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Principles of Management and Production Planning

This document discusses various management functions and principles. It covers topics such as management functions including planning, organizing, staffing, leading, and controlling. It also discusses Fayol's 14 principles of management such as division of work, authority, discipline, unity of command, and remuneration. Additionally, it covers production planning and control topics such as routing, scheduling, loading, dispatching, follow up, inspection, and corrective measures. Finally, it briefly discusses work study techniques including method study, work measurement, and the objectives and benefits of work study.

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Shikha Dubey
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0% found this document useful (0 votes)
97 views35 pages

Principles of Management and Production Planning

This document discusses various management functions and principles. It covers topics such as management functions including planning, organizing, staffing, leading, and controlling. It also discusses Fayol's 14 principles of management such as division of work, authority, discipline, unity of command, and remuneration. Additionally, it covers production planning and control topics such as routing, scheduling, loading, dispatching, follow up, inspection, and corrective measures. Finally, it briefly discusses work study techniques including method study, work measurement, and the objectives and benefits of work study.

Uploaded by

Shikha Dubey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

UNIT-2

Management Function:
Principles of Management- Management Tools
time and motion study, work simplificationprocess charts and flow diagrams, Production
Planning,
Specification
of
Production
requirements.

MANAGEMENT FUNCTIONS
The
management
process
is
methodology of getting the things
done. The logic of management
process is that particular functions are
performed in a sequence through time.

Management Functions are:


1.
2.
3.
4.
5.
6.
7.
8.

Forecasting.
Planning.
Organizing.
Staffing.
Leadership
Communication
Directing
Motivation
Supervision
Coordinating.
Controlling.
Decision making

FAYOLS GENERAL PRINCIPLES OF


MANAGEMENT

1. Division of work: Work specialization can


result in efficiencies and is applicable to both
managerial and technical functions. Yet there are
limitations to how much that work should be divided.
2. Authority: Authority is the right to give orders
and the power to exact obedience. It derives
from the formal authority of the office and from
personal authority based on factors like intelligence
and
experience.
With
authority
comes
responsibility.
3. Discipline: Discipline is absolutely necessary
for the smooth running of an organization, but
the state of discipline depends essentially on the
worthiness of its leaders.
4. Unity of command: An employee should
receive orders from one superior only.
5. Unity of direction: Activities aimed at the same

6. Subordination of individual interest to general


interest: The interests of one employee or group should
not prevail over the interests and goals of the organization.
7. Remuneration: Compensation should be fair to both
the employee and the employer.
8. Centralization: The proper amount of centralization or
decentralization depends on the situation. The objective is
the optimum use of the capabilities of personnel.
9. Scalar chain: A scalar (hierarchical) chain of authority
extends from the top to the bottom of an organization
and defines the communication path. However, horizontal
communication is also encouraged as long as the
managers in the chain are kept informed.
10. Order: Materials should be kept in well-chosen places
that facilitate activities. Similarly, due to good
organization and selection, the right person should be in the
right place.
11. Equity: Employees should be treated with kindness
and justice.

12. Stability of personnel tenure: Because


time is required to become effective in new jobs,
high turnover
should be prevented.
13. Initiative: Managers should encourage and
develop subordinate initiative to the fullest.
14. Esprit de corps: Since union is strength,
harmony and teamwork are essential.

PRODUCTION PLANNING AND CONTROL


Production planning and control is essentially
required
for
efficient
and
economical
production.
Production planning and control can facilitate
the small entrepreneur in the following ways.
1. Optimum Utilisation of Capacity: No order
goes unattended and no machine remains idle.
2. Inventory control: To ensure that the right
supplies are available at the right time.
3. Economy in production time: To reduce
the cycle time and increase the turnover via
proper scheduling.
4. Ensure quality: Quality of output is
ensured.

ps of Production Planning and Control (PPC)


Production Planning and
Control
Production Planning

Production Control

Planning

Dispatching

Routing

Following up

Schedulin
g

Inspection

Loading

Corrective

Production Planning:
To work out the quantity of 4 Ms i.e
material, manpower, machine and
money requires for producing
predetermined level of output in given
period of time.

Aggregate Planning
The objective of aggregate planning is
to find out the most economical
method of using production resources to
meet fluctuating demands of production
output.
The planning period varies from a week to
a year or so.
The planning consists of finding alternative
combinations of labour force, time
subcontracting and varying inventory levels.

Routing:
Routing procedure involves
following different activities.
1. The operations to be carried out on
a job.
2. The machine or work centre to be
used.
3. The details of operations to be
performed.
4. The sequence of operations from
raw material to finished product.

Objective of Routing
The main objective of routing is to
produce the job most economically
which depend upon the following factors:
1. Types of machines or work centre available.
2. Capacity of each work centre.
3. Labour required for each work centre.
4. Availability of tools and other resources.
5. Efficiency of work centre and labour.
6. Types and quantities of jobs to be produced.

Scheduling:
Working out of time that should be required to
perform each operation and also the time
necessary to perform the entire series as routed.
It is of two types:
A) Master Schedule
B) Production Schedule

Master Schedule:
Scheduling usually starts with
preparation of master schedule which is
weekly or monthly break-down of the
production requirement for each product for a
definite time period.
A master schedule is followed by operator
schedule which fixes total time required to
do a piece of work with a given machine or
which shows the time required to do each
detailed operation of a given job with a given
machine or process.

Production Schedule:
It takes into account following
factors.
1. Physical plant facilities of the type
required to process the material
being scheduled.
2. Personnel who possess the desired skills
and experience to operate the equipment
and perform the type of work involved.
3. Necessary materials and purchased parts.

Loading :
Loading determines who will do
the work as routing determines
where and scheduling
determines when it shall be done.

Production Control:
Production control is the process of
planning production in advance of
operations, establishing the exact route
of each individual item part or assembly,
setting, starting and finishing for each
important item, assembly or the finishing
production and releasing the necessary
orders as well as initiating the necessary
follow-up to have the smooth function of
the enterprise.

Dispatching:
Dispatching involves issue of production orders
for starting the operations. Necessary authority
and conformation is given for:
1. Movement of materials to different workstations.
2. Movement o tools and fixtures necessary for each
operation.
3. Beginning or work on each operation.
4. Recording of time and cost involved in each
operation.
5. Movement of work from one operation to another in
accordance with the route sheet.
6. Inspecting or supervision of work.

Follow up: Every production programme involves


determination of the process of work, removing
bottleneck in the flow of work and ensuring that the
productive operations are taking place in accordance
with the plans. All problems or deviations are investigated
and remedial measures are undertaken to ensure
the completion of work by the planned date.

Inspection: This is mainly to ensure the quality of


goods. It can be required as effective agency of
production control.

Corrective measures: Corrective action may


involve any of those activities of adjusting the
route,
rescheduling of work changing the workloads, repairs and

SPECIFICATION OF PRODUCTION
REQUIREMENT

1. Part Drawing (Production Drawing).


2. Machining Detailed and
Sequences.
3. Materials for the components.
4. Quality level required.
5. Production Quantity.

Difference Between Production


Planning & Production Control
S.No

Production Planning

Production Control

1.

Pre Production Activity.

In action only after when


production activity begins.

2.

Involves collection &


analysis of
data,standards,materials
,machines &
maintenance.

Deals with
communication,information
and reports like productivity
etc.

3.

Useful to anticipate the


problems & devising
remedies.

Taking corrective steps in


case of error to match
actual performance against
the planned.

4.

A centralised activity
dealing with control of
materials, tools and
process planning.

Includes functions of
dispatching, inspection etc.

Ensure availability of all

WORK STUDY

WORK STUDY
Work Study implies the study of human
work.
Work study investigates the work done in
organization.
It aims at finding the best and most
efficient

way

of

using

resources

men,

material,

available

machine

and

Objectives of Work Study


1. Improved working process and standardized.
2. Less fatigue to the operator.
3. Efficient utilization of men material.
4. To evaluate human work.
5. To reduce ineffective time due to management &
workers.
Benefits of Work Study
1. Improved Productivity.
2. Higher efficiency in productivity.
3. Manufacturing cost is reduced.
4. Quicker and accurate delivery dates.
5. Good employee- employer relationship.
6. Job satisfaction to workers.

Method Study or (Motion Study)


Method study is systematic recording and
critical

examination

of

existing

and

proposed ways of doing work, as a means


of developing and applying easier and
more
costs.

effective

methods

and

reducing

Objectives of Method Study


1. The improvement of process and procedures
2. The improvement of factory, shop and workplace
layout and of the design of plant and equipment.
3. Economy in human efforts and reduction of
unnecessary fatigue.
4. Improvement in use of materials, machines &
manpower
5. To find out the best way of doing a job.
6. To standardize the best method
7. Effective material handling

Economic
Consideration

Technical
Consideration

Human Reactions

1. Operation
involving
great deal of
manpower
condition

1.Bottlenecks
holding
production

1. More acceptable
if it can Improve
working

2. Highly fatigued
work

2. Movement of
material over long
distances
between shops

2. Reduce the
efforts and fatigue
of workers

3. Operations
involving
repetitive work

3. Inconsistency in
quality

Work Measurement
Work

measurement

is

concerned

with

elimination

of

ineffective time and establishment of time standards for a


job.
Work measurement is a technique to establish the time for
a qualified worker to carryout a specified job at a definite
level of performance.
Uses of Work Measurement
1. To reveal the existence of ineffective time
2. To compare the efficiency of alternative method.
3. To determine with the help of man machine chart the
number of machine an operator can run.
4. To set the time standard for carrying out the work.
5. As a basis for realistic and fair incentive scheme.

Time Study
Time study is a work measurement technique for
recording the times performing a certain specific
job or its elements carried out under specified
conditions, and for analyzing the data so as to
obtain the time necessary for an operator to
carry it out at a defined rate of performance.

Time Study Equipments


1. Stop Watch
2. The Study Board
3. Time Study Forms

Time Study Form


Product-------Time Study ------------Operation No----------Observer
Description of-------------------Date------------------Operation
No. of Cycles 5(say)
Standard time found------

Conversion of observed Time to


Standard Time
Observed Time

Apply Performance Rating Factor


Normal Time

Add allowance like


Personal allowance,
process allowance

Standard Time

Advantages of Time Study


1. Standard labour cost per unit of product can be
calculated.
2. Comparisons of actual and standard production.
3. Enable further improvement in work methods, training
necessity and better workplace layout.
Limitations of Time Study
1. Not suitable for non- repetitive jobs.
2. Not suitable for highly automated work place
3. May affect operators morale if output standard is not
attained.

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