Lillian developed and refined the Motion Study.
• Earlier the two studies are discussed individually, today they generally are discussed as
one.
• The objective of the Time and Motion Study is to determine a ‘normal’ or average time
for a job, by using observers to record exactly how much time is being devoted to each
task.
Time Study
• International Labor Organization (ILO) defines, “Time study is a work measurement
technique for recording the time and rate of working for the elements of a specified job,
carried out under specified condition & for analyzing the data so as to obtain the time
necessary for carrying out the job at a defined level of performance.”
• A method created to determine the ‘correct time’ it takes to complete a certain task
• A method to establish ‘the one best way to perform a task’
• Time study can reduce cost significantly well.
• In organizations that operate without time standards, 60% performance is typical &
when time standards are set, performance improves to an average of 85%. This is a 42%
increase in performance:
85% - 60%
------------------ = 42% performance increase.
60%
Time Study - Equipments
The equipments to be used in Time study are
• Stop Watch
• Fly-back type
• Non Fly-back type
• Split hand stop watch
• Time Study board
• Time Study forms
• A small calculator
• A reliable clock with seconds hands
• Measuring instruments such as measuring tape, steel rule, micrometer,
spring balance etc.
Time Study - Procedure
• Select the job to be timed
• Standardize the method
• Select the operator
• Record details
• Break the task into elements.
• Measure the duration of each element and assess the pace of performance
(Performance rating)
• Determine representative time for each element
• Extend observed time into normal time
• Assess relaxation and other allowances
• Compute the standard time of job
Motion Study
• Motion studies are performed to eliminate waste. Before any improvement in quality
or quantity of output, any study of operations time, any scheduling of work or
balancing of workload or any calculation of standard time, a study of the current and
proposed method is required.

• Motion study comes first before the setting of time standards. Motion study is a
detailed analysis of the work method in an effort to improve it.

• Studies of overall factory flow or process, called macromotion studies, and then
additional studies of detail or operations, called micromotion studies, should be
completed for a project.
Macromotion Study
• Any process can be studied by dividing it into process activity. Although each activity is
different, depending on the product, there are five classes of activities that are included
in all processes. Savings, may be found in the process by reorganizing activities.

• These activities found in every sequence of processes are

• Operations Changes in the properties of the product
• Transportations Changes in the location of the product
• Inspection Confirmation that change fits to specification
• Delay Wait for start of operation, transportation, or inspection
• Storage Wait until needed

• When the process is first studied, each activity is recorded and arranged into one of the
five classes. All observed activities are recorded, and activities not done are not
recorded. The purpose of each activity should be studied.
• Example: Pick up the screw driver may have its timed value of several seconds and is
studied under macromotion study.
Macromotion Study
• Typically, the questions Who? What? Where? When? Why? and How? must be
answered.
• Next, each event is observed in the following sequence:
• Can the activity be eliminated? If not,
• Can the activity be combined and done with another activity? If not,
• Can the activity be rearranged so occur in the sequence at an easier time? If not.
• Can the activity be simplified with shorter distances, mechanical assist, or
reduced complexity?
• Once these questions are asked and the improvement sequence is defined, it is
necessary to draw a chart or diagram that shows the motion improvements.

• Process Flow Plan A plan-view plant layout with activities overlaid

• Process Operations Chart The sequence of serial and parallel operations
• Process Chart All serial activities on a preprinted form
• Flow Process Chart All serial and parallel activities on a single page
• Work Cell Load Chart A plan view with repetitive operations
• Route Sheet A planning tool for scheduling operations
Micromotion Study
• Considerable wasted motion and idle time can occur within an operation. This time
can’t be found with macromotion studies because is usually within one process
operation. The improvement is gained from reducing the operation cycle time.
Micromotion Study
• Applicable for operations with very short cycles which are repeated thousands of times.
• Goes into greater details to determine where movements and efforts can be saved and
to develop the best possible patterns of movements.
• Enables operators to perform the operation repeatedly with minimum effort and
fatigue.
• The technique used for this typically involves filming the operation and hence is known
as micromotion study.
• Examples of operators studied could be cashier in the bank – routine job of taking
payment slips from customer and issuing cash.
Time Standard
• The definition of a time standard is “the time required to produce a product at a work station with the
following three conditions:
(1) a qualified, well-trained operator,
(2) working at a normal pace,
(3) doing a specific task.”
• The importance of time standards can be shown by the three statistics 60%, 85%, and 120%
performance.
• The time standard is one of the most important pieces of information produced in the manufacturing
department. It is used to develop answers for the following problems:
• Determining the number of machine tools to buy
• Determining the number of production people to employ
• Determining manufacturing costs and selling prices
• Scheduling the machines, operations, and people to do the job and deliver on time
• Determining the assembly line balance, determining the conveyor belt speed, loading the work cells
with the correct amount of work, and balancing the work cells
• Paying incentive wages for outstanding team or individual performance
• Evaluating cost reduction ideas and picking the most economical method based on cost analysis, not
opinion
• Evaluating new equipment purchases to justify their expense
• Developing operation personnel budgets to measure management performance.
Example of Time Standard
How Many Machines Do We Need?
• One of the first questions rose when setting up a new operation or starting production on a new
product is “how many machines do we need?” The answer depends on two pieces of information:
• How many pieces do we need to manufacture per shift?
• How much time does it take to make one part? (Time standard)

EXAMPLE
• The marketing department wants us to make 2,000 wagons per 8-hour shift.
• It takes us 0.400 minutes to form the wagon body on a press.
• There are 480 minutes per shift (8 hours/shift x 60 minutes/hr).
• 50 minutes downtime per shift (breaks, clean-up, etc.)
• There are 430 minutes per shift available @ 100%.
• @ 75% performance (based on history) (0.75 x 430 = 322.5).
• There are 322.5 effective minutes left to produce 2,000 units.
322.5
---------------- = 0.161 minutes per unit, or 6.21 parts per minute.
2,000 units
Example of Time Standard
EXAMPLE
• The 0.161 minutes per unit is plant rate. Every operation in the plant must produce a part
every 0.161 minutes; therefore, how many machines do we need for this operation?

Time standard = 0.400 minutes/unit

----------------------------------------------------- = 2.48 machines
Plant rate = 0.161 minutes/unit

• This operation requires 2.48 machines. If other operations are required for this kind of
machine, we would add all the machine requirements together and round up to the next
whole number.

• In this example, we would buy three machines. (Never round down on your own. You will
be building a bottleneck in your plant.)
Work Sampling
Work Sampling
• According to BS 3138:1969 “A technique in which statistically competent number of
instantaneous observations are taken, over a period of time, of a group of machines,
process or workers. Each observation records what is seen to happen and the
percentage of observations recorded for a particular activity or delay is a measure of the
percentage of time absorbed by the occurrence.”

• Work sampling is a sampling technique wherein a large number of observations are

conducted at random intervals of time and the state of each member of the group-
working or not working is studied.
• The observations of non-working are further amplified and the cause of delay is
recorded. The data so collected can be utilized in a variety of ways.
Work Sampling - Advantages
Advantages of work sampling
• Cost reduction and cost control.
• Assessment of allowances for output standards.
• Fixation of output standards.
• Testing the accuracy of the output standards.
P.M.T.S.
Predetermined Motion Time System
• According to BS 3138:1969 “Predetermined motion time system (PMTS) is a work
measurement technique whereby times established for basic human motions are used
to build up the time for a job at a defined level of performance.”

Technique of PMTS
• The technique to build PMTS data does not measure element time by a stop watch and
thus it avoids the inaccuracies being introduced owing to the element of human
judgment.
• It is assumed that all manual tasks in industries are made up of certain basic human
movements (like reach, move, disengage etc.) which are common to almost all jobs.
• The average time taken by the normal industrial workers to perform a basic movement
is practically constant.
P.M.T.S.
Steps involved in collecting PMTS data
• Select large number of workers doing varieties of jobs under normal working
conditions in industries.
• Record the job operations on a movie film (micromotion study).
• Analyze the film, note down the time taken to complete each element and
compile the data in the form of a table or chart.

• The jobs selected are such that they involve most of the common basic motions
and are worked under different set of conditions by workers having different
ages and other characteristics.
• Once the table for various basic motions are ready, the normal time for any new
job can be determined by breaking the job into its basic movements, noting
time for each motion from the tables and adding up the time values for all the
basic motions involved in the job.
• Standard time may be obtained by adding proper allowances.
Linear Programming
Linear Programming is one of the most versatile, powerful
and useful techniques for making managerial decisions.
Linear programming technique may be used for solving
broad range of problems arising in business, government,
industry, hospitals, libraries, etc. Whenever we want to
allocate the available limited resources for various
competing activities for achieving our desired objective, the
technique that helps us is LINEAR PROGRAMMING
PROPERTIES OF LINEAR PROGRAMMING MODEL
Transportation
Assignment
(i) Assigning the jobs to machines when the problem has square matrix to minimize the
time
required to complete the jobs. Here the number of rows i.e. jobs are equals to the number
of
machines i.e. columns. The procedure of solving will be discussed in detail in this section.
(ii) The second type is maximization type of assignment problem. Here we have to assign
certain jobs to certain facilities to maximize the returns or maximise the effectiveness.
This
is also discussed in problem number 5.2.
(iii) Assignment problem having non-square matrix. Here by adding a dummy row or
dummy
columns as the case may be, we can convert a non-square matrix into a square matrix and
proceed further to solve the problem. This is done in problem number.5.9.
(iv) Assignment problem with restrictions. Here restrictions such as a job cannot be done on
a
certain machine or a job cannot be allocated to a certain facility may be specified. In such
cases, we should neglect such cell or give a high penalty to that cell to avoid that cell to
enter
into the programme.
(v) Traveling sales man problem (cyclic type). Here a salesman must tour certain cities
starting
from his hometown and come back to his hometown after visiting all cities.
Sequencing
Inventory Control
 COSTS ASSOCIATED WITH INVENTORY

(A) Inventory Carrying Charges, or Inventory Carrying Cost or Holding Cost

or Storage cost - Ch

(B) Shortage cost or Stock - out – cost - Cs

(C) Set up cost or Ordering cost or Replenishment Cost - Co

(D) Purchase price or direct production cost - P

ABC Analysis of Inventory
Replacement Models
The problem of replacement arises when any one of the components of
productive resources, such as
machinery, building and men deteriorates due to time or usage. The
examples are:
(a) A machine, which is purchased and installed in a production
system, due to usage some of
its components wear out and its efficiency is reduced.
(b) A building in which production activities are carried out, may leave
cracks in walls, roof etc,
and needs repair.
(c) A worker, when he is young, will work efficiently, as the time passes
becomes old and his
work efficiency falls down and after some time he will become unable
to work.
Simple queuing models
Theory of Games
Game theory is a body of knowledge that deals with making
decisions when two or more intelligent and rational
opponents are involved under conditions of conflict or
competition.
The competitors in the game are called players.
PERT and CPM
Programme Evaluation and Review Technique (PERT) and Critical Path Method
(CPM) are two techniques
that are widely used in planning and scheduling the large projects. A project is a
combination of various
activities. For example, Construction of a house can be considered as a project.
Similarly, conducting
a public meeting may also be considered as a project. In the above examples,
construction of a house
includes various activities such as searching for a suitable site, arranging the finance,
purchase of
materials, digging the foundation, construction of superstructure etc. Conducting a
meeting includes,
printing of invitation cards, distribution of cards, arrangement of platform, chairs for
audience etc. In
planning and scheduling the activities of large sized projects, the two network
techniques — PERT and
CPM — are used conveniently to estimate and evaluate the project completion time
and control the
resources to see that the project is completed within the stipulated time and at
minimum possible cost.