IE Lab Manual Final 2019 PDF
IE Lab Manual Final 2019 PDF
IE Lab Manual Final 2019 PDF
Method-study concerned with “the way in which work is done (i.e., method)”. It is used to simplify
the way to accomplish a work and to improve the method of production. Method- study results in
a more effective use of material, plant, equipment and manpower. Method study is the process of
subjecting work to systematic, critical scrutiny to make it more effective and/or more efficient.
The basic approach to method study consists of the following eight steps. The detailed
procedure for conducting the method study is shown in Fig.
2. RECORD the relevant facts about the job by direct observation and collect such
additional data as may be needed from appropriate sources.
3. EXAMINE the way the job is being performed and challenge its purpose, place
sequence and method of performance.
4. DEVELOP the most practical, economic and effective method, drawing on the
contributions of those concerned.
5. EVALUATE different alternatives to developing a new improved method
comparing the cost-effectiveness of the selected new method with the current method with the
current method of performance.
6. DEFINE the new method, as a result, in a clear manner and present it to those
concerned, i.e., management, supervisors and workers.
7. INSTALL the new method as a standard practice and train the persons involved in
applying it.
8. MAINTAIN the new method and introduce control procedures to prevent a drifting
back to the previous method of work.
Sr.
Events Symbols Descriptions
NO
1 Operation Operation represent an action, it is a step in the procedure. An
operation involves a change in the location or condition of a
product. Example: Cutting a bar on power hacksaw.
2 Storage Storage represent a stage when a finish good or a raw material
awaits an action or an item has been retain for quite some time.
Example: milling cutter lying in tool store.
3 Delay or Delay occurs when something stop the process and product waits
Temporary for the next events. Example: power failure.
storage
4 Transport Transport indicates a movement of an item from one location to
another. The item may be material, manpower, equipment,
machinery, etc.
5 Inspection Inspection is an act of checking for correction of the quantity or
the quality of the item.
CHARTS
This is the most popular method of recording the facts. The activities comprising the jobs are
recorded method study using symbols. A great care is to be taken in preparing charts so that
the information it shows is easily understood and recognized. The following information should
be given in the charts:
Date: Operation
Activity: Transportation
Inspection
Method: Present/Proposed
Delay
Storage
Location: Time:
Operator(s): Clock No.: Distance:
Total
Aim- Hands on assignment on application of Work Measurement
Techniques
According to British Standard Institute time study has been defined as techniques designed to
establish the time for a qualified worker to carry out a specified job at a defined level of
performance.”
4. Realistic costing.
1. Repetitive work: The type of work in which the main operation or group of operations repeat
continuously during the time spent at the job. These apply to work cycles of extremely short
duration.
2. Non-repetitive work: It includes some type of maintenance and construction work, where
the work cycle itself is hardly ever repeated identically.
2. Synthesis,
3. Work sampling,
5. Analytical estimating.
2. Obtain and record all the information available about the job, the operator and the working
conditions likely to affect the time study work.
3. Breakdown the operation into elements. An element is a instinct part of a specified activity
composed of one or more fundamental motions selected for convenience of observation and
timing.
4. Measure the time by means of a stop watch taken by the operator to perform each element
of the operation. Either continuous method or snap back method of timing could be used.
5. At the same time, assess the operator’s effective speed of work relative to the observer
concept of ‘normal’ speed. This is called performance rating.
6. Adjust the observed time by rating factor to obtain normal time for each element
7. Add the suitable allowances to compensate for fatigue, personal needs, contingencies.etc. to
give standard time for each element.
8. Compute allowed time for the entire job by adding elemental standard times considering
frequency of occurrence of each element.
9. Make a detailed job description describing the method for which the standard time is
established.
10. Test and review standards wherever necessary. The basic steps in time study are
represented by a block diagram in Fig.No.1
Figure 1: Steps in time study
Stop watch: Stop watch is measuring instrument (Fig.No.2) to observe the elemental
timings and usually a decimal watch is used.
SHEET NO.
OPERATION:
CLOCK NO.
PLANT/MACHINE: DATE:
O.T.=Observed Time
R=Rating,
B.T.=Basic Time
STD.TIME= Basic Time + Allowances
(Basic Time= Observed Time x Rating Factor)
Aim-Assignment on industrial safety audit of selected work environment
Inspectors: Date:
(O)Satisfactory
(X) Requires Action
Remark
1 Training
b
Do all workers know the plan?
c
Are drills held regularly?
b
Are light fixtures in good condition?
c
Are all work areas clean and free of debris?
g
Are floors free of oil spillage or leakage?
a
Are all machine parts adequately guarded?
b
Do machine guards meet standards?
b
Are all machines properly grounded?
a
Are regular noise surveys conducted?
19 Employee Facilities
a
Are facilities kept clean and sanitary?
b
Are facilities in good repair?
c
Is the PPE reliable?
Is PPE used only when it is not reasonably
practicable to eliminate or control the
d
hazardous substance or process by other
means?
e Are the areas requiring PPE usage properly
identified by warning signs?
22 Materials Handling and Storage
c
Are storage areas free from tipping hazards?
Economic Order Quantity is the level of inventory that minimizes the total inventory holding
costs and ordering costs. It is one of the oldest classical production scheduling models.
Economic order quantity refers to that number (quantity) ordered in a single purchase
so that the accumulated costs of ordering and carrying costs are at the minimum level.
In other words, the quantity that is ordered at one time should be so, which will
minimize the total of. Cost of placing orders and receiving the goods, and Cost of
storing the goods as well as interest on the capital invested.
Definitions
1. Economic Order Quantity (EOQ) is the order quantity that minimizes total inventory
costs.
2. Order Quantity is the number of units added to inventory each time an order is placed.
3. Total Inventory Costs is the sum of inventory acquisition cost, ordering cost, and holding
cost.
4. Ordering Cost is the cost incurred in ordering inventory from suppliers excluding the cost
of purchase such as delivery costs and order processing costs.
5. Holding Cost, also known as carrying cost, is the total cost of holding inventory such as
warehousing cost and obsolescence cost.
Limitations
Q A company makes bicycles. It produces 450 bicycles a month. It buys the tires for bicycles
from a supplier at a cost of $20 per tire. The company’s inventory carrying cost is estimated to
be 15% of cost and the ordering is $50 per order.
D = annual demand = (2 tires per bicycle) x (450 bicycles per month) x (12 months in a year) =
10,800 tires
S = ordering cost = $50 per order H = carrying cost = (15%) x ($20 per unit) = $ 3.00 per unit
per year EOQ = Square root of { (2 x 10,800 x $50) / $3 = Square root of 400,000 = 600 tires
The company should order about 600 tires each time it places an order.
2 What is the number of orders per year? Number of orders per year = D / Q = 10,800 / 600 =
18 orders per year
3. Compute the average annual ordering cost.
Average annual ordering cost = (18 orders per year) x ($50 per order) = $900 per year
Average annual carrying cost = (average inventory) x (H) = (300 tires) x ( $3) = $900 per year
Total cost = (Average annual ordering cost) + (average annual carrying) = ($900) + ($900) =
$1,800
Pizza hut purchases its boxes from printing supplier it delivers on an average 200 pizzas each
month boxes cost Rs 20 each and each order cost Rs 100 to process because of limited storage
space manager wants to charge inventory holding at 30% of cost. Lead time to get the boxes
once they are delivered is 7 days. Pizza hut is open 360 days per year. To make the math easier
assume 30 days in each month.
250.00
200.00
150.00
100.00
50.00
0.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Capacity is the maximum output rate or production or of a production service facility, capacity
planning is the process of establishing the output rate that may be needed of a facility. And how
you will identify or how you will find out what is the output rate which is needed at the facility
this is based on the demand for which we are doing the production capacity is usually
purchased. In order to add additional design additional types of machines which can help us to
improve or increase the demand of our product in the market tactical issues are also involved
such as work force and inventory levels and day to day use of equipment. So, tactical issues
may be as written there that workforce level and inventory levels and day to day use of
equipment also are important when we are doing the capacity planning.
Three 100,000 units-per-year machines are available for small bottle production.2 operators
are required per machine
Two 120,000 units-per-year machines are available for family-sized bottle production.3
operators are required per machine.
How much capacity is used and what are the machine and labour requirement?
Solution:
We are having 3 machines available with us with the capacity of 100,000 each. So 3, 00,00 is
the overall capacity for making small sized bottles and demand is less than 150,000
Conclusion
So, if we see that most of the time our capacity percentage capacity used is less or
approximately equal to the maximum utilization 80 and 83 percentage here because the
demand is maximum 240 and 200 here in the 4th year. So, prior to that for the first 3 years we
are not able to utilize the capacity available with us and therefore, we can just use some creative
thinking your innovative thinking to find out other uses other usage of this capacity that is
available with us.
Poona bakery makes 148,000 rolls every week and operated 7 day/week .Determine the
design capacity, utilization, efficiency and expected output
Solution:
Actual production last week = 148,000 rolls
Effective capacity = 175,000 rolls
Design capacity = 1,200 rolls per hour
Bakery operates 7 days/week, 3 - 8 hour shifts
Efficiency = 84.6%
scheduling model
Software:-Promodel
Location
Locations are fixed places in the system such as machines, queues, storage areas, workstations
or tanks to which parts or entities are routed for processing, storage or simply to make some
decision about further routing. Locations may be either single unit locations (a single machine)
or multiunit locations (a group of similar machines performing the same operation in parallel).
Entities
Entities or parts refer to the items being processed in the system. These may include raw
materials, piece parts, assemblies, loads, WIP, finished products, orders, or any other type of
product that may need to be tracked as it moves through the system.
Path Networks
Path networks are optional and define the possible paths that entities and resources may travel
when moving through the system. Path networks consist of nodes connected by path segments
and are defined graphically with simple mouse clicks. Multiple path networks may be defined,
and one or more resources and/or entities may share the same network. Movement along a path
network may be defined in terms of distance and speed or by time
Resources
A resource may be a person, tool, vehicle or other object that may be used to:
• Transport material between routing locations,
• Perform an operation on material at a location,
• Perform maintenance on a location or other resource that is down.
Resources may be either static or assigned to a path network for dynamic movement. A
special type of dynamic resource is a crane. Built-in decision rules can be
Conclusion
It is difficult to schedule the sequence of flow of material manually. Simulation software plays
important role in this to schedule the flow without creating any bottleneck. If number of types
of product get increased then complexity will increase in such situation simulation software
will play a important role.
Aim: Case study based assignment on cost-revenue
model analysis
Introduction
Break-Even Analysis –
Break-even point refers to the level of sales (sales volume) at which the sales income (revenues)
equal the total costs. It is the point at which the profit is zero .The quantities produced (sold)
above break-even point result in profit and quantity below break-even point result in losses.
The break-even point is reached when the fixed cost are completely recovered
F represents the fixed cost. At BEP, Total cost equal total income
Q is the quantity produced and sold. Therefore, Total cost = Total income
𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡+𝑝𝑟𝑜𝑓𝑖𝑡
Sales (units) =
𝑐𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛
Problem1: An analysis of the company reveals the following information
Solution:
𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡 𝐹 2000
(a) BEP (units) = = =
𝑐𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑏−𝑎 9−5
= 500 units
2000+400
= 9−5
= 600 units
The company should sell 600 units to earn the profit of Rs.400.
𝑆𝑎𝑙𝑒𝑠−𝑆𝑎𝑙𝑒𝑠 𝑎𝑡 𝐵𝐸𝑃
(c) Margin of safety = × 100
𝑆𝑎𝑙𝑒𝑠
750−500
= × 100
750
= 33.3 percent
=3000-2000=1000 Rs.
Aim: Case study of Supply chain management of DELL computers
Supply Chain Management is a business practice that has been employed in order to give an
effective service to customers and to make the business sustainable by considering all the
aspects from the suppliers to the consumers. Supply Chain integrates all these features such as
manufacturer, supplier, transport, wholesalers, retailers, customers and all other elements
which link the above. Its main objective is to fulfill customer demands by adding value to the
products and services..
DELL is a computer technology corporation that develops sells, repairs and supports,
computers and computer related products. DELL has realized that supply chain is becoming
more and more important for the success of today’s business world and they work accordingly
to keep a competitive advantage in the market.
Scope of the study:
Here in this study, the supply chain processes that are utilized by DELL will be taken into
consideration which is known to be one of the best in the world. DELL s supply chain will be
heavily analyzed in the areas of supply chain integration strategies and demand management
aspects.
Supply Chain of DELL:
DELL has a different business model than its competitors, which can be identified as “direct
model”. In this model DELL sells its PC s directly to customers without using a retail channel.
Therefore it creates a direct relationship with each individual customer which they have
segmented into groups to make it easier to approach.
Mainly there are three customer segments which can be illustrated as large organizations,
small and medium businesses, and personal consumers.
The other aspect that makes DELLs supply chain unique is the Build-to-order strategy.
According to this once the order is placed by the customer, all the configuration details are
sent to the manufacturing floor and then the assembly of the PC begins. Once the computer is
built and all the software’s are downloaded it will be shipped to the customer by using 3PL.
Because of these aspects DELL has the competitive advantage over others because of several
reasons. The level of inventory costs is really low since the case of faster responses to
demand changes. It is also visible that customer pays for an order before DELL pays its
suppliers for the products components.
Thus the most interesting part of DELL and its supply chain is relationship they maintain
between the customers which of course lays foundation for the existence of the business.
According to this value chain plays a vital role in their demand analysis which can’t be
considered as true as always since there are visible occasions when their share prices go down
drastically.
Conclusion
Even though it is said to be that their relationship is “DEEP” with customers in the Sri Lankan
context it’s quite visible that the service is not the greatest among all. In fact DELL is losing
its market share with the rising of other PC producers which is quite evident in recent share
prices of DELL.
Having a direct relationship with the customer is a good strategy but considering big customers
who are going to be retailers in that context can be a threat to this supply chain. Since somehow
it’s representing DELL and the customer service that is done by them can have an adverse
impact on them. Therefore rather than going for short term profits consideration of these aspects
would make them thrive in the industry.