The document discusses production management and factors related to plant location. It covers: 1) The conversion of raw materials into finished goods using processes, machines, tools and workers is known as production. Production management deals with efficient production planning and control. 2) Key considerations for plant location include availability of raw materials, labor, markets, transportation and utilities at minimum cost. Location analysis involves evaluating domestic and international sites based on these factors. 3) Production managers are responsible for production planning, quality control, inventory management and ensuring optimal resource utilization to meet production goals. Their decisions involve facilities design, operations, maintenance and cost control.

1. PRODUCTION The conversion of raw materials to end product by using processes, machines, men and tools

2. Manufacturing Is the production of tangible goods only, whereas production includes creation of both tangible goods and intangible services.

3. Production Management It deals with decision making related to production process so that the resulting goods or services are produced according to specifications in amounts and by schedules demanded and at minimum cost – E S Buffa

4. PM Production Management is defined as the design, operation, and improvement of the transformation process, which converts the various inputs into the desired outputs of products and services

5. A branch of management which deals with the production function. It involves organising, directing and controlling the production process. Management of an organisation’s productive resources or its production system which converts inputs into tangible / intangible outputs needed by the customers of the organisation.

6. Production management ensures the optimum utilisation of resources in order to attain the production objectives of an organisation. Multi disciplinary Material management, man management, planning methodologies, scheduling techniques, quality management, cost control, maintenance management and a host of techniques and tools.

7. 5 P Product Plant Processes Programmes People

8. Objectives Maximum posssible production, productivity, employee satisfaction, cutomer satisfaction, profit, utilisation of resources. Minimum scrap / rework, production cycle time. Higher operating efficiency Protection of the environment

9. Ultimate Objectives Control & reduction in Manufacturing costs To improve the product quality Manufacturing schedule

10. Intermediate Objectives Machinery & equipments Materials Manpower Manufacturing services Methods

11. Scope Selection of location – end product Land acquisition, building, construction, selection and installation of machinery, purchasing, receiving, storing, issuing of raw materials and converting the raw materials into products ready for sale.

12. Scope- Cont’d Long Term Strategic Decisions Product selection & Design Process selection & Planning Location facilities Layout & material handling facilities Capacity planning

13. Short term Strategic decisions Production planning Production control Inventory control Quality control Method study Maintenance & replacements Cost control & Reduction

14. Factory Is a place where factors of production- land, labour, money and enterprise are grouped together for the creation of goods or services.

15. Activities Related to production system designing Production engineering( design of tools, jigs, design, development and installation of equipment) Plant location Work environment, work measurement, plant layout, time and motion study, material handling

16. Activities related to analysis and control Production planning Production control Quality control Human factor R & D activities

17. Comparison Manufacturing Tangible Produced to inventory Minimum or no contact with customer Demand varies –week/month/season Market served on regional level Economies of scale Location is in relation to regional market Services Intangible & perishable System is open for services High contact with the customer Demand – Hourly/daily/weekly Local market Relatively small units- local Location for local customer

18. Duties & responsibilities of The Production Manager Planning the geographical location of the factory Purchasing the production equipment Layout of the equipment within the factory Designing production processes and equipment Product design Designing production work and establishing work standards Capacity planning Production planning and scheduling Production control Inventory management Supply chain management Quality control

19. Cont’d Production equipment maintenance and repair Measurement and monitoring of productivity Industrial relations / personnel matters Health and safety Staff selection and training Budgeting & capital planning

21. Problems of Production Management Decisions relating to: Design of the production system Long range decisions – selection and decision of products, selection of equipment and processes, production of design of parts processed, job design, location of the system, facility layout Operation & control of the system Short run decisions - inventory, production control, maintenance and reliability of the system, quality control, labour control, cost control and improvement.

23. Responsibilities of Production Manager Production planning Production control Plant layout Materials handling Quality control Methods analysis Work measurement (work study, time study) Cost control, standardisation, storage, wages, incentives

24. In terms of three major managerial functions Planning Capacity, location, products & services, make or buy, layout, projects, scheduling. Organising Degree of centralisation, sub contracting, incentive plans, issue of work orders, job assignments. Controlling Inventory control, quality control, cost control

25. Three general categories of decision taken by production managers are: strategic decision, operating decision, controlling decision. Decision areas include: Quality management, product & service design, process &capacity design, location design, layout design, job design, supply chain management, inventory management, scheduling and maintenance.

27. Systems or types of production Continuous production system Is one in which the equipment and work stations are arranged in the sequence in which the input raw materials are converted into desired components or assembly. Intermittent production system is one in which the production equipments are grouped and organised according to the functions or process they perform.

28. Job production Goods are produced according to customers orders Also known as market order business Each job is different. Cost of item –high Highly skilled labour required

29. Batch production When manufacturing is done in batches on the basis of customer’s orders. Eg. If 500 is to be done per year, it is about 40 per month. A batch of 25 or 50 units can be taken at atime.

30. Mass production Is adopted for off the shelf or stock items for the consumer market. In terms of 1000 units A huge volume of limited variety SPMs , transfer lines are used Robotics Cost of facility is high Raw material inventories come down.

31. Process production ( Continuous Flow production) Extended form of mass production. Process is automatic and non stop.

33. Productivity Productivity = Output/Input Productivity can be increased by: By increasing of output, keeping input constant. By decreasing inputs for producing the same output. By increasing outputs proportionately higher than increases affected in inputs.

34. Factors contributing to increase of productivity Better utilisation of resources like men, machine and materials Using efficient ways of working Through good and systematic plant layouts using guidelines and principles of motion economy Reducing material handling through better layouts and using appropriate material handling equipments / facilities Selection of proper maintenance policy, keeping in mind preventive maintenance and breakdown maintenance. Provision of healthy and safe working conditions to workmen

35. Through modern HRM methods, counselling rather than threatening workmen, through participation of workmen in management including quality circles. This will keep the workforce motivated. Provision of fair wages and proper compensation through incentive schemes. By ensuring better quality

36. In a manufacturing unit the standard time allowed for the production of a unit is 5 hours. If in a particular month 126 units are produced by employing 4 persons and the allowable delays are found to be 44 man hours, find the productivity?

37. Earned Standard Hours Std time /unit = 5 hours Production =126 units ESMH =5x 126= 630 hours Available Man-hours Manpower employed= 4 Monthly working hours=4 x 25 x 8 = 800 hours Allowed delays = 44 hours Actual Man-hours available =800 – 44 =756 hours Productivity = (630/756 ) x 100 = 83.33%

38. Plant location Location of plant is the function of determining where the plant is to be located, for maximum operating economy and effectiveness. Location once decided, must be permanent. Consideration factors – raw material, supplies, labour and market.

39. Steps in choosing a location 1. Deciding on domestic or international location Competitive advantage derived from location If international location, choice of country Political stability Export and import quotas Exchange rates Cultural and economic considerations Availability of natural resources, cost of labour Friendliness with the country Favourable climate at the location

40. 2. Selection of the region Availability of raw materials Nearness to market Availability of power Transport facilities Suitability of climate Govt. policy and competition between states

41. 3. Selection of appropriate place within the region. Skilled labour at cheaper rate Water Civic amenities Finance

42. 4. Selection of various sites within the selected place. Availability of cheap land to build the plant Soil, topography Low cost of construction in levelling, foundation Facilities for transportation of goods Cost of installation of electricity, gas Cheap means of disposing of factory waste Availability of experienced sub contractors Cost of laying water supply, sewage Low pollution

43. Decide optimum site Work out the cost for different sites and select the optimum site where he would get the maximum benefit

44. Factors of location ( Location Theory) Weber’s Theory Primary factors Material & labour Material oriented Market oriented Secondary factors Banking, credit, insurance, communication, rent, utility rates Agglomerating & degglomerating factors

45. Factors affecting location of a plant Raw materials Cotton textile Kerala, AP, Karnataka, Tamil Nadu, Mumbai, West Bengal, Kanpur, Gujarat, MP Sugar Industry UP, Bihar, MP, Maharashtra, Tamil Nadu, Mandya

46. Iron & steel Industry Bihar, Orissa, MP, West Bengal, Karnataka Cement Bihar, TN, Gujarat, MP, AP, UP, HP & Orissa Jute WB

47. Paper Bamboo, grass, wood, sugarcane WB, Orissa , UP, Nagaland, Kerala, Assam Coal WB, Bihar, Orissa, MP, TN, Assam, Gujarat

48. IT Industry Educated manpower Power Satellite link Telecommunication Transportation Location with good climate Industry policy of state

49. Plant Layout Refers to the arrangement of machinery, equipment and other industrial facilities – such as receiving and shipping departments, tool rooms, maintenance rooms, employee amenities, etc. – for the purpose of achieving the quickest and smoothest production at the least cost.

50. Knowles & Thomson Plant layout involves: Planning and arranging manufacturing machinery, equipment, and services for the first time in completely new plants; The improvements in layouts already in use in order to introduce new methods and improvements in manufacturing procedures.

51. Objective of a good plant layout Provide enough production capacity Reduce material handling costs Reduce congestion that impedes the movement of people or material Reduce hazards to personnel Utilize labour efficiently Increase employee morale Reduce accidents Utilize available space efficiently Provide for volume and product facility Provide for ease of supervision Facilitate co-ordination & face to face communication where appropriate Provide for employee safety Allow ease of maintenance Allow high machine utilisation Improve productivity

52. Factors governing layout Factory location Type of manufacturing process Synthetic, Analytical, Intermittant, Repetitive, Non repetitive Type of the product Material input Employee requirements Machinery in the factory Managerial policies

53. Managerial policy Volume of production, provision for expansion, extent of automation, make or buy of components, desire for rapid delivery of goods to customers, purchasing policy, personnel policies Human factors Exit provisions Rest rooms Drinking water Lavatory Obstruction free work floor

54. Principles of plant layout Principle of: overall integration Utilisation Flexibility Expansion Minimum distance Max. use of volume Max. visibility Max. accessibility Ordeliness Safety & satisfaction

55. Types of layout Process layout ( functional layout) Product layout ( straight line layout) Hybrid layout ( Combined layout) Fixed position layout

58. Process layout Is the arrangement of a facility so that work centres or departments are grouped together according to their functional type. Also called as Functional layout Job shop layout

60. Product Layout Product layout involves the arrangement of machines in one line, depending upon the sequence of operations. Each of the components skip some of the machines not required. Machines are arranged serially, to machine similar components. Materials are worked out into finished components through a series of integrated operations. Back tracking is avoided.

61. Advantages of Product layout Uninterrupted output Reduced amount of work in progress Encourages use of automatic devices Best use of floor space Effective supervision Improved production control

62. Demerits of product layout Higher initial investment Danger of breakdown Expansion is costlier Lack of flexibility Dangers of specilisation

63. Advantages of process layout Lower capital lockup Greater flexibility Quality supervision Uninterrupted functioning Fuller utilisation of machine capacity Full scope for expansion

64. Demerits of a process layout Difficulties in production planning and control Excessive handling of materials Larger stock pile in the process Possibility of more floor space Elonged production cycle time

65. Product or Process layout? Product layouts are preferred where: One or few standard products are involved Production is in large quantities Components are such that material handling facilities are utilised efficiently The same machine is used for less number of products and operations Minimum inspection stages

66. Process layouts are preferred where: Many types or kinds of products are involved Production is in small quantities Heavy materials or products are used where material handling facilities cannot be used efficiently A number of products can be done on the same machine Inspection stages are many

68. Fixed position layout Job is stationary Men, machines and tools move towards the job Eg: Locomotives, Ship, Satellite, Aircraft, Boilers, Generators Site construction, Hospitals

70. Hybrid layout A combination of product and process layouts, with an emphasis on either, to utilise the advantages of both the types of layouts. Machines are arranged in a sequence. Hence sequence is followed as product layout. There are more number of machines at each stage, and they are grouped as mini departments so that they can take up different components of a similar nature. Process layout principle is followed here.

71. Advantages of a Good layout Advantages to the workers Reduction in effort Reduction in fatigue Reduction in number of handling Activities at maximum efficiency Encourages specialisation

72. Reduction in labour cost Reduction in number of workers, length of haul Increase in production per man hour Reduction in maintenance costs Reduction in manufacturing cost Saving in power Improved quality of product by reduced number of handlings Effective production control Effective supervision and capital investment

73. Characteristic of an Efficient layout Smooth flow of production Maximum utilisation of space (also cubic space) Sufficient space between the machines, for gangway, for movement of people and trolleys Minimum handling space between machines Provision of ventilation, illumination, water facilities, toilet Flexibility in layout Location of storage Provision to facilitate supervision, co-ordination Workmen safety Effective co ordination and integration Central locations for inspection

74. Techniques of a plant layout Charts & Diagrams Operation flowchart Flow process chart Machine card Templates Scale models Wooden models of machines Layout drawings

75. Procedure for deciding a Layout for a new plant Fix the objectives with regard to capacity, production flexibility and future expansion Collect data about machines and available space Make an overall plan Decide on service activities(location, nature) Determine the building specifications Decide on the industrial machine dimensions Prepare the layout drawings

78. Cellular layout A close grouping of equipments for processing a sequence of operations in multiple units of a part or a family of parts is called as ‘manufacturing cells’ Reduces distances moved by parts between machines Reduces transportation cost Frequently parts are processed one by one through processing steps and thereby reducing the work in progress inventory and the manufacturing cycle time or throughput time.

81. Organisation of Physical facilities Factory Building Industrial sanitation Noise control Plant lighting Ventilation Air conditioning Employee safety & health

82. Factory Building The design of the building The types of material for construction The types of building

83. Factory Building An ideal factory building is one which is built to house the most efficient layout that can be provided for the process involved, yet which is architecturally attractive and of such a standard shape and design as to be flexible in its use and inexpensive in its construction . – James Lindey

84. Significance of a Good factory Building Continuous & effective operation Reduction in material handling costs Provision of protection to all In house items Cutting down production cycle time High employee morale Provision of better control points Reduced costs of repairs & maintenance Core case of company image

85. Factory Design considerations Building foundation Location of receiving & Despatching departments Location of Aisles Material handling arrangement Location of production & service departments Type of construction Type of building Built in flexibility

86. Expandability - shape – U,E, H, I, L, T Lighting, Ventilators, doors & windows Floor & roof structures Damp proof construction Waste disposal Special process needs Protection of property & people Aesthetic consideration

87. Types of building Wood frame Bricks Steel frame RCC Pre-stressed concrete slab - Availability, Strength, Durability, Safety, cost

88. Single storey buildings High bay and monitor types Multi storey buildings Special Buildings Aircraft, Saw mills

89. Industrial Sanitation Sanitation – Science of safeguarding health Industrial sanitation – science of safeguarding health of the industrial workers

90. Elements of sanitation Supply of wholesome water Waste and effluent disposal Avoidance & control of insects, rodents etc. Food sanitation Good industrial housekeeping Providing facilities for personnel service To be free from air pollution

91. Supply of wholesome water Drinking Toilet purpose Hand washing Canteen Manufacturing – Plating, Heat treatment Lakes, Canals, Springs, Rivers, Borewells, Taps

92. Industrial wastage Is a residue or piece of raw materials, a byproduct of the manufacturing process. Waste is also produced by industrial establishment and plant personnel Salvageable waste Non salvageable waste Liquid waste Solid waste

93. Food sanitation Factories Act – canteen – 250 persons Clean handling No galvanized utensils Cover Kitchen – washed clean before & after preparation

94. Good housekeeping Eliminates accidents & fire hazards Conservation of space, time , materials and efforts Improvement of employee morale

95. Avoidance & control of insects & rodents Insects- diseases Rodents - plague

96. Providing facilities for personnel services Air pollution Proper town planning & zoning

97. Lighting Is one of the physical facilities most required in a factory. Most important single environmental factor contributing to worker satisfaction, comfort & productivity. Lighting is good when it is free from glare and is properly diffused, its colour pleasant & flow direct and steady. Illumination between 14 and 18 lumens will be ideal in any industrial establishment.

98. Sources of Lighting Day light ( Natural lighting) Artificial lighting

99. Natural Lighting Advantages Available in abundance Free of cost Requires no maintenance Free from load shedding Limitations Only during daytime & intensity varies Windows & roofs have to be specially constructed Difficult to provide uniform lighting throughout

100. Artificial Lighting Advantages Illumination is constant Intensity can be controlled to suit the operations Only method available after daylight hours Well suited to provide supplementary lighting Less no. of windows Disadvantages Quite expensive – investment, recurring – cost & maintenance Power cuts – generator maintenance

101. Ventilation Supply of air to an enclosed place and removal of air from there. Natural Mechanical Ventilation differs from air conditioning in that, the latter conditions the air by heating or cooling it by such process, while the former, merely supplies fresh air to or removes vitiated air there from without in any way conditioning it.

102. General ventilation ( Dilution ventilation) For comfort control To keep contaminants within safe limits Local Exhaust ventilation

103. Air conditioning Simultaneous control of temperature and humidity, distribution and purity of air by artificial means. Air conditioning is the control of the relationship between certain characteristics of the air, such as temperature, purity, humidity, movement and distribution, to that end, the air will meet the requirement of a particular situation in a room or building

104. Types Winter A/c Summer A/c Comfort or domestic a/c Industrial a/c Partial a/c Complete a/c

105. While designing the building Avoid or reduce the number of windows Provide for air ducts in the walls Provide for a seperarte room for installation of a/c units Provide facilities for admitting fresh air into the building

106. Noise control Unwanted and unpleasant sound People get headache & get exhausted Control – impossible to eliminate Control at source Control by absorption Control through ear protection