Production and Operational Management

Selection of Material Handling Equipment:

Selection of Material Handling equipment is an important decision as it affects
both cost and efficiency of handling system. The following factors are to be taken into
account while selecting material handling equipment.

1. Material Properties
Consider the material's state (solid, liquid, gas), size, weight, fragility, and whether it’s
corrosive or toxic. These factors help narrow equipment options.

2. Building Layout
Look at space availability, ceiling height, column positions, floor capacity, and whether
the building is single or multi-store.

3. Production Flow
Use fixed equipment (e.g., conveyors) for constant flow or mobile equipment (e.g.,
trucks) for variable flow.

4. Cost
Compare initial, operating, and maintenance costs to choose the most cost-effective
option.

5. Operation Type
Decide based on temporary or permanent use, continuous or intermittent flow, and
vertical or horizontal movement.

6. Engineering Factors
Check door and ceiling sizes, floor space, condition, and structural strength.

7. Equipment Reliability
Consider the equipment's reliability, supplier reputation, and after-sales service.

Evaluation of Material Handling System

1. Cost Factors
Includes investment, labor costs, service hours, utilization, unit load capacity,
loading/unloading, operating costs, and size requirements.
2. Technical Considerations
Consider power source, operating conditions, and other technical requirements.
3. Work Study Improvements
Use techniques like palletizing, minimizing duplicate movements, and replacing
outdated systems to enhance efficiency.
4. Effectiveness Metrics
o Time Efficiency: Ratio of handling time to total production time.
 o Cost Efficiency: Expenses per unit weight handled.
5. Performance Ratios
o Equipment Utilization Ratio: Compares use over time or with peers.
o MHL Ratio: MHL=Personnel assigned to handling/Total workforce
o DLHL Ratio: DLHL=Handling time lost/Direct labor time
o Movements Operations Ratio: Measures excess motions due to poor
routing.
6. Efficiency Factors
o Efficiency of handling methods.
o Layout design (reducing handling distance).
o Proper utilization of facilities.
o Speed of handling.
7. System Selection
o Fixed-path equipment (e.g., conveyors, cranes) for high-volume, fixed
routes.
o Varied-path equipment for flexibility in movement.

Purchasing

Purchasing is a key function in materials management, involving buying materials, tools,

and equipment for the industry. It affects finances, working capital, and the company's
image through vendor relations.

Objectives of Purchasing

1. Minimize Costs
Purchase materials, supplies, and equipment at the lowest possible cost to
improve productivity and profitability.
2. Ensure Continuous Supply
Maintain a steady flow of raw materials, tools, and components to avoid
production delays.
3. Increase Asset Turnover
Keep inventory investment low compared to sales volume, boosting profitability.
4. Develop Alternative Sources
Find multiple suppliers to enhance bargaining power, reduce costs, and prepare
for emergencies.
5. Maintain Supplier Relations
Build good relationships with suppliers for better pricing, priority during
shortages, and a strong business reputation.
6. Integrate with Other Departments
Coordinate with production, engineering, marketing, finance, and HR to align
purchasing with company needs.
7. Train Personnel
Develop skilled and innovative employees through training programs.
 8. Efficient Records and Reporting
Standardize paperwork for easier record-keeping and provide regular reports to
management to highlight purchasing activities.

Parameters of Purchasing

1. Right Price
Ensure the price is fair, not just the lowest. Use planning, price negotiation, and
cost analysis to determine the best value.
2. Right Quality
Purchase materials with the required technical and quality standards, ensuring
they suit specific needs and are measurable.
3. Right Time
Procure items with minimal lead time, accounting for emergencies and planning
for contingencies like strikes or delays.
4. Right Source
Choose reliable suppliers who consistently provide quality materials. Use vendor
ratings and build strong relationships.
5. Right Quantity
Buy the correct amount using methods like economic order quantity, while
considering discounts, availability, and demand.
6. Right Attitude
Adopt a proactive, cost-conscious approach, focusing on long-term goals and
innovative purchasing strategies.
7. Right Contracts
Understand legal aspects and adopt suitable procedures for capital and
consumer items, both domestic and international.
8. Right Material
Select materials that are best suited for production through techniques like value
analysis.
9. Right Transportation
Choose cost-effective transportation methods to minimize shipping expenses.
10. Right Place of Delivery
Specify the most efficient delivery location to reduce handling and transportation
costs.

Purchasing Procedure

1. Identify Need: Request materials through a purchase form with details like
quantity and specifications.
2. Choose Supplier: Find and select reliable suppliers based on price, quality, and
delivery.
3. Place Order: Send a purchase order to the chosen supplier.
4. Follow Up: Ensure the supplier confirms and delivers on time.
 5. Receive Goods: Check the quantity and quality of delivered items.
6. Make Payment: Verify the invoice and process payment.
7. Keep Records: Save records for future use.
8. Build Relations: Maintain good relationships with suppliers.

Purchasing Systems

1. Forward Buying: Commit to buying materials in advance, typically for a year, to

secure better prices and ensure availability.
2. Tender Buying: Use bidding for large purchases, often in public or government
sectors, ensuring fairness and selecting the best responsible bidder.
3. Blanket Order: Agree on long-term supply for a set quantity over a period (e.g.,
a year), reducing paperwork and getting bulk discounts.
4. Zero Stock: Supplier holds inventory for the buyer, reducing buyer's storage
costs but slightly increasing per-item prices.
5. Rate Contract: Pre-agreed prices for items over a fixed period, common in
public sectors, simplifying procurement and reducing lead times.
6. Reciprocity: Buy from your customers as a goodwill practice, but only when
terms and quality are comparable.
7. Systems Contract: Simplify ordering and documentation for frequently used,
low-cost items, reducing administrative efforts.

Stores Management

Stores are essential for uninterrupted service to manufacturing, managing materials,

and minimizing costs.

Functions of Stores:

1. Receiving Materials: Accept raw materials, tools, and other items and record
them.
2. Storage: Safely store and preserve items.
3. Issuing Materials: Supply departments as needed and track usage.
4. Minimizing Waste: Prevent obsolescence and scrap through proper handling.
5. Stock Monitoring: Highlight excess, shortages, or unusual usage for corrective
action.
6. Housekeeping: Maintain organized and efficient material handling and storage.
7. Support Purchasing: Provide accurate data for procurement.

Codification in Stores:

 A unique numeric system to classify and identify items based on groups, sub-
groups, type, and dimensions.

Objectives of Codification:
 1. Organize items systematically.
2. Avoid duplication and ambiguity.
3. Standardize item specifications.
4. Support data analysis and national/international standards.

Advantages of Codification:

 Reduces the number of items and avoids duplication.

 Simplifies identification and record-keeping.
 Groups similar items logically, improving efficiency.
 Eases bulk ordering and promotes standardization.

Inventory Control or Management

Meaning of Inventory

Inventory refers to materials in stock, including items for sale, in production, or awaiting
use. It acts as a buffer between supply and demand to ensure smooth production.

Reasons for Keeping Inventories

1. Stabilize Production: Avoid interruptions by managing demand fluctuations.

2. Price Discounts: Bulk purchases to gain cost advantages.
3. Replenishment Period: Meet demand during procurement delays.
4. Prevent Order Loss: Maintain stock to meet delivery schedules.
5. Market Changes: Anticipate shortages or price hikes.
6. Other Factors: Seasonal availability, supplier requirements, or minimum order
conditions.

Meaning of Inventory Control

A planned approach to decide what, when, and how much to order and stock, ensuring
minimal costs while avoiding production or sales interruptions.

Objectives of Inventory Control

1. Ensure adequate supply to avoid shortages.

2. Minimize financial investment in inventory.
3. Promote efficient material purchasing and usage.
4. Maintain stock records and manage limits.
5. Replenish stock promptly.
6. Reserve stock for lead-time variations.
7. Support short- and long-term material planning.

Benefits of Inventory Control

 1. Improved customer satisfaction through timely delivery.
2. Smooth production without stock-outs.
3. Optimal use of working capital.
4. Reduced losses from obsolescence and damage.
5. Cost savings in purchasing.
6. Avoid duplicate orders.

Standardization

Standardization involves creating maximum product variety using minimal materials,

parts, tools, and processes. It establishes consistent measures for quality, quantity, and
performance.

Advantages of Standardization

For Design Department

 Fewer specifications and drawings needed.

 More time for new or improved designs.
 Efficient resource allocation.
 Easier routine work for less skilled personnel.

For Manufacturing Department

 Lower costs and better quality.

 Improved methods, tools, and part interchangeability.
 Efficient use of manpower and equipment.
 Accurate delivery schedules and improved production support.

For Marketing Department

 Better quality at reasonable costs boosts sales and profit.

 Improved product availability and delivery.
 Easier after-sales service.

For Production Planning Department

 Enhanced methods, layouts, and tool designs.

 Faster pre-production activities.
For Production Control Department

 Improved planning and reduced delays.

 Accurate delivery commitments.

For Purchase and Stock Control Department

 Simplified stock handling and paperwork.

 Efficient storage and stock management.
 Cost savings through bulk purchases.

For Quality Control Department

 Consistent quality and clear standards.

 Familiarity among operators enhances quality.

Other Benefits

 Streamlined work processes, costing, and supervision.

 Reduced waste and improved efficiency.

Disadvantages of Standardization

1. Limited customer choices, risking business loss.

2. Resistance to change can hinder progress.
3. Favors larger companies over smaller ones.
4. Introducing new models becomes costly and inflexible.

Ergonomics (Human Engineering)

Ergonomics, also called human engineering, studies the relationship between
people and their work environment. It aims to design tasks, tools, and systems to match
human capabilities and needs, improving efficiency and well-being.

Objectives of Ergonomics

1. Increase Efficiency
o Make work easier and more productive.
o Reduce errors and enhance convenience.
2. Improve Human Values
o Ensure safety and reduce stress and fatigue.
o Enhance the quality of life.

Key Focus

 Designing tools, machines, and systems for safe and comfortable use.
 Improving working conditions to boost productivity and reduce fatigue.
Just-In-Time (JIT) Manufacturing
JIT is a way of manufacturing that focuses on making only what’s needed, when
it’s needed. This helps reduce waste, inventory, and the time products sit in the factory.

Seven Wastes to Avoid

1. Overproduction: Make only what’s needed, no more.

2. Waiting: Fix delays and keep work flowing smoothly.
3. Transportation: Reduce unnecessary movement of materials.
4. Processing: Question if each step is really necessary.
5. Inventory: Keep stock low by reducing other wastes.
6. Motion: Make work easier and faster by improving movements.
7. Defects: Prevent errors before they happen, don’t fix them later.

Benefits of JIT

1. Lower Costs: Reduces time, waste, and inventory.

2. Better Quality: Ongoing improvements keep products high quality.
3. Faster Design Changes: Quickly adjust designs as needed.
4. Higher Productivity: More work done in less time.
5. Flexible Production: Easily adjust to changes.
6. Simpler Management: Easier to manage and control operations.

Phases of Production Planning and Control

1. Planning Phase
This is the preparation stage where you decide how to make the product. There are two
types of planning:

 Prior Planning: Preparing before production starts, like designing the product,
predicting demand, and planning what materials are needed.
 Active Planning: Deciding the steps to make the product, planning what tools
and materials are required, and scheduling the work.

2. Action Phase
This is where actual production happens. Key actions include:

 Dispatching: Giving orders to start production by assigning tasks and issuing

materials and tools.
 Job Orders: Telling workers to begin making the product.
 Store & Tool Orders: Sending requests for materials and tools.
 Time Tickets: Tracking how long each task takes for future planning.

3. Control Phase
This phase monitors and fixes issues during production:
  Progress Reporting: Tracking how well production is going, like checking for
delays or quality issues.
 Corrective Action: Making changes if something goes wrong, such as adjusting
schedules or finding solutions to problems.

Functions of Production Planning and Control (PPC)

1. Pre-Planning Function
Pre-planning involves gathering data and setting guidelines based on demand
forecasts, market analysis, and product design. It focuses on process design,
equipment policies, and workflow (plant layout).
2. Planning Function
Once tasks are specified, planning involves analyzing four key areas: Machines,
Methods, Materials, and Manpower. It includes creating processes, scheduling,
and standardizing methods for both short-term and long-term goals.
3. Control Function
This phase ensures that the plan is executed correctly. It includes dispatching
(starting production), inspection (quality checks), and expediting (fixing delays).
Progress is monitored, and corrective actions are taken through feedback.

Key PPC Parameters

1. Materials: Ensure the right quantity and quality of materials are available on time
for production.
2. Machines and Equipment: Analyze available equipment, minimize downtime,
and maintain tools.
3. Methods: Choose the best manufacturing methods while considering
constraints.
4. Process Planning (Routing): Plan the path materials will follow in production,
including operations, setup, and process time.
5. Estimating: Estimate the time for each operation based on methods and routing.
6. Loading and Scheduling: Assign machine loads and determine start and finish
times for operations.
7. Dispatching: Start production by issuing work orders, materials, and
instructions.
8. Expediting: Track progress, identify bottlenecks, and take corrective actions.
9. Inspection: Ensure product quality through regular checks.
10. Evaluation: Analyze the entire production process to identify weaknesses and
make improvements.

Components of Operations Planning and Scheduling Systems

1. Business Plan
It outlines the company’s overall activity for the next 6-18 months, covering sales
volume, product groups, and inventory levels.
 2. Aggregate Production Planning
Determines product output levels for the next months, aligning with the business
plan and considering capacity, inventory, and workforce.
3. Aggregate Capacity Planning
Ensures the company can meet output demands by evaluating available
resources, adjusting capacity as needed.
4. Master Production Scheduling (MPS)
A detailed schedule of what to produce and when, based on customer orders and
forecasts.
5. Resource Requirement Planning (RRP)
Checks if the MPS can be achieved with the available resources, ensuring no
department is overloaded.
6. Material Requirement Planning (MRP)
Determines the materials needed and when they should be ordered to meet the
production schedule.
7. Capacity Requirement Planning (CRP)
Ensures that the required capacity for production matches the schedule by
adjusting resources.
8. Shop Floor Control
Manages daily operations such as job assignments, sequencing, scheduling, and
tracking work progress.
9. Loading
Allocates jobs to work centers based on their capacity.
10. Sequencing
Determines the order in which jobs should be processed at work centers.
11. Detailed Scheduling
Specifies when jobs should start and finish at each work center, with clear
assignments.
12. Expediting
Tracks job progress and takes action to ensure jobs are completed on time,
especially when disruptions occur.
13. Input/Output Control
Compares actual resource usage against planned usage and adjusts to maintain
smooth production.

Aggregate Planning
Aggregate planning is the process of planning output levels and timing over a
period of 3 months to 1 year. It balances demand fluctuations by adjusting labor,
inventory, and subcontracting, aiming to minimize costs.

Aggregate Planning Strategies

1. Vary Workforce Size: Adjust the number of workers (hire or lay off) based on
demand.
2. Vary Work Hours: Keep the workforce stable but use overtime during peak
demand or idle time during low demand.
 3. Vary Inventory Levels: Use inventory to meet demand fluctuations.
4. Subcontracting: Use external suppliers when in-house production can't meet
demand.

Aggregate Planning Guidelines

1. Set company policies on controllable variables (labor, inventory, etc.).

2. Use accurate forecasts.
3. Plan using capacity units.
4. Maintain a stable workforce.
5. Control inventory levels.
6. Keep flexibility to adapt.
7. Respond to demand in a controlled way.
8. Regularly review and evaluate plans.

Master Production Schedule (MPS)

MPS is a detailed plan that specifies what products to make and when to make
them, based on the overall production plan.

Functions of MPS:

1. Break Down Plans into Specific Products: Turns general production plans into
specific items to be made at certain times.
2. Try Different Schedules: Tests different schedules to find the best one.
3. Plan Material Needs: Helps plan the materials required for production.
4. Plan Capacity Needs: Determines how much machine and labor capacity is
needed.
5. Coordinate with Other Departments: Works with marketing, finance, etc., to
ensure smooth production.
6. Use Resources Well: Makes sure machines and workers are used efficiently
based on the schedule.

Capacity Planning

Capacity planning involves matching production capacity with demand to ensure

resources like labor, machines, and materials are used effectively.

Key Points:

1. Why it's Important:

o Ensures products are made on time to meet customer demand.
o Impacts costs and scheduling.
o Requires investment in facilities and equipment.
2. Types of Capacity:
o Design Capacity: Planned output under normal conditions.
 o System Capacity: Actual output considering limitations like product mix or
downtime.
o Installed Capacity: Capacity at the time of installation.
o Rated Capacity: Output based on real trial runs.

Capacity Planning Strategies:

1. Long-Term Capacity:
o Multiple Products: Manufacturing various products to reduce risk.
o Phasing in Capacity: Gradually building capacity as demand grows.
o Phasing out Capacity: Updating or closing old facilities responsibly.
2. Short-Term Capacity:
o Inventories: Stock products during slow periods to meet peak demand.
o Backlog: Delay orders to manage high demand.
o Hiring/Firing: Adjust workforce as needed.
o Employee Training: Cross-train workers for flexibility.
o Subcontracting: Use other firms’ capacity during peak demand.
o Process Design: Adjust jobs to improve efficiency.

Routing

Routing is the process of determining the most efficient path for a product to
follow during its transformation from raw materials to finished goods. It defines the
sequence of operations and where each step will take place.

Key Steps in Routing:

1. Type of Work: What tasks are needed on the product.

2. Operations Required: The operations to perform the work.
3. Sequence of Operations: The order in which tasks should be done.
4. Location: Where each operation will be carried out.
5. Personnel and Machines: What workers and machines are needed for each
task.

Routing Techniques:

1. Route Card: Tracks the job's progress and materials used at each operation.
2. Work Sheet: Provides manufacturing specs and machine instructions.
3. Route Sheet: Specific to production orders, detailing operations, machines, and
job rates.
4. Move Order: Tracks quantities and records the flow of parts between operations.

Scheduling

Scheduling involves planning when and where each operation in the production
process should take place. The goal is to ensure that all tasks are completed on time.
Principles of Scheduling:

1. Optimum Task Size: Smaller tasks lead to maximum efficiency.

2. Optimum Production Plan: Equal load distribution across plants.
3. Optimum Sequence: Work is scheduled in a logical, consistent order.

Inputs to Scheduling:

1. Performance Standards: Time needed for each operation.

2. Capacity: Available machine and labor resources.
3. Demand Pattern: Understanding rush orders and flexibility.
4. Job Schedules: Plans for individual tasks.

Scheduling Strategies:

1. Detailed Scheduling: Specific job schedules, but prone to changes and

disruptions.
2. Cumulative Scheduling: Long-term planning, but can overload current periods.
3. Cumulative Detailed: Combines both fixed and flexible scheduling.
4. Priority Decision Rules: Use rules (e.g., first come first serve) to reduce work-
in-process inventory.

Types of Scheduling:

1. Forward Scheduling: Jobs start as early as possible and finish before needed,
creating higher inventory costs but shorter lead times.
2. Backward Scheduling: Jobs start later to finish exactly when needed,
minimizing inventory and better for assembly-type industries.

Control

Control ensures that standards are met by comparing actual performance with
set standards and taking action if there is a significant difference.

Control Process Steps:

1. Choose the control object

2. Set the measurement unit
3. Set the standard value
4. Choose a sensing device for measurement
5. Measure actual performance
6. Interpret the difference
7. Take action

Need for Controlling Quality:

  Without quality control:
1. No clear standard to compare products/services.
2. Inconsistent quality.
3. Dissatisfied customers due to high maintenance and operating costs.
4. Increased rework costs.
5. Shorter product lifespan.
6. Less flexibility with standard spare parts.

Inspection

Inspection ensures product quality by detecting defects in materials and finished

products. It helps control quality, reduce costs, and minimize scrap losses.

Objectives:

1. Detect faulty raw materials before production.

2. Identify defective products during production.
3. Alert managers about potential issues.
4. Prevent substandard products from reaching customers.
5. Enhance product reputation for quality.

Purpose:

1. Distinguish good and bad lots/pieces.

2. Monitor process changes or limits.
3. Rate product quality and accuracy of inspectors.

Types of Inspection:

1. Floor Inspection: Performed at the production site by skilled inspectors. Detects

defects early and minimizes material handling.
o Advantages: Immediate correction, cost-saving, more pieces checked.
o Disadvantages: Expensive, difficult supervision, potential inspector bias.
2. Centralized Inspection: Inspections in a central location with sensitive
equipment.
o Advantages: Better equipment, unbiased results, lower cost.
o Disadvantages: Delayed defect detection, higher material handling costs.
3. Combined Inspection: A mix of floor and centralized inspections to prevent
defects.
4. Functional Inspection: Checks the product's functionality (e.g., motor speed),
not individual parts.
5. First Piece Inspection: Checks the first piece of production to ensure machine
setup is correct.
6. Pilot Piece Inspection: Done after a new product design is developed to ensure
functionality before mass production.
 7. Final Inspection: Performed after production to ensure the final product meets
specifications.

Methods of Inspection:

1. 100% Inspection: Every item is inspected. Expensive and time-consuming but

provides accuracy.
2. Sampling Inspection: A sample is checked for defects. Faster and cheaper, but
subject to sampling errors.

Drawbacks of Inspection:

1. Adds cost without improving product value.

2. Subjective and affected by inspector fatigue.
3. Does not prevent defective items from being produced.

Quality Control (QC)

QC ensures products/services meet desired quality standards by controlling

factors like materials, tools, labor, and working conditions.

Types of QC:

1. Off-line QC: Focuses on controlling product and process parameters through

design.
2. Statistical Process Control (SPC): Monitors and corrects processes in real-
time.
3. Acceptance Sampling Plans: Decides how many items to sample and when to
accept or reject a batch.

Steps in QC:

1. Formulate quality policy.

2. Set customer-based standards.
3. Create inspection plans.
4. Detect deviations from standards.
5. Take corrective actions.
6. Decide how to handle defective parts.
7. Coordinate quality issues.
8. Foster quality awareness.
9. Develop vendor relationships.

Objectives:

 Improve customer satisfaction and product life.

 Reduce costs by minimizing defects.
  Achieve large-scale production consistency.
 Ensure prompt inspections and reduce manufacturing variations.

Benefits:

 Improves product/service quality.

 Increases productivity.
 Reduces costs and consumer prices.
 Improves on-time deliveries and marketability.

Seven Tools for QC:

1. Pareto Charts: Prioritize problems based on their impact.

2. Check Sheets: Record data to identify patterns.
3. Cause and Effect Diagram (Fishbone): Identifies root causes of issues.
4. Scatter Diagrams: Shows relationships between variables.
5. Histograms: Displays frequency of quality characteristics.
6. Flow Charts: Visualizes the sequence of operations.
7. Control Charts: Monitors process stability and variations.

Total Quality Management (TQM)

TQM is a system that integrates quality development, maintenance, and

improvement across all business phases to ensure customer satisfaction and
economical production.

Benefits of TQM:

1. Customer Satisfaction:
o Better product quality.
o Improved product design.
o Efficient production flow.
o Enhanced employee morale and quality awareness.
o Better product service.
o Increased market acceptance.
2. Economic Improvements:
o Reduced operating costs.
o Lower operating losses.
o Decreased field service costs.
o Lower liability exposure.

Application of Total quality Management:

1. Quality Control

1. Ensure product quality

2. Detect defects

3. Prevent quality issues

2. Inventory Management

1. Track stock levels

2. Optimize storage

3. Manage inventory movement

3. Supply Chain Management

1. Coordinate suppliers

2. Manage logistics

3. Ensure timely delivery

4. Production Planning

1. Schedule production

2. Allocate resources

3. Meet demand

5. Process Design

1. Improve workflows

2. Reduce waste
 3. Enhance efficiency

6. Maintenance Management

1. Schedule maintenance

2. Prevent equipment failure

3. Ensure reliability

7. Product Design

1. Develop product specs

2. Ensure quality and functionality

3. Meet customer needs

8. Service Operations

1. Deliver customer service

2. Manage service quality

3. Ensure customer satisfaction

9. Just-in-Time Production

1. Produce on demand

2. Reduce inventory

3. Improve efficiency

10. Lean Manufacturing

 1. Eliminate waste

2. Improve efficiency

3. Enhance value

Productivity

Productivity is the ratio of output (what is produced) to input (resources used). It

measures the efficiency of production.

Factors Influencing Productivity:

1. Controllable (Internal) Factors:

o Product: Cost-benefit optimization.
o Plant & Equipment: Maintenance and modernization.
o Technology: Automation and advanced techniques.
o Materials & Energy: Quality materials, waste reduction, energy savings.
o Human Factors: Employee skills, motivation, training.
o Work Methods: Improved work processes and methods.
o Management Style: Flexible and dynamic leadership.
2. Uncontrollable (External) Factors:
o Structural Adjustments: Economic shifts, technological imports, social
changes.
o Natural Resources: Availability of manpower, land, and raw materials.
o Government & Infrastructure: Policies, transportation, communication,
taxes.

Productivity Measures:

1. Total Productivity Measure (TPM):

Formula: Total Productivity=Total Output/Total Input

2. Partial Productivity Measures (PPM):

o Labour Productivity: Output per labour input (measured in man-hours).
o Capital Productivity: Output per capital input.
o Material Productivity: Output per material input.
o Energy Productivity: Output per energy input.

Work Study
 Work study involves techniques (method study and work measurement) used to
examine human work to improve efficiency and economy. It identifies non-value-adding
operations and establishes time standards.

Advantages of Work Study:

1. Smooth production flow with fewer interruptions.

2. Reduces product cost by eliminating waste.
3. Improves worker-management relations.
4. Meets delivery commitments.
5. Reduces rejections and scrap; optimizes resource use.
6. Enhances working conditions.
7. Improves workplace layout.
8. Standardizes and simplifies processes.
9. Establishes standard time for jobs, aiding in manpower and production planning.

Work Measurement (Time Study)

Work measurement helps in planning, controlling, and improving operations by

tracking time, efficiency, and costs.

Objectives:

1. Compare methods.
2. Plan manpower needs.
3. Help with planning and control.
4. Calculate accurate costs.
5. Set delivery dates.
6. Reduce costs.
7. Identify low performers.
8. Train workers.

Techniques:

1. Time Study: Uses a stopwatch to track time for tasks.

2. Synthetic Data: Estimates time from past data.
3. Work Sampling: Observes tasks at intervals to measure activity.
4. PMTS: Uses preset times for basic tasks.
5. Analytical Estimating: Estimates time based on experience and data.

Maintenance Types:

1. Breakdown (Reactive) Maintenance

o Definition: Wait for equipment to fail, then fix.
o Advantages: Low investment, fewer staff needed.
 o Disadvantages: High costs due to unplanned downtime, expensive
repairs, potential damage to secondary equipment, and overtime costs.
2. Preventive Maintenance
o Definition: Perform scheduled maintenance to prevent breakdowns.
o Advantages: Cost-effective, longer equipment life, reduced failures,
saves 12%-18% over reactive maintenance.
o Disadvantages: Labor-intensive, possible unneeded repairs, catastrophic
failures can still occur.
3. Predictive Maintenance
o Definition: Use measurements to detect wear before failure, perform
maintenance based on actual condition.
o Advantages: Extends equipment life, reduces downtime, saves on parts
and labor, improves quality, saves 8%-12% over preventive maintenance.
o Disadvantages: Requires investment in diagnostic equipment and staff
training.

Reliability in Maintenance

 Reliability: The probability of equipment surviving under normal conditions

without failure.
 Improvement: Achieved by better design, testing, quality control, and preventive
maintenance.

Failure Rate Curve: Early-stage failures, followed by a period of stable performance,

and then failures as equipment ages (called the bathtub curve).

Maintenance planning
Maintenance planning answers what needs to be done and how to do it. It also
considers where and why. Good planning uses the right tools, materials, and knowledge
to make maintenance tasks efficient and successful.

Maintenance Job Planning Steps:

1. Knowledge Base: Understand the equipment, job, techniques, materials, and

facilities.
2. Job Investigation: Assess the job site to get a clear understanding of the work.
3. Document the Work: Identify and record the tasks, including preventive and
predictive maintenance.
4. Repair Plan Development: Create a step-by-step plan to complete the job
efficiently.
5. Prepare Tools and Facilities List: Identify any special tools or equipment
required.
6. Time Estimation: Use work measurement techniques and critical path analysis
to estimate job duration.
Maintenance schedules Techniques

Maintenance schedules are made by breaking jobs into small tasks and arranging them
in order. Different types of schedules include:

1. Weekly schedule: Assigns tasks for the entire week.

2. Daily schedule: Assigns tasks for a single day.
3. Gantt chart: Shows task timing for a project.
4. Bar chart: Used for comparing values.
5. PERT/CPM: Helps determine job completion time and resource allocation.

Six Sigma Maintenance

Six Sigma Maintenance applies Six Sigma principles to maintenance processes,

aiming to reduce variation, improve reliability, and enhance productivity. It follows the
DMAIC process:

1. Define: Identify maintenance goals, benchmarks, and reliability requirements.

2. Measure: Collect and analyze data on failures and performance.
3. Analyze: Identify root causes of issues and improvement opportunities.
4. Improve: Develop and implement improved maintenance plans and schedules.
5. Control: Monitor results, ensuring performance improvements and making
adjustments when needed.