2. 2.

Functions of management. Definitions: Management is to manage, to forecast and plan, to organize, to command ,to coordinate and to control. Henry Fayol Management is the art of knowing exactly what you want men to do and then seeing that they do it in the best and cheapest way. Management is a distinct process consisting of Planning, Organizing, Activating and controlling performed to determine and accomplish the objectives by the use of human beings and other resources. Management is the art of getting things done through and with the people in

2.1.2

2.1.3

2.2

Management as an art: 1. personal skill 2. Practical knowledge 3. Result oriented Approach 4. Regular Practice 5. Creativity Management as a Science: 1. Systematized body of knowledge 2. Continued Observation 3. Universal application 4. Cause and Effect Relationship 5. Validity and Predictability Principles of management: 1. Division of work 2. Authority and Responsibility 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interest to General interest 7. Fair remuneration

8. Centralization of authority 9. Scalar chain 10. Order 11. Equity of treatment 12. Stability in the tenure of personnel 13. Initiative 14. Esprit de corps (Cooperation & Team work)

2.2.1

Management-Administration- Organization: Administration determines the objectives, goals and policies of the enterprise. Management executes the directives and objectives. Organization is the effective machinery for accomplishing the objectives. Management carries out the policies of administration through the frame work of the organization.

2.3

Functions of management: 1. Forecasting 2. Planning 1.Gathering information 2. Laying down objectives 3. Developing planning premises 4. Examining alternate course of actions 5. Evaluating action patterns 6. Reviewing limitations 7. Implementation of plans 3. Organizing 1. Identifying the work to be performed 2. Classifying or grouping of the work 3. Assigning the group activities to individuals 4. Delegating authority and Fixing the responsibility 5. Coordinating these authority and responsibility 4. Staffing 1. Man power planning 2. Recruitment, selection and training 3. Placement of man power 4. Development, promotion, transfer & appraisal 5. determination of remuneration 5. Directing 1. Leadership 2. Communication 3. Motivation 4. Supervision 6. Coordinating 1. Canalizing the activities Of individuals 2. Creating team spirit 3. Vertical & Horizontal coordination 4. Internal & External coordination 5. Cooperation to achieve coordination 7. Controlling 1. Establishing the standards of performance 2. Measuring actual performance 3. Comparing actual performance with the standard 4. Taking corrective actions or measures 8. Decision making 1. Analysis of problem 2. Identification of alternatives 3. Evaluation of alternatives 4. Taking beneficial decision 5. Use of techniques of Operations research

2.4

Plant location A plant is a place where men, materials, machinery etc. are brought together for manufacturing products. Factors influencing the selection of plant location 1. Nearness to raw materials 2. Transport facilities 3. Nearness to markets 4. Availability of labour 5. Availability of fuel & power 6. Availability of water 7. Climatic conditions 8. Financial and aids 9. Availability of land 10. Government policies 11. Decentralization 12. Political and economical conditions 13. Presence of related industries 14. Industrial atmosphere 15. Special concessions 16. Future expansion 17. Housing facilities 18. Repair & research facilities 19. Community attitude 20. Personal factors

2.4.1

2.4.2

The principle consideration of typical industries: 1. Steel industry around Bihar: Availability of raw materials ( bulky & Heavy ) like Iron ore, lime stone and coke in large quantities around bihar. Ex: Steel plants at Bokaro ( Bihar), Raurkela(Orissa), Durgapur (WB), Bhilai (MP). 2. Plastic industry in Mumbai. Nearness to market Transport facilities (Road, rail, Air & Sea) 3. Textile industry at Mumbai & Ahmedabad Moist climate suitable for yarn processing Big market Abundant & cheap labour Transport facilities Export facilities 4. Thermal power plant at Kothagudem & ramagundam Availability of fuel & water Cheap labour Land at cheap rates Transport facilities 5. Electronics industries Availability of components & raw materials Good market Transport facilities Availability of professional & skilled personnel Research facilities Testing laboratories

2.5

Plant layout: Plant layout means the arrangement of machines and service centers with in the factory so that each operation is performed at the point of the greatest convenience. A technique of locating various resources like materials, machines and men with in the area of the site previously selected.

2.5.1

Objectives of a scientific layout: 1. Max. utilization of floor area cubic space 2. Min. internal transport from one operation to the other 3. Minimizing movements of workmen 4. Better working conditions- safe, well ventilated and good lighting 5. Improving productivity and quality of production 6. Avoiding accidents 7. Proper distribution of production and service areas 8. Easy supervision 9. Space for future expansion 10. Neatness and good appearance 11. Waste and scrap disposal 12. Convenience to workmen and supervisors

2.5.2

Factors influencing layout: 1. Type of industry 1. Synthetic 2. Analytical 3. Conditioning 4. Extractive 2. Type of product 1. Heavy / light 2. Large / small 3. Liquid / solid 3. Volume of production 1. Job production 2. Batch production 3. Mass production 4. Process Types of Layout: 1. Line or Product layout 2. Functional or Process layout 3. Fixed position layout 4. Combination layout

2.5.3

2.6

Line or Product layout: 1. This layout is popular for mass production. 2. One product or one type of product in an operating area. 3. The machines or equipments are arranged in the order of sequence of operations.

M HT

RM L M G

FG

RM: Raw material stores L: Lathes M: milling M/cs. G: Grinders FG: Finished goods stores 2.6.1 Suitability: 1. For continuous process industries. 2. Automobile industries 3. Chemical industries 4. Electronic components industry Advantages: 1. Smooth flow of production 2. Lower manufacturing time 3. Less space required for machines 4. Less work- in- process Disadvantages: 1. 2. 3. 4. 5. 6. Layout needs change when product undergo changes All machines in the line may not be fully utilized Increase in cost due to fall in volume Strict supervision is needed Halt in production due to break down of a machine in the line Operators lack skill in other areas 5. Easier production control 6. Better utility of machines 7. Less skilled labour 8. Reliable delivery schedule

2.6.2

2.6.3

2.7

Process or Functional layout: 1. This layout is popular for job production and non repetitive type production or maintenance. 2. The machines are arranged on their functional basis. All the lathes are kept in place; All milling machines are in one place and so on. 3. Each department is responsible for carrying out a particular process and not a particular product. H T G

L RM L

M H T

G F G G

2.7.1

Suitability: 1. Low volume production 2. Varity of products Advantages: 1. Supervision is simple since operations carried out are similar in each functional area. 2. Less No. of machines are needed. 3. Improved level of performance of each worker. 4. Flexible. Rate of production can be changed. 5. Better control on precision or complicated process. 6. Break down of one machine will not halt the production. 7. Less capital investment. 8. Better utilization of machine. Disadvantages: 1. Handling and follow up is more. 2. Production is difficult. 3. More floor area. 4. Routing and scheduling is difficult 5. Monotony due to specialization 6. Production cycle time is more 7. Inspection is more causes delay 8. Requires intense training.

2.7.2

2.7.3

2.8

Fixed position layout: 1. More popular for huge aircrafts, ship vessels etc. 2. Machines, tools and men are brought to work place due to the heaviness of the job. 3. This type was common before industrial revolution.

Raw material Products

Machines Tools Workmen

Assembly

2.8.1

Advantages: 1. 2. 3. 4. Less capital investment Continuity of operations Least material movement Less production cost

2.8.2

Disadvantages: 1. Difficulty in moving men, materials, tools and machines 2. Highly skilled workers are needed 3. Costly and complicated jigs and fixtures are needed

2.9

Combination layout: 1. Combination of the above two or three types is made use of. 2. This is popular where products are made first and all assemblies later. 3. Tries derive the advantages of each type of layout.