Q1.

Transformation Processes

 Physical (manufacturing)
 Locational (transportation/
warehouse)
 Exchange (retail)
 Physiological (health care)
 Psychological (entertainment)
 Informational (communications)
Operations as a Transformation Process
INPUT
Material
OUTPUT
Machines TRANSFORMATION Goods
Labor PROCESS Services
Management
Capital

INPUT
Material
OUTPUT
Machines TRANSFORMATION Goods
Labor PROCESS Services
Management
Capital

Feedback
Operations as the Technical Core

Finance/Accounting
Production and Budgets
Inventory data Cost analysis
Capital budgeting requests Capital investments
Capacity expansion and Stockholder
Orders for materials Technology plans requirements Product/Service
Production and delivery Availability
Schedules Quality Lead-time estimates

Marketing
Suppliers

Requirements Design/ Status of order

Performance specs Delivery schedules

Operations
Material availability Sales forecasts
Quality data Customer orders
Delivery schedules Customer feedback
Designs Personnel needs Promotions
Hiring/firing
Skill sets
Training
Performance evaluations
Legal requirements
Job design/work
Union contract negotiations
measurement

Human Resources
Q3. Productivity
 Productivity is an index expressed as the ratio of the value of the output to the cost of the inputs.

Productivity index = Value of output

Cost of input

 Partial measure =

Output or Output or Output or Output

Labor Capital Material Energy

 Multifactor measure = Output______________

Labor + Capital + Energy

 Total measure = Goods and services produced

All resources used
Factors Affecting Productivity
Some of the principal factors affecting productivity are:

 Capital / labor ratio

 Scarcity of some resources

 Work force changes

 Innovation and technology

 Regulatory effects

 Bargaining effects

 Managerial factor

 Quality of work life

 Q 1 Basic Types of Layouts

1. Process Layout
- Machines grouped based on process they perform
2. Product Layout
- Linear arrangement of workstations to produce a specific product
3. Fixed Position Layout
- Used in projects where the product cannot be moved
1. Process Layout
Milling
Lathe Department Department Drilling Department
M M D D D D
L L

M M D D D D
L L

G G G P
L L

G G G P
L L
Grinding Painting Department
Department
L L
Receiving and A A A
Shipping Assembly
Advantages of Process Layout
1. In process layout machines are better utilized and fewer machines are
required.
2. Flexibility of equipment and personnel is possible in process layout.
3. Lower investment on account of comparatively less number of machines and
lower cost of general purpose machines.
4. Higher utilisation of production facilities.
5. A high degree of flexibility with regards to work distribution to machineries
and workers.
6. The diversity of tasks and variety of job makes the job challenging and
interesting.
7. Supervisors will become highly knowledgeable about the functions under
their department.
Limitations of Process Layout
1. Backtracking and long movements may occur in the handling of materials
thus, reducing material handling efficiency.
2. Material handling cannot be mechanised which adds to cost.
3. Process time is prolonged which reduce the inventory turnover and increases
the inprocess inventory.
4. Lowered productivity due to number of set-ups.
5. Throughput (time gap between in and out in the process) time is longer.
6. Space and capital are tied up by work-in-process
2. A Product Layout

In

Out
Advantages of Product Layout:
1. The flow of product will be smooth and logical in flow lines.
2. In-process inventory is less.
3. Throughput time is less.
4. Minimum material handling cost.
5. Simplified production, planning and control systems are possible.
6. Less space is occupied by work transit and for temporary storage.
7. Reduced material handling cost due to mechanised handling systems and
straight flow.
8. Perfect line balancing which eliminates bottlenecks and idle capacity
9. Manufacturing cycle is short due to uninterrupted flow of materials.
10. Small amount of work-in-process inventory.
11. Unskilled workers can learn and manage the production.
Limitations of Product Layout:

1. A breakdown of one machine in a product line may cause stoppages of

machines in the downstream of the line.
2. A change in product design may require major alterations in the layout.
3. The line output is decided by the bottleneck machine.
4. Comparatively high investment in equipments is required.
5. Lack of flexibility: A change in product may require the facility modification
3. Fixed-Position Layouts
 Typical of projects
 Equipment, workers, materials, other resources brought
to the site
 Highly skilled labor
 Typically high variable costs
 Eg: Ship building, Construction of Dams, Fly-overs, etc.
Advantages of Fixed-Position Layouts

• The major advantages of this type of layout are:

1. Helps in job enlargement and upgrades the skills of the operators.
2. The workers identify themselves with a product in which they take interest and
pride in doing the job.
3. Greater flexibility with this type of layout.
4. Layout capital investment is lower.
Q2 Qualitative Techniques: - which uses less analytical approach, and these types of techniques are frequently used for
larger range strategic planning and facilities decisions. Even though qualitative techniques are very popular, they have definite
accuracy limitations.

I) The historical estimate

2) Market surveys

3) The sales force estimate

4)Delphi

5) Nominal group technique

Quantitative techniques: - which uses more analysis time series analysis approach and are frequently used for operational
planning, such as in production and inventory control.

1) simple moving average/ weighted moving average.

2) Single exponential smoothening

3) Simple regression

4) Box Jenkins

5) Econometric
1. The historical estimate: - This is the common and old type of forecasting technique. It is based on the assumption that what has happened in the past
is the best indication of what will occur in the future. For example (a) Last year sales were 1000 units. This year also sales will be 1000 units. (b) Last year
Christmas sales started in November and this year also Christmas sales will start in November. The historical estimate is useful for situation where the
activities influenced by patterns of seasonality. The historical estimate provides a basis for the total sales forecast, but it should be modified by the other
techniques. The method is useful only for short periods of time.
2. The sales force estimate: This method depends upon the salesman's estimates for their respective areas, because the salesman, because the
salesman are close to the customers and thus can estimate more properly about the customer's reaction about the product and their future
requirement. All the estimates of salesman are consolidated by the district sales managers, who will analyse and make certain modifications and pass it
to factory sales manager. After further review and discussions by the sales executive find estimates for all products are obtained.
3. Market survey: When a Company desires to introduce a new product into the market, there will not be any past data available to make the estimates
or to develop the trend line. In such a case, market surveys are effectively used to determine the potential sales market research may be carried out
(vary informal), utilizing the sales force to 'feel the potential customers in order to establish the extent of the market. Another method, which is the
most commonly used; in this the product is introduced in a relatively small trial area carefully selected for the purpose. The total sales can the obtained
by projections the sales of the trial area. Example: If the total sales at the trial area for the period = Rs. 50000-00 & if the money spent by the consumers
of this area for this type of product = Rs. I 000000-00 Then, potential sales percentage for the product = 50000/1000000 = 5% If the total market for this
type of product averages to - I 000000 (crore) then the forecast of potential sales = 0.05 * I 00000 = Rs. 500000
4. Delphi: The Delphi technique is a group intended to achieve a consensus forecast: it is a qualitative forecasting technique in which a panel of experts
working separately and not meeting, arrive at a consensus through the summarizing of ideas by a skilled coordinator. The procedure works as follows. 1)
A coordinator poses a question, in writing, to which experts in a panel. Each expert writes a brief prediction. 2) The coordinator brings the written
predictions together, edits them, and summarises them. 3) On the basis of the summary, the coordinator writes a new set of questions and gives them
to the experts. These are answered in writing. 4) Again, the coordinator edits and summarises the answers, repeating the process until the coordinator is
satisfied with the overall prediction synthesized from the experts. The key to the Delphi technique lies in the coordinator and experts. An advantage of
this method is that direct interpersonal relations are avoided. Hence personalities do not conflict, nor can one strong willed member dominate the
group. Example: technological forecasting.
Q1 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. INSTALL
The new method as a standard practice

7. MAINTAIN
New method as agreed standards