UNIT-II MANAGEMENT

According to Henry Fayol, "To manage is to forecast and to plan, to organise, to command, to coordinate and to control". According to Peter Drucker, "Management is a multi-purpose organ that manages business and manages managers and manages workers and work". According to Harold Koontz, "Management is the art of getting things done through and with people in formally organized groups. According to Mary Parker Fallett, "Management is the art of getting things done through people". Management is a purposive activity. It is something that directs group efforts towards the attainment of certain pre - determined goals (the goals may vary from one enterprise to another.) E.g.: (1) For one enterprise it may be launching of new products by conducting market surveys. (2) For other it may be profit maximization by minimizing cost. Management can be defined in detail in following categories : 1. Management as a Process 2. Management as an Activity 3. Management as a Discipline 4. Management as a Group 5. Management as a Science 6. Management as an Art 7. Management as a Profession

1. Management as a process:- As a process, management refers to a series of inter - related functions.As a

process, management consists of three aspects: 1. Management is a social process - Since human factor is most important among the other factors, it is the duty of management to make interaction between people which is productive and useful for obtaining organizational goals. 2. Management is an integrating process - Management undertakes the job of bringing together human and financial resources so as to achieve organizational purpose. 3. Management is a continuous process - It is a never ending process. It is concerned with constantly identifying the problem and solving them by taking adequate steps

2. Management as an Activity:- According to Koontz, Management is what a manager does. Like any
other activity (writing, playing, eating, cooking etc), management is also an activity because a manager is one who accomplishes the objectives by directing the efforts of others. Management as an activity includes 1. Informational activities - In the functioning of business enterprise, the manager constantly has to receive and give information orally or in written. MRS. SABITA SINGH (Asst. Professor- MBA)

2. Decisional activities - Practically all types of managerial activities are based on one or the other types of decisions. Therefore, managers are continuously involved in decisions of different kinds. (E.g. Sales Manager is deciding the media & content of advertising). 3. Inter-personal activities - Management involves achieving goals through people. Therefore, managers have to interact with superiors as well as the sub-ordinates. (E.g. Bonuses to be given to the sub-ordinates).

3. Management as a discipline :- Management is a course of study which is now formally being taught in
the institutes and universities after completing a prescribed course or by obtaining degree or diploma in management, a person can get employment as a manager. Any branch of knowledge that fulfils following two requirements is known as discipline: 1. There must be scholars & thinkers who communicate relevant knowledge through research and publications. 2. The knowledge should be formally imparted by education and training programmes. Since management satisfies both these problems, therefore it qualifies to be a discipline.

4. Management as a Science: - Science is a systematic body of knowledge pertaining to a specific field of

study that contains general facts which explains a phenomenon. It establishes cause and effect relationship between two or more variables and underlines the principles governing their relationship. These principles are developed through scientific method of observation and verification through testing. Science is characterized by following main features: 1. Universally acceptance principles - Scientific principles represents basic truth about a particular field of enquiry. These principles may be applied in all situations, at all time & at all places. E.g. - law of gravitation which can be applied in all countries irrespective of the time. Management also contains some fundamental principles which can be applied universally like the Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all type of organization - business or non business 2. Experimentation & Observation - Scientific principles are derived through scientific investigation & researching i.e. they are based on logic. E.g. the principle that earth goes round the sun has been scientifically proved. Management principles are also based on scientific enquiry & observation. E.g. it is observed that fair remuneration to personal helps in creating a satisfied work force.

3. Cause & Effect Relationship - Principles of science lay down cause and effect relationship between various variables. E.g. when metals are heated, they are expanded. The cause is heating & result is expansion. The same is true for management, therefore it also establishes cause and effect relationship. E.g. lack of parity (balance) between authority & responsibility will lead to ineffectiveness. MRS. SABITA SINGH (Asst. Professor- MBA)

4. Test of Validity & Predictability - Validity of scientific principles can be tested at any time or any number of times. Each time these tests will give same result. E.g. H2 & O2 will always give H2O. Principles of management can also be tested for validity. E.g. principle of unity of command can be tested by comparing two persons - one having single boss and one having 2 bosses. The performance of 1st person will be better than 2nd.

5. Management as an Art :- Art implies application of knowledge & skill to trying about desired results.
Art has the following characters 1. Practical Knowledge: Every art requires practical knowledge therefore learning of theory is not sufficient. E.g. to become a good painter, the person may not only be knowing different colour and brushes but different designs, dimensions, situations etc to use them appropriately. A manager can never be successful just by obtaining degree or diploma in management; he must have also know how to apply various principles in real situations. 2. Personal Skill: Although theoretical base may be same for every artist, but each one has his own style and approach towards his job. E.g. there are several qualified painters but M.F. Hussain is recognized for his style. Similarly management as an art is also personalized. Every manager has his own way of managing things based on his knowledge, experience and personality, that is why some managers are known as good managers (like Aditya Birla, Rahul Bajaj) whereas others as bad.

3. Creativity: Every artist has an element of creativity in line. Management is also creative in nature like any other art. It combines human and non-human resources in useful way so as to achieve desired results. 4. Perfection through practice: Practice makes a man perfect. Every artist becomes more and more proficient through constant practice. Similarly application of management principles over the years makes them perfect in the job of managing.

6. Management as a profession: - A profession may be defined as an occupation that requires

specialized knowledge and intensive academic preparations to which entry is regulated by a representative body. The essentials of a profession are: 1. Specialized Knowledge - A profession must have a systematic body of knowledge that can be used for development of professionals. Similarly a manager must have devotion and involvement to acquire expertise in the science of management. MRS. SABITA SINGH (Asst. Professor- MBA)

2. Formal Education & Training - No one can practice a profession without going through a prescribed course. Many institutes of management have been set up for imparting education and training. E.g., a CA cannot audit the A/Cs unless he has acquired a degree or diploma for the same but no minimum qualifications and a course of study has been prescribed for managers by law. E.g., MBA may be preferred but not necessary. 3. Code of Conduct - Members of a profession have to abide by a code of conduct which contains certain rules and regulations, norms of honesty, integrity and special ethics. Any member violating the code of conduct can be punished and his membership can be withdrawn. The AIMA has prescribed a code of conduct for managers but it has no right to take legal action against any manager who violates it.

LEVELS OF MANAGEMENT
The term Levels of Management refers to a line of demarcation between various managerial positions in an organization. The level of management determines a chain of command, the amount of authority & status enjoyed by any managerial position. The levels of management can be classified in three broad categories: 1. Top level / Administrative level 2. Middle level / Executory 3. Low level / Supervisory / Operative / First-line managers Managers at all these levels perform different functions. The role of managers at all the three levels is discussed below: LEVELS OF MANAGEMENT 1. Top Level of Management It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions. The role of the top management can be summarized as follows a. Top management lays down the objectives and broad policies of the enterprise. b. It issues necessary instructions for preparation of department budgets, procedures, schedules etc. c. It prepares strategic plans & policies for the enterprise. d. It appoints the executive for middle level i.e. departmental managers. e. It controls & coordinates the activities of all the departments. f. It is also responsible for maintaining a contact with the outside world. g. It provides guidance and direction. h. The top management is also responsible towards the shareholders for the performance of the enterprise. 2. Middle Level of Management The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. Their role can be emphasized as MRS. SABITA SINGH (Asst. Professor- MBA)

a. They execute the plans of the organization in accordance with the policies and directives of the top management. b. They make plans for the sub-units of the organization. c. They participate in employment & training of lower level management. d. They interpret and explain policies from top level management to lower level. e. They are responsible for coordinating the activities within the division or department. f. It also sends important reports and other important data to top level management. g. They evaluate performance of junior managers. h. They are also responsible for inspiring lower level managers towards better performance. 3. Lower Level of Management Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. Their activities include a. Assigning of jobs and tasks to various workers. b. They guide and instruct workers for day to day activities. c. They are responsible for the quality as well as quantity of production. d. They are also entrusted with the responsibility of maintaining good relation in the organization. e. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers. f. They help to solve the grievances of the workers. g. They supervise & guide the sub-ordinates. h. They are responsible for providing training to the workers. i. They arrange necessary materials, machines, tools etc for getting the things done. j. They prepare periodical reports about the performance of the workers. k. They ensure discipline in the enterprise. l. They motivate workers. m. They are the image builders of the enterprise because they are in direct contact with the workers

TYPES OF MANAGERIAL SKILL

Management is a challenging job. It requires certain skills to accomplish such a challenge. Thus, essential skills which every manager needs for doing a better management are called as Managerial Skills. 1. Conceptual Skills, 2. Interpersonal Skills, and 3. Technical Skills. According to Prof. Daniel Katz, all managers require above three managerial skills. However, the degree (amount) of these skills required varies (changes) from levels of management and from an organisation to organisation.

MRS. SABITA SINGH (Asst. Professor- MBA)

Conceptual Skill

Top level

Interpersonal skill Technical skill

Middle level

Lower level

The above picture or diagram shows the managerial skills which are required by managers working at different levels of management. 1. Conceptual Skills Conceptual skill is the ability to visualise (see) the organisation as a whole. It includes Analytical, Creative and Initiative skills. It helps the manager to identify the causes of the problems and not the symptoms. It helps him to solve the problems for the benefit of the entire organisation. It helps the manager to fix goals for the whole organisation and to plan for every situation. 2. Interpersonal (Human Relations) Skills Human relations skills are also called Interpersonal skills. It is an ability to work with people. It helps the managers to understand, communicate and work with others. It also helps the managers to lead, motivate and develop team spirit. Human relations skills are required by all managers at all levels of management. This is so, since all managers have to interact and work with people. 3. Technical Skills A technical skill is the ability to perform the given job. Technical skills help the managers to use different machines and tools. It also helps them to use various procedures and techniques. The low-level managers require more technical skills. This is because they are in-charge of the actual operations.

14 Principles of Management by Henri Fayol

1. Division of Labour a. Henry Fayol has stressed on the specialization of jobs. b. He recommended that work of all kinds must be divided & subdivided and allotted to various persons according to their expertise in a particular area. c. It also helps the individual in acquiring speed, accuracy in his performance. 2. Party of Authority & Responsibility a. Authority & responsibility are co-existing. b. If anyone is made responsible for any job, he should also have concerned authority.

c. Authority refers to the right of superiors to get exactness from their sub-ordinates whereas responsibility means obligation for the performance of the job assigned. d. There should be a balance between the two i.e. they must go hand in hand. MRS. SABITA SINGH (Asst. Professor- MBA)

e. Authority without responsibility leads to irresponsible behaviour whereas responsibility without authority makes the person ineffective. 3. Unity in command a. A sub-ordinate should receive orders and be accountable to one and only one boss at a time. b. In other words, a sub-ordinate should not receive instructions from more than one person because - Creates confusion - Delays and chaos - Duplication of work - Overlapping of efforts c. Unity of command provides the enterprise a disciplined, stable & orderly existence. 4. Unity of Direction a. One head one plan which means that there should be one plan for a group of activities having similar objectives. b. Related activities should be grouped together. There should be one plan of action for them and they should be under the charge of a particular manager. c. According to this principle, efforts of all the members of the organization should be directed towards common goal. d. Without unity of direction, unity of action cannot be achieved.

Basis Meaning

Unity of command It implies that a sub-ordinate should receive orders & instructions from only one boss.

Unity of direction It means one head, one plan for a group of activities having similar objectives. It is related to the functioning of departments, or organization as a whole.

Nature

It is related to the functioning of personnels.

Necessity

It is necessary for fixing responsibility of each subordinate.

It is necessary for sound organization.

Advantage

It avoids conflicts, confusion & chaos.

It avoids duplication of efforts and wastage of resources.

Result

It leads to better superior sub-ordinate relationship.

It leads to smooth running of the enterprise.

5. Equity of treatment a. Equity means combination of fairness, kindness & justice. MRS. SABITA SINGH (Asst. Professor- MBA)

b. It implies that managers should be fair and impartial while dealing with the subordinates. c. They should give similar treatment to people of similar position. d. They should not discriminate with respect to age, caste, sex, religion, relation etc.

6. Order a. This principle is concerned with proper & systematic arrangement of things and people. b. Arrangement of things is called material order and placement of people is called social order. c. Material order- There should be safe, appropriate and specific place for every article and every place to be effectively used for specific activity and commodity. d. Social order- Selection and appointment of most suitable person on the suitable job. There should be a specific place for everyone and everyone should have a specific place so that they can easily be contacted whenever need arises. 7. Discipline a. According to Fayol, Discipline means sincerity, obedience, respect of authority & observance of rules and regulations of the enterprise. b. This principle applies that subordinate should respect their superiors and obey their order. c. Discipline is not only required on path of subordinates but also on the part of management. 8. Centralization & De-Centralization a. Centralization means concentration of authority at the top level. In other words, centralization is a situation in which top management retains most of the decision making authority. b. According to Fayol, Degree of centralization or decentralization depends on no. of factors like size of business, experience of superiors, dependability & ability of subordinates etc. 9. Initiative a. Workers should be encouraged to take initiative in the work assigned to them. b. It means eagerness to initiate actions without being asked to do so. c. Fayol advised that management should provide opportunity to its employees to suggest ideas, experiences& new method of work. d. It helps in developing an atmosphere of trust and understanding. e. People then enjoy working in the organization because it adds to their zeal and energy.

10. Fair Remuneration a. Wages should be determined on the basis of cost of living, work assigned, financial position of the business, wage rate prevailing etc. b. Proper payment reduces tension & differences between workers & management. c. Fayol also recommended provision of other benefits such as free education, medical & residential facilities to workers. MRS. SABITA SINGH (Asst. Professor- MBA)

11. Stability of Tenure a. Fayol emphasized that employees should not be moved frequently from one job position to another i.e. the period of service in a job should be fixed. b. According to Fayol. Time is required for an employee to get used to a new work & succeed to doing it well but if he is removed before that he will not be able to render worthwhile services. c. As a result, the time, effort and money spent on training the worker will go waste. 12. Scalar Chain a. Fayol defines scalar chain as The chain of superiors ranging from the ultimate authority to the lowest. b. Every orders, instructions, messages, requests, explanation etc. has to pass through Scalar chain. c. But, for the sake of convenience & urgency, this path can be cut shirt and this short cut is known as Gang Plank. d. A Gang Plank is a temporary arrangement between two different points to facilitate quick & easy communication as explained below:

In the figure given, if D has to communicate with G he will first send the communication upwards with the help of C, B to A and then downwards with the help of E and F to G which will take quite some time and by that time, it may not be worth therefore a gang plank has been developed between the two. 13. Sub-Ordination of Individual Interest to General Interest a. An organization is much bigger than the individual it constitutes therefore interest of the undertaking should prevail in all circumstances. b. But in case of conflict, individual must sacrifice for bigger interests. 14. Espirit De Corps (strength in union) a. It refers to team spirit i.e. harmony in the work groups and mutual understanding among the members. b. Spirit De Corps inspires workers to work harder. c. To inculcate Espirit De Corps following steps should be undertaken

There should be proper co-ordination of work at all levels Subordinates should be encouraged to develop informal relations among themselves. Efforts should be made to create enthusiasm and keenness among subordinates so that they can work to the maximum ability. MRS. SABITA SINGH (Asst. Professor- MBA)

SCIENTIFIC MANAGEMENT
Fredrick Winslow Taylor commonly known as Father of Scientific Management. He implied application of scientific principles for studying & identifying management problems. According to Taylor, Scientific Management is an art of knowing exactly what you want your men to do and seeing that they do it in the best and cheapest way. Principles of Scientific Management In Taylors view, if a work is analysed scientifically it will be possible to find one best way to do it. 1. Development of Science for each part of mens job (replacement of rule of thumb) a. This means replacement of odd rule of thumb by the use of method of enquiry, investigation, data collection, analysis and framing of rules. b. Under scientific management, decisions are made on the basis of facts and by the application of scientific decisions. 2. Scientific Selection, Training & Development of Workers a. There should be scientifically designed procedure for the selection of workers. b. Physical, mental & other requirement should be specified for each and every job. c. Workers should be selected & trained to make them fit for the job. d. The management has to provide opportunities for development of workers having better capabilities. 3. Co-operation between Management & workers or Harmony not discord a. Taylor believed in co-operation and not individualism. b. It is only through co-operation that the goals of the enterprise can be achieved efficiently. c. There should be no conflict between managers & workers. 4. Division of Responsibility a. This principle is to determine the roles to be played by different level of managers & workers. b. The management should assume the responsibility of planning the work whereas workers should be concerned with execution of task. c. Thus planning is to be separated from execution. 5. Maximum output: a. Maximum output & optimum utilization of resources will bring higher profits for the employer & better wages for the workers. b. There should be maximum output in place of restricted output. c. Both managers & workers should be paid satisfactory. 6. Mental Revolution a. The workers and managers should have mutual relationship. b. It requires that management should create suitable working condition and solve all problems scientifically. MRS. SABITA SINGH (Asst. Professor- MBA)

c. Similarly workers should attend their jobs with utmost attention, devotion and carefulness. They should not waste the resources of enterprise. d. Satisfactory remuneration should be provided to workers to boost up their moral. e. It will create a sense of belongingness among worker. f. They will be disciplined, loyal and sincere in fulfilling the task assigned to them. g. There will be more production and economical growth at a faster rate.

Techniques / Contributions of Scientific Management

1. Performance Standards F.W. Taylor found out that there were no scientific performance standards. No one knew exactly how much work a worker should do in one hour or in one day. Taylor introduced Time and Motion Studies to fix performance standards. He fixed performance standards for time, cost, and quality of work, which lead to uniformity of work. 2. Differential Piece Rate System Under differential piece rate system, a standard output was first fixed. Then two wage rates were fixed as follows :1. Low wage rate was fixed for those workers who did not produce the standard output. 2. Higher wage rate was fixed for those workers who produced the standard output or who produced more than the standard output. 3. Functional Foremanship Taylor started "Functional Foremanship". Here, 8 foremen (lower level manager or supervisor) are required to supervise the workers. This is because one foremen cannot be an expert in all the functions. Taylor's functional foremanship consists of two groups of supervisors :1. At the Planning Level or Office Level. 2. At the Doing Level or Factory Level. (a) At the Planning Level :1. Time and Cost Clerk : This boss prepares the standard time for completing the work and cost of doing that work. 2. Route Clerk : This boss makes the exact route (way) through which each product has to travel from a raw-material to a finished product. 3. Discipline Clerk : This boss looks after the discipline and absenteeism problems in the organisation. 4. Instruction Card Clerk : The boss gives instructions about how to do a particular work. (b) At the Doing Level :1. Gang Boss : He is responsible for setting up the machines and tools and for direct supervision of workers. 2. Speed Boss : He is responsible for maintaining a proper speed of work. 3. Repair Boss : He is responsible for the repairs and maintenance of machines. 4. Inspector Boss : He is responsible for maintaining the quality of production. MRS. SABITA SINGH (Asst. Professor- MBA)

4. Time Study a. b. c. It is a technique which enables the manager to set standard time taken for performing a specified job. This technique is based on the study of an average worker having reasonable skill and ability. Average worker is selected and assigned the job and then with the help of a stop watch, time is ascertained for performing that particular job. d. Taylor maintained that Fair days work should be determined through observations, experiment and analysis by keeping in view an average worker. Standard Time Working Hours = Fair Days Work 5. Motion Study a. b. In this study, movement of body required to perform a job are closely observed. The purpose of motion study is to eliminate useless motions and determine the best way of doing the job. c. By undertaking motion study an attempt is made to know whether some elements of a job can be eliminated, combined or their sequence can be changed to achieve necessary result. Motion study increases the efficiency and productivity of workers by cutting down all wasteful motions 6. Gantt Charts Henry Gantt invented the Gantt chart. This chart shows the planned work and the completed work at each stage of production. It also shows the time taken to do the work. Gantt chart is the basis for following two concepts :1. The Critical Path Method (CPM), and 2. The Program Evaluation Review Technique (PERT).

WORK STUDY
First technique applied for increasing productivity. It is considered as a valuable tool in increasing productivity. Work study is a generic term for the techniques of method study and work measurement. These techniques are used in the examination of human work in all its contexts.

METHOD STUDY (To simplify job and develop more economical method of doing work)

WORK - STUDY
WORK MEASUREMENT (TIME STUDY) (To determine the standard

time for doing an operation) HIGHER PRODUCTIVITY MRS. SABITA SINGH (Asst. Professor- MBA)

Importance of Work-Study

Work study is a means of enhancing the production efficiency (productivity) of the firm by elimination of waste and unnecessary operations.

It is a technique to identify non-value adding operations by investigation of all the factors affecting the job.

It is the only accurate and systematic procedure oriented technique to establish time standards. It is going to contribute to the profit as the savings will start immediately and continue throughout the life of the product.

Work-Study Procedure Work-study is a procedure oriented and systematic study to establish the one best way (standard) method of doing an operation by investigation and analysis of all the details regarding the job or operation carried out as per the established standard method. Steps Involved in Work-Study 1. SELECT Job or Process to be studied 2. RECORD all the details concerning job using various recording techniques 3. EXAMINE recorded facts critically by asking questions like who, what, when, why 4. DEVELOP most economical method 5. MEASURE the amount of work involved and set standard time to do that job 6. DEFINE new method and standard time 7. INSTALL the new method as a standard practice 8. MAINTAIN new method as agreed standar

METHOD STUDY
Method study is the systematic recording and critical examination of production, service and business processes in order to make improvements. Objectives of Method Study 1. Improvement of manufacturing processes and procedures. 2. Improvement of working conditions. 3. Improvement of plant layout and work place layout. 4. Reducing the human effort and fatigue. 5. Reducing material handling 6. Improvement of plant and equipment design. 7. Improvement in the utility of material, machines and manpower. 8. Standardisation of method. 9. Improvement in safety standard.

MRS. SABITA SINGH (Asst. Professor- MBA)

Steps Involved in Method study 1. SELECT The process to be studied to selected and its boundaries are to be defined 2. RECORD The process is to be recorded in specified charts and diagrams (Process charts, Flow charts, Flow diagram, String diagram) 3. EXAMINE Each activity is subjected to a series of questions: A. Purpose B. Place C. Sequence D. person E. Means These questions in the above sequence must be asked every time a method study is undertaken. They are the basis of successful method study. 4. DEVELOP The shortcomings of the present process are brought out by the systematic questioning process that is combined with a knowledge relevant to the process being examined. Alternatives to the current activities which have the shortcomings are to be generated during this stage. 5. EVALUATE Alternatives are to be evaluated at this stage to find their contribution to the efficiency of the process as well as effectiveness. 6. DEFINE The new method or process suggested has to be put down standard process sheets that are issued to the shop or department. 7. INSTALL Methods study persons have to train the operators and their supervisors in the new method and participate in installing the method. 8. MAINTAIN Industrial engineers have to conduct a periodic review of methods to observe modifications brought into the installed methods by operators and supervisors.

CHARTS AND DIAGRAMS USED IN METHOD STUDY (TOOLS AND TECHNIQUES OF METHOD STUDY)
1. Operation process chart (or) Outline process chart. 2. Flow process chart. (a) Material type (b) Operator type (c) Equipment type 3. Two-handed process chart. (or) Left hand-Right hand chart 4. Multiple activity chart. 5. Flow diagram. 6. String diagram. 7. Travel chart. MRS. SABITA SINGH (Asst. Professor- MBA)

Process Chart Symbols

The different kinds of process chart share a common core set of symbols, though some have additional symbols for specific and specialised process steps. The common symbols (of which there are only five) were first promulgated by the American Society of Mechanical Engineers and have become known as the ASME symbols. OPERATION: a main step, where the part, material or product is usually modified or changed INSPECTION: indicates a check for quality or quantity

TRANSPORT: the movement of workers, materials or equipment STORAGE: controlled storage in which material is received into or issued from a store, or an item is retained for reference purposes DELAY or EMPORARY STORAGE: indicates a delay in the process, or an object laid aside until required Additional symbols OPERATION cum INSPECTION: TRANSPORT cum- OPERATION:

1. Operation process chart (or) Outline process chart.

An operation process chart is a graphic representation of the sequence of all operations and inspections taking place in a process. It is also known as outline process chart. It gives a birds eye view of the overall activities. Entry points of all material are noted in the chart.

Example:-Repairing of punctured scooter tyre.

MRS. SABITA SINGH (Asst. Professor- MBA)

2. Flow process chart.

A flow process chart is a graphical representation of the sequence of all the activities (operation, inspection, transport, delay and storage) taking place in a process. Process chart symbols are used here to represent the activities. There are three types of flow process charts. They are 1. Man type flow process chart This flow process chart records what the worker does. 2. Material type flow process chart This flow process chart records how the material is handled or treated. 3. Equipment type flow process chart This flow process chart records how the equipment or machine is used. Example: Material type flow chart:- (Showing the packing and price tagging of finished goods) particular Finished goods lying Move to packing machine Wait for process to install Packing of product is done Wait for trolley Move to price tag machine Tagging is done Inspect before release 2 1 2 1 2 1 1 1
Distance (Metres) Time (Minutes)

10 20 -

3 5 20 2 3 6 15

Summary Process description 2 1 1 2 Distance Time Process description 2 30 (meters) 54(min)

3. Two - Handed Process Chart (or) Right Hand, Left Hand Chart
It is the process chart in which the activities of two hands of the operator are recorded. It shows whether the two hands of the operator are idle or moving in relation to one another, in a timescale. It is generally used for repetitive operations. General guidelines for preparing the chart 1. Provide all information about the job in the chart. 2. Study the operation cycle a few times before starting to record. 3. Record one hand at a time. 4. First record the activities of the hand which starts the work first. MRS. SABITA SINGH (Asst. Professor- MBA)

5. Do not combine the different activities like operations, transport etc. Example: JOB: Assembling Nut and Bolt LEFT HAND Left Hand symbols Pick up bolt Hold Hold Hold Idel Pick up Nut To left hand Assemble(screw up) Right hand symbols RIGHT HAND

Summary: L.H 1 3 R.H 2 1 1

4. Multiple Activity Chart

It is a chart on which the activities of more than one subject (like worker, machine or equipment) are each recorded on a common time-scale to show their relationship. How to construct (i) Start with the preparation of flow process chart for elements like machine or operative involved in the process. (ii) Group activities to be recorded into convenient elements for time-study. (iii) Take sufficient observations of time-study for determining accurate elemental time. (iv) Draw in the form of bar-chart for each activity of the leading operative or machine. Take a common scale such as time for each activity. (v) Use different colour codes for different sections within each bar. Working Idle

(vi) Calculate the amount of effective work per cycle in percentage of total time. Application (i) In a situation of one operative running one or several operatives (ii) In a situation of several operatives running one or several machines (iii) A team of operatives or a bank of machines (iv) Helps in exploring the possibilities of elimination, change in work sequence, combination and simplification of work elements. MRS. SABITA SINGH (Asst. Professor- MBA)

Operation : Hole punching in the sheet Part name: RT Date: 22/02/2013 Operator Pick up the sheet and position in the machine Start the machine Idle Unload machine Repeat the cycle 0.50 0.85 0.65 Time 3.00

Machine: punch 8 Part No. : RT 16

Machine Idle

Time 3.00

Idle Punch plate Idle Repeat the cycle

0.50 0.85 0.65

Summary (time in minutes) Operator Idle Time Operation time Cycle time Utilization (%) 0.85 4.15 5.00 4.15/5 = 83% 4.15 0.85 5.00 0.85/5= 17% Machine

5. String Diagram It is a scale diagram on which colour threads are wrapped around pins or pegs, which are used to indicate the paths taken by either worker or material or equipment when processing is done on material from start to finish i.e. from raw material to finished goods. A measured length of thread is taken to trace the movements .The distance covered by object is obtained by measuring the remaining part of the thread and subtracting it from original length Application (1) For studying layout of the plant (2) Indicates backtracking in material movement, congestion, bottleneck and over/under utilization of shop-floor. (3) The pattern of material movement, as indicated by the strings, is helpful in the modification in plant and machinery.
Store (IN)
M3 M4 M5 M2

M1

M6 M7

Store (OUT)

6. Flow diagram In flow diagram route followed in transport are shown by joining the symbols in sequence by represents as nearly as possible the paths or movement of the subject concerned. MRS. SABITA SINGH (Asst. Professor- MBA)

Procedure: Drawing of working area & showing location of various activities Shows the route followed and different layout then selects the optimum one Study traffic and frequency over different routes Procedure : Layout of workplace is drawn to scale Relative positions of the m/c tools, storage & inspection benches are marked on the scale Path followed by the subject under study is tracked by drawing lines Each movement is serially numbered & indicated by arrow for direction Different colours are used to denote different types of movements
C B E H
2

Example: simple flow diagram

D G 3 6 F A
1

7. Travel Chart (Also Called as Cross Chart) A Travel Chart is a simple table that is useful where there are multiple (and possibly irregular) movement between places. It is a variation on the Check Sheet, indicating movements from and to any combination of a given set of locations. It is a more detailed type of movement chart in which the recorded details are like: (i) Pattern of movement, (ii) Extent of movement or volume. Application Studying layout problem for deciding how to minimize total flow (of material) in the plant or work-place.

MRS. SABITA SINGH (Asst. Professor- MBA)

MOTION STUDY
Motion Study Motion study is a technique of analyzing the body motions while doing a task in order to eliminate or reduce ineffective movements and facilitates effective movements. By using motion study and the principles of motion economy the task is redesigned to be more effective and less time consuming. Therbligs On analysing the result of several motion studies conducted, Gilbreths concluded that any work can be done by using a combination of some or all of 17 basic motions, called Therbligs (Gilbreth spelled backward). These can be classified as effective therbligs and ineffective therbligs. Effective therbligs take the work progress towards completion. Attempts can be made to shorten them but they cannot be eliminated. Ineffective therbligs do not advance the progress of work and therefore attempts should be made to eliminate them . Therblig Definitions and Symbols SN. Therblig Symbol Colour Definition

Effective therblig (can be shortened but difficult to eliminate completely) 1. Grasp G Lake read Begins when hand or body member touches an object for holding. Consists of gaining control of an object. Ends when control is gained. 2. Preposition PP Pale blue Same as position, except used when line-up is previous to use of part or tool in another place. 3. Use U U Purple Begins when hand or body member actually begins to use tool. 4. Assemble # A violet Consists of actual assembly of parts of putting together. MRS. SABITA SINGH (Asst. Professor- MBA)

5.

Disassemble

DA Light violet RL Carmine red

Consists of taking object apart. It complete separation.

6.

Release load

Begins when body member begins to relax control of object. Consists of body members changing location of an object. Consists of reaching for something.

7.

Transport loaded TL TE

Grass green Olive green

8.

Transport empty

Infective therbligs ( Should be eliminated if possible) 9. 10. Search Position P 11. 12. Select Hold ST H Light gray SH Black Blue Consists of attempting to find an object Consists of hand or body member causing part to line up, orient, or change position. Consists of locating an individual object from a group.

Gold ochre Consists of holding an object in a fixed position and location.

13.

Unavoidable delay

UD

Yellow Ochre Lemon yellow

Consists of a delay for other body member or machine when delay is part of method. Consists of some movement or idleness.

14.

Avoidable delay AD

15.

Rest for overcoming fatigue R

Orange

Consists of idleness necessary to overcome fatigue from previous work.

16.

Plan PM

Brown

Consists of determining a course of action.

17.

Inspect

Burnt ochre

Consists of determining a quality of an object.

SIMO Chart It is a graphic representation of an activity and shows the sequence of the therbligs or group of therbligs performed by body members of operator. It is drawn on a common time scale. In other words, it is a two-hand process chart drawn in terms of therbligs and with a time scale, MRS. SABITA SINGH (Asst. Professor- MBA)

WORK MEASUREMENT
Work measurement is the application of techniques designed to establish the time for an average worker to carry out a specified manufacturing task at a defined level of performance. It is concerned with the length of time it takes to complete a work task assigned to a specific job . TECHNIQUES OF WORK MEASUREMENT 1. Time study 2. Predetermined motion time systems (PMTS) 3. Standard Data 4. Work sampling

1 ) Time Study
Time study is defined as a work measurement technique for recording the times and rate of working for the elements of a specified job, carried out under specified condition, and for analyzing the data so as to obtain the time necessary for carrying out the job at a defined level of performance.

Steps in time study (stop watch method) 1. Select: Select work for work measurement. MRS. SABITA SINGH (Asst. Professor- MBA)

2. Record: Obtain and record all relevant information about operator and the surrounding condition. 3. Divide: Breakdown operation into elements. 4. Examine: Examine most effective method and motions being used. Determine sample size. 5. Measure: Use time measuring device like stop-watch to measure and record the time taken by the operator in performing the elements of the job. 6. Observe: Assess the effective speed of working as compared to standard rate of observer.

7. Compile: Compile the basic cycle-time for operation or work cycle. 8. Determine: Determine the standard time by adding relaxation and personal allowances in base time. 9. Define : Define the total procedure of performing an activity along with time standards.

STOP WATCH TIME STUDY List of Time Study Equipment and Form Equipment and Type Stopwatch Remark A decimal minutes stop watch has two hands. *The small hand represent minutes on dial. One revolution = 30 minutes. *The large hand represent centi minutes (1/100th min = 0.01min) i.e. one revolution = 1 minute Time Study Board Time Study Form Used to hold time study sheet properly. Generally made of plywood or plastic sheet For recording observations on a predesigned printed or xerox form. Time Study board for general purpose form:

Stop watch:

MRS. SABITA SINGH (Asst. Professor- MBA)

Time Study for short cycle form

Time Study Top Sheet Department : Operation : Plan/Machine : Tools and gauges: MS No.: No.: Study No. Sheet No.: Time off: Time On: Elapsed time: Operative: Clock No. Product/part : No.: Studied by: Date: Checked: of

DWG No. Quality

: :

Material:

Note: Sketch the workplace layout/set-up/part on the reverse, or on a separate sheet and attach. Element description R WR ST BT Element description R WR ST BT

Note: R = Rating

WR = Watch reading

ST = Subtracted time

BT = Basic time

Time Study Top Sheet

Study No.: Element description

Time study continuation sheet R WR ST BT Element description

Sheet No. R WR

of ST BT

Note: Reverse side is similar, but is without heading line

PRODUCTION PLANNING AND CONTROL

For efficient, effective and economical operation in a manufacturing unit of an organization, it is essential to integrate the production planning and control system. Production planning is required for scheduling, dispatch, inspection, quality management, inventory management, supply management and equipment management.

MRS. SABITA SINGH (Asst. Professor- MBA)

Planning and control is an essential ingredient for success of an operation unit. The benefits of production planning and control are as follows:

It ensures that optimum utilization of production capacity is achieved, by proper scheduling of the machine items which reduces the idle time as well as over use.

It ensures that inventory levels are maintained at optimum levels at all time, i.e. there is no over-stocking or under-stocking.

It also ensures that production time is kept at optimum level and thereby increasing the turnover time. Since it overlooks all aspects of production, quality of final product is always maintained.

Objectives of Production Planning and Control 1. Continuous Flow of Production: It tries to achieve as smooth and continuous production by eliminating all sorts of bottlenecks in the process of production (through routing and scheduling) . 2. Planned Requirements of Resources: It ensure the availability of all the inputs i.e. materials, machines, tools, equipment and manpower in the required quantity, of the required quality and at the required time so that desired targets of production may be achieved. 3. Optimum Inventory: It aims at consistent and continuous flow of production. 4. Increased Productivity: It is achieved by optimizing the use of resources and eliminating wastage . 5. Customer Satisfaction: It also aims at satisfying customers requirements by producing the items as per the specifications or desires of the customers. 6. Evaluation of Performance: The process of production planning and control is expected to keep a constant check on operations by judging the performance of various individuals and take corrective measures if there is any deviation between planned and actual operations.

PRODUCTION PLANNING:
Production planning means prepares a detailed plan for achieving the production goals economically, efficiently and in time. It forecasts the problems, which may arise in the production process. It tries to remove these problems. It also tries to remove the causes of wastage.

"Production Planning is concerned with the determination, acquisition and arrangement of all facilities necessary for future operations."

Objectives and functions of Production Planning

The need, main functions or objectives of production planning are as follows: 1. Effective utilization of resources Production planning results in effective utilization of resources, plant capacity and equipments. This results in low-cost and high returns for the organization. 2. Steady flow of production MRS. SABITA SINGH (Asst. Professor- MBA)

Production planning ensures a regular and steady flow of production. Here, all the machines are put to maximum use. This results in a regular production, which helps to give a routine supply to customers. 3. Estimate the resources Production planning helps to estimate the resources like men, materials, etc. The estimate is made based on sales forecast. So production is planned to meet sales requirements. 4. Ensures optimum inventory It prevents over-stocking and under-stocking. Necessary stocks are maintained. Stock of finished goods is also maintained to meet regular demands from customers. 5. Co-ordinates activities of departments Production planning helps to co-ordinate the activities of different departments. For e.g. the marketing department co-ordinates with production department to sell the goods. 6. Minimize wastage of raw materials It ensures proper inventory of raw materials and materials handling. So proper production planning and control results in minimum wastage. 7. Improves the labour productivity Production planning improves the labour productivity. Here, there is maximum utilization of manpower. Training is provided to the workers. Workers are motivated to perform their best. 8. Helps to capture the market Production planning helps to give delivery of goods to customers in time. This is because of regular flow of quality production. So the company can face competition effectively, and it can capture the market. 9. Provides a better work environment Workers get improved working conditions, proper working hours, leave and holidays, increased wages and other incentives. This is because the company is working very efficiently. 10. Facilitates quality improvement Quality consciousness is developed among the employees through training, suggestion schemes, quality circles, etc. 11. Reduces the production costs Production planning makes optimum utilization of resources, and it minimizes wastage. It also maintains optimum size of inventories. All this reduces the production costs

PRODUCTION CONTROL Production control looks to utilize different type of control techniques to achieve optimum performance out of the production system as to achieve overall production planning targets. Objectives of production control are as follows:

Regulate inventory management Organize the production schedules Optimum utilization of resources and production process

The advantages of production control are as follows: MRS. SABITA SINGH (Asst. Professor- MBA)

Ensure a smooth flow of all production processes Ensure production cost savings thereby improving the bottom line Control wastage of resources It maintains standard of quality through the production life cycle.

Production control cannot be same across all the organization. Production control is dependent upon the following factors:

Nature of production ( job oriented, service oriented, etc.) Nature of operation Size of operation

Production planning and control are essential for customer delight and overall success of an organization.

STEPS IN PRODUCTION PLANNING & CONTROL 1. Routing i.e. determination of the manufacturing path. 2. Scheduling i.e. establishing time for starting & finishing each operation or job. 3. Despatching i.e. issue of orders. 4. Follow-up i.e. ensuring that work proceeds according to plans & there is no variation. This means to ensure smooth flow of work.

Routing
Routing is one important step in production planning & control. Production planning starts with routing. It decides the path of work & the sequence of operations. In short, routing determines What, How much, with which, How and Where to produce. Routing includes the following activities: a. Determining the quality of the product to be manufactured; b. Determining the men, machines & materials to be used; c. Determining the types, number & sequence of manufacturing operations; & d. Determining the place of production.

Routing has the following objectives: 1. It determines the sequence of manufacturing operations. 2. It ensures the strict adherence to the sequence so determined. 3. It strives for the best possible & cheapest sequence of operations. 4. It influences the design & layout of the factory building with a view to get quick & better production results. 5. It also influences the installation of plants & factory for better results. Advantages of routing: 1. Well check division of labour. 2. Production of goods according to schedule. 3. Maximization of productivity. 4. Interruption free production. MRS. SABITA SINGH (Asst. Professor- MBA)

5. Reduction in cost of production. 6. Optimum use of all factors of production. 7. Scientific layout of the plant.

Scheduling
Scheduling is next to routing . Scheduling means to: Fix the amount of work to do. Arrange the different manufacturing operations in order of priority. Fix the starting and completing, date and time, for each operation.

It is like a timetable of the production plan. Uses / Essentials of scheduling: 1. Scheduling is certainly a necessity in a large setup which produces a variety of products with numerous components. The time within which products must be manufactured forms an important element in production control. 2. Scheduling also determines the total time required to perform a given piece of work or assembly. 3. Time & motion study helps standardization of methods of work after a careful analysis of all the vital factors surrounding the manufacturing processes.

Techniques of scheduling
1. Gantt chart 2. PERT 3. CPM

1. Gantt Chart :
A Gantt chart is a horizontal bar or line chart which will commonly include the following features:

Activities identified on the left hand side; Time scale is drawn on the top (or bottom) of the chart; A horizontal a line is drawn against each activity indicating estimated duration; Dependencies between activities are shown; At a review point the blocks are shaded to represent the actual time spent (an alternative is to represent actual and estimated by 2 separate lines);

A vertical cursor (such as a transparent ruler) placed at the review point makes it possible to establish activities which are behind or ahead of schedule.

Activity A B C D E

Time 3 5 4 4 2

Predecessor A B B,C

MRS. SABITA SINGH (Asst. Professor- MBA)

F G H I J K

3 4 6 2 3 7

D,E D,E F G G H,I,J

Time 0 / / / / 5 / / / / 10 / / / / 15 / / / / 20 / / / / 25 / / / / 30 / / / / 35 Activity
A B C D E F G H I J Slack time K

Extra time which an activity can take

Critical activity Non critical activity (Which can be delayed)

2. CPM (Critical Path Method) Network analysis technique used in complex project plans with a large number of activities. CPM diagrams consist of (1) all activities, (2) time required for their completion, (3) and how each activity is related to the previous and next activity. A sequence of activities is called a 'path,' and the longest-path in the diagram is the critical path. It is 'critical' because all activities on it must be completed in the designated time, otherwise the whole project will be delayed. Step 1. Identify the activities Step 2. Determine activity relationships (immediate predecessors of each activity) Step 3. Estimate activity completion times and costs Step 4. Construct an activity network Step 5. Execute a forward pass to determine earliest start and earliest finish times for each activity (by taking highest value)

MRS. SABITA SINGH (Asst. Professor- MBA)

Step 6. Execute a backward pass to determine latest start and latest finish times for each activity (by taking lowest value) Step 7. Find the activities with zero slack ;( i.e. activity having same value) these are critical activities and make up at least one critical path Step 8. Identify activity slack (length of time an activity can be delayed without delaying the project completion time) Step 9. Use information from Steps 5 - 8 to develop the activity schedule for the project. Step 10. Implement, monitor and control the project Example:- The example project involves the marketing of a new product. There are eleven activities.
ACTIVITY A B C D E F G H I J K TITLE Identify market need Conduct R&D Design Packaging Select production site Conduct product test Install production process Perform market analysis Production start up Make modifications Market test Market product IMMEDIATE PREDECESSOR A A B B D,E D,E D,E C,G I,F ACTIVITY TIME 15 20 25 10 15 20 10 30 15 10 20

25

60

15

55

C 25 A15
0

2
D10

35

G20

5
H30

J10

1
B20

4
I15
35

7
K20

70

70

E15

3
F20
20
20

6
50
50

Critical path

Critical path = 1,3,4,6 = 7 20+15+15+20= 70

MRS. SABITA SINGH (Asst. Professor- MBA)

3. PERT(Program Evaluation Review Technique)

A PERT chart is a project management tool used to schedule, organize, and coordinate tasks within a project. PERT stands for Program Evaluation Review Technique, a methodology developed by the U.S. Navy in the 1950s to manage the Polaris submarine missile program. This method use three estimate for an act (1) Optimistic time (a): This is the situation in which every activity look positive and every activities are completed on time. (2) Pessimistic time (b): This is the situation in which every activity look difficult and cannot be completed on time. (3) Most likely Time (m): This situation is not so positive or negative. It has equal probability to complete the project on time.
Example: - Project duration is 15 weeks and Due date is 16 weeks .what is the probability that the project will be completed on due date.
IMMEDIATE ACTIVITY PREDECES SORS A B C D E F G H I J A A A B D C,E F G H,I OPTIMISTIC TIME (a) 1 57 3 5 5 37 9 3 4 10 MOST LIKELY TIME (m) 2 58 4 15 6 39 10 7 5 12 PESSIMISTIC TIME (b) 9 71 11 25 7 47 11 11 12 14 EXPECTED TIME 3 60 5 15 6 40 10 7 6 12

VARIANCE

1.78 5.44 1.78 11.11 0.11 2.78 0.11 1.78 1.78 0.44

The Expected Time for an activity is its weighted average. The formula is: Expected Time = (Optimistic (a) + 4*Most Likely (m) + Pessimistic(b)) / 6 The expected time for Activity A is: Expected TimeA = (1 + 4*2 + 9) / 6 = 3

To compute the variance, we use the formula: Variance = [ ( Pessimistic - Optimistic) / 6 ] 2 VarianceA = [ (9 - 1 ) / 6 ]2 = 1.78

Assumption :- A, B, E, G, I and J are critical activities. Therefore project variance is sum of all critical path 1.78 + 5.44 + 0.11 +0.11 + 1.78 + 0.44 = 9.66 Standard DeviationProject (p )= Square Root (9.67) = 3.1 or about 3 weeks MRS. SABITA SINGH (Asst. Professor- MBA)

Project duration = 15 week Due date = 16 weeks Z-score = (Due date- project duration)/p = (16-15)/3 = 0.33 Now 0.33 % of 16 week is 48.48% So probability to complete the project in 16 weeks is 51.51% (100-48.48).

The Major Differences and Similarities between PERT and CPM

Both CPM (critical Path Method) and PERT (Program Evaluation and Review Technique) provide the user with project management tools to plan, monitor, and update their project as it progresses. There are many similarities and differences between the two, however. Similarities between PERT and CPM

Both follow the same steps and use network diagrams. Both are used to plan the scheduling of individual activities that make up a project. They can be used to determine the earliest/latest start and finish times for each activity.

Differences between PERT and CPM

PERT is probabilistic whereas CPM is deterministic. In CPM, estimates of activity duration are based on historical data. In PERT, estimates are uncertain and we take of ranges of duration and the probability that an activity duration will fall into that range.

CPM concentrates on Time/Cost trade off.

Dispatching
Dispatching is based on the route sheets & schedule sheets. Dispatching provides the necessary authority to start the routed & schedule work. It is similar to putting oneself into the train after deciding the route of the particular train & the destination.

Functions of dispatching: 1. To ensure that the right materials are moved from stores to machines & from operation to operation. 2. To distribute machine loading & schedule charts, route sheets, operation instruction cards & identification tags for each works order. 3. To instruct tools department to issue the right tools, accessories & fixtures in time. 4. To authorize the work to be taken in hand as per the predetermined dates & time. 5. To direct inspection at various stages of production for inspection report. 6. To maintain proper report of the various subsidiary orders issued with each production order, for filing & MRS. SABITA SINGH (Asst. Professor- MBA)

reference. 7. To inform the follow-up section that production is starting.

Follow-up
This is the last function of production control. Once production commences it is necessary to check that it is proceeding according to plan. Before dispatching new orders to the manufacturing department the progress of outstanding orders must be known. There are certain factors over which the manufacturing department has no control & hence follow-up is necessary. The most important factors causing disturbances in production schedule are: excessive labour, absenteeism, machine breakdown, errors in drawings, strikes, late delivery of materials etc. The function of follow-up is to maintain proper records of work, delays & bottleneck. Such records can be used in future to control production. Follow-up Documents: Follow-up documents are prepared with the objective to identify the products. They also help to check completion dates with due dates. 1. Labels with part numbers. 2. Order numbers mentioned on the article. 3. Number of products or batches of products. 4. Daily progress sheets showing the position of every order in process. 5. Reports showing orders behind schedule.

Relationship between Production Planning and Production Control

Parameter Production planning production control

Meaning

Production planning is concerned with The production control function involves the determination, acquisition and the co-ordination and integration of the of production for optimum efficiency.

arrangement of all facilities necessary for factors future operations.

Goals

Production planning fixes the goals for Production control achieves these goals. production.

Course of action

Production-planning strategies, etc.

fixes

the

plans, Production control puts these plans, strategies, so on; into action, i.e. it implements the plans, strategies, etc.

Work performed

Production planning decides who should Production control ensures that each do the work and when. department complete its work on schedule.

Operations

Production operations production.

planning which are

decides required

the Production

control

regulates

and

for supervises the operations required for production.

MRS. SABITA SINGH (Asst. Professor- MBA)

Resources

Production

planning

estimates

the Production

control

makes

available

resources that are required for production. resources that are required for production.

Directions

Production planning shows the directions. Production directions.

control

follows

these

Weaknesses

Production-planning makes modifications Production control collects information (changes) in the production plans to about the production process. It finds out remove the weakness in the production the weaknesses in the production process process. and informs the production planners about it.

Conclusion
The process of production planning and control is a continuous one. Since, control starts where planning ends and planning starts where control ends.

What is Master Production Schedule or MPS?

A Master Production Schedule or MPS is the plan that a company has developed for production, inventory, staffing, etc. It sets the quantity of each end item to be completed in each week of a short-range planning horizon. A Master Production Schedule is the master of all schedules. It is a plan for future production of end items. MPS INPUTS: Forecast Demand Production Costs Inventory Costs Customer Orders Inventory Levels Supply Lot Size Production Lead Time Capacity MPS OUTPUT (production plan): Amounts to be Produced Staffing Levels Quantity Available to Promise Projected Available Balance

The Master Production Schedule gives production, planning, purchasing, and top management the information needed to plan and control the manufacturing operation.

MRS. SABITA SINGH (Asst. Professor- MBA)