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Operation function of an Organization

The operation function of an organization is the part that produces the organization’s products. The product may be physical goods or services. This function performs several activities to ‘transform’ a set of inputs into a useful output using a conversion process. The conversion process is the process of changing inputs of labor, materials, capital and management into outputs of goods and services. The production process consists of number of activities and operations. These operations and activities can be applied in different combinations and order to achieve the desired objective. The operations can be purchase of raw materials, maintenance of inventories, transportation of goods etc. The combination of two or more constitutes a system. In any production process two or more systems can be combined in series or parallel e.g. number of factories producing produce similar products to supply several markets areas then they constitute a parallel system. According to Webster “System is a regularly interacting or interdependent group of items forming a unified whole.” Any systems may have many components and variation in one component is likely to effect the other components of a system e.g. change in rate of production will affect inventory, overtime hours etc. Broadly speaking an ‘operation function’ or operations management is a systematic approach to address all the issues pertaining to the transformation process that converts some inputs into outputs that are useful and could fetch revenue to the organization. Four aspects of this definition merit closer attention. A systematic approach involves understanding, nature of issues and problems to be studied, establishing measures of performance, collecting relevant data, using scientific tools and techniques to analyze and effective and efficient solutions to the problem. Therefore, for successful operation management, the focus should be on developing a set of tools and techniques to analyze problems within operation systems. The second aspect of operation management pertains to addressing several issues that an organization faces. These issues vary markedly in terms of the time horizon, the nature of the problem to be solved and commitment of the required resources, the problems may include deciding how to re-route jobs when a machine breaks down on a shop floor or how to handle a surge in demand in a service systems. On the other hand, decisions such as where to locate the plant, what capacity to build in the system and what type of products and services need to be offered to the customers is to be done? Operation management provides alternative methodologies to address such wide-ranging issues to an organization. Transformation processes are central to operation systems. The transformation process ensures that inputs are converted into useful outputs. Therefore, the focus of the operation management is to address the various aspects of design in the transformation process as well as planning and operational control. Finally, the goal of operation management is to ensure that through careful planning and control of operations the organization is able to keep the costs. In order to ensure this an appropriate performance evaluation system is required. Therefore the operation management discipline also involves the development of such a system of performance evaluation and methods by which the operating system could make improvements to meet targeted performance measures.

Service Operations vs. Manufacturing Operations

Service and manufacturing operations have differences, but also similarities. For example, both create mission statements and a vision for how the organization will be run and perceived by customers. Each provider or manufacturer wants to lead the market in its specific industry. However, manufacturing and service operations answer different questions and formulate different strategies when it comes to planning and managing the way in which an organization is run.

Characteristics

Manufacturing operations produce tangible goods, which are physical products that can be held and seen. Manufacturing can be broken down into two branches: process and discrete manufacturing. While process manufacturers produce goods that typically use a formula and ingredients, such as soda pop or pharmaceutical drugs, discrete manufacturers produce goods from parts, such as electronics, appliances and automobiles. On the other hand, service operations provide certain intangible services that may not be easily identifiable. Service operations can be classified into many industries, such as banking, hospitality, advertising and consultancy.

Customization vs. Standardization

In general, manufacturers have a standardized way of producing goods. Goods are produced en masse in a factory or warehouse-type environment. One finished product is generally the same as the next. Service operations, by contrast, have more opportunities to customize the services they provide. For example, beauticians and hairdressers must customize the styling and treatments to match the customer's hair, shape of face and other characteristics. Even in service operations where you receive a tangible product, the service you receive from workers may not always be the same.

Operations Management

In a manufacturing environment, operations managers oversee the activities required to produce goods from raw materials. Issues managers in this environment face include managing the space to store raw materials, the flow of materials through the manufacturing process, how much product to produce and quality of output. In a service operation, operations managers schedule workers to handle customer demand. They must coach and train employees to provide optimal services to customers. Service operations that also sell physical goods also face inventory control issues, such as how much to stock and when to order.

System View of Operations Management

System is a group of interrelated items in which no item studied in isolation will act in the same way as it would in the system. A system is divided into a series of parts or subsystems, and any system is a part of a larger system. The system’s boundary defines what is inside the system and what is outside. A system’s environment is everything outside the system boundary that may

have an impact on the behavior of the system. A system’s inputs are the physical objects of information that enter it from the environment and its outputs are the same which leave it for the environment.

The activities in an operations system can be classified as inputs, transformation process and output. Inputs are classified into three general categories-external, market and primary resources. Transformation resources are the elements that act on, or carry out, the transformation process on other elements. These include such elements as labor, equipment/plant and energy. The nature and mix of these resources will differ between operations. The transformed resources are the elements which give the operations system its purpose and goal. The operations system is concerned with converting the transformed resources from inputs into outputs in the form of goods and services. There are three main types of transformed resource of materials which can be transformed either physically (e.g. manufacturing) by location (e.g. transportation),by ownership(e.g. retail) or by storage(e.g. Warehousing) or other private services, Government services.

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Strategic Role of Operations

Operations management refers to the design, operation and control of the transformation process that converts such resources as labor and raw materials into goods and services that are sold to customers. And just as every organization produces something ,every unit in an organization also produces something. Today, every successful organization recognize the crucial role that operations management plays as part of the overall organizational strategy to establish and maintain global leadership. The strategic role that operations management plays in successful organizational performance can be seen as more organizations move towards managing their operations from a value chain perspective which means the entire series of organizational work activities that add value at each step beginning with the processing of raw materials and ending with the finished product. There are various reasons which make operations management important. It encompasses both services and manufacturing, its important in effectively and efficiently managing the productivity as every organization should have high productivity which can lead to economic growth and development and help employees in receiving high wages as well as lead to increase in company's profit without causing inflation. Operations management is also important as it plays a strategic role in an organization's competitive success.

Operations Strategies for Competitive Advantage

The environment of organizations is becoming more and more complex because of increasedrate of environmental, social and technological change, the increased internalization of business organizations and increased scarcity and cost of natural recourses. An analysis of the competitive scenario in our country in the last ten years reveals that it is inevitable for organizations to have a good operation strategy. Due to the liberalization and globalization policies of the Union Government, Indian manufacturing and service firms have faced competition from other parts of the world. They are new and required to have a global outlook as opposed to the traditional domestic outlook. It also signaled the end of an era when customer orientation and the need for cost cutting were not all that important. Today the primary goals are related to market opportunities and customer satisfaction. The general thrust of the operation management is guided by competitive and market condition of the industry, which provides the basis for determining the organization’s strategy. Where is the industry now, and where will it be in future? What are existing and potential markets? What market gap exists and what competencies do we have for filling them? A careful analysis of market segments and the ability of our competitors and ourselves to meet the needs of these segments will determine the best direction for focusing an organization’ efforts. After assessing the potential within the industry, an overall organizational strategy must be developed, including some basic choices of the primary basis for competing. In doing so, priorities are established among the following four characteristics;• Quality (product performance)• Cost efficiency (low product price )• Dependability (reliable; timely delivery of orders to customers )• Flexibility (responding rapidly with new products or changes in output volumes )

The manufacturers need to devise methods to remain competitive in the market following the four characteristics. Better cost management practices are often required in the manufacturing

and service organizations to handle the threat of competition. Time is emerging as a critical dimension of competition in both manufacturing and service industries. In any industry the firm with the fastest response to customer demands has the potential to achieve an overwhelming market advantage. Developing superior capabilities to cut down lead time is an important requirement today. Another area of operation strategy is the proliferation of variety. Some of the key inferences from the changes in the last ten years can be summarized as follows:

• Due to several factors, the competitive dynamics will change and the expectation of the customers will also change on account of this.

• Organizations need a structured approach to scan the market and distill the changing needs at the market place. Moreover they also need a mechanism to chalk out a plan for responding to these changes in the most effective way.• With the changes in the market place, the competitive priorities for an organization must also change. Organizations need to tune their operations to match the competitive priorities?• The above processes are expected to repeat several times in the future and the organization must be in a position to respond to the changes every time it is called for. These basic strategic choices, then, set the tone for the shape and content of the operation function and what it accomplishes. Therefore it is important for organizations to develop the capabilities to devise strategies for operations. This strategic planning exercise enables an organization to respond to the market needs in the most effective manner by aligning the resources and various activities in the organization to deliver products and services that are likely to succeed in the market place. The process of formulating operation strategy in any organization involves a sequential and structured set of activities. There are three steps in the process. The first step is to identify the strategic options for sustaining the competitive advantage. Once the options are known, based on the firm’s strengths and weaknesses, the overall corporate strategy could be devised. In the last step, the corporate strategy provides the basis for arriving at the appropriate operation strategy for the organization. Any strategy making exercise begins with scanning the marketplace and understanding the dynamics of the marketplace. The market dynamics informs an organization of the relevant issues to be considered for the strategy formulation process. It provides useful information about competitors, the nature of offerings that they make to the current customers, the customer’s expectations, any missing links between expectations and the current offerings and intensity of competition. The expectations of the customers can be manifold. It can include price, performance, quality, ease of use, delivery commitments, technological superiority of products, critical post sales service and so on. Customer expectation changes with time on account of several reasons. Technological improvements, evolution of market and infrastructure may cause a shift in customer expectations about a product or service.

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Operations Quality and Productivity Focus

The scope of Operations Management (OM) has changed significantly in the last several decades. Starting from Re-order Point (ROP) to Enterprise Resources Planning (ERP) and Supply Chain Management (SCM), OM has gone through a long way in terms of scope and techniques being used. JIT philosophy, lean production, and agile manufacturing have significantly changed the ways how we design and analyze the operations. Recently, OM and logistics fields get closer, since there is no way to separate those functions any longer from the operational process perspective. Traditional OM’s focus is about to move from a function of the organization to the supply chain, starting from suppliers of suppliers to customers of customers. Along the supply chain, not only goods and services but also all sources of cash, credit, and information need to be managed. Technological innovations are another facet of the discussion and the real power behind this integration. It may not be wrong to express those trends in OM with a quotation as “Unite (integrate) and conquer”. The profile of the operations managers has also changed a lot through those developments in OM. Teaming, cross-functional training, leadership, employee involvement, commitment, and couching are just a few skills to name here to remain in demand in future. The measures for customer satisfaction on cost, response time, variability, quality, flexibility and service in future’s operations are sure to be high and strict. To match the expectations, well-integrated technological solutions would be only aid of OM practitioners. In this study, the issues mentioned above will be explored systematically and the challenges of the new era as well as the new skills required to cope with those will be discussed.1. IntroductionAll organizations; private or public, manufacturing or service, have four basic management responsibilities: Money management, demand management, design management, and operations management [Schonberger et al., 1997]. Based on the size of the company those responsibilities may be viewed under the defiance/accounting departments for money management, marketing/sales departments for demand management, research &development/design departments for design management, operations/production departments for operations management. Human resources, materials management, purchasing, maintenance, and so on are all support departments [Schonberger et al., 1997]. This division of the management responsibilities is the result of the functional thought. In the last decade, this functional consideration of the organization has received heavy criticism. According to Hammer, originator of the reengineering principles, functional division or grouping of the tasks was not a natural breakdown of how we are doing our jobs. A process oriented thought was introduced as a new substitute for the 90’s and has received an overwhelming acceptance from the practitioners. This new approach to the organizations, of course, requires a new set of tools, skills and infrastructure to grow up. At the beginning of new millennium, we are in the process of implementing this approach as well as constructing its infrastructure. Current technological advancements and innovations also contribute to this transformation. Concentration to the processes basically results with the integration of many cross functional names tasks traditionally performed by different functional departments. This integration creates many challenges for the stakeholders of the work including employees, employers, work environment, and work itself. Of course, the shift of concentration to the processes, not to the functions would make most of the tools developed for the functional areas absolute. New skills, and expertise areas would be necessary.

New millennium starts with this transformation on the organizations inherited from the last decade of the 20th century. On the other side, business world changes as the customers’ wants and needs change. Technological innovations always open new horizons to the solution of old problems while creating new ones. The future is full of new opportunities about how to fulfill customer requirements through new innovative design of business processes. Internet, e-business, new communication technologies are just a few to recall here. In this study, we like to explore the new challenges for the managers of the future. We will first identify the current trends in the field of Operations Management (OM) and focus to its expanded scope. New features on the work system characteristics as well as business environment and stakeholders’ expectations in the future will be discussed in the following sections respectively. Based on those future expectations, we will work to specify the winning characteristics of the future’s operation managers, then, speculate on how to remain in demand.2. Expansion on the Scope of Operations ManagementIn recent years, the new areas which are not considered traditionally within the OM field or the topics which OM has showed limited attention previously have gained quite a bit interest. Among those; design of goods and services, utilization and compensation of human resources, maintenance, quality, and service sector can be counted OM is a set of activities that creates goods and services through the transformation of inputs into outputs [Heizer et al., 1999]. In the past; developments on scientific management, organizational behavior, quantitative modeling, computing technology and Total Quality Management (TQM) have initiated significant changes on OM respectively. In recent years, OM practices have seriously increased in the service sector. Logistics as activities associated with the management of freight and distribution systems among the parties in the supply chain [Schonberger et al., 1997], is highly visibility partner of OM. Customer service, demand forecasting, inventory management, material handling, order processing, plant and warehouse site selection are among the major logistics activities [Lambert et al., 1993]. Almost all of those are very traditional OM subjects as well [Nahmias, 1993]. This makes clear how recent developments help both OM and logistics to merge.

Meeting global Challenges of Production and Operations

Operation managers face challenges balancing an organization's processes and policies. Operation managers play a central role in stabilizing an organization's policies and procedures across major business areas including finance, planning and technology. In small businesses, the role of the operation manager is often assumed by the business's owner or its general manager. The job involves overseeing the company's strategic approach to its on-site operations.

Competing Practices

Managing the competing business practices within an organization is a major challenge for an operation manager. The finance function of the business may prefer to communicate via email, for instance, while the human resources director may prefer written memos. These differences in business procedure can have a detrimental effect on operations when they impact the effectiveness or efficiency of delivering quality goods and services. A weak communications process can hamper the processing of orders or the payment of invoices. Operation managers can end competing practices by instituting company-wide standards. Even in small businesses where one person might handle several functions, all team members should understand how the

organization operates and follow those procedures. The operation manager's job is to ensure that everyone is using the same methods, is following the same policies and is communicating openly.

Sustainability

Operation managers are tasked with creating long-term customer and employee strategies that acknowledge the organization's impact on the social, cultural and economic environment. Many companies have adopted "green" or environmentally friendly strategies as part of a focus on sustainability. These strategies seek to eliminate waste and turn the company's attention to minimizing negative effects on the environment that reduce the well-being of local consumers. Developing business policies that encourage transparency are also part of the sustainability push. This can be a particular challenge to operation managers in small businesses, because these work environments tend to be more insular than larger corporations. Creating a set of sustainable business practices impacts the organization's relationship with its employees and customers.

Corporate Reporting

Many operation managers are responsible for corporate reporting, including the compilation of financial and performance data, the communication of this data to stakeholders and regular audits of the organization's financial books. Challenges can arise in corporate reporting when the business hasn't kept current or accurate records. In the small-business setting, record keeping can sometimes take a back seat to more pressing concerns like meeting customer demands or keeping production levels high. Nonetheless, full and complete record keeping on profits and losses as well as sales goals and expenses is necessary to assess the company's long-term viability.

Social Responsibility

In many ways, social responsibility is related to sustainability, but this function of the operation manager looks specifically at how the business engages with its local community beyond trying to get consumers to buy its products. Many businesses choose to get involved with nonprofit organizations, to sponsor local sports teams or to volunteer in local schools. While these can be challenging projects to organize, a business's community involvement gives its neighbors a sense that the company cares about its surroundings and its customers on more than just a profit level, and it raises awareness of the business and its brand. Social responsibility, therefore, is a form of marketing and public relations.

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Designing product

There are various product design processes and many focus on different aspects. The process shown below, for example, is "The Seven Universal Stages of Creative Problem-Solving," outlined by Don Koberg and Jim Bagnell. It helps designers formulate their product from ideas. This process is usually completed by a group of people, i.e. industrial designers, field experts (e.g. prospective users), engineers, etc. depending upon the products involved. The process focuses on figuring out what is required, brainstorming possible ideas, creating mock prototypes, and then generating the product. However, that is not the end of the process. At this point, product designers would still need to execute the idea, making it into an actual product and then evaluate its success by seeing if any improvements are necessary.

The product design process has experienced huge leaps in evolution over the last few years with the rise and adoption of 3D printing. New consumer-friendly 3D printers can produce dimensional objects and print upwards with a plastic like substance opposed to traditional printers that spread ink across a page.

The design process follows a guideline involving three main sections

Analysis Concept Synthesis

The latter two sections are often revisited, depending on how often the design needs touch-ups, to improve or to better fit the criteria. This is a continuous loop, where feedback is the main component. To break it down even more, the seven stages specify how the process works. Analysis consists of two stages, concept is only one stage, and synthesis encompasses the other four.

Analysis

Accept Situation: Here, the designers decide on committing to the project and finding a solution to the problem. They pool their resources into figuring out how to solve the task most efficiently.

Analyze: In this stage, everyone in the team begins research. They gather general and specific materials which will help to figure out how their problem might be solved. This can range from statistics, questionnaires, and articles, among many other sources.

Concept

Define: This is where the key issue of the matter is defined. The conditions of the problem become objectives, and restraints on the situation become the parameters within which the new design must be constructed.

Synthesis

Ideate: The designers here brainstorm different ideas, solutions for their design problem. The ideal brainstorming session does not involve any bias or judgment, but instead builds on original ideas.

Select: By now, the designers have narrowed down their ideas to a select few, which can be guaranteed successes and from there they can outline their plan to make the product.

Implement: This is where the prototypes are built, the plan outlined in the previous step is realized and the product starts to become an actual object.

Evaluate: In the last stage, the product is tested, and from there, improvements are made. Although this is the last stage, it does not mean that the process is over. The finished prototype may not work as well as hoped so new ideas need to be brainstormed.

New Product Design

A successful product development requires a total-company effort. The most successful innovating companies make a consistent commitment of resources to product development, design a new product strategy that is linked to their strategic planning process, and set up formal and sophisticated organizational arrangements for managing product development process. The product development process for finding and growing new products consist of eight major steps as explained below;• Idea generation• Idea screening• Concept development and testing• Marketing Strategy Development• Business analysis• Product Development• Test marketing• CommercializationWe shall briefly describe these steps:Idea Generation: It is a systematic search for new product ideas. A company has to generate many ideas in order to find good ones. The search for new products should be systematic rather than haphazard. Top management should state what the products and markets to emphasize. It should state what the company wants from its new products, whether it is high cash flow, market share or some bother objective. To obtain a flow of new-products ideas, the company can tap many sources. Major sources of product ideas include internal sources like customers, competitors, distributors and suppliers. It has been found that more than percent of all product ideas come from internal sources.Idea screening: The purpose of idea generation is to create a large number of ideas. The purpose of the succeeding stages is to reduce that number. The first reducing stage is idea screening. The purpose of screening is to spot good ideas and drop poor ones. Most companies require their executive to write up the new product ideas on a standard format that can be reviewed by a new product committee. The write up describes the product, the target market, the competition and makes some rough estimate of market size, product development time and costs, manufacturing costs and rate of return. The committee then evaluates the idea against a set of general criteria.

Concept Development and testing: Customers do not buy product ideas, they buy the product concepts. The concept testing calls for testing new product concepts with a group of target consumers. After being exposed to the concept, consumers then may be asked to react to it by asking a few questions.Market strategy development: The next step is market strategy development, designing an initial marketing strategy for introducing the concept to the market. The market strategy statement consists of three parts:• The first part describes the target market; the planned product positioning, market share and profit goals for the first few years.• The second part of the marketing strategy statement outlines the product planned price, distribution and marketing budget for the first year.• The third part of the marketing strategy statement describes the planned long-run sales, profit goals, and marketing mix strategy.Business Analysis: Once management has decided on its product concept and marketing strategy, it can evaluate the business attractiveness of the proposal. Business analysis involves a review of its sales, cost, and profit projections for a new product to find out whether they satisfy the company‘s objectives.Product development: If the product concept passes the business test, it moves into product development. Here, R&D or engineering develops the concept into a physical product. The R&D department will develop one or more physical versions of the product concept, R&D hopes to design a prototype that will satisfy and excite consumers and that can be produced quickly and at budgeted cost. When the prototype is ready it must be tested. Functional tests are then conducted to make sure that the product performs safely and effectively.Test Marketing: If the product passes functional and consumer tests, the next step is test marketing, the stage at which the product and marketing program are introduced into more realist marketing setting. This allows the marketer to find potential problems so that these could be addressed.Commercialization: is introducing the new product into the marketTools for Product Development: The following are various product development techniquesadopted by different organizations;Standardization: This means fixation of some appropriate size, shape, Quality, manufacturing process, weight and other characteristics as standard to manufacture a product of desired variety and utility e.g. manufacture of television sets of standard size of the screen using standard components and technology; shaving blades are made of standard size and shape to suite every kind of razor. The concept of standardization is applicable to all factors of production namely men, materials, machines and finished goods. These standards can become the basis to evaluate the performance of various components of production in a manufacturing process. In the words of Behel, Smith and Stackman: “A standard is essentially a criterion of measurement, quality, performance, practice established by custom, consent or authority and used as a basis for comparison over a period of time. The setting of standards and the coordination of the industrial factors to comply with these standards and to maintain them during the periods for which they are effective is known as industrial standardization” According to Dexter S Kimball of production control operation in the manufacturing sense is the reduction of any one line to fixed types, sizes and characteristics.” Standardization becomes the basis of production control operations and works as a catalyst in directing and operating the working of business enterprise. It identifies and compares various products, systems and performances in an enterprise. It is the

function of the department responsible for designing the product to provide the guidelines and infrastructure for standardization of the whole system keeping into consideration the designing stage towards standardization may be too expensive to be rectified. For an organization designing of the product without considering standardization aspect is of no value of significance. Franklin F. Folts has described the concept of standardization as,” amplification of product lines and concentration on a restricted predetermined variety of output is one common application of the principles of standardization may be extended to all factors in the production process”. Standardization is an instrument to manufacture maximum variety of products out of minimum variety of components by means of a minimum variety of machines and tools. This decreases working capital requirements and reduction in manufacturing costs. Standardization also implies that non-standard items are not to be manufactured except when consumers order them specially. Some standards are enacted by law viz. automobile windscreen which must be made of safety glass. Usually there are institutions, societies and governmental departments that regulate the standards. In a factory, it is best to have standardization committee drawing its members from sales, engineering, production purchasing, quality control and inspection. Sales department and engineering department have to work closely in effecting changes towards standardization because the older products that have been sold are affected for after-sales service needs. Within an organization, it is the engineering department who sets standards for the materials to be procured and specification of the end products and the mode of testing the products.

Product life cycle

Product life cycle is a business technique that attempts to list the stages in the lifespan of commercial/consumer products. 'Product Life cycle' (PLC) is used for determining the lifespan of these products; such as the normal phases through which a product goes over its lifespan. A by-product of this PLC information is Product Life cycle Management (PLM). This is the management of the gathered PLC data to use in different aspects of the business.

Stages of a product life cycle

Development

In the development stage, the product goes through testing and a prototype is developed. This is after considerable market research to identify consumer needs and wants. If the product is deemed commercially viable, then the product may be put into mass production and launched.

It is important to remember at this stage expenditure for the company is high. No income is being received as there are zero sales. This is the first stage of the product cycle lifespan.

Introduction is the stage in which a new product is first made available in the market. In the introduction stage, customers are few, competition is less, sales are low, risk is high and profits are low or nil. There are heavy distribution and promotion expenses. This stage is full of risks and uncertainties. Prices are also high because costs are high due to low level of output. Technological problems in production may not have been solved, and high profit margins are

required to support the heavy promotion expenditure. the product at the introduction stage requires high activity in promotion.

Growth

If the product is popular with consumers, then sales will start to rise. It may be a rapid growth or a slower one. Rapid growths that fall away just as quick are called 'Fads'. That process is known as Growth. Advertising is often still heavy at this point.

Maturity

Once the product is well established and consumers are satisfied, then the product is widely accepted and growth slows down. Before long, however, a successful product in this phase will come under pressure from competitors. The producer will have to start spending again in order to defend the product's market position or introduce extension strategies.

It may only be in the Maturity stage where companies will receive a return on their original expenditure and investment due to potentially high start up and development costs.

Saturation

At the very end of the Maturity stage, and where there is no further growth possible, saturation occurs. This is also referred to as Saturation Point. This is when little or no advertising is needed and sales are leveling off. This is the period of stability. During this period, the sale of the product reaches the peak. There is a steady demand for the product and no possibility for growth. However, at this stage other competitors also become popular and capture the market.

Decline

Sooner or later sales fall due to changes in consumer tastes or new choices available from competitor's products. Again, extension strategies may be open to the company to keep the product alive. The product can be declined if there is no proper growth and the later stage which has been discussed above.

New product development (NPD)

To create the next product in a company’s product line a design team goes through product development process steps. Starting with a product idea, the team moves through several stages to generate all the details and documents needed to get the product built. A NEW product development (NPD) process goes through the same steps, however as this product has not been developed by the team before, new risks and uncertainties are introduced and often additional information is documented and shared with manufacturing.

Basic new product development steps

There are five basic steps in a new product development process: Concept, Ideation, Design, Test and Release.

1. Concept — The concept step sets basic direction and boundaries for the entire development process by clarifying the type of product, the problem the product solves and the financial and technical goals to be achieved by the product.

2. Ideation — During the ideation step the team brainstorms to discover some of the many ways a product can solve the problem and meet internal goals. Ideas are evaluated and the most promising are selected for further investigation.

3. Design — It’s in this step that the execution of the “best” way to create and construct the product happens. Engineering details are generated to flesh out the high level concepts from the ideation stage.

4. Test — Testing verifies if the product meets the original goals or if additional refinement is needed.

5. Release — Once testing has confirmed that the product solves the problem and will meet the company goals; it is ready to start the new product introduction (NPI) process and get the product built!

Product Development Process

The basic steps of the new product development process are listed above as stages that follow each other, but in reality the process is cyclical, not linear. Ideation, Design and Test steps are repeated over and over again, at varying depths of detail and on different subsystems, until the product design is complete.

Concept ideate Design Release

Test

New product development stages

The pace at which NPD cycles move can be fast with lots and lots of changes to parts, assemblies and BOMs. During design, companies often do not follow the form-fit-function (FFF) rules that get followed in production, but they will use revisions to take snap shots of a design at a moment in time. Teams typically establish new revisions when they want to create prototypes. At this point the design is temporarily frozen as models, drawings, specifications and BOMs get updated to the next revision.

Keeping track of all the different changes made during these cycles can be difficult even if the design team is located within the same building. And if multiple people have access to editable documents (e.g. MS Word specs, MS Excel BOMs) changes made that were not agreed to by all necessary parties will cause misunderstandings. Read-only PDFs can help this matter, but this fix is just a temporary solution for a larger problem. If a company doesn’t have a common understanding around when revisions are created and by whom, and where they are stored, this lack of control can lead to confusion and chaos. Once all the iteration, design and testing has been completed, it’s time to enter the release stage and get the product built. The release stage is also the beginning of the New Product Introduction (NPI) process where information is handed-off to manufacturing for ramp and product planning. With some revision control, spec and process work in the steps leading up to this point, the time and labor needed to generate the data manufacturing needs can be minimized.

Here’s how to tackle challenges during new product development stages:

1. Take snapshots of the design at major points during the process, like when releasing files for prototyping. Keep track of modifications of both part and BOM revisions so you won’t have to second guess changes that occurred. Again, using Word or Excel alone to capture this information can be problematic whereas PDFs provide a solid reflection of the design at that point in time.

2. Collect all the product documents, including all types of files, and organize them in an easy to navigate folder structure. This will free up time when you need to gather information to give to manufacturing; you won’t have to dig through several different locations if documents are maintained in a centralized location.

3. Be consistent with the naming conventions for all your files including manufacturer’s data sheets for off-the-shelf parts as well as internal CAD drawing files. Name files so that they can be easily associated with the right component or assembly within a product. With easily recognizable nomenclature you’ll be able to tell the associated part number and revision from the file name. Everyone will have an easier time knowing what information they have and won’t have to open a lot of documents to find the right data.

Use systems to help NPD processes

With revision control processes in place and data collected in one location, everyone will know where to find the latest information and be able to tell what happened along the way. While this can be done through manual edits to files collected on corporate servers there are systems available to help maintain all the documentation and keep related items together while giving access to team members anywhere in the world. As mentioned above, the product development process isn’t always brand new; for example, the new product can use several of the exact same

resistors that are already used in an existing product. Having a system where you can pull all the related documents of a previously used part will save you time from gathering the information all over again. Not only does this make it easier during the new product development design stage, it helps during the last stage when information is released to manufacturing.

Lession-5

Process Technology

There are different ways to categorize a process. They can be categorized on the basis of orientation, e.g. market orientation or manufacturing process; they may also be categorized on the basis of the production methodology or customer involvement. The various typeset processes are given below:Processes by Market Orientation: There are four types of processes based on market orientation:• Make to stock-The goods usually are standard, mature products. As a general rule make to stock products compete primarily on the basis of cost and availability. Example of such products includes most retail goods.• Assemble to order-products are standard items that are assembled from in stock subassemblies. This allows customers to specify a wide range of options.• Make to order- are made from previously designs, but are made only after an order has been received. Make to order products are used when the standard product is too costly to stock, have too uncertain demand, or will deteriorate if stocked on shelf.• Engineer to order-This market orientation is used to make unique products that have not been previously engineered, Extensive customization to suite the customers’ need is possible but only if customer is willing to wait for this addition stage in the valuecreation process.Processes as production systems: A production system refers to how an organization organizes material flow using different process technologies. There are five types of production systems:• Projects: These are one-off projects. It is based on extensive customization that is suited to the customer’s ‘need. Many construction projects, project management contract, shipbuilding and civil engineering projects fall in this category.• Job shop: Construction is characterized by processing of small batched of a large number of products, most of which require a different set or sequence of processing steps. Production equipment is mostly general purpose to meet the specific customer orders.• Batch production: Production is in discrete parts that are repeated at regular intervals. Such a structure is generally employed for relatively stable lines of products, each of which is produced in medium volume.• Assembly Line: It is a mass production process. On assembly line, production follows in a predetermined sequence of steps which are continuous rather than discreet. The product moves from work station to workstation at a controlled rate following the sequence needed to build the product.• Continuous flow: It is common in the food processing industry, and in industries involving undifferentiated materials. Most bulk products are manufactured using continuous flow production; generally, on-line control and continuous system monitoring is needed. The technology life cycle (TLC) describes the costs and profits of a product from technological development phase to market maturity to eventual decline. Research and development (R&D) costs must be offset by profits once a product comes to market. Varying product life spans mean that businesses must understand and accurately project returns on their R&D investments based on potential product longevity in the market.

Due to rapidly increasing rates of innovation, products such as electronics and pharmaceuticals in particular are vulnerable to shorter life cycles (when considered against such benchmarks as steel or paper). Thus TLC is focused primarily on the time and cost of development as it relates to the projected profits. TLC can be described as having four distinct stages:

life cycle chart

This chart illustrates the stages in the technological life cycle.

Research and Development - During this stage, risks are taken to invest in technological innovations. By strategically directing R&D towards the most promising projects, companies and research institutions slowly work their way toward beta versions of new technologies.

Ascent Phase - This phase covers the timeframe from product invention to the point at which out-of-pocket costs are fully recovered. At this junction the goal is to see to the rapid growth and distribution of the invention and leverage the competitive advantage of having the newest and most effective product.

Maturity Stage - As the new innovation becomes accepted by the general population and competitors enter the market, supply begins to outstrip demand. During this stage, returns begin to slow as the concept becomes normalized.

Decline (or Decay) Phase - The final phase is when the utility and potential value to be captured in producing and selling the product begins dipping. This decline eventually reaches the point of a zero-sum game, where margins are no longer procured.

Product development and capitalizing on the new invention covers the business side of these R&D investments in technology. The other important consideration is the differentiation in consumer adoption of new technological innovations. These have also been distributed into phases which effectively summarize the demographic groups presented during each stage of TLC.

Lession-6

Process Technology Life Cycle, Process Technology Trends, FMS, CIM,

FLEXIBLE MANUFACTURING SYSTEMSBatch manufacturing has always had inherent limitations on account of mid volume, mid variety nature of manufacturing. Work- in- process levels are generally high and machine utilization tends to be low. Job spend a high proportion of time waiting for machine to be set up, waiting to be moved or waiting for other jobs on the machines to be completed. Batch production often requires an army of expeditors, progress chasers to keep jobs flowing through the manufacturing facilities. In batch type manufacturing, some studies conducted revealed that only 5 percent of the total time spent on the shops unnecessary waiting of jobs and so on. One way to improve productivity is to use technology to obtain a better process. These requirements could be met with the aid of computers and numerical control techniques using the basic concepts of Flexible Manufacturing Systems (FMS) Job shops are designed to produce a variety of products. They usually tend to have low production rate, high manufacturing lead time, more WIP, and more inventories of finished goods. On the other hand, flow shops are designed for mass production. Consequently, they are less flexible to change. The change over a period of time is very high, as it involves redesigning of template, cam switches, dies; fixtures etc. FMS is a combination of job shopped flow in the sense that a limited variety with reasonably quick change over time impossible. A FMS is a manufacturing system that actually consists of numerical control (NC) machines connected by an automated material handling system. It is operated through central computer control and is capable of simultaneously processing a family of parts with low to medium demand, different process cycles and operation sequences. We can characterize the typical features of FMS as follows:• It is an attempt to solve the production problem of mid-volume and mid variety parts for which neither high production rate transfer lines nor highly flexible stand-alone NC machines are suitable.• It is designed to process simultaneously several types of parts in the given mix.• It is equipped with sophisticated flexible machine tools that are capable of processinga sequence of different parts with negligible tool change over time.• Parts are transferred from machine to machine by Computer controlled machine handling system.• It consists of three subsystems (i) the machining system (ii) the material handlingsystems (iii) the control system 45technology results in the reduction of direct and indirect labor force. With the level of automation that is employed in the subsystem, it is possible for a worker to attend to a group of machines in the system. The following is the role of human labor in the FMS:• loading and unloading,, tool set up, tool replacement, work piece set up off-line• Maintenance of the system, multi-task monitoring (3to8 machines)• Supervision of the overall system taking decisions using the information supplied by the computer system.The technologically advanced features of the FMS, in part, simplify process designs and complexities in flow in an intermittent flow system in batch manufacturing by offering thefollowing flexibilities;• Machine flexibility• Process flexibility

• Routing flexibility• Volume flexibility

The technology life-cycle (TLC) describes the commercial gain of a product through the expense of research and development phase, and the financial return during its "vital life". Some technologies, such as steel, paper or cement manufacturing, have a long lifespan (with minor variations in technology incorporated with time) whilst in other cases, such as electronic or pharmaceutical products, the lifespan may be quite short.

The TLC associated with a product or technological service is different from product life-cycle (PLC) dealt with in product life-cycle management. The latter is concerned with the life of a product in the marketplace with respect to timing of introduction, marketing measures, and business costs. The technology underlying the product (for example, that of a uniquely flavored tea) may be quite marginal but the process of creating and managing its life as a branded product will be very different.

The technology life cycle is concerned with the time and cost of developing the technology, the timeline of recovering cost, and modes of making the technology yield a profit proportionate to the costs and risks involved. The TLC may, further, be protected during its cycle with patents and trademarks seeking to lengthen the cycle and to maximize the profit from it.

The "product" of the technology may just be a commodity such as the polyethylene plastic or a sophisticated product like the ICs used in a smart phone.

The development of a competitive product or process can have a major effect on the lifespan of the technology, making it shorter. Equally, the loss of intellectual property rights through litigation or loss of its secret elements (if any) through leakages also work to reduce a technology's lifespan. Thus, it is apparent that the management of the TLC is an important aspect of technology development. In the simplest formulation, innovation can be thought of as being composed of research, development, demonstration, and deployment.

Most new technologies follow a similar technology maturity lifecycle describing the technological maturity of a product. This is not similar to a product life cycle, but applies to an entire technology, or a generation of a technology.

Technology adoption is the most common phenomenon driving the evolution of industries along the industry lifecycle. After expanding new uses of resources they end with exhausting the efficiency of those processes, producing gains that are first easier and larger over time then exhaustingly more difficult, as the technology matures.

The TLC may be seen as composed of four phases:

(a) The research and development (R&D) phase (sometimes called the "bleeding edge") when incomes from inputs are negative and where the prospects of failure are high

(b) The ascent phase when out-of-pocket costs have been recovered and the technology begins to gather strength by going beyond some Point A on the TLC (sometimes called the "leading edge")(c) The maturity phase when gain is high and stable, the region, going into saturation, marked by M, and(d) The decline (or decay phase), after a Point D, of reducing fortunes and utility of the technology.

S-curve

The shape of the technology lifecycle is often referred to as S-curve.

There is usually technology hype at the introduction of any new technology, but only after some time has passed can it be judged as mere hype or justified true acclaim. Because of the logistic curve nature of technology adoption, it is difficult to see in the early stages whether the hype is excessive.

The two errors commonly committed in the early stages of a technology's development are

fitting an exponential curve to the first part of the growth curve, and assuming eternal exponential growth

fitting a linear curve to the first part of the growth curve, and assuming that take-up of the new technology is disappointing

Similarly, in the later stages, the opposite mistakes can be made relating to the possibilities of technology maturity and market saturation.

Technology adoption typically occurs in an S curve, as modeled in diffusion of innovations theory. This is because customers respond to new products in different ways. Diffusion of innovations theory, pioneered by Everett Rogers, posits that people have different levels of readiness for adopting new innovations and that the characteristics of a product affect overall adoption. Rogers classified individuals into five groups: innovators, early adopters, early majority, late majority, and laggards. In terms of the S curve, innovators occupy 2.5%, early adopters 13.5%, early majority 34%, late majority 34%, and laggards 16%.

The four stages of technology life cycle are as follows:

Innovation stage: This stage represents the birth of a new product, material of process resulting from R&D activities. In R&D laboratories, new ideas are generated depending on gaining needs and knowledge factors. Depending on the resource allocation and also the change element, the time taken in the innovation stage as well as in the subsequent stages varies widely.

Syndication stage: This stage represents the demonstration and commercialization of a new technology, such as, product, material or process with potential for immediate utilization. Many innovations are put on hold in R&D laboratories. Only a very small percentage of these are commercialized. Commercialization of research outcomes depends on technical as well non-technical, mostly economic factors.

Diffusion stage: This represents the market penetration of a new technology through acceptance of the innovation, by potential users of the technology. But supply and demand side factors jointly influence the rate of diffusion.

Substitution stage: This last stage represents the decline in the use and eventual extension of a technology, due to replacement by another technology. Many technical and non-technical factors influence the rate of substitution. The time taken in the substitution stage depends on the market dynamics.

Computer-integrated manufacturing (CIM) is the manufacturing approach of using computers to control the entire production process. This integration allows individual processes to exchange information with each other and initiate actions. Through the integration of computers, manufacturing can be faster and less error-prone, although the main advantage is the ability to create automated manufacturing processes. Typically CIM relies on closed-loop control processes, based on real-time input from sensors. It is also known as flexible design and manufacturing.

OVERVIEW

The term "computer-integrated manufacturing" is both a method of manufacturing and the name of a computer-automated system in which individual engineering, production, marketing, and support functions of a manufacturing enterprise are organized. In a CIM system functional areas such as design, analysis, planning, purchasing, cost accounting, inventory control, and distribution are linked through the computer with factory floor functions such as materials handling and management, providing direct control and monitoring of all the operations.

As a method of manufacturing, three components distinguish CIM from other manufacturing methodologies:

Means for data storage, retrieval, manipulation and presentation; Mechanisms for sensing state and modifying processes; Algorithms for uniting the data processing component with the sensor/modification

component.

CIM is an example of the implementation of information and communication technologies (ICTs) in manufacturing.CIM implies that there are at least two computers exchanging information, e.g. the controller of an arm robot and a micro-controller of a CNC machine.

Some factors involved when considering a CIM implementation are the production volume, the experience of the company or personnel to make the integration, the level of the integration into the product itself and the integration of the production processes. CIM is most useful where a high level of ICT is used in the company or facility, such as CAD/CAM systems, the availability of process planning and its data.

CIM & production control system: Computer Integrated Manufacturing is used to describe the complete automation of a manufacturing plant, with all processes running under computer control and digital

Subsystems in computer-integrated manufacturing

A computer-integrated manufacturing system is not the same as a "lights-out" factory, which would run completely independent of human intervention, although it is a big step in that direction. Part of the system involves flexible manufacturing, where the factory can be quickly modified to produce different products, or where the volume of products can be changed quickly with the aid of computers. Some or all of the following subsystems may be found in a CIM operation:

Computer-aided techniques:

CAD (computer-aided design) CAE (computer-aided engineering) CAM (computer-aided manufacturing) CAPP (computer-aided process planning) CAQ (computer-aided quality assurance) PPC (production planning and control) ERP (enterprise resource planning) A business system integrated by a common database.

Devices and equipment required:

CNC, Computer numerical controlled machine tools DNC, Direct numerical control machine tools PLCs, Programmable logic controllers Robotics Computers

Software Controllers Networks Interfacing Monitoring equipment

Technologies:

FMS, (flexible manufacturing system) ASRS, automated storage and retrieval system AGV, automated guided vehicle Robotics Automated conveyance systems

APPLICATION

There are multiple areas of usage:

In Industrial and Production engineering In mechanical engineering In electronic design automation 

Lession-7

CAD, CAM; Design for Services, Services Process Technology

Computer-aided manufacturing (CAM) is the use of computer software to control machine tools and related machinery in the manufacturing of work pieces. This is not the only definition for CAM, but it is the most common; CAM may also refer to the use of a computer to assist in all operations of a manufacturing plant, including planning, management, transportation and storage. Its primary purpose is to create a faster production process and components and tooling with more precise dimensions and material consistency, which in some cases, uses only the required amount of raw material (thus minimizing waste), while simultaneously reducing energy consumption.CAM is now a system used in schools and lower educational purposes. CAM is a subsequent computer-aided process after computer-aided design (CAD) and sometimes computer aided engineering (CAE), as the model generated in CAD and verified in CAE can be input into CAM software, which then controls the machine tool.

Traditionally, CAM has been considered as a numerical control (NC) programming tool, where in two-dimensional (2-D) or three-dimensional (3-D) models of components generated in CADAs with other “Computer-Aided” technologies, CAM does not eliminate the need for skilled professionals such as manufacturing engineers, NC programmers, or machinists. CAM, in fact, leverages both the value of the most skilled manufacturing professionals through advanced productivity tools, while building the skills of new professionals through visualization, simulation and optimization tools.

Typical areas of concern:

High Speed Machining, including streamlining of tool paths Multi-function Machining 5 Axis Machining Feature recognition  and machining Automation of Machining processes Ease of Use

Computer-aided design (CAD)is the use of computer systems to assist in the creation, modification, analysis, or optimization of a design. CAD software is used to increase the productivity of the designer, improve the quality of design, improve communications through documentation, and to create a database for manufacturing. CAD output is often in the form of electronic files for print, machining, or other manufacturing operations.

Computer-aided design is used in many fields. Its use in designing electronic systems is known as electronic design automation, or EDA. In mechanical design it is known as mechanical design automation (MDA) or computer-aided drafting (CAD), which includes the process of creating a technical drawing with the use of computer software.[3]

CAD software for mechanical design uses either vector-based graphics to depict the objects of traditional drafting, or may also produce raster showing the overall appearance of designed objects. However, it involves more than just shapes. As in the manual drafting of technical and engineering drawings, the output of CAD must convey information, such as materials, processes, dimensions, and tolerances, according to application-specific conventions.CAD may be used to design curves and figures in two-dimensional (2D) space; or curves, surfaces, and solids in three-dimensional (3D) space.

CAD is an important industrial art extensively used in many applications, including automotive, shipbuilding, and aerospace industries, industrial and architectural design, prosthetics, and many more. CAD is also widely used to produce computer animation for special effects in movies, advertising and technical manuals, often called DCC digital content creation. The modern ubiquity and power of computers means that even perfume bottles and shampoo dispensers are designed using techniques unheard of by engineers of the 1960s. Because of its enormous economic importance, CAD has been a major driving force for research in computational geometry, computer graphics (both hardware and software), and discrete differential geometry.

Lession-8

Work Study: Methods Study- Techniques of Analysis, recording

Work: Work is an activity in which one exerts physical and mental effort to accomplish a given task or perform a duty. The Pyramidal Structure of Work Basic Motion Elements Work Elements Task : An amount of work that is assigned to a worker or for which a worker is responsible. Work Element: A series of work activities that are logically grouped together.

A work element consists of multiple basic motion elements Examples: Reaching for an object, Grasping the object, Moving the object, Walking, Eye movement Work Study.

• Work Study is the systematic examination of the methods of carrying out activities such as to improve the effective use of resources and to set up standards of performance for the activities carried out.

• 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.

1. Work study2. Method study

Method-study 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 results in a more effective use of material, plant, equipment and manpower. Method study is essentially concerned with finding better ways of doing things. It adds value and increase the efficiency by eliminating unnecessary operations, avoidable delays and other forms of waste.

The improvement of efficiency is achieved through:

1. Present and analysis true facts concerning the situation.

2. To examination those facts critically

3. To develop the best answer possible under given circumstances based on critical examination of facts.

Steps or procedure involved in methods study

1. Select: select the work to be studied.

• The job should be selected for the method study based upon the following considerations:

a) Economical aspect

b) Technical aspect

c) Human aspect

2. Record: record the relevant facts about the job by direct observation

• Recording techniques used for method study are charts and diagrams.

Steps or procedure involved in methods study

Recording techniques for method study

Recording techniques for method study

Charts

Macro motion charts

1. Operations process chart

2. Flow process chart

3. Two Handed process chart

4. Multiple activity chart

Micro Motion charts

Diagrams

1. Flow diagram

2. String diagram recording techniques for method study

Operation process chart: An operation process chart provides the chronological sequence of all operations and inspections that occur in a manufacturing or business process. Operation process chart used only two symbols, i.e., operation Recording techniques for method study Flow process chart: A flow process chart is used for recording greater detail than is possible in an operation process chart. It is made for each component of an assembly rather than for the whole assembly.

Recording techniques for method study

String Diagram: String Diagram is a scale layout drawing on which, length of a string is used to record the extent as well as the pattern of movement of a worker working within a limited area during a certain period of time. It is a scale diagram on which color threads are wrapped around pins or pegs, which are used to indicate the paths taken by either worker or material or equipment when processing is done Steps or procedure involved in methods study

3.Examine: examine the way the job is being performed and test its purpose, place, sequence and method of performance.

• In this step, the information provided by charts and diagrams is critically examined and screened by asking some searching questions. Like, what is done? why it is done? what else might be done? Etc.

• This examination is carried out with a view to eliminate, combine, rearrange and/or simplify the activities.

4. Develop: develop the most practical, economical, and effective method.

After critical examination of records is complete, it is necessary to transform the learning’s into the development of new methods. Some approaches are:

a) Eliminate unnecessary activities.

b) Combine two or more activities. For example, if one uses a combination tool for two operations, say, facing and drilling, the total set-up time will reduce.

c) Re-sequence activities so as to reduce time and effort.

d) Simplify process to reduce number of operations or reduce effort or reduce throughput, etc.

e) Attack on constraints, which are preventing the method

Work measurement

Work measurement is the application of techniques designed to establish the time for a qualified worker to carry out specified jobs at a defined level of performance or at a defined rate of working.

A qualified worker is one who has acquired the skill, knowledge and other attributes to carry out the work in hand to satisfactory standards of quantity, quality and safety.

Defined rate of working is the amount of work that can be produced by a qualified worker/employee when working at normal space and effectively utilizing his time and where work is not restricted by process limitation.

Uses of work measurement:

To compare the efficiency of alternative methods.

Cost estimation

Pricing of products and services

Incentive pay systems

Capacity planning

Production scheduling

To provide information on which estimates for tenders, Work measurement

Technique of work measurement:

a) Time study: short cycle repetitive jobs

b) Work sampling: Long cycle jobs

c) Predetermined motion time standards: manual operations confined to one work center

Flow process chart

Flow diagram

Process flow diagram of oil refinery

String diagram

Lession-9

Standardized Work Combination Table

Standardized Work Combination Table is used to analyze the relationship between an operator and machine to effectively synchronize work and eliminate time the operator is waiting for the machine. It is also used for multiple people working on the same item simultaneously (Liker and Meier, 2007). From the definition from Kaizen Terminology .

The key notion for the elimination of waste and the effective combination of work on the shop floor is the separation of machine work and human work. Understanding the separation of human and machine work is the basis for understanding the interface between these two elements. Human work refers to work that cannot be completed without human effort. Examples of human work are picking up materials, putting materials into a machine, operating the controls of a machine, and etc. Machine work refers to work or incidental work that equipment, which has been started by human hand, automatically performs operations. Examples of machine work are milling, auto riveting or bolting, auto inspection (hole probes), and etc..

When a problem is discovered, the first step should be to confirm that the process is being consistently followed. The Standardized Work Combination Table makes it easy to audit an operation. As a management tool. The Standardized Work Combination Table helps managers:

Understand the capacity. Manage daily operations. Keep things running smoothly? Knowing exactly where an employee should be at any point in a Time. As a continuous improvement tool. The Standardized Work Combination Table, to the experienced veteran, shows out incidents of waste. When this waste is easily identified, it is much more likely to be eliminated.

Question In a welding shop a direct time study was done on a welding operation. One inexperienced industrial engineer and one experienced industrial engineer conducted the study simultaneously. They agreed precisely on cycle time as shown below but their opinion on rating the worker differed. The experienced engineer rated the worker 100% and other engineer rated the worker 120%.They used a10% allowance

Cycle time(minutes) No of times observed

20 2

24 1

29 1

32 1

From the above statement

a)Determine the standard time using the experienced industrial engineers worker rating

b)Find the standard time using the worker rating of inexperienced industrial engineer.

Ans

a)Rating the worker at 100% by industrial engineer

Cycle time(CT)=20x2+24x1+29X1+32x1

5

=25 min

Normal time(NT)=CTxPR=25x100%=25min

Standard Time(ST)=NT(1-%A)=25(1-0.10)=27.78 min

b)Rating the worker 120% by the inexperienced industrial engineer

CT=25 min

NT=CTxPR=25x120%=30 min

ST=NT(1-%A)=33.33mins

Lession-10

Work Measurement

Work Measurement Principles using Stopwatch Time Study - It is the determination of the degree and quantity of labor in performing tasks. It is actual quantifying of performance dimensions. Managers are used to measuring work in terms of” hours of work done". In many cases, this provides very inaccurate data on performance. With performance measurements which depend on establishing standards, we can determine how well a process is proceeding to forecast the end conditions. The fundamental purpose of work measurement is to set time standards for work. Standards are needed for several reasons: One reason is the need to measure performance, which requires a comparison of accomplishment against a standard. Performance data is needed so that one can avoid surprises when one has to make decisions. All scheduling requires some estimate of how much time it takes to do the work. Standards are necessary to schedule work and allocate capacity. Standards are used in industry as a basis for payments to workers where output based incentive plans employed. This requires an objective basis for motivating the workforce and measuring worker's performance. Costing and monitoring of work presume the existence of standards. In contracting, this is particularly important for new contracts. Questions such as "Can we do it"? And "How best can we do it"? Can only be answered using standards. Most important, standards provide benchmarks for improvement. Using universal standard data, it is possible to compare your work standards with those of similar jobs in other organizations. There are many techniques used to measure work. However, they can be classified into those that rely either on direct observation of the work or indirect observation of the work. Some techniques, such as motion-time systems or standard data can provide standard times from simulation, etc. However, the data on which such techniques are based, are based on earlier observations of actual work.Work Measurement Techniques: There are six basic ways of establishing a time (work) standard:• Ignoring formal work measurement• Using the historical data approach'• Using the direct time study approach• Using the predetermined time study approach• Using the work sampling approach• Combining approaches 2 through Ignoring Formal Work Measurement: For many jobs in many organizations, especially in the labor-intense service sector, formal labor standards are simply not set at all. The issue of a fair day's work for a fair day's pay is ignored. Even though there is no explicit basis for criticism, workers may be blamed for poor performance and inefficiency. Often, because management has not established a work (time) standard, some informal standard is established by default. Since this informal standard generally compares unfavorably with those set by other techniques, we do not recommend ignoring formal work measurement.

Historical Data Approach: This method assumes that past performance is normal performance. In the absence of other formal technique as their main guide in setting standards. What are the advantages of these methods? Basically, it is quick, simple, inexpensive, and probably better than ignoring formal work measurement altogether. The major disadvantage, as you can reason, is that past performance might not at all be what an average worker can reasonably be expected to perform under average working conditions.Direct Time Study: Often called a time study, a stopwatch study, or clocking the job, this technique is certainly the most widely used method for establishing work standards in manufacturing. Perhaps you have observed a job being studied by an industrial engineers, some managers use part perform clip board and stopwatch in hand. How does direct time study work? Basically there are six steps in the procedure:• Select the job to be timed: The direct time study approach depends upon direct observation and is therefore limited to jobs that already exist. The job selected should be standardized, in terms of equipment and materials, and the worker should be representative of all workers doing the job.• Select a job cycle: Identify the elements and tasks that constitute a complete cycle. Decided how many cycles you want to time with a stopwatch.• Time the job for all cycles and rate the worker: Workers behave in varying ways when their performances are being recorded; common reactions are resentments, nervousness, and slowing the work pace. To minimize these effects, repeated study, study across several workers, and standing by one worker while studying a job somewhere nearby, perhaps in another department, can be helpful. You can assign the worker a rating, as a percentage of the "normal" or average worker. Industrial engineers frequently use a rating factor when timing jobs. In essence the engineer is judging the worker as 85 percent normal, 90 percent normal, or some other rating depending on his or her perception of "normal." Obviously, ratings of this kind depend on subjective judgments. Compute the normal time based on the average cycletime and the worker rating. Determine the fraction of time available, making allowances for personal needs; delays, and fatigue, Set the performance standard (standard time) based on the normal time and the allowances To be more precise about the calculations of this procedure: Sum of cycle times recordedAverage cycle time = ------------------------------------- Number of cycles observedNormal time = Average cycle time x Worker ratingAllowance fraction = Fraction of time for personal needs, fatigue, and unavoidable delaysAvailable fraction of time = 1- Allowance factionStandard time = Normal time -------------------------- Available fraction of time

Lession-11

Predetermined Motion Time Standards and Work Sampling, Standard Time Estimation

Predetermined Time Study: For setting standards for jobs that are not currently being performed but are being planned, the predetermined time study is helpful. A predetermined time study can also be applied to existing jobs as an alternative to a direct time study. The bases of this technique are the stopwatch time study and time study from films. Historical data have been accumulated on tens of thousands of people making such basic motions as reaching, grasping, stepping, lifting, and standing. These motions have been broken down into elements, each element timed, the times averaged to yield predetermined time standards, and the standards published in table form. The procedure for setting a predetermined time standard is as follows:• Observe the job or think it through if it is not yet being performed: It is best to observe under "typical" conditions: typical machine, materials, and worker.• Itemize the job element: Do not be concerned about timing them; just thoroughly document all the motions performed by the worker.• From a table of predetermined time standards, record the standard for each motion units: Motion units are expressed in some basic scale (that corresponds to time units.• Find the sum of the standards for all motions.• Estimate an allowance for personal time, delays, and fatigue, and to the sum of standards. This total sum is the predetermined time standard for the job. The primary advantage of predetermined time studies is that they are not skewed by a typical performance of workers who are nervous because they are being timed: the timing has already taken place - away from the workplace in a logical, systematic manner. The basic disadvantage of this technique is that some job elements may not be recorded, or may be recorded improperly. Furthermore, if job elements can't be properly categorized and located in a table, a direct time study approach must be made instead of the predetermined time study.Work sampling: Work sampling does not involve stopwatch measurement, as do many of the other techniques; instead, it is based on simple random sampling techniques derived from statistical sampling theory. The purpose of the sampling is to estimate what proportion of a worker's time is devoted to work activities. It proceeds along the following steps:• Decide what activities are defined as "working." "Not working" comprises all activities not specifically defined as "working."• Observe the worker at selected intervals, recording whether a person is working or not.• Calculate the portion P of time a worker is working as :

Number of observations during which working occurredP = -------------------------------------------------------------------------- Total number of observationsThis calculation can then be used as a performance standard. Work sampling can also be used to set standards; the procedure is similar to the one used in direct time studies. Work sampling is particularly adaptive to service to service sector jobs such as those in libraries, banking, health, banking, health care, insurance companies, and government. Accuracy of this technique depends keenly upon sample size. Disadvantages of work sampling are that the analyst may not be completely objective or may study only a few workers, and that "working" is a broad concept not

easily defined with precision. There are, however, some obvious, advantages with work sampling: It is simple easily adapted to service sector and indirect labor jobs, and an economical way to measure performance. In short, work sampling is a useful work measurement technique if it is used with discretion.Combining Work Measurement: Techniques which work measurement technique should you use? In practice, they are used in combination, as cross-checks. One common practice is to observe a job, write down in detail all the job elements, and set a predetermined time standard. Then you can check the history of performance on this or similar jobs to verify that the predetermined standard is reasonable. To provide a further check, a direct time study can be made of the job by element and in total. No one work measurement technique is totally reliable. Because of the high skill level required in setting the standard, a cross-check is desirable whenever possible.

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Location and Layout Planning: Business systems utilize facilities like plant and machinery, warehouses etc., while performing the task of producing products and services a proper planning of these facilities would definitely reduce their cost of operation and maintenance. Plant location decisions are very important because they have direct bearing on factors like financial, employment and distribution patterns. In the long run, relocation may even benefit the organization. But, the relocation of the plant involves stoppage of production, and also cost for shifting the facilities to a new location. In addition to these things, it will introduce some inconvenience in the normal functioning of the business. Hence at the time of starting any industry, one should generate several alternate sites for locating the plant. After a critical analysis, it is the best site to be selected for commissioning the plant. Location of warehouses and other facilities are also having direct bearing on the operational performance of organizationThe following events are quite common in any business venture:• Establishment of a new venture• Expansion of the existing business• Significant change in existing demand, supply and marketing locations• Significant change in the cost structure.• Government policiesBecause of these events, an organization will be keen in additional or alternate sites for its production activities. So the plant location becomes an important decision which in turn influences plant layout and facilities needed. Also, it influences capital investment and operating costs. For example, in steel industry, if we integrate the unit’s right from ore extraction to final steel formation in a nearby area, the transportation cost would be substantially reduced and also, the availability of supplies to the final stage of production in the integrated plant would be improved. This in turn, improves the productivity of the plant FACTORS INFLUENCING PLANT LOCATION .The factors which influence plant location can be classified into general factors and specific factors:General factors: These are:1. Availability of land for present and future needs and cost of land and land development and building etc.2. Availability of inputs such as labor and raw material, etc.3. Closeness to the market place4. Stability of demand5. Availability of communication facilities6. Availability of necessary modes of transportation like road, rail, airport, and waterways.7. Availability of infrastructural facilities such as power, water, financial institutions banks etc.8. Disposal of waste and effluents and their impact on environment9. Government support, grant, subsidy, tax structure10. Availability of housing facilities and recreational facilities.11. Demographic factors like population, trained man power, academic institutions, standard of living, income level, etc.12. Security culture of the society13. Fuel cost

Specific Factors: A multinational company, desiring to set up plant should consider the following aspects in addition to the normal factors:1. Economic stability of the country and the concern of the country towards outside investments are to be considered2. The success of operation of the factory depends upon the cultural factors, language and cultural differences which can present operating control and even policy problems. Units of measurement are also very important in international business.3. Analysis must be based on the factors like wage rate, policy, duties, etc.,4. The Company can set up joint ventures with any leading local giants that will solve many local problems

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Facility Location Procedure and Models

General Procedures for Facility Location Planning:The preliminary Screening: A preliminary screening to identify feasible sites begins the planning process. For some kinds of facilities, particular environmental or labor considerations are crucial. Breweries, for example, require an adequate supply of clean water. Aircraft manufacturers must be located near a variety of subcontractors; primary aluminum producers need electrical power.Resources Local Conditions1. Labor skills and productivity.2. Land availability and cost3. Raw materials4. Subcontractors5. Transportation facilities (highways, rail, air, water)6. Utility availability and ratesSources of information After identifying several key location requirements, management undertakes a search to find alternative locations that are consistent with these requirements. Where does this information come from? Local chambers of commerce provide literature promoting expansion possibilities in various state and local communities. The wall street Journal and numerous trade publications contain advertisements placed by cities and communities hoping to attract new commerce. The national Industrial Conference Board, the U.S. Department of Commerce, the U.S. Small Business Administration, and the U.S. Census of Manufactures are among the many sources that provide both general and detailed location information. Data include geographic breakdowns of labor availability, population, transportation facilities, types of commerce, and similar information.Detailed Analysis: Once the preliminary screening narrows alternative sites to just a few, more detailed analysis begins. At each potential site a labor survey may be conducted to assess the local skills. Where community or consumer response is in question, pilot studies or systematic surveys may be undertaken. Community response is important, for example, in deciding where to locate a nuclear reactor, recreation area, commercial bank, state prison, or restaurant. For assessing community attitudes and for developing strategies to gain acceptance, survey research techniques can be very helpful. Among all the many considerations, each company must identify which ones most pertinent for their location strategies?Factor Ratings Factor ratings are frequently used to evaluate location alternatives because:• Their simplicity facilitates communication about why one site is better than another;• They enable managers to bring diverse location considerations into the evaluation process;• They foster consistency of judgment about location alternatives. LOCATION SELECTION METHODS

Various quantitative models are used to help determine the best locations of facilities. There are some widely known general models that can be adapted to the needs of variety of systems. These are explained below:

Simple Median Model: Suppose we want to locate a new plant that will receive shipments of raw materials from two sources: F1 and F2. The plant will create finished goods that must be shipped to two distribution warehouses F3 and F4 Given these four facilities, where should we locate the new plant to minimize annual transportation cost for the network of facilities?The median model can help answer this question. The model considers the volume of Loads transported on rectangular paths. All movements are made in east-west or North-south directions; diagonal moves are not considered. The simple median model provides an optimal solution.Linear Programming: Linear programming may be helpful after the initial screening phase has narrowed the feasible alternative sites. The remaining candidates can then be evaluated. , one at a time, to determine how well each would fit in with existing facilities, and alternatives that leads the best overall system( network) performance can be identified. Most often, overall transportation cost is the criterion used for performance evaluation. A special type of linear programming called the distribution or transportation method is particularly useful in location planning. The mechanics of this technique are omitted in the exampleLinear Programming: Linear programming may be helpful after the initial screening phase has narrowed the feasible alternative sites. The remaining candidates can then be evaluated. , one at a time, to determine how well each would fit in with existing facilities, and alternatives that leads the best overall system( network) performance can be identified. Most often, overall transportation cost is the criterion used for performance evaluation. A special type of linear programming called the distribution or transportation method is particularly useful in location planning. 2. Direction of transportation movements: The simple median model assumes that all shipments move in rectangular patterns. The linear programming model does not so assume.Behavioral Impact in Facility Location: Our previous discussions of models focused on the cost consequences. But costs are not the whole story, and models can't account for aspects of a problem that are not quantifiable. New locations require that organizations establish relationships with new environments and employees, and adding or deleting facilities requires adjustments in the overall management system. The organization structure and modes of making operating decisions must be modified to accommodate the change. These hidden "system costs" are usually excluded from quantitative models, and yet they are very real aspects to location decisions.Cultural Differences: The decision to locate a new facility usually means that employees will be hired from within the new locate. It also means that the organization must establish appropriate community relations to "fit into" the locale as a good neighbor and citizen. The organization must recognize the differences in the way people in various ethnic, urban, suburban, and rural communities react to new businesses. Managerial style and organizational structure must adapt to the norms and customs to local subcultures. Employees' acceptance of authority may vary with subcultures, as do their life goals, beliefs about the role of work, career aspirations, and perceptions of opportunity. These cultural variations in attitude impact on the job behavior and talent. At the international level are even greater cultural differences. Compare, for example, the Japanese work tradition with that of Western industrial society. Japanese workers are often guaranteed lifetime employment. Management decisions usually are group rather then individual decisions. Employee compensation is determined by length of service, number of dependents, and numerous factors apart from the employee's productivity. Obviously operations managers in Japan face a very different set of managerial problems from their U.S. counterparts. Wage determination, employee turnover, hiring and promotion practices are not at

all the same. The European social system, as another example, has resulted in a more "managerial elite" in their organizations than in U.S. organizations. Because of education, training and socialization, including a lifelong exposure to a relatively rigid class system; lower subordinates are not prepared to accept participative managerial styles. This has resulted in organizations more authoritarian/centralized than participative /decentralized. Locating a new facility in a new culture is not simply a matter of duplicating a highly refined manufacturing process. Merely transferring tools and equipment is not adequate. Managerial techniques and skills, in proper mixture, must be borrowed from the culture, and so must the cultural assumptions that are needed to make them work. Clearly, the economic, political makeup of a society has far-reaching effects on the technological and economic success of multinational location decisions.Job Satisfaction: In recent years managers have been very concerned about employee job satisfaction because it affects how well the organization operates. Although no consistent overall relationship between job satisfaction and productivity seems to exist, other consistent relationships have been found. As compared with employees with low job satisfaction, those expressing high job satisfaction exhibit the following characteristics

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Layout Planning: Layout Types : Process Layout, Product Layout, Fixed Position Layout Planning, block diagramming

Plant layout is a floor plan of the physical facilities which bare used in production. Layout planning is referred to the generation of several possible plans for the spatial arrangement of physical facilities and selects the one which minimizes the distance between departments.The following are the main objectives of plant layout:• Minimum investment in equipment• Minimum overall production time• Utilize existing space effectively• Provide for employment convenience, safety and comfort• Maintain flexibility of arrangement and operations• Minimized material handling costs• Facilitate the manufacturing process• Facilitate the organizational structure hospital for a master health check up. What if the radiology department was located in the second floor, the general physicians were sitting in the ground floor at the rear side, ECG and tread-mill test facilities were in the fourth floor and so on. Finally, imagine that you need to walk out of the main complex and go 50 meters away to another building to have your breakfast after you give your fasting food samples and return to the main complex to continue with the process. Such instances are uncommon. How many times have you felt that you were made to walk too much in a hospital when you went for a health check up or you went to a financial institution asking for a loan sanction or to a government office to pay some utilities bill and make some enquiries? What is the core problem in these examples? In simple terms, these examples suggest that with better arrangement of resources it is possible to provide better service to the customers. That is where layout planning in manufacturing and service organization is importantLAYOUT PLANNINGLayout planning in manufacturing and service organizations deals with the physical arrangement of various resources that are available in the system with the objective to improve the performance of the operating system, thereby better customer service. Typically, in case of a manufacturing organization, there may be over 200 machine tools of various kinds to be located in a machine shop. Similarly, in the case of a service organization such as hospital or hotel, there are various resources to be physically located. We can identify the best possible locations for various resources in organizations through good layout planning exercise. Layout planning provides a set of tools and techniques that help an operation manager to decide where to locate the resources and also to assess the impact of the alternative choices that he/she may have for locating the resources. A good layout design will ensure that a vast majority of jobs in a manufacturing system may have to travel shorter distances before completing their processing requirements. Similarly, in the case of service organizations, customers may need to walk shorter distances and spend less time in the systems of the processes come down. On the other hand, a bad layout designwill result in longer distances to be covered before completing the process. This creates several problems in organizations and several key performance measures suffer. The most significant and visible effect is the time taken to complete the process. Longer distances would mean more time to complete the process and more material handling in the case of manufacturing

organization, leading to higher material handling costs. Eventually, in both service and manufacturing systems, this leads to poor quality.Implications of Layout Planning: Addressing the layout planning problems it begins with good understanding of the key factors that influence the layout design. The nature of issues to be tackled and the manner in which these issues could be addressed vary from one type of organization to another. Let us consider a high variety manufacturer such as Bharat Heavy Electrical Limited (BHEL) and that of high volume manufacturer such as MarutiUdyog Limited (MUL); it is reasonable to expect that the basis on which the resources are to belocated will differ in these two cases. A high volume manufacturer like MUL will have dominant flow pattern and this information will be useful for the layout planner. On the other hand, in the case of low volume manufacturer like BHEL there will not be dominant flow of material in the shop. The demand placed on different resources will vary widely in this case from time to time.In more general case, the relationship between ‘volume-variety-flow’ provides crucial inputs to a layout problem. Variety and volume are inversely related in any operating system. Thus, when variety is low, the volume of production is high. The typical examples are processing industry firms such as petrochemical manufactures and mass manufacturers such as automobiles components manufacturers. In these cases, the flow is highly streamlined. Raw materials move progressively through the system from one end of the process until to reach the final assembly, testing and packing, similar effect exists in service systems also. In case of fast food joint with just few offerings, the process could be highly streamlined. Customers may enter the eatery, place , order and pay at the cash counter, move to the delivery counter, pick up their order, and move to the dining area. Finally, they may move to disposal area to leave their used plates before exiting the system. At the other extreme is a project shop. In a project shop the volume is typically one. Examples include building of large scale power projects, nuclear facilities, and a multi-level flyover system for a large metropolitan city and so on. Resources requirements in these projects are vast and varied, uneven in demand and stretched over long periods. Therefore, layout planning is a very different problem. Between these two extremes we have operating systems that vary volume-variety dimension and therefore, have varying flow implications. As variety increases the volume drops, leading to batch manufacturing firms. Further increase in variety leads to reduction in volume as we find in case of job shops and customized product and service providers. In general, as the flow becomes more cumbersome, the type of layout may significantly influence the ability of operation manager to effectively plan and control operations on shop floorLAYOUT TYPESIt is clear from the above discussion that alternate types of layouts are required for the above systems. Over the years, operation management researchers and practitioners have evolved certain types of layouts. These are described below:Process Layout: A process or functional layout is an arrangement of resources on the basis of process characteristics of the resources available. Consider a machine shop consisting of lathes (L), grinders (G), milling machines (M) and drilling machines (D). In the example, components belonging to product A first visit a lathe, then they visit a drilling machine, a milling machine and finally agrinding machine .The sequence of visits is functional of the process plan and is available in route card. The major implication of this design is that each component manufactured in the shop needs to visit the machines in order of their processing. In reality, when the number of

components manufactured is large, there will be enormous crisscrossing in the shop, as components need to visit machines in multiple combinations. This increase material handlingand poses challenges for production control. Each department in a process layout is typically organized into functional groups. Thus all lathes will be organized into a lathe department. Similarly, there will be drilling departmentmilling department and so on. In the fabrication area a similar arrangement would be a welding department, fitting department, and shearing department and so on. All manufacturing support areas are also arranged on a functional basis. Examples include maintenance department, quality control department procurement store and production control department.Product Layout: A product layout is an alternative design for the arrangement of resources. In this case the order in which the resources are placed exactly follows the visitation sequence dictated by a product. In product layout the required set of resources for every product is made available in dedicated fashion. Due to this, it is possible to arrange the resources in the order of machining requirements and ensure smooth component flow in the shop. Since each product will have its own set of resources, material handling is simpler and it is possible to invest in fixed path material handling systems tospeed up material transfer between successive work stations. Moreover, the production volumes also are higher layout as compared to the process layout. The production control issues are much simpler in a product type Very often the final assembly in several manufacturing plants follows a product layout. The assembly workstations are designed in such a manner that at each workstation a part of the job is completed. The feeder stations are linked to assembly workstations to ensure material availability. As the products move through the assembly the process is completed. Testing, final inspection and even packing could be part of this layout so that at the end of the line it is ready for dispatch to the market. The notion of product and process layouts applies not only to manufacturing settings but also to service settingsGroup Technology Layout: Product layouts are feasible only in case of mass production systems. When the production volume is less, it may be difficult to justify dedication of resource to individual products. Therefore, organizations have been using process layouts for such situations. However, since process layouts create more problems in production planning and control’ due to complex routing of various components on the shop floor, operation managers were looking for alternatives to the process layout. On the other hand, there hasbeen an increasing trend towards more variety. The industrial fans and blowers division of ABB Ltd, a multinational company operating in India manufactures about 725 models, Titan Industries increased the jumpers of watch models from 850 in 1993 to 1200 in 1996, an average more than 100 new models every year. Group Technology (GT) layout provides an alternative method for configuring resources in organizations that have mid-value, mid variety product portfolios. Group Technology is a philosophy that seeks to exploit commonality in manufacturing and uses this as the basis for grouping components and resources. The implications of GT are often known as cellular manufacturing. In cellular manufacturing, the available components are grouped part families. An approximate measure for manufacturing similarity is used to identify part families. Corresponding to each part family, machine groups are identified and layout is formed accordingly. The benefits of the layout ensure that each cell has only a certain number of components to be processed. In essence, it is akin to breaking a monolith structure into smaller, more manageable and independent units of production. The components seldom travel outside their respective cell for processing. Therefore, material handling becomes easier and traceability improves. Moreover, employees are able to relate better to their workplace and make concerned

improvements. The new structure also helps to implement several other operations management practices such as small group improvement, Kaizen and JIT manufacturing practices.Fixed Position Layout: There are several situations in which the product manufactured is very bulky, difficult to move and is often made in quantities of one or few pieces. In such situations, the layout design ought to be very different. Typical examples include building very large machines tools and equipments, ships, and aircraft building. Since the equipments are very large and bulky they dictate several choices with respect to layout. The specific orientation of the equipment will dictate the placement of specific resources required for the process. Layout planning in such cases is often a question of a good work place organization Some examples include the nuclear engineering division of Bharat Heavy Electrical Division at Tiruchirapalli, the final assembly panel of advanced helicopter division.Reasons for Location Changes: In addition to the need for greater capacity, there are other reasons for changing or adding locations.1. Changes in resources may occur. The cost or availability of labor, raw materials, andsupporting resources (such as subcontractors) may change.2. The geography of demand may shift. As product markets change, it may be desirableto change facility location to provide better service to customers.3. Companies may merge, making facilities GT are many. Once the part families and the machine groups are identified

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line balancing, computerized layout planning- overview. Group Technology

DESIGN OF PRODUCTS AND PROCESSES

Design of Product layout: Layout design for products can be classified into the following two methods• Manual methods• Computerized methods

Manual Methods: Under this category there are some conventional methods like travel chart and Systematic Layout Planning (SLP). We will discuss Systematic Layout process:Systematic Layout Design Method (SLP) This is an organized approach to layout planning.This approach has been developed by Muther. It is clear that once the appropriate information is gathered, a flow analysis can be combined with an activity analysis to develop the relationship diagram. This space-relationship diagram is constructed by combining space considerations with the relationship diagram. Based on space relationship diagram, modifying considerations and practical limitations, a number of alternative layouts are designed and evaluated.Computerized methods: Under these methods the layout design procedures can be classified into constructive type algorithms and improvement type algorithms.Constructive type algorithms are:• Automated Layout Design Program (ALDEP)• Computerized Relationship Layout Planning (CORELAP)Improvement type algorithms are

• Computerized Relative allocation of Facilities Technique (CRAFT)We shall be discussing only Computerized Relative Allocation of Facilities Technique (CRAFT). This algorithm was originally developed by Armour and Buffa. Craft is more widely used than other computerized methods. It starts with an initial layout and improves the layout by interchanging the department’s pair wise so that the transportation cost is minimized.CRAFT requirements• Initial layout• Flow data• Cost per unit distance• Total number of departments• Fixed departments, their number and location• Area of departments.CRAFT Procedures: The steps of CRAFT algorithm are summarized below

Step 1:• Number of Department• Number of interchangeable departments• Initial layout• Cost matrix• Flow matrix• Area of departments

Step 3: Form distance matrix using the controlsStep 4: Given data on flow, distance and cost, compute the total handling cost of the presentlayoutStep 5: Find all the possible pair wise interchanges of departments based on common borderof equal area criterionStep 6: Find the pair of departments corresponding to minimum handling cost from amongall possible pairs of interchanges.Step 7: Interchange the selected pair of departments. Call this new layout

LAYOUT DESIGN FOR SERVICESThe principles of designing layouts for manufacturing settings do apply for service setting also. However, there are other aspects of the service system that will influence its layout design. Therefore, the layout designer should factor in these also during the design process. Two important factors that influence the layout design problem of in a service organization are degree of customer contact and line of visibility. Customer contact refers to the physical presence of the customer in the system. For example, in a restaurant, customers’ presence is confined to the dining area. The kitchen, back office and stores are areas that are outside the zones of physical presence of the customers. Similarly, in the case of a bank, front office, facilities such as cash and payment counters and locker facilities have a customer contact, whereas the record keeping rooms, network infrastructure facilities, strong rooms and other such facilities are outside scope of customer access. By degree of customer contact we mean the percentage of time the customer spends to get service. The notion of customer contact significantly influence service delivery and layout design .If the firms aim to high degree of service, then the customer convenience is of paramount importance and the firms may have to forego the efficiency aspect of design.Appropriate ambience comfort of using and extent of travel and the search required to get the service well done are key objective of design. On the other hand, if the design is with low customer contact, efficiency in utilizing the space as well as other resources could be pursued without seriously jeopardizing service efficiency. One of the fallouts and operational implications of the degree of customer contacts the line of visibility available to the customer. As the degree of customer contact increase, the line of visibility also gets pushed back in the system. Therefore more and more aspects of business processes are exposed to customers, paving the way for multiple opportunities for jeopardizing service quality. Layout decisions are critical in such situations. JOB DESIGNThe Hawthorne Studies conducted from 1924 onwards, showed that productivity is not only influenced by asset of methods and procedures that specify a set of tasks but also by employees feelings about their jobs. This is actually one of the major determinants of productivity. For many years, Job Design has also been involved with the physical environment of the job. This often means specifying the allowable levels of noise, dirt, temperature, and the layout of facilities. Job Design also takes into account all factors which affect the work and organizes the content of the tasks .Job Design refers to the way that a set of tasks or an entire job is organized within the social and psychological environment of the organization. Job Design helps to determine:• What tasks are done• How the tasks are done• How many tasks are done

• In what order the tasks are doneHumans have certain physiological, psychological and sociological characteristics. In performing work, human functions at three different levels:• They receive information through the sense organs,• Process the information received and the information stored in the memory for decision making• Take action based on these decisions. The decision may be automatic based on learned responses, as with a highly repetitive jobs, or may involve extensive reasoning and the results may be complex. These characteristics define their capabilities and limitations in the work situation. There is variation in these characteristics among individuals. In addition, there are socio-psychological and socio-technical factors that determine behavior. Such factors include not only how a job is done, but the employee feels about the job. It takes into account how easily or quickly a person may perform a job and how she or he will react emotionally to that job and the environment in which it is performed. Job Design, as it is seen today, has expanded to include social and psychological environment by considering what are called socio-psychological factors related to a job and socio technical considerations- the social and technical make-up of the individualSocio- technical Factors: Based on different levels of human functioning the socio-technical theory believes that machines and humans at one level have the general structure of a closed loop automated system. However, machines and humans are alike in certain important respects. Both have sensors, stored information, comparators, decision makers, effectors and feedback loops. The difference between the two is that unlike machines—which are specialized in the kind of ranges of tasks they can perform—humans have tremendous range of capabilities, and limitations which are imposed by their physiological and sociological characteristics. Machines perform tasks as faithful servants reacting mainly to physical factors. Humans, however, react to their psychological and sociological environments as well as to the physical environment. Socio-technical theory believes that humans operate on socio-technical systems. In their job environment, they optimize both social and technological considerations. Every socio technical system is defined by the social aspects, reflected by the environment that consists of culture and its values and by a set of generally accepted practices. The environment provides certain roles for organizations, groups and people while technology imposes constraints that limit the possible arrangements of processes and jobs and thereby impact job satisfaction and social system needs. According to socio-technical principles, Job Design is the application of the concept of their joint optimization between technology and the values of the social systems.Socio-psychological factors: Humans have certain physiological, psychological and sociological characteristics that define their capacities and limitations in the work situation. They can be related to empirical evidence that suggests that workers prefer tasks of a substantial degree of wholeness, in which the individual has control over the materials and the process involved and which integrates the employee into the fabric of organization. Keeping these observations and empirical evidence in mind, jobs should be designed such that there are an optimal variety of tasks within each job. The optimal level is one that allows the employee to rest from the high level of attention or effort while working on another task or, conversely to stretch after a period of routine activity. There is research that suggests employees derive satisfaction from using a number of skilled levels. There are some points that must be considered for Job Design:• The jobs should be challenging for each skill category• It is important that the group or individual undertaking the job should be able to

Exercise some control over their work.• Area of discretion and decision making should be available to them.• Ideally, employees should have some responsibility for setting their own standards of quantity and quality.• There should be clarity in the sets of tasks. Wherever possible, a group or individual Employee should have responsibility for a set of tasks that is clearly defined, visible and meaningful.• As people have sociological needs, they require feedback. Workers should know when they have achieved their targets and how they are doing relative to others