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OPERATION MANAGEMENT:

DEFINITION: The ongoing activities of designing, reviewing and using the operating system to achieve service output as determined by the organization for customers.

COLONY LIMITED COMPANY

BRIEF HISTORY

We are pleased to present here the brief history and social importance of the Colony Mills Limited (CML). Its history started from more than a century back when Mian Mohammad Ismail Sheikh inaugurated his first ginning factory in United India, near Khanewal, Punjab, in 1889 and thus laid the foundation of the "Colony" name. In 1908 Mian Mohammad Ismail established his first flour mill and by the time of independence he had set up one of the largest Muslim industrial enterprise with 14 ginning, flour and oil mills. In 1946 he went on to incorporate Colony Textile Mills Limited which had the distinction of being one of the very first textile mills to come into production in 1948, after independence. Colony Mills Limited also holds a very special place as being one of the first companies that were registered at the opening of Karachi Stock Exchange in 1948. CML has also played a role of an institution of learning for the field functionaries and produced most prominent textile technicians in our country. The CML has always aspired for the welfare of the people and therefore became a major contributor towards laying the foundation of the textile college at Faisalabad. The clear objective was to promote and generate the specific skills of this industry, in the textile Engineering. From then onwards the enterprise grew rapidly into cement, power generation, banking and obviously textiles. The nationalization of the early 1970s was a major blow when cement, power generation and banking were nationalized.

Colony Textile Mills Limited:

A composite textile unit, worked as the flagship of the colony group and helped it venture into fields like cement, power generation, insurance and banking. In pursuance of the division of assets between the family members the one time flagship of the group, Colony Textile Mills Limited, which had turned into a sick unit by 1993, was handed over to Mian Mughis A. Sheikh, the present chairman of the Colony Group. It was sheer hard work and untiring efforts that the unit has been completely turned around today and bears a complete new look and vision. Today, it can again be termed as flagship of the group. Once Colony Textile Mills Limited was set on the right course, the Group (which had reduced to a single company) set up two other projects namely, Sheikh Spinning Mills Limited, a spinning unit and Colony Weaving Mills (Private) Limited, a weaving unit. These have since been merged into one composite unit. A brief on the group companies is given here under: Colony Mills Limited (CML): Colony Textile Mills Limited a textile-manufacturing unit was established on August 24, 1946 in Ismailabad, Multan. In the year 2006 this company was merged into Colony Mills Limited along with another company. Colony Mills Limited has equity of Rupees 2,937 million as at December 31, 2006. Today, Colony Mills Limited produces 100% Cotton yarn, 100% Polyester yarn, 100% Viscose yarn, Mixed Cotton Polyester yarn and Cotton Viscose yarn ranging from 20 counts to 80 counts. There are seven production units within the same factory premises. Presently the numbers of spindles installed stand at 186 576. The annual turnover of the company is Rupees 6 billion.

Colony Industries (Private) Limited (CIPL): Two of the Group Companies Sheikh Spinning Mills Limited (SSML) and Colony Weaving Mills (Private) Limited (CWML) were merged with effect from December 12, 2004 into CIL. The equity of the company as at December,31,2006 was Rupees 1500 million .The spinning division which comprises of approximately 34,000 spindles capable of manufacturing Polyester Cotton, Polyester Viscose and 100% Cotton yarn and a weaving division engaged in manufacturing of grey cloth from 100% cotton yarn. The weaving division comprises of 421 air-jet looms including 120 in the process of installation .The Annual turnover is around Rupees 4.5billion.

Colony Sugar Mills LIMITED (CSML): Colony Sugar Mills Limited (CSML) is the flagship project of the group in the sugar industry. The project has a cane crushing capacity of 7,500 tons per day and a rated capacity of producing 125,000 liters of Ethanol.

TRANSFORMATIONAL PROCESS OF COLONY LIMITED:

The transformational process of this organization is well explained by the given diagram structure:

Input

Transformation/co nversion process

Output

Land Labour Capital Information

Feed back

Man Money Managmment Material Feed back

Control

SCOPE OF OPERATION MANAGEMENT:

The scope of operation management ranges across the organization. Operation management people are involved in product and services design, process selection, selection and management of technology, design of work system, location planning, facilities planning, and quality improvement of the organization products and services.

Plant Location
What is plant location? Plant location refers to the choice of region and the selection of a particular site for setting up a business or factory. But the choice is made only after considering cost and benefits of different alternative sites. It is a strategic decision that cannot be changed once taken. If at all changed only at considerable loss, the location should be selected as per it own requirements and circumstances. Each individual plant is a case in itself. Businessman should try to make an attempt for optimum or ideal location. LOCATIONAL ANALYSIS: Location analysis is a dynamic process where entrepreneur analyses and compares the appropriateness or otherwise of alternative sites with the aim of selecting the best site for a given enterprise. It consists the following: (a) Demographic Analysis: It involves study of population in the area in terms of Total population (in no.), age composition, per capita income, educational level, Occupational structure etc (b) Trade Area Analysis: It is an analysis of the geographic area that provides

continued clientele to the firm. He would also see the feasibility of accessing the trade area from alternative sites. (c) Competitive Analysis: It helps to judge the nature, location, size and quality of competition in a given trade area. (d) Traffic analysis: To have a rough idea about the number of potential Customers passing by the proposed site during the working hours of the shop, the traffic analysis aims at judging the alternative sites in terms of pedestrian and vehicular traffic passing a site. (e) Site economics: Alternative sites are evaluated in terms of establishment costs and operational costs under this. Costs of establishment is basically cost incurred for permanent physical facilities but operational costs are incurred for running business on day to day basis, they are also called as running costs.

SELECTION CRITERIA: The important considerations for selecting a suitable location are given as follows: Natural or climatic conditions. Availability and nearness to the sources of raw material. Transport costs-in obtaining raw material and also distribution or marketing finished products to the ultimate users.

Access to market: small businesses in retail or wholesale or services should be located within the vicinity of densely populated areas. Availability of Infrastructural facilities such as developed industrial sheds or sites, link roads, nearness to railway stations, airports or sea ports, availability of electricity, water, public utilities, civil amenities and means of communication are important, especially for small scale businesses.

Availability of skilled and non-skilled labor and technically qualified and

trained managers. Banking and financial institutions are located nearby. Locations with links: to develop industrial areas or business centers result in Savings and cost reductions in transport overheads, miscellaneous expenses. Strategic considerations of safety and security should be given due importance. Government influences: Both positive and negative incentives to motivate an entrepreneur to choose a particular location are made available. Positive includes cheap overhead facilities like electricity, banking transport, tax relief, subsidies and liberalization. Negative incentives are in form of restrictions for setting up industries in urban areas for reasons of pollution control and decentralization of industries. Residence of small business entrepreneurs want to set up nearby their homelands.

PURPOSE OF TAKING LOCATION DECISION: Location decisions are particularly important - whether we are considering the location of warehouses, manufacturing plants, hospitals, fire stations, or retail outlets because once the buildings are built; managers must live with their location decisions for a long time. And, although it might appear that location decisions are one-time problems pertaining to new organization, existing organizations often have a bigger stake in theses kinds of decisions than new organizations. One purpose of selecting a best sit for a business is to utilize that location profitably. Existing firms may need to make location decisions for many reasons some of them are below: As a part of marketing strategies To expand their market Adding new location to existing firms

OPTION FOR LOCATION DECISION: There are four options in location planning To expand an existing facility To add new location while retaining existing one. It is essential to take into account what the impact will be on total system. Adding new location can be a defensive strategy designed to maintain a market share or to prevent competitors from entering into market.

To shut down in one location and move toward another location. An organization must weigh the costs of a move and resulting benefits against the costs and benefits of the existing locations. A shift in markets, exhaustion of raw materials, and the cost of operations often cause firms to consider this option seriously.

Organizations have an option of doing nothing. If detailed analysis of potential locations fails to uncover benefits of expanding adding or moving to new location than a firm decide to maintain the status quo, or at least for the time being.

Many factors influence location decisions. It often happen that one or few factors are so important that they dominant the decisions. Managers must weigh many factors when assessing desirability of a particular site. In fact, there is comprehensive covering the myriad factors that could be important in any given situation. For example in manufacturing, the potentially dominant factors usually include availability of abundant energy and water supply and proximity to raw materials. Transportation cost can be major factor. In service organizations traffic pattern, convenience, and competitors, location as well as proximity to the market are dominant factors In order to pare the checklist to a reasonable size, we will disregard those factors not meet at least one of two conditions: The factor must be sensitive to location. A factor will influence choice nlye if management is convinced that the degree of factor achievement vary among the locations under consideration.

Management must consider the difference in degree of factor achieve to be significant. Even a 50 percent differential is not important applied to a minor cost category.

Managers can divide location factors into dominant and secondary factors. Dominant factors are derived from competitive priorities and have a particu strong impact on sales or costs. For example, a labor-intensive plant might require low wage costs in order to remain competitive. Secondary factors are also important, but management may downplay or even ignore some of them if others are relatively more important. larly

Dominant Factors in Manufacturing

According to interviews and survey data, five groups of factors dominate loca decisions for new manufacturing plants (Schmenner, 1982). The per "must" when considering a new location. 1. Favorable labor climate (76%) 2. Proximity to markets (55%) 3. Quality of life (35%)
4. Proximity to suppliers and resources (31

tion centage

shown for each group represents the proportion of respondents who picked it as a

%)

5. Proximity to company's other facilities (25%) Once an organization has determined the most important factors, it will try to narrow the search for suitable alternatives to generate geographical regions. Then a small number of community alternatives are identified and subjected to detailed analysis. Favorable Labor Climate For 76 percent of the respondents, a favorable labor climate was a dominant factor in making location decisions. Labor is a function of the cost and availability of labor, training requirements, wage rate in an area, labor productivity and attitude toward work and union strength. Many executives believe that weak unions or a low probability of union organizing efforts is a major advantage. One indicator of this attitude is that, although 50 percent of U.S. industry is
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unionized, and only 20 percent of new plants being opened have unions. Laborintensive firms that give strong consideration to labor climate include manufactures tiles, furniture, and consumer electronics. Proximity to Markets Profit oriented firm locate near the markets they intend to serve where as non profit oriented organizations choose locations relative to the needs of the users of their services. Other factors include distribution costs or the perishabilty of a finish product. After determining where the demand for goods and services is greatest, management must select a location for the facility supply that demand. Locating near markets is particularly important goods are bulky or heavy and outbound transportation rates are high. For example, manufacturers of products, that are relatively inexpensive to produce, such as paper, plastic pipe, and heavy metals all emphasize proximity to their markets. Quality of Life and Community considerations Respondents from all but one of the industrial groups gave quality of life a relatively low rating. The lone exception was high-tech exec more important than labor environment or trans utives, who rated it at the top of their lists. For them, attracting and keeping a good engineering staff is portation costs. Cost of availability of utilities, environmental regulations, transportation, religious worships, medical services, local attitude toward services, Quality schools, recreational facilities, and an attractive life style can make the difference in their location decisions. Proximity to Suppliers and Resources Most respondents rated proximity to suppliers and resources of relatively low importance. The exception was industries dependent on bulky or heavy raw materials. In such cases inbound transportation costs become a dominant factor, forcing these firms to locate facilities near suppliers. For example, it is practical to locate paper mills near forests and food processing facilities near farms. Another advantage of locating near suppliers is the ability to maintain lower inventories.
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Firm locate near or at the source of raw materials for three reasons. Necessity Perish ability Transportation cost Transportation costs are important in industries where processing eliminates much of the bulk connected with a raw material, making it much less expensive to transport the product or material after process. Proximity to the Parent Company's Facilities/ Site-related factors In many companies, plants supply parts to other facilities or rely on other facilities for management and staff support. These ties require frequent coordination and communication, activities that can become more difficult as distance increases. Other important factors may emerge, depending on the situation. They include the cost of shuffling people and materials between plants, utility costs (telephone, energy, and water), local and state taxes, financing incentives offered by local or state governments, and relocation costs. After management narrows the location choice to a specific site, still other factors arise: room for expansion, land and construction costs, accessibility to multiple modes of transportation, insurance, competition from other firms for the work force, local ordinances (such as pollution or noise control), community attitudes, and many others.

Climate and taxes

Climate and taxes sometimes play a role in location decision. Climate should be suitable of the production of product. And in case taxes free zones are available it should be utilized.

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The Facility Location Decision (internationally or domestically)

National Decision
I. Stability of Government, Economy, and Political System 2. Labor Availability and Costs 3. Export and Import Quotas, Duties, and Fees 4. Currency Exchange Rates 5. Transportation System 6. Materials and Supplies Availability and Costs 7. Climate 8. Government Incentives 9. Cultural and Economic Peculiarities 10. Regulation s on Operations

Regional Decision
I. Customer or Constituent Concentrations and Trends 2. Labor Availability and Costs 3. Degree of Unionization 4. Constructio n and Land Costs 5. Utilities Supply and Costs 6. Transportati on System Availability 7. Transportation Costs 8. Materials and Supplies Availability and Costs 9. Climate 10. Government Incentives

Community Decision
I. Customer or Constituent Concentrations and Trends 2. Preference of Management 3. Community Services and Taxes 4. Communit y Attitudes toward New Facility Locations 5. Labor Availability and Costs 6. Site Availability and Costs 7. Construction Costs 8. Transportati on System Availability 9. Transportation Costs 10. Materials and Supplies Availability and Costs II. Banking Services 12. Environmental Impact 13. Government Incentives

Site Decision
1. Customer or Constituent Concentrations and Trends 2. Site Costs 3. Size of Site 4. Proximity to Transportation Systems 5. Utilities Availability 6. Zoning Restrictions 7. Proximity to Related Industry or Services 8. Environmental Impact 9. Materials and Supplies Availability and Costs

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PROCEDURE FOR MAKING LOCATION DECISIONS

The way an organization approaches location decisions often depends on its size and the nature or scope of its operations. The general procedure for making location decisions usually consists of the following steps: Decide on the criteria to use for evaluating location alternatives, such as increased revenues or community service. Identify important factors, such as location of markets or raw materials. Develop location alternatives: Identify the general region for a location. Identify a small number of community alternatives. Identify site alternatives among the community alternatives.

Evaluate the alternatives and make a selection.

Colony Mills Limited Plant Location: Colony Mills Limited has an installed production capacity of 55 million kilograms of yarn (Ne 20s converted) produced from 186,576 ring spindles and 2,880 rotors, divided over 7 production units, Alhamdulillah, making Colony Mills Ltd. the largest yarn spinning facility in Pakistan. To support these large operations, a natural gas based, in-house, power generation facility of 36 mega watts is also installed. Spinning process is backed by most modern back-process of European and Japanese origin. Modern laboratory facilities are available to test and evaluate quality of raw materials and yarns. With direct employment base of over 6000 strong work force, Colony Mills Limited is the largest single industrial employer in Multan. Complete work force is hosted within the housing facilities in the mills premises. The facility which extends to 160 Acres not only has the workers accommodation but housing facilities for
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lower middle & upper management. All amenities are available in house including separate high school for boys and girls, hospital, post office, bank and a market.

FIELDS OF ACTIVITIES:

The following are the fields of activities in Colony Group of Industries. A. Spinning. B. Weaving. SPINNING: Yarn is manufactured by 100% cotton through ring spinning. Its brand name is CARNITION. The properties of natural cotton fibers vary from one area to other because of different climatic conditions year to year. When cotton crop is crop is collected from fields, sapphire sends its professionals for surveying the best cotton growing areas. These specific areas are known as stations. So, after the selection of the best stations, the next step is the selection of ginning factories in respected areas. Then cotton is sent to these ginning factories where cotton lint and seeds are separated. Seeds are used as the raw material for oil factories and cotton lint is used in the spinning of yarn. This raw cotton is tested at various parameters, its staple length, floating fibber trash color, yellowness and moisture content etc. Cotton is purchased for the whole year consumption by considering these parameters. After ginning, ginners send cotton in lots to spinning mills in the form of pressed bales having weight of about 165-170 Kg each bale. Each lot contains 100 bales. Two types of yarn is produced in Sapphire, Combed Carded

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The spinning process is different for the production of both types of Yarn. The steps involved in production of Combed Yarn are and some of them are involved in Carded Yarn are as under.

BLOWROOM: Following three jobs are done here.

Mixing.

Opening.

Cleaning.

Cotton is blended together come from various growing stations. These growing stations should be within the range of one hundred sequare kilometers range. The stations, which are blended, are about 7-8. Each station representing about 20-25 bales. Approximately, there are 120 bales are issued for Blow Room. For bales opening and contamination sorting, 80-100 people are deputed. Contamination may be colored yarn pieces, small cloth pieces, jute, feathers and hairpieces. Then blending and mixing starts after contamination sorting. Because of this the variation from vale to bale and from station to station minimizes. Now cotton is kept here for 24 hours for reducing moisture content 7-8%. After this cotton is passed through various machines which open the cotton to further small tufts.

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CARDING: Cotton from blow room machines is transferred to next department called carding. This is machine, which has big cylinders with very sharp wires. These cylinders are so placed in the machine that at various points of the machine, cotton experiences and extensive opening and cleaning. Up to here 12% waste has been extracted. The product of carding machine is caolled Silver. It is and assembly of fibers almost parallel to each other and condensed in the form of rope. About 500 yards of silver are laid in Can.

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UNILAP Silvers received from Pre- comber draw frames are once again stretched here. Twenty-six silver cans are set on a machine called Unilap. Thus silver from twenty-six cans are mixed and blended together to minimize variation. It results in the shape of Lap. It is a sheet wound on a plastic tube.

COMBERS:
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Laps are fed to the next process called Combing. Here 15-18% short fibers are extracted which are called Comber Noil. The resultant of this process is also silver of very fine and clean form.

Drawing
The silver obtained from combers is again fed to another draw frame passage called post-combing process. Sometimes this silver is passed once through draw frames and sometimes twice. In the former case it is called a single passage and the later is called double passage. On the draw frames again, six or eight-combed silver are mixed and blended together to minimize the variation in the combed sliver. The resultant sliver again collected in cans.

6. Simplex
Here are the objectives as under. Drafting Twisting Winding The drawn cans are subjected to a next process called simplex. One hundred and twenty cans are placed at the back of each simplex machine. Each cans again
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experiences a strech of six to seven times assume a shape of finer than sliver. This fine rope is twisted and wound on to a plastic bobbin. This rope is called roving. Up to her in spinning process this process is called back process.

7.Ring
It is in fact yarn production department as yarn count is controlled here. Each roving bobbin contains about 2000 to 3000 yards of roving. This roving is once again subjected to a stretching process. As the roving is unwound from the roving bobbin, it is passed through three pairs of rollers. Their speeds are so adjusted that the speed of no. 3 is about 22 times more than that of no. 1. In this way if one yard of roving is subjected to three rollers; it will be lengthened to twenty-two yards.

8. Auto Cone
Three jobs are done here; Faults removal: This yarn has some faults e.g. some thin or thick places. While winding and electronic device called yarn cleaner senses the thin and thick places in yarn. During winding process waxing is done only with hosiery yarn to reduce its friction with the needles of the knitting machine. Winding yarn on paper cones.
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9. Conditioning
After a pre-decided length is wound on a paper cone, a certain weight e.g. 4.166 lbs. are obtained. After the weighting of every cone it is inspected through Ultra Violet device. Then they are stacked in packing department for conditioning. In this way strength of yarn is improved.

Plant Layout

Plant layout refers to the arrangement of physical facilities such as machinery, equipment, furniture etc. within the factory building in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of material to the shipment of the finished product. IMPORTANCE: Plant layout is an important decision as it represents long-term commitment. An ideal plant layout should provide the optimum relationship among output, floor area and
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manufacturing process. It facilitates the production process, minimizes material handling, time and cost, and allows flexibility of operations, easy production flow, makes economic use of the building, promotes effective utilization of manpower, and provides for employees convenience, safety, comfort at work, maximum exposure to natural light and ventilation. It is also 99 important because it affects the flow of material and processes, labor efficiency, supervision and control, use of space and expansion possibilities etc. FACILITY LAYOUT: Facility layout means planning for the location of all machines, utilities, employee work stations, customer service areas, material storage areas, aisles, rest rooms, lunchrooms, drinking fountains, internal walls, offices, and computer rooms, and for the flow patterns of materials and people around, into, and within building. Facility layout refers to the configuration of departments, work centers, and equipment, with particular emphasis on movement of work through the system. We select or design processing machinery; in conjunction with product design, we determine the characteristics of the materials in the products, and we introduce new technology into operations. Through facility layouts, the physical arrangement of these processes within buildings, the space necessary for the operation of these processes, and the space required for support functions are provided.

Layout planning:
Layout planning involves decisions about the physical arrangement of economic activity centers within a facility. The goal is to allow workers and, equipment to operate at peak effectiveness and efficiency. An economic activity center can be anything that consumes space: a person or group of people, a machine, a workbench or work station, a department, a stairway or an aisle, a timecard rack, a cafeteria or storage room, and so on.

The term physical arrangement raises four questions for the manager:

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design and maximize productivity. For example, a central storage a tools is most efficient for certain processes, but keeping tools at individual work stations makes more sense for others.
2. How much space and capacity does each center need? Inadequate space can

reduce productivity, deprive employees of privacy, and even create health and safety hazards. However, excessive space is wasteful, can also reduce productivity, and can isolate employees unnecessarily.
3. How should each center's space be configured? The amount of space, its shape

and the elements in it are all interrelated. For example, placement of a desk and chair relative to the other furniture in an office is date by the size and shape of the office, as well as the activities performecl
4. Where should each center be located? Location, whether in the middle facility or

in a back room, can have a significant effect on productivity. This question has two dimensions: relative location and allocation. Managers must consider both when modifying existing layout in order to increase productivity.

TYPES OF LAYOUT As discussed so far the plant layout facilitates the arrangement of machines, equipment and other physical facilities in a planned manner within the factory premises. An entrepreneur must possess an expertise to lay down a proper layout for new or existing plants. It differs from plant to plant, from location to location and from industry to industry. But the basic principles governing plant layout are more or less same. As far as small business is concerned, it requires a smaller area or space and can be located in any kind of building as long as the space is available and it is convenient. Plant layout for Small Scale business is closely linked with thenfactory building and built up area. From the point of view of plant layout, we can classify small business or unit into

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three categories: 1. Manufacturing units 2. Traders 3. Service Establishments 1. Manufacturing units In case of manufacturing unit, plant layout may be of four types: Product or line layout Process or functional layout Fixed position or location layout Combined or group layout

FACTORS INFLUENCING LAYOUT: While deciding his factory or unit or establishment or store, a small-scale businessman should keep the following factors in mind: a) Factory building: The nature and size of the building determines the floor space available for layout. While designing the special requirements, e.g. air conditioning, dust control, humidity control etc. must be kept in mind. b) Nature of product: product layout is suitable for uniform products whereas process layout is more appropriate for custom-made products. c) Production process: In assembly line industries, product layout is better. In job order or intermittent manufacturing on the other hand, process layout is desirable. d) Type of machinery: General purpose machines are often arranged as per process layout while special purpose machines are arranged according to product layout

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e) Repairs and maintenance: machines should be so arranged that adequate space is available between them for movement of equipment and people required for repairing the machines. f) Human needs: Adequate arrangement should be made for cloakroom, washroom, lockers, drinking water, toilets and other employee facilities, proper provision should be made for disposal of effluents, if any. g) Plant environment: Heat, light, noise, ventilation and other aspects should be duly considered, e.g. paint shops and plating section should be located in another hall so that dangerous fumes can be removed through proper ventilation etc. Adequate safety arrangement should also be made. Thus, the layout should be conducive to health and safety of employees. It should ensure free and efficient flow of men and materials. Future expansion and Diversification may also be considered while planning factory layout.

COLONY MILLS PLANT LAYOUT: In general when we talk about the whole plant layout of Colony mills it follows a product layout where different departments are receiving their raw materials (from previous departments) and then after a processing sending raw martial to another departments. This layout of plant is best to facilitate the flow of material from department to department. This layout provides advantage to Colony mills by reducing material handling because of shorter travel of work, less total time of production, close coordination of manufacturing because of definite sequence of operation.

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The basic product that is produce by the mill is yarn that is manufacture through the 100% cotton through ring spinning. Following are the plants that are used in order to prepare the yarn:

YARN MANUFACTUREING MACHINE This is the machine that is used to manufacture the yarn from the cotton. This machine is helpful in order to separate the cotton and convert it into the small fabric which is known as RESHA

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Yarn manufacturing machine

SPINING MACHINE: This is the machine that is used to convert the wool or cotton in to thread. This machine plays the major role in order to manufacture the thread. It work same as like in the past years the wooden wheel is used in order to make thread from the cotton or from the wool.

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Spinning machine

MONARCH SPINNING FRAME: This is the machine that is used to manufacture the fiber. At this stage the fiber or thread id prepare and this machine is helpful in order to separate it from the useless material and transfer the long thread in to round bindles.

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YARN SPINNING MACHINE:

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This machine is used in order to convert the bundle of threads on the cones. At this stage the thread is transferred from bundles to large cones according to different colors or thread specifications and its quality.

CHARKHA MACHINE:

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This is the machine that is used to bundle the large cones in to the small cones. This machine is like a old charkha which is used to convert the thread on to the cone. With the help of this machine cones of different types are prepared of all kind of sizes. In the colony a simple cartoon contains round about 68 cones of thread in a single pack.

PRODUCT LAYOUT: When a facility's positioning strategy calls for repetitive or continuous production, the operations manager dedicates resources to indi vidual products.
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This strategy is achieved by a

product layout, which arranges work stations or around the product's

departments in a linear path. Output is balanced to move the product along in a smooth, continuous flow. Operations arrange resources good example. Product layouts often follow a straight line, but this arrangement is not always best or possible. In such managers may opt for L, assembly processes. 0 S, or U shapes. A product layout , is often a production,or assembly, line.The difference is that an assembly line is line Product layouts are designed to accommodate only a few product designs. Such layouts are designed to allow a direct material flow through the facility for products. Auto-manufacturing plants are good examples of facilities that use an assembly line or a product layout. route, rather than share them across many products. An automated car wash is a

PURCHASING
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Purchasing refers to a business or organization attempting to acquire goods or services to accomplish the goals of the enterprise. Though there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations. Purchasing is responsible for obtaining the materials, parts, supplies and services needed to produce a product or provide a service. The percentage of purchased inventories is even higher for retail and whole sale companies, sometimes exceeding 90%. The importance of purchasing is more than just the cost of goods purchased, other important factors include the quality of goods and services or timing of delivery of goods and services, both of which can have a significant impact on operations. The goal of purchasing is to develop and implement purchasing plans for products and services that support operations strategies. Among the duties of purchasing are identifying sources of supply, negotiating contracts, maintaining database of supplies, obtaining goods and services that meet or exceed operations requirements in a timely and cost-efficient manner, and managing suppliers. liaison between suppliers and various internal departments. Purchasing is taking an increased importance as organizations place greater emphasis on supply chain management, quality improvement, lean production, and outsourcing. Moreover, business to business buying relationships are changing. Although traditional relationships currently account for the lion's share of buying relationships, they are expected to decrease substantially by the middle of decade, while web-based auctions and managed inventory relationships are expected to grow. In addition, increasing globalization will continue to have an impact on purchasing. Thus purchasing selects suppliers, negotiates contracts establishes alliance, and acts as

PURCHASING INTERFACE
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Purchasing has interface with a number of other functional arrears, as well as with outside suppliers. Purchasing is connecting link between the organization and the suppliers. In this capacity, it exchanges information with suppliers and functional areas. The interacting between purchasing and the other areas are as follows: Operation constitute the main source of requests for purchased materials, and close cooperation between these units and the purchasing department is vital if quality, quantity and delivery goals are to be met. Cancellation, changes in specification or changes in quality, quantity or delivery time must be communicated immediately for purchasing to be effective.

The purchasing department may require the assistance of the legal department in contract negotiations. In drawing up bid specifications for non routine purchase, and in helping interpret legislation on pricing, product liability and contracts with suppliers.

Accounting is responsible for handling payments to suppliers and must be notified promptly when goods are received in order to take advantage of possible discounts. In many firms, data processing is handled by the accounting department, which keeps inventory records, checks invoices and monitors vendor performance.

Design and engineering usually prepare material specification, which must be communicated to purchasing. Because of its contacts with suppliers, purchasing if often in a position to pass information about new products and materials improvement on to design personnel. Also, design and purchasing people may work closely to determine whether changes in specifications, design or materials can reduce the cost of purchased items

Receiving checks incoming shipment of purchased items to determine whether quality, quantity and timing objectives have been met, and it moves the goods to temporary storage. Purchasing must be notified when shipments are late, accounting must be notified when shipments are received so that payments can

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be made and both purchasing and accounting must be appraised of current information on continuing vendor evaluation. Suppliers or vendors work closely with purchasing to learn materials will be purchased and that work kings of specifications will be required in terms of quality, quantity and deliveries. Purchasing must rate vendors on cost reliability and so on. Good supplier relations can be important on rush orders and material improvements.

THE PURCHASING CYCLE DEFINITION: "Series of steps that begin with a request for purchase material, equipment, supplies or other items from outside the organization, and ends when the purchasing department is notified that a shipment has been received in satisfactory condition." PURCHASE CYCLE OF COLONY MILLS LIMITED:

There are three modes by which purchase department purchases: detail. ON CREDIT BASIS Following are the steps, which are involved during the procedure. On credit basis. On advanced payment. Cash purchase.

The procedure for all three modes of purchases is different. Let us discuss them in

1) Purchase Indent or Requisition.

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When any department requires any item then this department prepares purchase indent and verifies it from head of department and finally approved by General Manager. This purchase indent is sent to store and store further send it to purchase department. The information which are provided by this purchase indent to purchase department are, code, item, quantity, description, stock in hand, progressive consumption from (1 st of month) rate, amount, quantity to be purchased and remarks.

2) Comparative Statement
After receiving indent purchase dept. settled rates. There are three or four dealers are contacted to whom Sapphire mostly purchase. Purchase Manager takes rates from them and prepares comparison statements. There are two copies of comparative statement (red and black) re prepared. The red is used for internal record and black is approved from directors. Comparative statement includes Indent no., description, quantity, and unit and supplier name.

3) Purchase Order
After settlement of rates, purchase order is prepared and sent to supplier.

4) Dispatch Advice
When purchase dept. receives information from supplier for the completion of goods then it issues three copies of dispatch advice. Yellow copy is kept for record and other two copies are sent to mill with the delivery challan for entry of goods at gate.

5) Transformation
The party sends message for completion of goods to purchase department. After receiving messages from different parties, vehicles are sent for loading and transportation of goods. The goods are unloaded in mill.

6) Party Bill

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After loading the material, party hand over its bill, which describes the item description, rate and amount etc?

7) Challan
Two types of challans are prepared by purchase dept. PC Challan. Store Challan.

PC Challan
It is prepared only in case of repair things. Because, at the time of purchase entry of all these things is written in record book of store. After repairing, if these goods are entered as routine then its record will be doubled. So for the sake of preventing double entry, PC Challan is prepared for differentiation. The particulars of PC Challan are This document is generated from party bill. Challan no. From (date) To (date) Supplier name. Code. Description.

Store Challan
It is prepared in case of purchase of new products. Three copies of challan are prepared. This document is also generated from party bill. The particulars of store Challan are; Indent no. Quantity dispatch. Quantity approved. Item code.
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Description. Unit. Current rate. Challan amount. Approved amount. Previous rate.

8) Quality Control Test

When the technical experts or users receive goods at mill then these goods are inspected, if the goods are matched by specifications which co. require then test report is prepared.

Rejection of Item
In case, if items are not according to specifications then these are returned to suppliers. If the quality of items remains unchanged then contract may be transferred to any other supplier. After quality control approval, mill send store challan + gate entry + test report to purchase department. A file is maintained for whole month with different documents. Store Challan Gate Entry Test Report Party Bill

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9) Station wise Receipt Report

At the end of month, summery is prepared at mill for all goods purchased during the month. It provides information about station, challan date, item code, item description, quantity record, unit value, total value, previous purchase price and variance (Rs.). This summery is sent from mill to purchase department. It tallies all details with actual documents. After telling all information, this complete file is transferred to accounts department. Accounts Department issue checks for payments of these purchases. Separate checks are issued for each party. These checks are sent to purchase department for payment.

On Advanced Payment
In this case, payment is made before the purchases. Purchase Department prepares advice payment slip for this mode of purchase. The particulars of payment slip are indent no. Item description, quality, unit, rate and amount. After the approval of comparison statement, payment slip is prepared. By this payment slip, store challan or challan is generated. Store challan + advance slip + quotation are sent to accounts department which issue checks in name of dealers and sent back these documents to purchase dept. with checks. Purchase dept. submits these checks to bank. Further procedure is same as in case of credit basis.

Cash Purchase
When items are purchased against cash then procedure is different from advanced payment case and on credit basis case. An amount of Rs. 1,000000 is deposited purchase account every time. Mostly this procedure is used for cheaper goods. Purchase dept. directly issue for payment. Remaining procedure is same as in case of credit basis.

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LABOR SUPPLY The employment procedure was the first phase of personnel work to receive the attention of management and it has increased in importance in recent years. Under present labor laws and strong union organization a worker who is once employed soon achieves a claim upon his job which makes its difficult for management to discharge him. The importance of employment procedure is increased also by the policy of promotion from within since future executives may enter the service of the company by way of the employment office.

SOURCES OF LABOR SUPPLY:

The employment of worker requires attention to the source of labor Cheaper and quicker to recruit People already familiar with the business and how it operates Provides opportunities for promotion with in the business can be motivating Creates another vacancy which needs to be filled Business already knows the strengths and weaknesses of candidates DISADVANTAGES: Limits the number of potential applicants No new ideas can be introduced from outside the business May cause resentment amongst candidates not appointed.

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JOB POSTING:
Publicizing an open job to employees (often by literally posting it on bulletin boards) and listing its attributes, like qualification, supervisor, work schedule, any pay rate. Qualifications personnel inventory tools like those described earlier ( such as computerized skills banks) are also important. An examination of personnel records may reveal employees who are working in jobs below their educational or skill levels. It may also reveal employees who are working in jobs below their educational or skill levels. It may also reveal persons who have potential for further training or who already have the right background for the open job. Computerized records systems can help ensure that you consider qualified inside candidates for the opening.

ADVANTAGES:
Foreknowledge of candidates strengths and weaknesses More accurate view of candidates skills Candidates have a stronger commitment to the company Increases employee morale Less training and orientation required

DISADVANTAGES:
Failed applicants become discontented Time wasted interviewing inside candidates who will not be considered Inbreeding of the status quo

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REHIRING FORMAL EMPLOYES:

Rehiring former employees has its pros and cons. On the plus side, former employees are known quantities n(more or less), and are already familiar with the companys culture, style, and ways of doing things. On the other hand, employees who left for greener pastures back into better positions may signal your current employees that the best way to get ahead is to leave the firm. In any event, there are several ways to reduce the chance of adverse reactions. For example, after rehired employees have been back on the job for a certain period, credit them with the years of service they had accumulated before they left. In addition, inquire (before hiring them) about what they did during the layoff and how they feel about returning to the firm: You dont want someone coming back who feels theyve been mistreated, said one manager. ADVANTAGES: They are known quantities. They know the firm and its culture.

DISADVANTAGES: They may have less-than positive attitudes. Rehiring may sent the wrong message to current employees about how to get ahead.

PROCESS FOR EMPLOYMENT: When a worker is needed the foreman mat prepares the acquisition for help. After the requisition has been approved by the division chief it is send to the personal department the employment section has on file the job description and job specification for the various jobs. The employment section may also have on file and application from a
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qualified person. If so that person is invited to call. For hire ranking jogs some of the present employers may be available by transfer or promotion. If the job cannot be filled by a present employee or an applicant previously interviewed and investigated. It may b necessary to select a worker from those currently making application The procedure for employment depends upon the kind of job to be filled and also varies with the company. Some companies give much more an accurate test and others. The procedure for employing sales people would necessary be different from that for assembly line workers. The following procedure is used by one employer in selecting factory workers: Applicant enters from the street through a divided doorway with separate entrance for male and female applicants. A receptionist examines the job seekers credentials notes his name and admits it into the application room inside. Applicant is directed to a table or an armchair provided with pencil and application blank and after completing the form is refers to an interviewer. Prospective employee outlines previous vocational experience to interviewer. He is advised for opening for which he might qualify, union agreement provision which concern him and company policies and regulation effecting employment If the applicant desire a job for which he appears qualifies he directed to the physical examination room. His record is written for file purposes. Applicant undergoes a physical checkup. X-ray picture is taken. If an applicant has match the physical qualification of the jobs. He steps into the photographic identification room, receives he employment credential and instructions as to where and when to report for work then steps into the street at the exit.

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Foreman

Foreman

Definitions:
A person who exercises control over workers

A supervisor responsible for a group of workers A man who serves as the leader of a work crew, as in a factory A person in charge of a group of workers, a particular operation, or a section of a plant A person in charge of a particular department or a group of workers, etc., as in a factory or the like

Foremen are the front line supervisors. They play a very important role in ensuring the work is done to the required standard and completed it safely as they are the direct supervisors of the workers who actually carry out the job. Therefore, they should
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possess knowledge in safety to enable them to give instruction and have supervision on their workers to complete the work safely and effectively. The foreman is the worker who is in charge of the labor. Normally the foreman is a person with many years of experience in a particular work of supervising others. Typically the foreman is a person with specialist knowledge of a good management of people. A good foreman is said to be the keystone of the work projects. Foreman is a person overseeing others work or in charge of a group of workers. A man who serves as the leader of a work crew in a factory called foreman. A foreman supervises the activities of workers in a plant or factory. He is a responsible for supervisory position. This employee is responsible for assigning and directing workers who perform the various tasks necessary to carry out a production work & a comprehensive maintenance and repair of plant and machinery as well. Work is performed under general supervision and requires considerable judgment and initiative approach. A foremans Vision is to transform the way people work and to create individuals with the knowledge, skills and attitudes to succeed professionally. His business approach will be;

Integrity: professional standards Commitment: going the extra mile Achievement: exceeding expectations Balance: maintaining a healthy attitude Teamwork: supportive individuals

Someone who directs and supervises workers is also a foreman. A foreman must Keep track of:

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Safety Meetings Inspections Material and Equipment Purchases Important Telephone Numbers & Addresses Accidents Tardiness & Absences of Workers Work Accomplished Extra Work Performed Equipment Used Problems & Delays

THE ROLE OF THE FOREMAN IN PROVIDING SAFETY FOR LABOR

Experience in the organization of safe working conditions has shown that safe and injury-free work depends upon the attitude to this question of the direct organizer of production and labor, the foreman of the production area. The role of foreman in providing safety for labor was clearly determined. In plant the foremen conduct meetings in which they familiarize the workers with safety techniques, discuss cases of the violation of safety rules during work, take into consideration rules published in connection with these failures, and determine in each case the benefit to the workers, in distributing the tasks for the shift the foreman gives instructions for safe conduct of the work.

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Before the start of work the foremen together with the public inspectors carefully check the condition of the working areas. The results of the inspection are entered in a special first stage of inspection journal and, in the case of deficiencies which cannot be eliminated by the crew, in the shop head's journal (second-stage journal), Almost all of the deficiencies are eliminated by the efforts of the crew and only occasionally do the foremen turn to the shop management for help. The plant is devoting much attention to increasing the level of knowledge of foremen and to the adoption of standards and rules of safety the observation of the requirements of which are included in their responsibilities. This is obtained by holding lectures and conferences before the annual checking of the rules of safety by foremen and leaders of areas and shifts. Each week the shop heads and periodically the chief specialists check the safety activity of foremen and conduct the necessary conferences. In turn the foremen periodically and before instructing new workers on safety carefully check working methods in their area, check them against the appropriate rules and instructions, make up a summary, and only after this do they teach the workers safe working methods. The fulfillment of the rules and instructions for safe work is possible only with strict observation of production discipline, which is provided only by the painstaking educational work of the foremen. The training of young workers as experienced workers increases their mutual responsibility for the observation of instructions on safety and production discipline. Together with the foremen, public inspectors actively participate in inspection for preventing injury.

THE ROLE OF FOREMAN IN PRODUCTION:

The Increasing Role of Foremen in Production meets the task of improving administrative activities at the level of supervision of primary labor collectives and defines the role and importance of the foreman as the organizer and educator of workers. A high evaluation of the work of foreman is done, important tasks are placed before them, and measures are provided for ensuring their fruitful activities in production in increasing the efficiency of production and labor productivity, and in improving product quality.
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There is a feeling of deep satisfaction for the concern about increasing the role and authority of foremen in production. Foremen represent an enormous force whose influence encompasses essentially the entire production of material goods.

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Required Knowledge, Skills and Abilities:

He must have considerable knowledge of methods, materials, and techniques used in production and demonstrated ability to plan, schedule, assign, and supervise the work of others; to communicate effectively; and to maintain effective working relations with top management, subordinates, and the general public. He must have experience and training. Any combination of education and experience which provides the required knowledge, skills and abilities may be accepted.

Foreman Training:
Training is appropriate for many different business situations and job roles. Whether an individual is leading a team, moving into a more senior position or needs to enhance their skills to deliver on current responsibilities, training provides positive outcomes quickly and costeffectively. Foreman understands how to identify and address your real learning and development needs. Knowing is not enough; we must apply. Willing is not enough we must do. In todays knowledge-driven economy it is the skills and behaviors of key staff that make the difference between success and failure. Yet many companies fail to maximize the return on their investment in people because learning and development programs are not clearly aligned with business goals. Improved personal skills, behavioral change and business competencies aligned with corporate objectives will benefit the firm. A unique blended learning approach combines seminars, facilitators, skills practice and reinforcement. Intellectual property relates to the effective transfer of knowledge into personal and organizational business improvement. Training is designed to impart specific skills and achieve defined changes in work behavior: for example, more successful negotiation outcomes. Its focus on action-oriented content that can be applied to add value to your company, creating practical models that participants can

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take back to use at work. The objective of training is to provide the basic safety training for foremen to enhance their safety knowledge. If you always do what youve always done, youll always get what youve always got. The art of teaching is the art of assisting discovery. The key to effective training is talented, experienced trainers. In stimulating and challenging learning environment workers will learn more. It is said that What we hear, we forget. What we see, we remember. What we do, we understand.

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Product Design:
Product Design
Product design is paramount to every company involved in the manufacture and marketing of physical products of any type. Design is fundamentally about making things better - better for consumers and users, better for business, and better for the world. A well-conceived and better product will: sell more increase market share obtain wider distribution improve margins carve out new opportunities All of which will increase revenue and, potentially, also decrease costs

The potential wins from effective product design are undeniable, but the management of the process to ensure a cost-to-benefit gain is rarely straightforward. The breadth of the activity can be narrow and geared to small step changes, or alternatively very wideranging in the search for genuine innovation and a sea change in the clients business. The greatest benefits accrue from innovative and demanding ideas which can involve higher risk and greater commitment. Hardcore businessmen and women often distrust creative activities geared to wide-ranging thinking. That which is hard to understand and intangible at the outset is invariably categorized as risky. Product design can be defined as the idea generation, concept development, testing and manufacturing or implementation of a physical object or service.

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Product Designers conceptualize and evaluate ideas, making them tangible through products in a more systematic approach. The role of a product designer encompasses many characteristics of the marketing manager, product manager, industrial designer and design engineer. The role of the product designer combines art, science and technology to create tangible three-dimensional goods. This evolving role has been facilitated by digital tools that allow designers to communicate, visualize and analyze ideas in a way that would have taken greater manpower in the past. Product designers are equipped with the skills needed to bring products from conception to market. Aesthetics is considered important in Product Design but designers also deal with important aspects including technology, usability, engineering etc. COLONY MILLS PRODUCT DESIGN: The design of the product is consists of the following stages:

1. Design Brief The design brief is typically a statement of intent. I.e. "We will design and make a Formula One racing car". Although it states the problem, it isn't enough information with which to start designing. Briefing usually encompasses three main views:

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A. Marketing The marketing part of the brief will describe the anticipated product, its

functionality, positioning with respect to main competitors and brand imperatives It may also have a 'wish list' of functions and features, as well as 'must haves' It will also either refer to, or enclose recent consumer research findings B. Technical The technical part of the brief will invariably spell out the restrictions on

investment for new tooling, existing parts or components that need to be reused, a preliminary product specification covering performance, cost and intended manufacture, and standards that need to be respected It will usually clarify or inform about key functional criteria that are likely to

influence a future design C. Commercial The commercial part of the brief will typically cover all aspects relating to sales

and distribution including ROI (Return on Investment), and sales planning (targets and forecasts) In addition it may cover key account needs and the commercial implications for

the new product in the context of other products in the manufacturers line up Typical outputs would include documents and reports

2. Product Design Specification (PDS) The PDS is a document listing the problem in detail. It is important to work with the customer and analyze the marketplace to produce a list of requirements necessary

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to produce a successful product. The designer should constantly refer back to this document to ensure designs are appropriate. To produce the PDS it is likely that you will have to research the problem and analyze competing products and all important points and discoveries should be included in your PDS. We can model the production of the PDS for a given product using a process flow diagram. One example of such a diagram is given in Figure.

3. Concept Design Using the PDS as the basis, the designer attempts to produce an outline of a solution. A conceptual design is a usually an outline of key components and their arrangement with the details of the design left for a later stage. The degree of detail generated at the conceptual design stage will vary depending on the product being designed. It is important when designing a product that you not only consider the product design specification but you also consider the activities downstream of the design stage. Downstream activities typically are manufacture, sales, transportation etc. By
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considering these stages early, you can eliminate problems that may occur at these stages. This stage of the design involves drawing up a number of different viable concept designs which satisfy the requirements of the product outlined in the PDS and then evaluating them to decide on the most suitable to develop further. Hence, concept design can be seen as a two-stage process of concept generation and concept evaluation

4. Concept generation Typically, designers capture their ideas by sketching them on paper. Annotation helps identify key points so that their ideas can be communicated with other members of the company. There are a number of techniques available to the designer to aid the development of new concepts. One of the most popular is brainstorming. This technique involves generating ideas, typically in small groups, by saying any idea that comes into your head no matter how silly it may seem. This usually sparks ideas from other team members. By the end of a brainstorming session there will be a list of ideas, most useless, but some may have the potential to be developed into a concept. Brainstorming works better if the members of the team have different areas of expertise. 5. Concept evaluation Once a suitable number of concepts have been generated, it is necessary to choose the design most suitable for to fulfill the requirements set out in the PDS. The product design specification should be used as the basis of any decision being made. Ideally a multifunction design team should perform this task so that each concept can be evaluated from a number of angles or perspectives. The chosen concept will be developed in detail.
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One useful technique for evaluating concepts to decide on which one is the best is to use a technique called 'matrix evaluation' With matrix evaluation a table is produced listing important the features required from a product - usually this list is drawn up from the important features described in the product design specification. The products are listed across the table. The first concept is the benchmark concept. The quality of the other concepts are compared against the benchmark concept for the required features, to help identify if the concept is better, worse than, or is the same as the benchmark concept. The design with the most 'better than' is likely to be the best concept to develop further. Most people who use the matrix technique will assign points, rather than simple, better, worse, same, so that it is easier to identify which concepts are the best. It is also likely that some features of the design will be more important than others so a weighting is used. 6. Detail design In this stage of the design process, the chosen concept design is designed in detailed with all the dimensions and specifications necessary to make the design specified on a detailed drawing of the design. It may be necessary to produce prototypes to test ideas at this stage. The designer should also work closely with manufacture to ensure that the product can be made. 7. Manufacturing and Testing After manufacturing products are tested against the set standards. 8. Sales Clearly, an important part of the design activity is designing a product that will sell.

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Simplification:
Simplification is usually initiated because the product line has become overextended through the development of an excessive numbers of unrelated products or the production of too many colors, sizes or other varieties.

Steps involved in simplification:

a) Group efforts of many manufacturers and producers. b) Voluntary recommendation by government and private agencies. c) Progress by individual manufacturer Development by engineering department. Improvement of weaknesses Improvement of market channel Selection and rejection accordingly Untraditional markets

Objectives:-

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i. ii. iii. iv. v. vi.

Better goods on same price Same goods on lower price Large turnovers Less investments Increase in labor efficiency Satisfying consumer needs

PRODUCT LINE:
The expansion of product line proceeds from two directions. TWO DIRECTIONS:

The first is the addition of a new product as result of research and creative ideas of a person in the management or as a result of the acquisition of new plants or mergers with other companies. Many reasons may be found for such expansions. The research division may have found a way to utilize waste and scrap or it may have discovered new manufacturing methods, new kinds of raw materials or new application of scientific knowledge. Expansion through the development and design of the new product may be planned for the purpose of providing financial stability through the seasonal dovetailing of demand. The expansion or merger may enable the company to reach the markets in new territorial areas or to gain any one of many other advantages in production, sales, finance, or general management. The multiplicity of styles, size and colors of product has resulted largely from difficulties encountered by the sales division in marketing and from recommendations for new designs by that division. During seasons or years when sales were difficult to make and buyers market prevails, the salesmen endeavor to give the buyer what he wants or what he thinks he needs, even though he requests a product that is not included in the
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regular line. The sales division also may recommend additions to the regular lines of products in order that it may offer the customer something different from products offered by competitors.

The program of Simplification

Simplification may be effected by a single company acting on its initiative, by all of the companies in an industry to the offices of trade association, or through the cooperation of a government agency. Any manufacturer may simplify his product line by discounting the production and sale of any items that are found not to be profitable. However, in many line of production, a company that undertakes to eliminate the slow selling varieties may find that it loses sales on other products as well. A retailer or a wholesaler is not likely to purchase the product in its popular sizes, grades, or colors from one manufacturer and the unusual varieties from another. Consequently, competition may compel a manufacturer to make and sell a wide variety of products unless the simplification movement is broad enough to include most of the industry.

Standardization
Extent to which there is an absence of variety in a product, service or process is called standardization. The development and implementation of concepts, doctrines, procedures and designs to achieve and maintain the required levels of compatibility. Definition:It refers to setting of fixed size, type and measurement in addition to quality of different product, being manufactured by different organizations in an industry. It is an agreement where manufacture undertakes to follow the set standards.

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Industrial Standards Consumer Standards

Industrial Standards:An engineering or industrial standard is a precise description or definition of a product, a part, a raw material , or a manufacturing process which has been establish by one company or by a group of companies in an industry. Some standards are national in scope and some are international. The standards are establish by agreement and are made effective by voluntary compliance. Several types of industrial standards have been adopted. One type includes the nomenclature or the technical terms that are used in specifications, contracts, catalogue or literature. Or generally accepted requirements followed by the members of an industry. A technical standard is an established norm or requirement. It is usually a formal document that establishes uniform engineering or technical criteria, methods, processes and practices. The nomnclature extends to abbreviations, letter symbols for chemical composition, graphic symbols and pictograph used in drawing or diagrams. The standardization of nomenclature permits a buyer and a seller to execute a concise contract of purchase and sale with aminimum of misunderstanding and confusion. A technical standard can also be a controlled artifact or similar formal means used for calibration. Reference Standards and certified reference materials have an assigned value by direct comparison with a reference base. A primary standard is usually under the jurisdiction of a national standards body. Secondary, tertiary, check standards and standard materials may be used for reference in a metrology system. A key requirement in this case is (metrological) traceability, an unbroken paper trail of calibrations back to the primary standard.

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Another type of standard pertains to the dimensions that are necessary to secure the interchangeability of parts and suppliers and the proper funtionng of the product. The agreement as to dimension and sizes may also make provision for the concentration of production upon a optimum number of sizes, colors or grades of the product.The company adopting the stands may agree not to make any varities other than those for which standards have been established. Standards may also designate the properties or qualities of bulk materails and suppliers in order that the purchaser may be assured of the grade of product he desires. Other industrial standards provide for the rating of machinery and equipment on the basis of performance, durability,variances in the product turned out by the machine, power consumption, horse power or ther such quality. The rating establish the test limits under certain conditions and afford a basis specification used in the purchase of machinery and equipment.. Safety Standards:Safety standards provide for the safety of workers in the use of machines and equipment or Safety standards are standards designed to ensure the safety of products, activities or processes, etc. They may be advisory or compulsory and are normally laid down by an advisory or regulatory body that may be either voluntary or statutory. China has recently experienced trouble with some of the post listed associations. These standards would include guards for grinding wheels, gears, belts and other moving parts warning signals by means of light or other devices color schemes for safety purposes protection against gases and fumes noise control

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Quality:
What is quality? Quality is important to businesses but can be quite hard to define. Customers want quality that is appropriate to the price that they are prepared to pay and the level of competition in the market. Key aspects of quality for the customer include:

Good design looks and style Good functionality it does the job well Reliable acceptable level of breakdowns or failure Consistency Durable lasts as long as it should Good after sales service Value for money

Why is quality important? Quality helps determine a firms success in a number of ways:

Customer loyalty they return, make repeat purchases and recommend the product or service to others. Strong brand reputation for quality Retailers want to stock the product As the product is perceived to be better value for money, it may command a premium price and will become more price inelastic Fewer returns and replacements lead to reduced costs Attracting and retaining good staff

These points can each help support the marketing function in a business. However, firms have to work hard to maintain and improve their reputation for quality, which can easily be damaged by a news story about a quality failure.
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How is quality measured? Aside from achievement of standards like BSI, firms can measure quality aspects such as:

Failure or reject rates Level of product returns Customer complaints Customer satisfaction usually measured by a survey Customer loyalty evident from repeat purchases, or renewal rates

A detailed analysis of areas such as these would be an important part of Quality Improvement. Quality Assurance This is an approach that aims to achieve quality by organizing every process to get the product right first time and prevent mistakes ever happening. This is also known as a zero defect approach. In quality assurance, there is more emphasis on self-checking, rather than checking by inspectors. Advantages include:

Costs are reduced because there is less wastage and re-working of faulty products as the product is checked at every stage. It can help improve worker motivation as workers have more ownership and recognition for their work It can help break down us and them barriers between workers and managers as it eliminates the feeling of being checked up on. With all staff responsible for quality, this can help the firm gain marketing advantages arising from its consistent level of quality.

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Quality assurance refers to planned and systematic production processes that provide confidence in a product's suitability for its intended purpose. It is a set of activities intended to ensure that products (goods and/or services) satisfy customer requirements in a systematic, reliable fashion. QA cannot absolutely guarantee the production of quality products, unfortunately, but makes this more likely.

Inspection
Quality inspection The act of monitoring or observing, (usually involving sampling and related sampling plans), a process, procedure, or service to insure compliance with the operational definition and to insure that all customer requirements or internal prerequisites are meet. Activities may include the collecting data using stratified sampling from the item being inspected. Usually execute by the QA, (quality assurance), departments, but not always. Typically employs the use of a control charts using collected data to evaluate the process using statistical process control. An inspection is one of the most common sorts of review practices found in software projects. The goal of the inspection is for all of the inspectors to reach consensus on a work product and approve it for use in the project. Commonly inspected work products include software requirements specifications and test plans. In an inspection, a work product is selected for review and a team is gathered for an inspection meeting to review the work product. A moderator is chosen to moderate the meeting. Each inspector prepares for the meeting by reading the work product and noting each defect. The goal of the inspection is to identify defects.

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In an inspection, a defect is any part of the work product that will keep an inspector from approving it. For example, if the team is inspecting a software requirements specification, each defect will be text in the document which an inspector disagrees with.

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Types Routine inspection Concise inspection Follow-up inspection Special inspection Quality systems review Routine Inspection Full inspection of all components Newly established manufacturer Renewal of a license Changes Not inspected in the last 3-5 years

Concise Inspection Consistent record of compliance

Focus on limited number of requirements

Selected as indicators Identify significant changes Non-compliance Should trigger comprehensive inspection

Follow-up Inspection

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Reassessment or re-inspection Monitor result of corrective actions 6 weeks to 6 months after initial inspection Nature of defects Work undertaken Specific requirements Not observed Not adequately implemented

Special Inspection Spot check focusing on One product, a group of related products Specific operations, e.g. mixing, labeling Complaints or recalls Adverse drug reactions Marketing approval or export certificate Information or investigation Specific information Advice on regulatory requirements

STEPS OF PRODUCTION PLANNING AND CONTROL

Production Planning and Control (PPC) is a process that comprises the performance of some critical; functions on either side, viz., planning as well as control. Production planning:

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Production planning may be defined as the technique of foreseeing every step in a long series of separate operations, each step to be taken at the right time and in the right place and each operation to be performed in maximum efficiency. It helps entrepreneur to work out the quantity of material manpower, machine and money requires for producing predetermined level of output in given period of time. Routing: Under this, the operations, their path and sequence are established. To perform these operations the proper class of machines and personnel required are also worked out. The main aim of routing is to determine the best and cheapest sequence of operations and to ensure that this sequence is strictly followed. In small enterprises, this job is usually done by entrepreneur himself in a rather adhoc manner. Routing procedure involves following different activities. (1) An analysis of the article to determine what to make and what to buy. (2) To determine the quality and type of material (3) Determining the manufacturing operations and their sequence. (4) A determination of lot sizes (5) Determination of scrap factors (6) An analysis of cost of the article (7) Organization of production control forms. Scheduling: It means working out of time that should be required to perform each operation and also the time necessary to perform the entire series as routed, making allowances for all factors concerned. It mainly concerns with time element and priorities of a job. The pattern of scheduling differs from one job to another which is explained as below: Production schedule:

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The main aim is to schedule that amount of work which into account following factors.

can easily be handled

by plant and equipment without interference. Its not independent decision as it takes

(1) Physical plant facilities of the type required to process the material being scheduled. (2) Personnel who possess the desired skills and experience to operate the equipment and perform the type of work involved. (3) Necessary materials and purchased parts. Master Schedule: Scheduling usually starts with preparation of master schedule which is weekly or monthly break-down of the production requirement for each product for a definite time period, by having this as a running record of total production requirements the entrepreneur is in better position to shift the production from one product to another as per the changed production requirements. This forms a base for all subsequent scheduling acclivities. A master schedule is followed by operator schedule which fixes total time required to do a piece of work with a given machine or which shows the time required to do each detailed operation of a given job with a given machine or process. Manufacturing schedule: It is prepared on the basis of type of manufacturing process involved. It is very useful where single or few products are manufactured repeatedly at regular intervals. Thus it would show the required quality of each product and sequence in which the same to be operated Scheduling of Job order manufacturing: Scheduling acquires greater importance in job order manufacturing. This will enable the speedy execution of job at each center point.

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As far as small scale industry is concerned scheduling is of utmost importance as it brings out efficiency in the operations and s reduces cost price. The small entrepreneur should maintain four types of schedules to have a close scrutiny of all stages namely an enquiry schedule, a production schedule, a shop schedule and an arrears schedule out of above four, a shop schedule is the most important most suited to the needs of small scale industry as it enables a foreman to see at a glance. 1. The total load on any section 2. The operational sequence 3. The stage, which any job has reached. Dispatching: Dispatching involves issue of production orders for starting the operations. Necessary authority and conformation is given for: 1. Movement of materials to different workstations. 2. Movement of tools and fixtures necessary for each operation. 3. Beginning of work on each operation. 4. Recording of time and cost involved in each operation. 5. Movement of work from one operation to another in accordance with the route sheet. 6. Inspecting or supervision of work Dispatching is an important step as it translates production plans into production. Follow up: Every production program involves determination of the progress of work, removing bottlenecks in the flow of work and ensuring that the productive operations are taking place in accordance with the plans. It spots delays or deviations from the production plans. It helps to reveal detects in routing and scheduling, misunderstanding of orders and instruction, under loading or overloading of work etc. All problems or deviations are

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investigated and remedial measurer are undertaken to ensure the completion of work by the planned date.

Inspection: This is mainly to ensure the quality of goods. It can be required as effective agency of production control.

Cotton farms

Production department

Spinning process

Packing and inspection

Retailer

Head office

Consumer

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Conclusion:
Colony mills are recently follows ISO 9000 and apply various tests to ensure the quality of their product. They also use all the theoretical concepts of inspection to get maximum benefit. They plan their procedures in a proper way to get profit with minimum wastage. Their controlling milk supply depends upon the demand of milk in the market. If it is greater, they increase the supply of milk. And if it ceases, they refrain their supply to minimize the wastage and hence loss.

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