11 .

I N D U S T R I A L M A N A G E M E N T

Introduction

Required resources are collected in one place to manufacture

materials in correct size and correct shape. That place is called as
f a c t o r y. T h e r e s o u r c e s a r e t r a i n e d m e n , r a w m a t e r i a l s , m a c h i n e s e t c .

Plant location

Plant location is important exercise of selecting a suitable site

and area of establishing a new plant or for expanding a existing plant.
This is very essential as it decides the operational and capital cost of
the product.

Important factors to be considered in selecting a plant location

1. The plant should be located as near as possible to the place where

the raw materials are available. This will reduce the cost
involved in transportation of the raw materials.
2 . T h e l o c a t i o n s h o u l d b e c o n v e n i e n t l y c o n n e c t e d b y h i g h w a ys a n d
r a i l w a ys .
3 . T h e a v a i l a b i l i t y o f a d e q u a t e l a b o u r i s a n i m p o r t a n t f a c t o r.
4 . T h e t o p o g r a p h y o f g e o g r a p h y, a r e a o f a v a i l a b l e l a n d , s h a p e o f t h e
site and drainage facilities should be suitable to the needs of the
plant. The location should not be prone to floods and
earthquakes.
5 . S u ff i c i e n t q u a n t i t y o f q u a l i t y w a t e r s h o u l d b e a v a i l a b l e n e a r t h e
plant location.
6. The atmosphere of the plant should provide adequate lighting and
ventilation facilities.
7. Electrical power of adequate strength and n c.
8. Location of the plant should be selected to avail maximum tax
c o n c e s s i o n s , l o a n f a c i l i t i e s a n d l o w p o w e r t a r i ff .
9. Proper housing facilities for the employees, presence of
hospitals, educational institutions, banks, markets and
recreational facilities should also be c onsidered while selection
locations.
10. Presence of related industries near the location is
preferable.

Plant layout

T h e p h ys i c a l a r r a n g e m e n t s o f b u i l d i n g s , m a c h i n e r y, e q u i p m e n t s ,
workplaces and other facilities for the manufacturing process is known
a s p l a n t l a yo u t .
Advantages of a good plant layouts

1. Handling of materials and transportation becomes minimum.

2 . T h e r a t e o f p r o d u c t i o n i n c r e a s e s b e c a u s e o f e ff e c t i v e u s e o f m a n a n d
machines.
3 . Wo r k e r s f e e l c o m f o r t a b l e w i t h l e s s m o v e m e n t i n s i d e t h e p l a n t .
4. The availabl e space is economically and efficiently used.
5. Investments on equipments becomes minimum.
6 . S i m p l e , e a s y a n d e ff e c t i v e s u p e r v i s i o n i s p o s s i b l e .

WORK STUDY

Wo r k s t u d y i s a t e c h n i q u e t o i n c r e a s e t h e p r o d u c t i v i t y. I t i s u s e d
t o f i n d o u t t h e r e a s o n s f o r s h o r t f a l l i n t h e e ff i c i e n c y o f t h e h u m a n w o r k
and set guidelines for improvement. By increasing production, the cost
i s r e d u c e d a n d t h e p r o d u c t r e a c h e s m o r e p e o p l e . Wo r k s t u d y a i m s o n
the above objective.

Wo r k s t u d y i s a c o m b i n a t i o n o f t w o t e c h n i q u e s n a m e l y

1. Method study and

2 . Wo r k m e a s u r e m e n t .

Wo r k s t u d y= m e t h o d s t u d y + w o r k m e a s u r e m e n t

METHOD STUDY

Method study is a systematic recording and critical analysis of

the method of doing a work. It also proposes a new method of doing the
same work in a easy and effective manner to reduce costs.

WORK MEASUREMENT

Wo r k m e a s u r e m e n t i s a t e c h n i q u e t o f i n d o u t t h e t i m e t a k e n f o r a
qualified worker to finish a specified work at a particular level of
performance.

P r o d u c t i o n a n d p ro d u c t i v i t y

Production can be defied as a process of manufacturing the

required end product from the available raw materials.

Raw material production products

 Productivity can be defined as a ratio between he
output in a grantum of wealth and the input resources of production.

𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑜𝑢𝑡𝑝𝑢𝑡
𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 =
𝑖𝑛𝑝𝑢𝑡 𝑜𝑓 𝑟𝑒𝑠𝑜𝑢𝑟𝑐𝑒𝑠

Productivity based on different resources productivity o f land

Let us assume an agriculturist spends Rs.5000/ -

t o p l a n t c a s u a r i n a s a p l i n g s i n h i s l a n d o f 1 a c r e a n d e a r n s yi e l d s w o r t h
Rs.10,000/-.

P r o d u c t i v i t y= P r o d u c t i o n o u t p u t

Input of resource

= 10000/5000 X100

productivity = 200%

we consider another case where the same agriculturist spend. Rs.1000

more for better saplings and better methods of cultivator in the same
a r e a a n d e a r n s yi e l d s w o r t h R s . 1 5 , 0 0 0 / - .

Productivity = Production output

Input of resource

=15000/6000X100

p r o d u c t i v i t y= 2 5 0 %

In this case, the productivit y is increased by 50%.

Productivity of men

We c o n s i d e r a c a s e o f m a c h i n i s t w h o w o r k s o n a
m i l l i n g m a c h i n e a n d m a k e s 4 0 g e a r s a d a y. B y i m p r o v e d m e t h o d s o f
w o r k , t h e s a m e m a c h i n i s t i s a b l e t o m a c h i n e 5 0 g e a r s i n a d a y. T h e
increase in productivity can be calculated as,

Increase in productivit y = change in Production

Original production(input)

50 − 40
= 𝑋100 = 25%
40
Increase in production=25%
Productivity of machine

Let us consider a case where an operator works

on a drilling machine for 8 hours to make drills on 100 identical work
p i e c e s . Wi t h t h e s a m e m a c h i n e , t h e o p e r a t o r i s a b l e t o m a k e d r i l l s o n
140 work pieces by using jigs and drills with high cutting speeds.

𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛
𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑒 𝑖𝑛 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 =
𝑜𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛(𝑖𝑛𝑝𝑢𝑡)

140 − 100
𝑡ℎ𝑒 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑒 𝑖𝑛 𝑝𝑟𝑜𝑑𝑢𝑐𝑖𝑣𝑖𝑡𝑦 = 𝑋100 = 40%
100
I n c r e a s i n g p ro d u c t i v i t y m e t h o d s

Some important methods of increasing the

p r o d u c t i v i t y a r e g i v e n b e l o w,

1. By improving the working conditions.

2. By improving the process involv ed in production
3. By reducing the non -productivity time by work measurement
4. By providing suitable incentives to the workers.
5. By proposing better plant maintenance programmes.
6. Old and worn out machines should be corrected to make them8
function as before.
7. Men, machine and materials should be maintained at the required
quantum.
8. By providing the operators with new and proper training.
9 . L a yo u t o f t h e p l a n t a n d e q u i p m e n t s s h o u l d b e i m p r o v e d .

P r o d u c t i o n p l a n n i n g a n d c o n t ro l ( P P C )

Production planning is a process of scheming the

production procedures to get the finished products of required quality
f r o m t h e r a w m a t e r i a l s w i t h i n a p r e s c r i b e d t i m e f r a m e e c o n o m i c a l l y.

Production control is a process of making

specific arrangements to carry out the procedures outline d by
production planning. It should also over see corrective measures in
case of failures in the production process.

Function of PPC

1. Pre-planning: it involves the decesions of the preparatory

functions in the production process.
2. Route plan: it is the plan arranging various activities that take
place from the stage of raw material to the finished product.
 3. Scheduling: scheduling is the preparation of a time table to show
the time of starting and the time of completing of operations
involved in production of each component.
4. Despatching: it is the process of ordering different departments
to carry out production process as per the route plan and
scheduling,
5. Controlling: it is the process of getting reports from all
departments regarding production and taking co rrecting actions,
i f n e c e s s a r y.

Importance of PPC

Guideline is very important to all departments. It

m u s t b e c l e a r a n d c o r r e c t . P P C d o e s t h i s g u i d e l i n e t o e v e r y i n d u s t r y. S o
P P C d o e s t h i s g u i d e l i n e t o e v e r y i n d u s t r y. S o P P C i s t h e “ b r i n o f t h e
industry”.

The important task of arranging specific

instructions to the workers to carry out specific tasks, at specific time,
frame with specific materials at specific quantity and quality on
specific machines.

I f t h e P P C d o e s n o t w o r k i n r i g h t w a y, t h e
industry affects. So every industry needs skilled PPC.