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  1. Definition of Industrial Engineering They find the most efficient and effective ways to make things.
  2. What is Industrial Engineering?  Electrical Engineering – to engineer an electrical product or system.  Computer Engineering – to engineer a computer or a system of networked computers.  Industrial Engineering?  To engineer an industry?? No.  To engineer an industrial product or system (efficiently and effectively): for manufactured goods or services, originally  To engineer a product or system for industry, the military, government, education, etc.  Efficiency and Quality Engineering!!
  3. Plant location  Every entrepreneur is faced with the problem of deciding the best site for location of his plant or factory.  What is plant location? Plant location refers to the choice of region and the selection of a particular site for setting up a business or factory.  But the choice is made only after considering cost and benefits of different alternative sites. It is a strategic decision that cannot be changed once taken. If at all changed only at considerable loss, the location should be selected as per its own requirements and circumstances. Each individual plant is a case in itself. Businessman should try to make an attempt for optimum or ideal location.
  4. What is an ideal location  What is an ideal location? An ideal location is one where the cost of the product is kept to minimum, with a large market share, the least risk and the maximum social gain. It is the place of maximum net advantage or which gives lowest unit cost of production and distribution. For achieving this objective, small-scale entrepreneur can make use of locational analysis for this purpose.
  5. Manufacturing and service companies make location decisions based on many criteria. Following are the factors that should be considered for location of an industry or service unit : 1) Primary Factors : a) Nearness to customers b) Near raw materials c) Supply of capital d) Logistic facilities and infrastructure e) Skilled labour availability f) Power supply g) Business climate 2) Secondary Factors : a) Host community and political factors b) Natural factors c) Historical factors d) Initial start and living conditions e) Personal factors f) Government policies g) Environmental considerations h) International factors
  6. Primary factors  (a) Nearness to Customers: Nearness to customer helps a plant to incorporate customer needs into the products being made in the unit. Finished goods to customers can reach faster and in less cost. There is less chance of breakage or damage during transportation.  (b) Nearness to raw materials: Cost of raw material input is a large cost in case of manufactured goods. The time & cost of transporting raw material is less if the plant is located near the source of raw material. For example, thermal power plants are located near to the coal mines.  (c ) Supply of capital: Short term and long term funds are required for any manufacturing or service industry. A company decides to locate its plant in such a location
  7. Primary Factors  (d) Logistic facilities and Infrastructure: Adequate roads, rail, phone, postal and transportation facilities are to be considered while deciding on the location of plant and service facilities.  (e ) Skilled labour Supply: Regular supply of skilled labour is one of the major factors to be considered while deciding on the plant or service location. Example: Software companies are located in Bangalore, Hyderabad and New Delhi.  (f) Power Supply: This is a very critical factor to be analyzed. Uninterrupted power supply with proper voltage is one of the prerequisites of plant location decision.  (g) Business Climate: Companies must find a positive business climate or environment in the area, state or a country to set-up manufacturing or service facility there.
  8. Secondary Factors  (a) Host community and political factors: The community near the industry proposed location should be willing to welcome the new industry. Local people should feel that there will be improvement in their quality of life due to the new industry  (b) Natural Factor: Land, water, climate condition, sources of material attract and help some industries Example: Tea industry, cotton industry, coffee industry, coconut oil industry etc.  (c) Historical factors: Capitals of old kingdoms of yesteryears, large religious places sometimes attract companies to set up their plants.  (d) Initial start and living conditions: Some industries were started earlier in certain places during the British era in its early stages. The industries since then have developed making good living conditions. The related industries start
  9. Secondary Factors  (e) Personal factors: The history of the entrepreneuring company or family or personal considerations play a key role in location decision.  (f) Government policies: Government play their own role in the location decision of new industries. The Government of India and the state governments have made special efforts in making industries grow and made manufacturing and service units all over India with a view to have a balanced developmental spread all over the country and the region.  (g) Environmental considerations: Environmental issues for certain industries for a particular location are to be checked before deciding on location.  (h) International factors: For companies deciding to go overseas for locating a unit for manufacturing or service must consider behavioral aspects, cultural differences,
  10. Selection of Site Urban or City area. Rural area. Suburban area.
  11. Advantages of Urban area  Good transport facilities are available for the movement of raw-materials and finished products by rail and road and at times, by water and air.  Good and prompt postal and communication services are available.  Banking and credit facilities available.  Services of insurance companies are available in city areas.  Sufficient storing facilities including cold-storage , are available.  Ample availability of skilled and unskilled workers.  Advantages of vicinity of the market for the product. Due to large population,
  12.  The local demand for the product is fairly high.  Facility of the ancillary and services units, which develop around the  industrial strip of the city area.  Sufficient passenger transport facilities by road and railways are available to employees.  Development of the training institutes for workers and management institutes for executives put the city area units into privileged position.  Educational, medical and recreational institutes increase the amenities of lives in the city area .  Certain specific municipal services facilities are available only in the city areas, like water supply, drainage, fire fighting facilities, sufficient police protection etc.
  13. Disadvantages of Urban or City Area  The cost of land is very high as compared to rural areas  Even at high cost, sufficient land is not available, which puts constraints on the arrangement of plants and machines. Sometimes multi-story buildings are used which are not suitable for the installation of heavy  plant and machines  Due to high standard of living in city area, the cost of labour is relatively high  Due to possibilities of changing jobs from one unit to another, and tendency of competitors to snatch away the good employees, the rate of labour turnover is very high in city area
  14.  The trade union movement is very strong in city area. Militant trade unionists disturb the amicable industrial relations, which gives rise to strikes and lockouts  Various types of taxes is levied in city areas. The rates of taxes are relative high. Eg. Octroi is a typical tax of the city area which is not levied in rural areas.  Certain municipal restrictions put constraints and involve extra cost due to height of the building, disposal of waters, treatment of affluent water , elimination of air pollution caused by smoke etc.  The industrialization in the city areas gives birth to slums and dirty residence which creates the typical problems of sanitation and health.
  15. Advantages of Rural area  As compared to the city area, the land is available at cheaper rates.  Large plots of the land area available which can be developed for a factory sites, office buildings and residential quarters. Horizontal arrangement of plant machines in the vast areas of land is possible.  Due to lower standard of living, the rates of labour are relatively lower.  As compared to the city area, the labour force is more or less stable which reduces the rate of labour turnover. The industrial relations between labour and management are relatively amicable.
  16.  The local taxes which are found in the city areas are practically nonexistent in rural areas.  The municipal restrictions which are found in city areas do not exist in rural areas. E.g. height of buildings.  Slumps and dirty residence are not found in rural areas. The rural areas is conducive to good health of workers.  Due to lack of congestion, there is danger of fire caused by surrounding units.
  17. Disadvantages of Rural Area  Transportation facilities are not available in good condition and sufficient quantities.  Banking and credit facilities are also not available. The indigenous money-lenders are charging exorbitantly for these services.  Absence of insurance facilities.  Storing and warehouse facilities are not available in rural areas.  Passenger transport facilities are not available, as are available in city area.  Like in city areas, the advantage of ancillary and service units is not available.
  18.  Such units are very far from the market place and this increases the cost of distribution of finished goods.  Sometimes the means of transport are not available.  It is not possible to tap the advantage of industrial training institutes or management development pragrammes which is possible in city areas.  It is generally not easy to get skilled workers in rural areas.  Municipal facilities like water supply, drainage, fire- fighting etc. are not available in rural areas.  There is absence of recreation facilities, good educational institutes, good and sufficient medical facilities.
  19. Advantages of Suburban Area  Land is available at a cheaper rate as compared to urban areas.  Adequate land is available for future expansion unit. The machines can be installed horizontally and still the provision for future expansion can be made.  Infrastructure facilities like road, water supply, drainage, banking, warehousing, insurance etc. are developed Government, municipal authorities or industrial associations.  As city area is nearest, the skilled and unskilled, both type of labour are available.
  20.  It is possible to tap the advantage of industrial training institutes, management development programmes, research institutes etc. which are available in nearby city area.  The nearby city area provides a substantial market for the products of the unit. This reduces the cost of marketing the finished products and other ancillary advantages of marketing are available.  Educational institutes, medical facilities and other recreational facilities are available in the suburban area itself as well as in the nearby city area.
  21. Location Models 1. Factor Rating Method 2. Point rating Method 3. Qualitative Factor Analysis
  22. Plant Layout and its Types
  23. “Plant layout ideally involves allocation of space and arrangement of equipment in such a manner that overall operating costs are minimized”. Layout?
  24. Objectives of Layout 1. Efficient utilization of available floor space 2. To ensure that work proceeds from one point to another point without any delay 3. Provide enough production capacity. 4. Reduce material handling costs 5. Reduce hazards to personnel 6. Utilize labor efficiently 7. Increase employee moral.
  25. Objectives of Layout….Cont.. 8. Reduce accidents 9. Provide for volume and product flexibility 10.Provide ease of supervision and control 11.Provide for employee safety and health 12.Allow ease of maintenance 13.Allow high machine or equipment utilization 14.Improve productivity
  26. PRINCIPLES OF PLANT LAYOUT  PRINCIPLE OF MINIMUM MOVEMENT :As far as possible materials and labour should be moved over minimum distances.  PRINCIPLE OF FLOW :The work areas should be arranged according to the sequence of operations so that there is continuous flow of materials without congestion. The layout should allow for easy movement of materials without interruption or delay.  PRINCIPLE OF SPACE All available cubic space should be effectively used both vertically and horizontally.  PRINCIPLE OF SAFETY There should be consideration for safety and convenience of workers. There should be built in provision for the safety and comfort.  PRINCIPLE OF FLEXIBILITY Layout should be designed in the manner that production facilities can easily be rearranged when it becomes necessary in future on account of expansion and technological advancement.  PRINCIPLE OF INTERDEPENDENCE Interdependent operations and processes should be located in close proximity to each other.  PRINCIPLE OF OVERALL INTEGRATION All the plant facilities and services should be fully integrated into a single operating unit so as to maximize efficiency and minimize costs of production.  PRINCIPLE OF MINIMUM INVESTMENT The layout should yield savings in fixed capital investment through optimum utilization of
  27. a. Product; b. Process; c. Fixed Position d. Combined Types of Layout
  28. Product layout(line Layout):  The materials move form one workstation to another sequentially without any backtracking or deviation.  Materials are fed into 1st machine and semi- finished goods travel automatically from machine to machine.  The output of one machine becoming input of the next. Eg: Food Processing Unit; Paper mill
  29. Product layout(line Layout): Eg: Paper mill
  30. Product layout(line Layout): Advantage Disadvantage 1.Low material handling cost 2.Continuous work 3.Optimum floor space 1.Initial cost is very high 2.Repetitive process
  31. Process (functional)layout:  In this type of layout machines of a similar type are arranged together at one place.  The work has to be allocated to each department in such a way that no machines are chosen to do as many different job as possible. Eg: Process oriented layout for an hospital
  32. Process (functional)layout: Eg: Process oriented layout for an hospital Surgery Radiology ER triage room ER Beds Pharmacy Emergency room admissions Billing/exit Laboratories Patient A - broken leg Patient B - erratic heart pacemaker
  33. Process layout: Advantage Disadvantage 1.Low capital 2.Overhead cost are relatively low. 3.Effective supervision 1.High material handling cost 2.Time lag is higher
  34. 1.Manufacturing Layout c. Fixed (position) layout:  Here, Major products being produced is fixed at one location.  All other facilities are brought and arranged around the work center. Eg: Ship building, Dam construction, flyover construction.
  35. c. Fixed (position) layout: Eg: Ship building, Dam & flyover construction.
  36. Fixed (position) layout: Advantage Disadvantage 1.Save cost, as customization is necessary 1.Lengthy production period, heavy investment cost 2.Several operations are carried out simultaniously.
  37. Combined layout:  In many manufacturing units, several products are produced in repeated numbers with no likelihood of continuous production, combined layout is followed. Eg: Soap industry, all inputs are almost manufactured in separate units viz glycerin, water treatment, fragrance etc.
  38. Combined layout: Eg: Soaps
  39. Line Balancing  Line: an assembly line composed of several work stations, at which specific operations are performed. To work effectively, with no work pile-ups between stations, the line must be balanced,  e.g. work must get through each workstation in roughly the same amount of time.
  40. Need for Line balancing  the main job in line balancing is to eliminate or reduce wip (work in process) at bottleneck operations.  keeps inventory costs low, resulting in higher net income  allows operator to work all day long giving an opportunity to earn more money and increases his/her work efficiency  keeps the prices low which turns into repeat sales  means better production planning
  41. Line Balancing LINE BALANCING (Process Organization) The Line Balancing is “ to design a smooth production flow by allotting processes to workers so as to allow each worker to complete the allotted workload within an even time ” LINE BALANCING (Process Organization) It is a system where you meet the production expectations and you can find the same amount of work in process in every operation at any point in the day.
  42. Classification of Production System  Continuous Production system  Intermittent production system  Project production system
  43. TYPES OF CONTINUOUSPRODUCTION SYSTEM  FLOW TYPE  Output cannot be segregated into different units  High degree of uniformity  Output cannot be measured directly  Example-power plant  MASS PRODUCTION  Straight line flow of materials  Output of one stge normally becomes input for another  Output visible in form of identical units  Standardised output produced in large quantities
  44. Types of intermittent production systems  1.BATCH PRODUCTION SYSTEM-  Variety of products are made in small quantities  Various products compete for share of machines  Outputs are aggregated in form of batches  Batches may comprise of similar or dissimilar outputs  2.JOB-ORDER PRODUCTION SYSTEM  Does not has its own standard product but accepts whatever customer orders come in  Output identifiable in terms of specific job order  Material flow is very
  45. PROJECT PRODUCTION SYSTEM Project is a temporary endeavour having a defined beginning and end ;undertaken to meet unique goals and objectives Project is non repetitive This type of production system uses resources on different projects Product remains fixed and manpower and facilities put work on it
  46. Materials Handling
  47. Materials handling is the art and science of moving, packing and storing of substances in any form. Materials Handling
  48.  Function of production control  Concerned with scheduling of production control  Material Handling adds value to product cost  Material Handling increases effectiveness of in plant layout by reducing the cost Importance of Material Handling
  49.  To Lowers unit materials handling cost  To reduce manufacturing cycle time  To provide better control of the flow of materials  To provide better working conditions  To provide Contribution for better quality by avoiding damages to products  To Increase storage capacity  To provide higher productivity at lower manufacturing costs Objectives of Materials Handling
  50.  Material should be moved as little as possible  Reduction in time by using shortest routers and mechanical material handling equipment  The material movement should be in lots rather than in individual units  Design of material handling equipment should be such that it can increase the effectiveness  Gravity should be used  Rehandling and back tracking of materials should be avoided  Periodically Repairing ,Maintaince & Checkup of existing material handling equipments Material Handling Principles
  51. Production problem Human element involved Capabilities of the handling equipment available
  52. Production Problem Volume of Production to be maintained Layout of plant & building facilities Class of materials to be handled
  53. Equipment s Factors Adaptability Speed Space requirements Supervision required Environment Cost Ease of Maintaince Power Load capacity Flexibility
  54. Human Factors Capabilities of manpower Safety of Personnel
  55. 1. Equipments oriented systems :- a) Convey or Systems b) Tractor transfer system c) Fork lift truck d) Industrial truck system e) Underground system 2. Material Oriented Systems a) Unit handling system b) Bulk handling system c) Liquid handling system Types of Material Handling Systems
  56. 3. Methods oriented system a) Manual systems b) Automated systems c) Job shop handling system d) Mass production system 4. Function oriented system a) Transportation systems b) Conveying systems c) Transferring systems d) Elevating systems
  57. 1. Conveyers 2. Cranes, Elevators and Hoists 3. Industrial Trucks 4. Auxiliary Equipments Types of Materials Handling Equipment
  58. 1. Conveyors-  Gravity or powered devices  Used for moving loads from one point to point over fixed paths.
  59. Belt Conveyor-Motor driven belt usually made of metal fabric
  60. Chain Conveyor-Motor driven chain that drags material along a metal side base.
  61. Roller Conveyor- Boxes , large parts or units loads roll on top of a series of rollers mounted on a rigid frame.
  62. High volume of air flows through a tube carrying materials along with air flow.
  63. These are overhead devices used for moving varying loads intermittently between points within an area. 2. Cranes, Elevators and Hoists
  64. Cranes –Devices mounted on overheard rail or ground wheels or rails .They lift, swing and transport large and heavy materials
  65. Elevators –Types of cranes that lift materials –usually between floors or buildings
  66. Hoists- Move vertically or horizontally. May be air hoist , electric hoist, chain hoist
  67. 3. Industrial Trucks- May be electric, deisal, gasoline or gas powered Fort lift Truck Pallet truck-
  68. Devices or attachments used with handling equipments to make their use more effective and versatile Auxiliary Equipments
  69. Skid boxes
  70. Expendable pallet