10. 11, 12, 13. 14. 15, 16. 231 raven?) April 2018 Time ~ Three hot (Maximum Marks: 75) IN.B: (1) Q.No. 8 in PART - A and Q.No. 16 in PART - B are compulsory. Answer any FOUR questions from the remaining in each PART A ‘and PART ~ 8 (2) Answer division (a) or division (b) of each question In PART ~ C. (3) Each question carries 2 marks in PART ~ A, 3 marks In Part ~ 8 and 410 marks in PART ~ C.1 PART -A Define plant layout. What is arbitration? Define productivity. What is PMTS? Define job order production. List any two benefits of ISO to an organisation. What is JIT? Define debentures. PAR B Write a short note on process type layout. Compare between breakdown maintenance and _ preventive maintenance. Explain briefly about string diagram Describe the procedure in making a time study. Explain critical path method (CPM). State the differences between inspection and quality control. List the qualities of a good leader. List the objectives of good stock control system. 185/57917. 18. 19. 20. 21. (a) (b) {a) (b) (a) (b) (b) (a) (b) PART - C Explain the factors influencing plant location. (Or) State the important provisions of factories act 1948 governing safety and health of workers. Explain two handed process chart with a neat sketch. (Or) Write short notes on the following: (i) Analytical estimating. (ii) Synthesis from standard data. (iii) Ratio-delay study. Explain the major functions of production planning and control (PPC) in detail. (Or) Explain the various types of inspection. Explain the principles of F.W.Taylor’s scientific management. (or) Write short notes on: (ijlalsey’s $0% plan (iRowan’s plan. Explain by means of a block diagram how the selling price of a product is determined. (Or) Explain Economic Order Quantity (EOQ) with a sketch.induginol Frag and Managerenl” Note: 1. Q. No. 8 in Part - A and Q. No. 16 in Part - B are compulsory. Answer any FOUR questions from the remaining in each Part - A and Part - B. 2. Answer division (a) or division (b) if each question in Part ~ C. 3. Each question carries 2 marks in Part - A, 3 marks in Part — B and 10 marks in Part -C. PART-A 1, Define plant layout. Plant layout is the arrangement of buildings, machinery, equipments, workplaces and other facilities of production, to manufacture products in a most efficient manner in the plant. 2. What is arbitration? In arbitration process, the parties submit their claims to the arbitrator and support them with all possible facts and arguments they can. The decision made by the arbitrator is usually binding upon the union and management. 3. Define productivity. Productivity is the ratio between output of wealth and input of resources of production. 4. What is PMTS? Pre-Determined Motion System is the work measurement technique used to build up time for manual work making use of pre- determined elemental motion time. 5. Define job order production. In this type, the products are manufactured only on receipt of orders. Turbo generators, large engines, special machinery, boilers etc., are examples of this type of produc 6. List any two benefits of ISO to an organisation, (any two advantages) Benefits to organization: Provides senior management with an efficient management process Sets out areas of responsibility across the organization Mandatory if the organization want to tender for some public sector work Communicates a positive message to staff and customers Identifies and encourages more efficient and time saving processes Highlights deficiencies + Reduces the costs + Provides continuous assessment and improvement+ Marketing opportunities Benefits to customers: Improved quality and service Delivery on time Right first time attitude Fewer returned products and complaints Independent audit demonstrates commitment to quality 7. What is JIT? JIT is a manufacturing philosophy with an objective of elimination of the waste and getting the most out of resources. 8. Define debentures. A debenture is an acknowledgement of a debt by a company. The debentures are uniform parts of a loan raised by the company. PART-B 9. Write a short note on process type layout.(Explanation 1 mark and diagram carries 2 marks) Process layout is one in which all machines or processes of the same type are grouped together in the same area. For example, all lathes will be in one place, all milling machines in another place. The raw material is moved through different departments for processing. The figure shows a sample process layout. ‘Briing | Grindag | Braing | nspecton ae, ee, es _ fe 5 ee OT Ponting Packing Dssariment | epartment 10. Compare between breakdown maintenance and preventive maintenance. (Any three and each one carries I mark each) i. ['S# | Breakdown Maintenance Preventive Maintenance [1.7] Maintenance is undertaken only after breakdown | Maintcnance undertaken before breakdown 144 [2 TNo action is taken to prevent breakdown ) Maintenance is made to prevent breakdown iii i || Predictable activity | Maintenance cost is high ch disadvantages are eliminated, Results in production Toss, more idle time ete12, Explain briefly about string diagram.(Diagram 2 marks and Explanation 1 mark) The string diagram is a scale model or plan on which a thread is used to trace and ‘measure the path of workers, material or equipment during a process. ‘Sting Diagram (+1 means techine) When movements involved in a job are many, then the lines drawn on a flow diagram may become too crowded to understand. In such cases, a string diagram is used. It will clearly show the frequency of movements between various points. The string diagram is used for recording the movements of workers during a manufacturing process and to improve plant layout. 13. Describe the procedure in making a time study. PEOCEDURE TO CONDUCT TIME STUDY: (Any six and each one carries 0.5 marks) 1, SELECT: The job to be measured, operator to be observed and approach to the ‘operator. RECORD: All information about the job, operator and surrounding conditions. BREAK: The job into elements. EXAMINE: Each element to make sure that effective methods and motions are used. MEASURE: With a stop the time taken by the operator to perform each element. RATE: The effective speed of the operator's performance. This is known as rating or assessing rating factor. 7. APPLY RF: To the observed time to get basic time. 8, DETERMINE: Allowances to be made 9. COMPILE: Standard time. 14, Explain critical path method (CPM). (Diagram 1 marks and Explanation 2 marks) ‘The critical path method (CPM) is a step-by-step project management technique for process planning that defines critical and non-critical tasks with the goal of preventing time- frame problems and process bottlenecks. And it is used 10 determine the expected completion or execution time for each task,15, State the difference between inspection and quality control, (Any three and each one carries 1 mark each) [S# | Inspection _ ‘Quality Control tis a function of quality control. It compares | It is a procedure for achieving the requirements of 1. | materials, products or performance with the | quality of the products. Determines what when __|staited standards. and how much to inspect. [5 it aims at the detection of defects in | It aims at prevention of manufacturing defective manufactured products. | products. 2 ~ Tit does not take any corrective action to rectify | It finds out the causes for poor quality and takes defects. corrective action. 4, | Ieassures the quality of past output. [Ht assures the quality of future ouipat. 16, List the qualities of a good leader. (Any six points) © Co-ordination ‘Interpersonal skills * Communication skills © Positive Attitude © Team work © Enthusiasm ‘© Co-operation + Commanding ‘© Time Management ‘© Motivational skills & self-motivated, etc. 17. List the objectives of good stock control system. ( Any six points) 1. Materials are neither overstocked nor under stocked. 2. Materials are made available as and when required 3. Production delays due to materials shortage are avoided. Price discounts can be obtained by bulk purchase of materials at proper time, Bulk purchase reduces transportation costs. Money invested in inventory (stock) is kept minimum Material cost is reduced and hence production cost reduces.PART-C 18. (a) Explain the factors influencing plant location. SELECTION OF SITE - FACTORS TO BE CONSIDERED (Any five and each one carries two marks) 1, Nearness to raw materials It will reduce cost of transport. For example, iron and steel industries, cement industries are using heavy and bulky materials so these may locate close to place of raw ‘materials are available. 2. Nearness to market It will reduce cost of transportation, cost of damages and spoilage. But in present days of global competition this factor is not considered as important. 3. Transport and communication facilities Transportation facilities like roads, rails, water or air shall be easily available to reduce cost of transports. Communication facilities between plant area and other parts of the ‘world are vital. 4, Availability of labour: Sufficient labour force is very necessary. The attitude of labour towards work, cost of living, wage rates, impact of trade union etc., is some of other factors which affect plant location. 5. Availability of power and fuel All industries require electric power and it will be available continuously at reasonable rates, Fuel is essential for steel plants, foundries, power plants. Availability of fuel, cost and its calorific value are important while selecting a site for plant location. 6. Availability of water Water is needed for industry and also for persons working in the plant. Water of proper quality and in sufficient quantity shall be available. Plenty of water is needed for process industries and power plants, So they are generally located near natural sources of water like river, lake, etc. 7. Climate and Atmospheric conditions Bad climate and atmospheric conditions affect human efficiency and behaviour. For example, Textile industries need high humidity clean and Pharmaceutical industry need dust free atmosphere. 8, LandTopography, cost, shape of site, soil condition, provisions for waste disposal and yy of floods and earthquakes etc. are influence the selection of plant Drainage, possibil location, 9. Labour laws and taxation Labour laws, controls and tax rates differ ftom state to state. These shall be studied in detail when considering various locations for factory. 10. Financial and other aids ‘Some states grant tax exemption, give loans at low rate of interest build sheds, ete. to attract people to start industries in backward areas. Such aids may be considered. 11. Social and recreational facilities. Social facilities like hospitals, markets, schools, banks, post offices, police stations etc. and recreational facilities such as cinemas, club, parks etc. are essential. (OR) (b) State the important provisions of factories act 1948 governing safety and health of workers.(Any five in both provisions (5+5) and each point carries 1 mark) ie irding He: ith Prot 1. Cleantiness: ‘* Dirt and refuse from all places shall be removed © Floors shall be washed at least once in every week using disinfectants, ‘* Collection of water etc., on the floor shall be avoided by effective drainage. ‘+ All walls, partitions, ceilings and rooms shall be kept ‘* Repainted or re-varnished at least once every five years. ‘+ White or colour washed at least once in every fourteen months. ‘© Waste and effluents due to the manufacturing process shall be effectively disposed off. 2. Ventilation and temperature a) Adequate ventilation for fresh air circulation shall be provided. b) Suitable temperature shall be provided for the health and comfort of workers. 3. Artificial Humidification: Artificial humidification shall be of prescribed standards. 4, Dust and Fumes: Accumulation of dust and fumes injurious to health shail be prevented. 5. Overerowding: No room in a factory shall be overcrowded. ‘The minimum space to be provided for a worker is 550 cft 6. Lighting: a) In every part of work place or passages, suff nt lighting shall be provided b) Glares and shadows shall be prevented, 7. Drinking Water:) Good drinking water should be made available, 20 feet from an6 washing place, urinals or latrines. b) Where there are more than 250 workers, cool drinking water shall be provided. 8. Latrines and Urinal: 8) Sufficient latrines and urinals of prescribed type shall be provided, separately for male and female workers, b) All latrines and urinals shall be adequately lighted and ventilated, They shall be maintained clean at all times. 9. Spittoons: Sufficient number of spittoons shall be provided in convenient places and they shall be maintained in clean end hygienic conditions. Person spitting within the premises of a factory except in spittoons are punishable. 0 in safe 1. Fencing of machinery: All dangerous and moving parts of machinery shall be securely fenced. 2. Work on or near machinery in motion a) Machinery in motion shall be examined only by a specially trained adult male worker. b) No woman or young worker shall be permitted to clean, lubricate of adjust any part of machinery in motion. 3. Employment of young persons of dangerous machines: No young person shall work on any machine declared as dangerous. 4, Hoists and other Lifting Machinery a) Hoists and other lifting machinery shall be of good mechanical construction, properly maintained and certified by a competent authority once in year. b) Hoists and lifts meant for carrying persons shall have at least two ropes or chains separately connected with the cage. ©) Devices shall be provided to support cage in the event of breakage of the ropes or chains, 5. Excessive weights: a) No person shall be asked to lift, carry or move any load so heavy as to cause him an injury. b) No woman; or young person shall, unaided by another person. Lift, carry or move any material exceeding the weight of prescribed limit. 6. Eye Protection: Effective goggles shall be provided to protect eyes from flying particles or from exposure to excessive light.7. Floors, Stairs and means of access: They shall be of sound construction, provided with hand rail and properly maintained. 8. Pits, Sumps, Opening in Floors: They shall be securely covered or suitably fenced. 9, Precautions against dangerous fumes a) No person shall enter any confined space in which dangerous fumes are present unless it is provided with effective means of exit b) No portable electric light of voltage exceeding 24 volts shall be permitted in spaces in which dangerous fumes are present. When fumes are inflammable, only flame proof construction lamp shall be permitted. 10. Precautions against fire a) Effective fire warning signals shall be provided. ) There shall be adequate means of escape in case of fire. Free passage ways, easily open able windows shall be provided. c) Every window, door or other exist should be constructed to open outwards 19. (a) Explain two handed process chart a neat sketch, (Diagram 5 marks and Explanation 5 marks) LEFT HAND RIGHT HAND CHART (Two Handed Process Chart) ‘Two handed process chart is a chart in which the activities of the hands of a worker during work are recorded. This chart machining work and clerical jobs. One complete cycle of work has to be recorded in detail. generally used for repetitive operations such as assembly work, ‘This chart is used to improve worker's motions and work place layout. Construction of left hand right hand chart: 1. The chart should have a title containing name of chart, process description, present or proposed method, date, name of the person doing the chart etc., 2. A sketch of work place shall be drawn to scale, indicating the contents of the bins and locating of tools and material. 3. The space below the sketch is divided into two portions, one for left hand and another for right hand. The activities of the left hand right hand are recorded making use of symbols, with a brief description of activities 4, Before starting to record, the operation cycle is watched for few times to have a ‘mental note of the motions. 5. Only one hand should be charted at one time. 6. At the end of the chart a summary of various activities shall be shown.EX: TWO-HANDED PROCESS CHART ry Aan of wacker and auto 3 bolt Char beg: Both hands fre before asembly Assembly Bolt Washer Nut (Cham ends Bodh hands fee ater ascembity Oar Exiting method/Propoced method Date Operator In construction of the chart, the symbols of the process chart are used but the symbols, have different meaning. ‘Inspection’ symbol is not used. Operation’ symbol is used for activities of grasp, position, use, release etc., of a tool, component or material. "Transport’ symbol is used to denote the movements of hands, tool or material. ‘Delay’ symbol is used to denote the idle period of hand. 'Storage' symbol is used to represent the activity of holding work, tool or material. ‘A left hand right hand chart for the operation of assembling a washer and a nut on toa bolt is shown in Fig. The chart shows that the left hand is holding the bolt, while the right hand is doing useful work of assembling washers and nuts. The motions of two hands are unbalanced, The method could be improved by using fixtures. (OR) (b) Write short notes on following (i) Analytical estimating. (ii) Synthesis from standard data ANALYTICAL ESTIMATING (1 mark) Analytical estimating is a work measurement technique to measure non-repetitive i) ratio - delay study. work the basic of the knowledge and experience of an estimator. Procedure to analytical estimating:(1 mark) Selection of an estimator: In analytical estimating, the time standards are determined by the estimator using his knowledge of work and work experience. The success of this technique lies in the ability of the estimator. Hence great care should be taken in the selection of an estimator.Elemental breakdown: The details of work to be estimated are obtained by estimator. Then the estimator has to prepare an elemental break down of the job. The elements shall be longer duration than time study elements. Calculation of time standards: All the elemental normal times are estimated. Allowances are determined. The sum of all elemental normal times and allowances is the standard time for the job. Areas of application of analytical estimating: (1 mark) Analytical estimating is widely used in the following areas of work. © Repair work Maintained work * Construction work © Job order shop SYNTHESIS FROM STANDARD DATA: (2 marks) The standard data are documents used to set standards. If contains all elemental time standards, curves, alignment charts, formulas, and tables that are compiled from previous time studies. This standard data is useful to establish time for a job without conduction time study. ‘Synthesis is a work measurement technique to establish time standards for a job totally elemental times obtained from standard data. ‘Thus in many kinds of jobs of same type, many elements are common. In such causes, the standard time for a job I determined by synthesis. Time study is not necessary. The elemental times required for the job are obtained from standard data, Procedure to synthesis: (2 marks) 1, Collect the details about the job such as material dimension, methods, working conditions etc., Break the job into elements. Separate machine elements, constant elements and various elements. Select normal times for all the elements involved in the job from standard data Estimate various allowances for the job. Obtain the standard time for the new job by adding all clemental times and allowances. RATIO DELAY STUDY: (1 mark) Activity sampling technique was introduced by Mr. Tippet, a mathematician and applied this technique initially in a textile industry. He called this method a RATIO TIME DELAY TECHNIQUE. This is a method of finding ratio of delay and work to the total to20. process time by random observation. The technique can be used for measuring work delays and idle time Work sampling technique can be applied to: (I mark) 1. Long eycle operation 2. Work where people are employed in groups 3. Activates where use of time study is not practicable Use of work sampling: (1 mark) 1. To determine percentage of idle time and utilization of men or machine in a working day. 2. To determine percentage of “time delays” in a working day and to find out reasons for each delay. 3. To establish a time standard for manual delay. (a) Explain the major functions of Production planning and control in detail (PPC). (List of functions 2 marks and explanation any four and each one carries 2 marks) Major Funetions of Production Planning and Control 1. Preplanning 2. Routing 3. Scheduling 4. Dispatching 5. Controlling 1, Preplanning Planning means course of action to be taken in advance. The preparatory functions of PPC are considered as preplanning activities. They are done prior to production. Forecasting, product planning, process planning and determination of human resource, ‘material and tools requirement are the main functions of preplanning. 2. Routing Routing indicates how and where the work is to be done, what machines are to be used, in what sequence the work is to be carried out and by whom the work is to be done. Routing is the vital portion of PPC. 3. Scheduling Scheduling is the assignment of work to men and machines, with time specifications. Scheduling means 'When’ of production. 4. DispatehingDispatching is the action phase of PPC. It is the process of putting production programmes into action by release of work orders. The work orders are released in the sequence decided by route sheet and scheduling, 5. Controlling Controlling is the process of making necessary arrangements to carry out production as per plan and taking corrective action in case of failure of the plan. There are many types of control such as progress control, cost control, budget control, labour control, budget control, labour control, machine utilization control, material control ete. (OR) (b) Explain the various types of inspection. (Any four types and each one carries 2.5 marks) TYPES OF INSPECTION 1. Incoming or receiving inspection 2. In process or manufacturing inspection a) Centralised inspection b)_ Floor inspection RECEIVING INSPECTI Quality of raw materials is very important as it affects the quality of final product. Hence all incoming materials are to be inspected prior to taking them in stock. Samples of raw materials may be sent to laboratories for testing. Instruments and accessories shall be checked for its function. The receiving inspection department has to be fully equipped to carry out a thorough inspection. Some of the facilities required are limit ‘gauges, measuring instruments like calipers, micrometres, non-destructive testing equipments like ultrasonic flaw detector, magniflux crack detector etc., Suspected materials are kept separately. All rejections are reported to the purchasing department for further action. NTRALISED INSPECTION This is also known as view room inspection or Lab inspection. In this method inspection is carried out in separate rooms. Inspectors are available at these rooms. Products are brought to inspection rooms from the place of manufacture, After inspection the products are sent back to production line for future process. In this type the inspection is separated from production disturbances. Therefore, better inspection is possible. Advantages of centralized Inspection: |. There will be no accumulation of products near machines, 2. Inspection by delicate instruments is possible, Disadvantages of Centralized inspection:1. Material handling is increased. 2. Inspection rooms may cause delays. The delays may result in spoiled work. 3. Inspection cycle is longer FLOOR INSPECTION Inspection done at the place of actual production is known as floor inspection. The inspectors go the shop floor and carry out inspection standing at a particular place on the shop floor. Depending upon the quantity to be inspected two or more stationery inspectors may be employed. Patrol Inspection: This is also a type of floor inspection. In this method the inspector moves round the shop floor in a systematic manner and checks products as they are being made. He stops the machine whenever adjustments are necessary. This prevents manufacture of defective parts future. Advantages of floor/patrol Inspection: 1. Defects in production are found out immediately and corrective action taken without loss of time. 2. Material handling is reduced. Disadvantage of floor patrol Inspection: 1. LFinished products may accumulate at the machines due to delay in inspection 2. The inspectors may show favouritism since they have personal contact with the workers. OTHER INSPECTION METHODS: Under centralized inspection and floor inspection system there are several methods. Each method has got specific purpose. a) Line or Assembly Inspection This type of inspection is suitable for mass production industries. In mass production product layout is used. The material from raw material stage finished product moves in a predetermined path, This path of material movement is known as production line. The inspection done in the production line itself is known as line or assembly inspection. Inspectors are posted in production line itself. Inspection is done in between two production processes or machines. Defects in the product is found out and rectified before it goes to next process, On assembly line, such as automobile assembly inspection is done periodically during assembly. This type of continuous inspection reduces delays due to defective process and keeps assembly line without any break b) Field Inspection: 13Testing of products to determine their fitness in actual working conditions is known as field inspection, for example, automobile vehicles are field tested. A test field is specially made with adverse road conditions. The vehicle is tested in the test field for speed, brake, stability, vibration, etc only after satisfactory test results, the vehicle released for sales. Periodical field test on vehicles are conducted by government officials to check the road sued. A vehicle with fitness certificate worthiness of the vehicle and a fitness certificate only shall be run on road. Space craft's tankers satellites are other examples which are field tested. ©) Hundred percent Inspection: If all the pieces produced are inspected, then it is known as 100% inspection, This is done in very important cases where any defect in the product will lead to heavy and costly damage. For example, if an engine of an aircraft fails, it will cause not only money loss but also of many valuables lives. In such cases 100% inspection is carries out. Merit and demerits of 100% Inspection 1. Its time consuming and costly. 2. Iteannot be applied to inspect parts by destructive testing. 3. 100% inspection is useful where costly damages may occur due to any defect. 4) Sampling Inspection: When 100% inspection is not practicable, samples are taken and tested. The results of tests on the samples are the representative of the whole lot. such inspection is known as sampling inspection. To carry out sampling inspection the following data are to be determined. 1. Lot size: The total number of pieces from which a sample is taken 2. Sample size: The number of pieces in the sample to be inspected. 3. Acceptance Number: The permissible number of defective pieces. A suitable sampling plan with the above data can be obtained from the sampling Inspection Table”. In sampling Inspection, the number of defective pieces in the sample is cepted. If found out. If this is less than or equal to the acceptance number (c) the lot (N) the number of defective pieces found in the sample (n) is more than the acceptance number (©) then the entire lot (n) is rejected. For example, let N=500, n=100 and ¢ =2, This means 100 pieces to be selected at random from a lot of 500 pieces and inspected. If the number of defective pieces found in the sample are 2 and less than 2 the entire lot of 500 pieces is accepted. If more than 2 defective pieces are found in the sample the entire of lot 500 pieces is rejected. Merits and demerits of sampling Inspection 1, Sampling inspection is less costly. 142. It consumes less time than 100% 3. Itdoes not give greater assurance of quality than 100% inspection. ispection, ©) First off Inspection: This type of inspection is used for products made in automatic and semi-automatic, machines. The inspection is done before starting production run. First, the machine is set up and tools are setup with correct position and orientation. The first piece is made, This first piece is checked carefully. If the dimensions and other factors are correct and upto the standard, the machine is handed over to the operator for production run. If the first piece is found to be defective, then the machine is re-set to correct the defects found. The machine is handed over to the operator only after a correct first piece produced. For example, a turret lathe has been set up and tools are setup. The material is fed in to the machine. The first piece is produced and inspected, If it is found to be correct, then production is allowed to continue. If found defective the machine is re-set and machine shall be handed over to the operator only after a correct piece is made. 21. (a) Explain the principles of F.W. Taylors scientific management. (list out 3 marks and ©) explanation of any 7 principles, each one carries Imark) HENRY FAYOLS PRINCIPLES OF MANAGEMENT: 1. Division of work Authority and Responsibility Discipline Unit of command Unity of Direction Subordination of individual interest to general interest. Remuneration of Personnel. Centralization Se Nuaneauwn Scalar Chain 10. Order 11. Equity 12. Stability of Tenure of personnel. 13. Initiative 14. Esprit de corps. ision of work This is the principle of specialization. Specialization is defined as the concentration of effort upon a particular work. As a man concentrates his efforts on a particular work, he acquires ability confidence and accuracy. This increases productivity wo”The division of work may lead to new discoveries and inventions. But it has the disadvantages of (me) boredom and monotony due to the repetition of same type of job and. (ii) difficult in getting some other type of job. 2. Authority and Responsibility Authority is legal power to command others and extract obedience. Responsibility is the obligation (or) duty towards a job. Authority may be delegated but responsibility cannot be delegated. For example a ‘general manager is answerable to the board, for anything and everything that happens in the firm, He cannot say that he has delegated the responsibility to a production manager who may be cause for any trouble. People often seek authority but fear responsibility. The fear of responsibility destroys initiative and other good qualities. Authority without responsibility and responsibility without authority are defects of management which should be avoided. 3. Discipline Discipline is "respect for agreements and the outward marks of respect. Discipline is absolutely essential for the smooth running of an enterprise. Maintenance of discipline requires good supervisors at all levels clear and fair agreements, judicious application of penalties and effective communication. 4. Unity of command ‘This is the principle that an employee should receiver orders from one superior only. ‘A man can serve only one boss. Multiple commands will cause conflicts and confusion. A sound management should avoid dual commands. 5. Unity of direction: It means that there should be complete identify between individual goals and organizational goals. They should not pull in different directions. Each group of activities having the same objectives must have one head and one plan. Unity of command cannot function without unity of direction. 6. Sub ordination of individual interest to general internal The interests of an organization are more important than the interest of an employes This is necessary to maintain unity and to avoid friction among the employees. Fair agreement effective supervision, firmness and good examples set by superiors are essential set by superiors are essential to maintain general interest. 7. Remuneration of personnel. Remuneration is the money paid to the employees for the work done by them. This should be fair and give maximum satisfaction to the employees. 8. Centralization:Centralization means concentration of authority at the top level of management. All decisions are taken only by the top executive. Centralization will cause delays in works. Decentralization is essential. Decentralization means delegation of authority to subordinates for quick action. 9, Scalar chain Scalar chain means "line of authority" one should not unnecessarily short circuit the lines of authority. The chain may be short circuited only when it is harmful to follow the scalar chain principle strictly. B ic CT] oO E— F GH If has to communicate with I, the channel, is F to B to A to C to I. By short circuiting, F directly communicates with I and their superiors are later informed. 10. Order This is a principle of arrangement of things and persons. This principle is of two types Material Order and Social Order. A place for everything and everything in its place” is material order and “A place for everyone and everyone in his place" is social order. Scientific selection training and placement are necessary for adopting this principle. 11. Equity : The managers should treat subordinates equally with kindness and justice. By this loyalty and devotion from employees can be expected. A good morale could be maintained among employees. 12, Stability of Tenure of Personnel: Stable and secure work force is an asset to an organization. Unnecessary labour turnover is costly and dangerous to the organization. It is better to have one manager of average ability than to have outstanding managers who merely come and go. 13. Initiative It is the capacity to see what needs to be done and take efforts to do it. It gives deep satisfaction for an intelligent man, Hence managers should encourage subordinates to use come forward to propose a new method, idea ete it imitative. For example, when employes must be encouraged. 14, Esprit de crops bt‘These are French words which mean "feeling of harmony and union among personnel of a factory". Union is strength. The management should avoid the dangers of divide and rule, (OR) (b) Write short notes on (i) Halsey’s 50 % plan marks and formulae 2 marks for each plan) () HALSEY'S 50% PLAN Under this plan, a standard time is set for completion of a job. If a worker completes Rowan’s plan. (Explanation 3 the job in the standard time, he is paid at his guaranteed time rate. Ifa worker completes the job n less than standard time, he is paid a bonus in addition to his base wage at the guaranteed time rate. The amount of the bonus paid is 50% of the time saved. The other 50% goes to the employer. Let S is the standard time allowed for the job. T is the time taken by the worker to complete the job, R is the hourly rate. Then under 50% Halsey plan the earnings E of the worker will be E=RT+(s-T)R2 (ii) ROWAN PLAN In this system an hourly rate is guaranteed and standard time for completion of a job is established from the past production record, In the job is completed in the standard or more than the standard time the worker is paid the guaranteed wage. If the job is completed in less than standard time, the worker is paid a bonus in addition to the guaranteed wage. Let R is the hourly rate S is the standard time, T is the time taken to complete the job and E is the total Earnings of the worker then a) The bonus (incentive) or premium = (Hourly rate x Time taken) x (time saved/ Standard time) = (Rat) x (s-T)/s) b) Earnings E=Rat + {[s- t)/s] x RT)} 22, (a) Explain by means of a block diagram how the selling price of a product is determined. SELLING PRICE OF A PRODUC The selling price of product is the sum of direct materials cost, direct labour cost, Diagram 5 marks and explanation 5 marks) overheads and profit, The selling price of product has the following components. © Prime cost Factory cost iG+ Production cost ‘+ Total cost or sales cost Prime Cost = Direct Materials Cost + Direct Labour Cost + Direct Expenses (if Any) Factory Cost=Prime Cost + Factory Overheads Production Cost=Factory Cost + Administrative overheads ‘Total cost or sales Cost= Production Cost + Sales Overheads Factory (or) Works Cost Production Cost Total Cost (Sales Cost) Selling Price General Overheads: Sometimes administrative and sales overheads are put together and given as general overheads. In such cases, ‘Total Cost = Factory Cost + General Overheads Sales Price: If profit is added to the total cost of product, sales price is arrived. The customers get the article by paying the price named as selling price. Sales Price = Total Cost + Profit The above procedure to arrive at sales price of product is illustrated by a block diagram shown in the above figure. (OR) (b) Explain economic order quantity (EOQ) with a sketch. ECONOMIC ORDER QUANTITY (EOQ): (Explanation 4 marks, diagram 4 marks and formulae carries 2 marks)oa Guantty— Consider the procurement of the entire quantity of an item required in a year. In this, case, inventory carry cost will be high. Hence for keeping inventory carry cost low, it is better to procure them in small quantities. But this will increase the number of orders and hence ordering costs. This quantity is called Economic order Quantity (BOQ) cost is equal to ordering cost. At EOQ, inventory carry Economical Order Quantity (EOQ) is the quantity at which sum of ordering cost and inventory carry cost is least. Let, A= Annual requirement, Q= Quantity per order C= Cost per unit in rupees, S = Ordering cost or procurement cost per order in rupees Ordering Cost = Cost per order x No. of orders = Sx AIQ =ASIQ inventory carry charges per rupee expressed as decimal Carry cost= (Average inventory) x (Cost per unit) x (Inventory carry cost per unit) =Q2 x Cx I= QCl2 At EQ, ordering cost = Carry cost ie, ASIQ= QCL2 Therefore @ = 2aS/IC — \ a That is, EOQ =Q = V2AS/IC 01018 18 2020 (4 Taylor's Scientific Management 1, Science and not rule of thumb“ Taylor said that rule of thumb would not help to solve problems in industries. He believed in scientific methods and approach. By applying the scientific methods, the industrial efficiency can be improved as explained below. a) Standardisation of working conditions Providing good working condition will improve industrial effi ciency. The different working conditions are 1) Proper lighting 2) Ventilation 3) Temperature 4) Humidity 5) Colour 6) Cleanliness 7) Noise and 8) Seating Applying scientific approach, Taylor found ‘out the minimum requirement of working conditions b) Standardisation of working methods For doing any job, the best method should be found out. Taylor invented motion study (now called method study) techniques for this purpose. In this, the method of doing a job is scientifically studied. The waste efforts are eliminated. This leads to savings in human efforts. ©) Establishing the standard of performance Taylor said that production time for each job should be found out scientifically. For this he invented time study techniques. Here the job is broken into elements. Each element is termed separate- ly and the total time for the job is found out. This will help to plan the dally work of each worker. 2. Harmony and not discord Taylor said that the employer and employee should have complete understanding. The interest of employer and eniployees should be same. . Maximum output and not restricted output: Taylor evolved methods of getting more production from the workers, He said that workers must be encouraged for higher production. This was done by giving incentive wages for higher producers. He introduced differential piece rate system for this purpose. The workers who produced above the standard level were paid a higher piece rate, Those whose production was lower were paid a lower piece rate. v4. Specil activity Taylor said that the workers must be relieved of the mental activities. So he separated the mental activity from physical activity. Physical activities are carried out by the people inside the shop. Mental activities are carried out by the people in the office. He evolved the functional organisation structure. He identified the activities in an industry into eight functions. He appointed one foreman for each function. They were called Gang boss, Speed boss, Repair boss, Inspection boss, Instruction card clerk, Time and Cost clerk, Route clerk and Disciplinarian ation - Separation of physical and mental 5, Training and development of workers ‘Taylor insisted that the workers should be given proper training before they are put in the production line. He said that the selection of workers should be done scientifically. Right person should be ‘employed for the right job.Sy" 231 April 2018 1. Qn. No. 20. (a) Explain the principles of F.W. Taylors scientific management. (list out 3 marks and explanation 7marks) The following are the Taylor's principles of scientific management. 1. Science not rule of thumb 2. Harmony, not discord. 3. Co-operation, not individualism 4. Maximum output not restricted output. 5. Specialization not generalization 6. Scientific selection, training and development of persons not on personal judgment. Science not rule of thumb: Taylor's overall goal was higher industrial efficiency through higher productivity. To improve industrial efficiency, application of method of science is essential. Taylor identified the following objectives for this purpose. a) Standardization of working conditions Determining the best temperature and humidity, provision for rest breaks, adequate lighting is examples of standardization of working conditions. ) Standardization of work methods. Analyzing the work on scientific basis and determining the best procedure for doing the job. Motion study techniques shall be used to standardize work methods. ©) Planning of a daily task The job shall be broken into elements. Each element shall be timed to determine production time for a job. Time study techniques shall be used for this and standard time for a job shalll be fixed. 2. Harmony, not discord ‘There must be friendly relations among personnel of a concern. There shall be no difference of opinion and dispute. The interest of the employer and employees shail be same. To maintain harmony, fair agreements effective supervision and firmness are required. 3. Co-operation not individualism:Development of hearty co-operation between management and labour is essential ‘The personnel of a concern should not be selfish. They should not always think of their own interests. General interest is more important than self interest. 4. Maximum output, not restricted output: Workers must be encouraged to produce more by Incentive of high wages". For this Taylor introduced Differential Piece Rate Plan”. Under this plan, workers producing above standard were paid high piece rate and those producing below standard were paid a lower piece rate. 5. Specialization not generalization: Division of work between management and labour is necessary to achieve higher industrial efficiency. Division of work leads to specialization. Management must take responsibility for planning and supervision. Workers are responsible for doing of works. Taylor developed functional organization for this purposes. “6. Scientific selection training and development of persons not on personal judgment: If an organization does not possess right kind of people for different activities. | t will lower production and employee morale, It may also increase absenteeism and labour turnover. Therefore scientific selection of right type of people training and developing them and fitting them in proper placement are essential. Taylor's principles of scientific management had contributed to Elimination of waste effort. ‘More emphasis of fitting workers to a particular job. Greater care in training workers. Greater specialization of activities. Establishment of standard task level. Standardization of working conditions and working methods.