1

UNIT-III
Operations and Materials Management

INDUSTRIAL MANAGEMENT
Operations Management 2
 Work study – Introduction – Objectives – Scope of Work study
 Method study - Definition - Objectives – Steps of Method study.
 Work measurement – Definition, objectives and benefits of Work
measurements
 Time study – Definition – Steps in Time study – Uses of Time study.
Materials Management –Definition – Objectives – Functions
 Purchase procedure
 ABC analysis – VED Analysis – Economic Order Quantity.
Operations Management
3

 Operations management is a field of business concerned with the

administration of business practices to maximize efficiency within an
organization. It involves planning, organizing, and overseeing the
organization’s processes to balance revenues and costs and achieve the
highest possible operating profit. An operations manager is tasked with
ensuring that the organization successfully converts inputs such as materials,
labor, and technology into outputs in an efficient manner.
Work Study
4
 Work Study is a technique which deals with the problems
 As to How should a job be done

 How much time a job should take for completion

 Work study is an organised continuous effort to improve productivity, quality

and reduce costs within an organization

 Work Study techniques lead to increase in productivity

 Work Study reduces wastage of time, effort, increase the efficiency of man and
machine.
Work Study
5

 Work Study is the most effective tool in the hands of management. It

is the study of work of workers in all aspects in order to
increase productivity. It is a systematic and analytical study of work
process and work methods with the objective of increasing efficiency
and reducing costs.
Work Study
6

 Work study is a systematic, objective and critical examination of all the

factors governing the operational efficiency of any specified activity in order to
effect improvement.
 Work study is a term used to embrace the techniques of method study and work
measurement, which are employed to ensure the best possible use of human and
material resources in carrying out a specified activity.
Objectives of Work Study
7
 The maximum use of plant and equipment.
 The most effective use of human work.
 Provide more and improved physical means to motivate the workers.
 Improve the basic process by research and development.
 Improve the methods of operation.
 Establishment of standards for measuring performance.
 Improve organisation product, planning and control.
 Improve manpower efficiency at all levels.
Procedure for Work Study 8

 Define the Problem

 Record(with operation process chart, flow process chart, flow diagram

and other relevant charts)

 Examine

 Develop

 Measure

 Maintain
 Benefits of Work Study 9

 Increased productivity and operational efficiency

 Reduced cost of Production
 Improved Plant Layout
 Better manpower planning and capacity planning
 Fair wages to workers
 Better working conditions to employees
 Reduced material handling costs
 Provides a standard of performance to measure labour efficiency
 Better industrial relations and employee morale
 Basis for suitable incentive schemes and provide better job satisfaction to employee
 10

Techniques of
Work Study
Work Study 11
 Method Study or Work Simplification 12

 Method Study is the scientific technique of observing, recording and critically

identifying the operations performed and the movement involved in doing a job
with the aim of making improvements therein. It is an organised and systematic
study of work organised and work processes and working conditions. It is a very
wide term embracing all of the physical aspect of operation, methods ,
conditions, equipment etc.,
 Method Study or Work Simplification 13

According to the British Standards Institute

 "Method Study is the systematic recording and critical examination of
existing and proposed ways of doing work, as a means of developing and
applying easier and more effective methods and reducing costs".
 Method Study is done to evolve the most economical method of
doing the job
 Method Study or Work Simplification 14
Method study is useful under following situations :
 High operating cost.
 High wastage and residual.
 Exeessive movement of materials and workmen.
 More production bottlenecks.
 More rejections and rework.
 Complaints about quality.
 Complaints regarding poor working conditions.
 More number of accidents.
 Excessive use of overtime.
 Objectives of Method Study
15
 To eliminate unnecessary and inefficient motions
 To remove repeating of effort
 To reduce fatigue and boredom of work by avoiding unnecessary movements
 To improve product design and plant layout
 To standardise work processes, working conditions and tools or equipment
etc.,
 To maximise the utilization of manpower, materials, machinery and other
facilities.
 To train the Individual worker
 Method Study-Advantages 16

 Work simplification.

 Better working method (cheaper method).

 Better product quality.

 Improved plant layout.

 lmproved equipment design.

 Better working conditions or environment.

 Better materials handling system and lesser materials handling cost.

 Improved work flow.

 Method Study-Advantages 17

 Less fatigue to workers.

 Optimum utilization of all resources.

 Higher safety to workers.

 Shorter production cycle time.

 Higher level of job satisfaction for workmen.

 Reduced material consumption and wastages.

 Reduced cost of production and higher productivity.

 Procedure of Method Study 18

 Selection of the job to be studied and simplified.

 Collection and recording of data about the existing method.
 Critical examination or analysis of the data collected.
 Development of most practical and economical method.
 Installation of new method and evaluation of its efficiency.
 Maintenance of new method.
Method Study Techniques 19

 Process Charts
 Flow diagrams
 String diagram
 Travel charts
Symbols used in Process Chart 20
Flow Process Chart-Types 22

1. Man type or Operator Type

2. Material Type of Product Type
3. Equipment Type or Machine type
Flow process chart 24
 26

Outline
process
chart
 28

Two handed process chart

Flow Diagram 31

A Flow diagram is a drawing indicating the paths

of men, material or components, on a scale plant of
work, area, department or factory.
Flow diagram 32
String Diagram 33

 When the paths are many and repetitive, a flow diagram of the
process becomes complicated. It is neither traceable nor
understandable. Under such a case String diagram is used.
 String diagram is a simple tool for analysing and designing
work spaces such that movements can be minimised.
String Diagram 34
Travel Chart 35

 “the tabular record for representing quantitative data about

the movement or workers, materials or equipment between
any number of places over a given period of time”.
 36

Travel
charts
Motion Study 37

 Motion Study or movement study is a formal engineering analysis of

motions performed to accomplish work. The motions or movements of a
worker play an important part in the fabrication or manufacture of the
products. By carefully observing a worker his unnecessary and
unproductive motions or movements can be identified and can be
eliminated.
Motion Study 38

 Motion study is defined as analysis of an operation when carried out

in terms of individual motions of a worker.
 Motionstudy is the science of eliminating wastefulness resulting
from unnecessary, ill treated and inefficient motion.
 Motion Study is a formal engineering analysis of motions performed
to accomplish work with the intent to eliminate waste motions and
ill-treated inefficient motions.
Objectives of Motion Study
39
 Eliminating unwanted motions.

 Simplifying complex motions.

 Increase the efficiency of activities.

 Improving the order of necessary motions.

 Change the sequence of activities.

 Improve the materials handling process.

 Make the activity more safe.

 Standardize the optimum procedures and working conditions so that the employees
uniformly use the best possible way of performing activity.
Motion Study-Procedure 40

 Select

 Record

 Examine

 Develop

 Install

 Maintain
Techniques of Motion Study 41

Therblig Analysis
 Therblig was suggested by Gilbreth. Therbligs are used to describe the basic
elements of movements or fundamental hand motions of the work cycle. Each
type of motion is called a therblig and represented by a definite color and with a
word or two to record the same.

 A single operation can consist of many therblig.

 42

Techniques of
Motion Study
Therblig
Analysis
Micromotion Study 43

 Micro motion study is defined as the study of fundamental elements

of an operation. It is carried out with the help of high speed movie
camera in order to eliminate the unnecessary motions involved in
the operation and balancing the necessary motion.

 Very small time up to 0.0005 minutes can be measured by the

system
Process Charts 44

 A Process chart records graphically or diagrammatically in

sequence, the operations connected with the process. A Process chart
is a representation of events and information related to the process
during a series of operations.
 Work Measurement 45
 Work Measurement is the application of techniques designed to establish the work content of
a specific task by determining the time required for carrying out the task at a defined standard
of performance by a qualified worker.

 Work measurement is concerned with the determination of the amount of time required to

perform a unit of work. Work measurement is very important for promoting productivity of an

organization. It enables management to compare alternate methods and also to do initial

staffing. Work measurement provides basis for proper planning.

 Objectives of Work Measurement 46

1. To compare the times of performance by alternative methods.

2. To enable realistic schedule of work to be prepared.

3. To arrive at a realistic and fair incentive scheme

4. To analyse the activities for doing a job with the view to reduce or eliminate unnecessary
jobs.

5. To minimise the human effort.

6. To assist in the organisation of labour by daily comparing the actual time with that of
target time.
 Work Measurement-Advantages 47

1. Work measurement is used in planning work and in drawing out schedules.

2. Wok measurement is used to determine standard costs.

3. Wok measurement is used as an aid in preparing budgets.

4. It is used in balancing production lines for new products.

 Work Measurement-Advantages 48

5. Wok measurement is used in determining machine effectiveness.

6. To determine time standards to be used as a basis for labour cost control.

7. To establish supervisory objectives and to provide a basis for measuring

supervisory efficiency.

8. To determine time standards to be used for providing a basis for wage

incentive plans.
Work Measurement-Techniques 49

1. Time Study

2. Synthesis Method

3. Analytical Estimating

4. Pre-determined Motion Time System(P.M.T.S)

5. Activity Sampling or Work Sampling or Ratio delay Method

 Time Study 50

 Time Study is concerned with the determination of total time required to perform a unit
of work. It consists of the process of observing and recording. The purpose is to
estimate reasonable time required to perform each element of an operation so that work
should be finished.

 “the art of observing and recording the time required to do each detailed element of an
industrial operation”
 Manual, Mental and Machinery operations
 Time Study-Objectives 51

(1) Target time for each job can be scientifically estimated. With this estimate realistic schedules and

manpower requirements can be prepared.

(2) Sound comparison of alternative methods is possible by comparing their basic times.

(3) Useful wage incentive schemes can be formulated on the basis of target times.

(4) In can lead to proper balancing of the work distribution.

(5) It can help to analyse the activities for performing a job with the view to eliminate or reduce unnecessary or

repetitive operations so that human effort can be minimized.

 Time Study-Objectives 52

(6) To standardize the efficient method of performing operations.

(7) To standardize conditions for efficient performance.

(8) To determine man and machines ratio for effective and efficient utilisation of both.

(9) To provide information and basis for production planning and scheduling activities.
 Uses of Time Study 53
 It is useful in determining the standard time for various operations, which helps in
fixing wages and incentives.

 It is useful to estimate the cost of a product accurately.

 It helps in production control.

 It helps in predicting accurately as to when the work will be completed and hence
customers can be promised to take delivery on a fixed date.

 Using the time study techniques, it can be found that how much machines an opera­tor
can run.
 Time Study-Advantages 54

(a) To plan future production they are required for:

(1) Estimation of equipment or machinery requirements.

(2) Estimation of production cost per unit in order to determine/fix selling price.

(3) Estimating manpower requirements.

(4) Taking makes or buys decisions.

(5) Balancing the work of operators constituting a group.

(6) Estimating delivery dates.

 Time Study-Advantages 55

(7) Estimating times required for a specified inventory level generation.

(8) Estimation of labour costs.

(9) Making alternative investment decision in purchasing machines/equipment

(10) Developing efficient plant layout and material handling arrangement.

(b) Time standards help in evaluation of performance as in following cases:

(1) The evaluation of productivity of various workstations.

(2) The development of individual or group incentive schemes for above average performance.
Time Study-Procedure 56

 For conducting time study, average workers and average machines

are selected. This study is conducted by the Time Study expert, who
should be familiar with all information’s related to the job and the
conditions in which it is being done. The location of the expert
should be such that he can watch all the operations and the movement
of the workers without disturbing them from suitable distance.
Time Study-Procedure 57

(a) Analysis of Work:

 The complete job and its operations are split up into various
elements. These elements are finalised after conducting motion study.
In the end, time required for the job preparation, cleaning of machine
and oiling etc. should be included. Thus time study includes all the
tasks performed by the worker and not only the effective work.
Time Study-Procedure 58

(b) Standardization of Methods:

 Before conducting time-study, all the constituents of the job such as

materials, equipment, tools, working conditions and methods are
standardized. The method should be easy, safe and quickest in the
given conditions, so that it can be accepted by workers.
 Time Study-Procedure 59
(c) Making Time Study:
 The study is done on a printed time study record sheet, which is fixed on a board known as
Time Study Board. On one corner generally right hand top corner a stop watch is placed.
This stop watch should have a decimal scale dial so that it can read up to 0.001 minute.

 Different time readings of one element are recorded in the corresponding column of the
record sheet. Several sets of readings are taken to arrive at an accurate result. After noting
all these readings, average time is calculated, neglecting abnormal values, if any .
 Time Study-Procedure 60

 This average time is multiplied by a leveling factor also called ‘Rating Factor’, which
is generally assumed as 90-120% to get the time required by a normal worker. The
multiple of average time and rating factor is known as “Normal Time”.

 Some allowances such as personal allowance (20%), fatigue allowance (5%),

preparation allowance (5%) are added in normal time to obtain the standard time. The
standard time is the basis for the calculation of wages and incentives.
 Standard time = Average Time × Rating factor + Other allowances.
Time Study Record Sheet 61