Production and Productivity
Production and Productivity
Production and Productivity
UNIT-1
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Syllabus
Production system and Productivity:
History of Industrial Engineering,
Introduction, aim and generalized model of Production
systems, Types of production system,
Plant location,
Plant layout, objectives and types.
Productivity, various methods of productivity
measurement, Factors effecting productivity, Strategies
for improving productivity,
Industry 4.0.
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Industrial Engineering
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American Institute of Industrial Engineers (AIIE)
defines Industrial Engineering as follows:
• Industrial Engineering is concerned with the design,
improvement and installation of integrated system of
men, materials and equipment.
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• The prime objective of industrial engineering is to
increase the productivity by eliminating waste and
non-value adding (unproductive) operations and
improving the effective utilisation of resources.
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Historical development in Industrial
Engineering
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Pre-industrial Revolution Era
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Scientific Management Phase
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Operations Research and Quantitative
Phase
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Automation and Computer-integrated
Manufacturing Phase
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Factory of the Future
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Activities of Industrial Engineering
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5. Developing a cost control system such as budgetary
control, cost analysis and standard costing.
6. Development of time standards, costing and
performance standards.
7. Development and installation of job evaluation
systems.
8. Installation of wage incentive schemes.
9. Design and installation of value engineering and
analysis system.
10. Operation research including mathematical and
statistical analysis.
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11. Performance evaluation.
12. Organization Methods (O & M).
13. Project feasibility studies.
14. Supplier selection and evaluation.
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Objectives of Industrial Engineering
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Productivity
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• Productivity refers to the efficiency of the production
system.
• It is the concept that guides the management of
production system.
• It is an indicator of how well the factors of
production (Land, capital, labour and energy) are
utilised.
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European Productivity Agency (EPA) has defined
productivity as,
• Productivity is an attitude of mind.
• It is the mentality of progress, of the constant
improvements of that which exists.
• It is the certainity of being able to do better today
than yesterday and continuously.
• It is the constant adaptation of economic and social
life to changing conditions.
• It is the continual effort to apply new techniques and
methods.
• It is the faith in human progress. 19
Productivity as Viewed by Different People
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Definitions of Productivity
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Production & Productivity
• Production is defined as a process or procedure to
transform a set of input into output having the
desired utility and quality.
• Production is a value addition process.
• Production system is an organised process of
conversion of raw materials into useful finished
products.
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Productivity can be Increased
1. When production is increased without increase in
inputs.
2. The same production with decrease in inputs.
3. The rate of increase in output is more compared to
rate of increase in input.
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Example
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Solution
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Expectations from Productivity
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Productivity measures
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Advantages and Limitations of Productivity
Measures
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Example
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Solution
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Solution
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PRODUCTIVITY MEASUREMENT MODELS
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FACTORS INFLUENCING PRODUCTIVITY
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Controllable Factors (Internal Factors)
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3. Technology:
(i) Size and capacity of the plant
(ii) Timely supply and quality of inputs
(iii) Production planning and control
(iv) Repairs and maintenance
(v) Waste reduction
(vi) Efficient material handling systems
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4. Material and energy:
(i) Selection of quality material and right material
(ii) Control of wastage and scrap
(Hi) Effective stock control
(iv) Development of sources of supply
(v) Optimum energy utilisation and energy savings
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5. Human factors: Productivity is basically dependent
upon human competence and skill.
6. Work methods: Improving the ways in which the
work is done (methods) improves productivity.
7. Management style: This influences the
organisational design, communication in organisation,
policy and procedures.
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External Factors
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PRODUCTIVITY IMPROVEMENT TECHNIQUES
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Technology Based
1. Computer Aided Design (CAD), Computer Aided
Manufacturing (CAM), and Computer Integrated
Manufacturing System (CIMS)
2. Robotics
3. Laser technology
4. Modern maintenance techniques
5. Energy technology
6. Flexible manufacturing system (FMS)
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Employee Based
1. Financial and non-financial incentives at individual
and group level
2. Employee promotion.
3. Job design, job enlargement, job enrichment and job
rotation
4. Worker participation in decision-making
5. Quality circles (QC), Small Group Activities (SGA)
6. Personal Development
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Material Based
1. Material planning and control
2. Purchasing logistics
3. Material storage and retrieval
4. Source selection and procurement of quality material
5. Waste elimination
6. Material recycling and reuse
Process Based
1. Methods engineering and work simplification
2. Job design, job evaluation, job safety
3. Human factors engineering
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Product Based
1. Value analysis and value engineering
2. Product diversification
3. Standardisation and simplification
4. Reliability engineering
5. Product mix and promotion
Management Based
1. Management style
2. Communication in the organisation
3. Work culture
4. Motivation
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5. Promoting group activity
Production system
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Production system has the following characteristics:
1. Production is an organized activity, so every
production system has an objective.
2. The system transforms the various inputs (men,
material, machines, information, and energy) in to
useful outputs (Goods or Services.)
3. Production system does not operate in isolation from
the other organizational systems such as finance,
marketing etc.
4. There exists a feedback about the activities which is
essential to control and improve system performance.
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The production system (facility, equipments and
operating methods) that a company uses depends upon
the type of the product that is offered to the customer
and the strategy that it employs to serve its customers:
Basically, production systems can be categorized as:
1. Make to stock production
2. Make to order production
3. Assemble-to-order production system
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MAKE TO STOCK PRODUCTION
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Situations for Make to Stock Production are:
1. Fairly constant and predictable demand.
2. Products are few and they are standardized.
3. Shorter delivery time expected by the customers.
4. Products having higher shelf life.
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MAKE TO ORDER PRODUCTION
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Situations for make to order productions are:
1. Products are manufactured to customer
specifications.
2. Customer can wait till the order is being processed
(longer delivery schedule).
3. Product is non standard and expensive to store.
4. When there are several product options available to
store.
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ASSEMBLE-TO-ORDER PRODUCTION SYSTEM
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TYPES OF PRODUCTION SYSTEM
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Intermittent Production System
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• These products are of different sizes.
• The design of these products goes on changing.
• It keeps changing according to the design and size of
the product.
• Therefore, this system is very flexible.
Example
• The work of a goldsmith is purely based on the
frequency of his customer's orders.
• The goldsmith makes goods (ornaments) on a small-
scale basis as per his customer’s requirements.
• Here, ornaments are not done on a continuous basis.
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The types of intermittent production systems include:
• Project production flows,
• Jobbing production flows, and
• Batch production flows.
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Continuous Production System
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Advantages of Job Order Production
1. Because of general-purpose facilities, variety of
products can be processed.
2. Operators will become more skilled and competent
that each job gives them
learning opportunity.
3. Utilization of full potential of operators.
4. Opportunity to use innovate ideas and creative
methods.
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Limitations
1. Higher set up and tooling up cost due to frequent set
up changes.
2. High inventory level of raw material and in process
and hence higher inventory costs.
3. Production planning is complicated.
4. Highly competent and skilled manpower is
demanded.
5. Product cost comes to be high.
6. High cost of material handling and larger space
requirement.
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PROJECT INDUSTRIES
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INTERMITTENT (BATCH) PRODUCTION
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PROCESS INDUSTRIES (FLOW PRODUCTION
OR CONTINUOUS PROCESS PRODUCTION)
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MASS PRODUCTION
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Plant Location
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NEED FOR SELECTING A SUITABLE LOCATION
1. Competition
2. Cost
3. Indirect Benefits
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LOCATION FACTORS
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FACTORS THAT INFLUENCE THE SELECTION
OF PLANT LOCATION
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Factor Affecting Facilities Layout Planning
• Material
• Labour
• Material Handling
• Waiting Time
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OBJECTIVES OF PLANT LAYOUT
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PRINCIPLES OF PLANT LAYOUT
1. Principle of Integration
2. Principle of Minimum Distance
3. Principle of Cubic Space Utilization
4. Principle of Flow
5. Principle of Maximum Flexibility
6. Principle of Safety and Security and Satisfaction
7. Principle of Minimum Handling
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ADVANTAGES OF PLANT LAYOUT
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TYPES OF LAYOUT
• Process Layout
• Fixed-Position Layout
• Product Layout
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Process (Functional) Layout
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Advantages
Disadvantages
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 investment in
inventories.
4. Production planning and control is difficult.
5. More space is required.
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Product (Line) Layout
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Advantages
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Disadvantages
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Fixed Position Layout
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Advantages
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Industry 4.0
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Historical context for Industry 4.0
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Second industrial revolution
• A century later, the second industrial revolution
introduced assembly lines and the use of oil, gas and
electric power.
• These new power sources, along with more advanced
communications via telephone and telegraph,
brought mass production and some degree of
automation to manufacturing processes.
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Third industrial revolution
• The third industrial revolution, which began in the
middle of the 20th century, added computers,
advanced telecommunications and data analysis to
manufacturing processes.
• The digitization of factories began by embedding
programmable logic controllers (PLCs) into
machinery to help automate some processes and
collect and share data.
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Fourth industrial revolution
• Fourth industrial revolution, is referred as Industry
4.0.
• It is characterized by increasing automation and the
employment of smart machines and smart factories,
informed data helps to produce goods more
efficiently and productively across the value chain.
• Flexibility is improved so that manufacturers can
better meet customer demands using mass
customization.
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Industry 4.0 technologies
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Cloud computing
• Cloud computing is a cornerstone of any Industry 4.0
strategy.
• Full realization of smart manufacturing demands
connectivity and integration of engineering, supply
chain, production, sales and distribution, and service.
Cloud helps make that possible.
• In addition, the typically large amount of data being
stored and analyzed can be processed more
efficiently and cost-effectively with cloud.
• Cloud computing can also reduce startup costs for
small- and medium-sized manufacturers.
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AI and machine learning
• AI and machine learning allow manufacturing
companies to take full advantage of the volume of
information generated not just on the factory floor,
but across their business units, and even from
partners and third-party sources.
• AI and machine learning can create insights
providing visibility, predictability and automation of
operations and business processes.
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Edge computing
• The demands of real-time production operations mean
that some data analysis must be done at the “edge”—
that is, where the data is created.
• This minimizes latency time from when data is
produced to when a response is required.
• For instance, the detection of a safety or quality issue
may require near-real-time action with the equipment.
• The time needed to send data to the enterprise cloud
and then back to the factory floor may be too lengthy
and depends on the reliability of the network.
• Using edge computing also means that data stays near
its source, reducing security risks. 107
Cybersecurity
• Manufacturing companies have not always
considered the importance of cybersecurity or cyber-
physical systems.
• However, the same connectivity of operational
equipment in the factory or field (OT) that enables
more efficient manufacturing processes also exposes
new entry paths for malicious attacks and malware.
• When undergoing a digital transformation to
Industry 4.0, it is essential to consider a
cybersecurity approach that encompasses IT and OT
equipment.
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Digital twin
• The digital transformation offered by Industry 4.0
has allowed manufacturers to create digital twins
that are virtual replicas of processes, production
lines, factories and supply chains.
• A digital twin is created by pulling data from IoT
sensors, devices, PLCs and other objects connected to
the internet.
• Manufacturers can use digital twins to help increase
productivity, improve workflows and design new
products.
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Benefits of Industry 4.0
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