Subject : Production and Materials Management
Unit I
Production management- functions – scope- plant location – factors –site location – plant layout – principles – process – product layout for production planning and control- principles- information flow – routing – scheduling – dispatching – control.
Section A
1. Important aims of production management are : efficiency, effectiveness and consumer satisfaction
2. For a production manager, the product is : combination of surfaces
3. The method used in scheduling a project is : pert and cpm
4. One of the principles of scheduling is : principle of optimal operation sequence
5. Scheduling shows: which resource should do which job and when
6. One of the aims of loading is : to keep operator idle time, material waiting time and ancillary machine time at minimum
7. Fixing the follow lines of materials in production is known as : routing
8. The act of releasing the production documents to the production department is known as : dispatching
9. Routing and scheduling becomes relatively complicated in : batch production
10. Proximity to markets is important factors for : selection of the locality
11. Scheduling is actually time phasing of : loading
12. Product layout is also referred as: line layout
Section B
1. Define production management and its functions.
Production management deals with decision making related to production process of that the resulting goods and services is produced according to specifications in the amount and at the scheduled demand and at minimum cost.-elwood butta.
Functions
A. Production planning
B. Production control
C. Factory building
D. Provisions of plant services
E. Plant layout
F. Physical environment
G. Method study
H. Inventory control
I. Quality control
J. Product department.
2. Explain the scope of production management.
1. Designing the product and conceive the idea about its production.
2. Deciding upon the organization which will carry out the managerial and production function within the enterprise.
3. Selection of the appropriate location for the production.
4. Determination of the production process which is most relevant and efficient in the given state of affairs.
5. Planning the production and its various aspects how, when and where producing a particular product or its assembly will be done.
6. Deciding upon the machines, equipment and necessary devices which could lead to effectual and desired production in the most economic way. Preparation of plan layout for the establishment of machines in the required sequence.
7. Preparation of the time schedule to ensure the production in accordance with the prescribed performance standards.
8. Procurement of the raw material, fuel, spare parts and other supplement material as per required quantity and at desired time.
9. Storage of material and handling it in most effective way to avoid the wastage and delivery at the work centres as and when required.
10. Controlling the production and ensuring the quality by setting the check points and taking the periodic measurements of the current performance. Analysing the deviations and formulating the corrective measures to stay in track with planned quality, time-schedule and predetermined cost schedules.
11. Managing the inventories of raw material, semi-finished and finished goods in a way that neither excessive money may block in this non-productive operation nor the required material
Section c
1. Plant location and lay out.
The location of the plant can have a crucial effect on the profitability of a project, and the scope for future expansion. Many factors must be considered when selecting a suitable site, and only a brief review of the principal factors will be given in this section. The principal factors to be considered are:
o Location, with respect to the marketing area.
o Raw material supply.
o Transport facilities.
o Availability of labour.
o Availability of utilities: water, fuel, power.
o Availability of suitable land.
o Environmental impact, and effluent disposal.
o Local community considerations.
o Climate.
o Political strategic considerations.
Marketing area
For materials that are produced in bulk quantities: such as cement, mineral acids and fertilizers, where the cost of the product per ton is relatively low and the cost of transport a significant fraction of the sales price, the plant should be located close to the primary market. This consideration will be less important for low volume production, high-priced products; such as pharmaceuticals. In an international market, there may be an advantage to be gained by locating the plant within an area with preferential tariff.
.
Raw materials
The availability and price of suitable raw materials will often determine the site location. Plants producing bulk chemicals are best located close to the source of the major raw material; where this is also close to the marketing area.
Soda ash plant should be located near the salt lakes or near sea, where sodium chloride is available abundantly.
Transport
The transport of materials and products to and from plant will be an overriding consideration in site selection. If practicable, a site should be selected that is close at least two major forms of transport: road, rail, waterway or a seaport. Road transport is being increasingly used, and is suitable for local distribution from a central warehouse. Rail transport will be cheaper for the long-distance transport of bulk chemicals.
Air transport is convenient and efficient for the movement of personnel and essential equipment and supplies, and the proximity of the site to a major airport should be considered.
Availability of labour
Labour will be needed for construction of the plant and its operation. Skilled construction workers will usually be brought in from outside the site, but there should be an adequate pool of unskilled labour available locally; and labour suitable for training to operate the plant. Skilled tradesmen will be needed for plant maintenance. Local trade union customs and restrictive practices will have to be considered when assessing the availability and suitability of the labour for recruitment and training.
Utilities (services)
The word “utilities” is now generally used for the ancillary services needed in the operation of any production process. These services will normally be supplied from a central facility; and will include:
• electricity: - power required for electrochemical processes, motors, lightings, and general use
• steam for process heating: - the steams required for the process are generated in the tube boilers using most economic fuel.
• cooling water: - natural and forced draft cooling towers are generally used to provide the cooling water required on site.
• water for general use: - the water required for the general purpose will be taken from local water supplies like rivers, lakes and seas. Because of this reason all the plants located on the banks of river.
• dematerialized water: - dematerialized water, from which all the minerals have been removed by ion-exchange is used where pure water is needed for the process use, in boiler feed water.
• refrigeration: - refrigeration is needed for the processes, which require temperatures below that are provided by the cooling water.
• inert-gas supplies.
• compressed air: - in an ethylene oxide plant compressed air is one of the raw materials. It is also needed for pneumatic controllers etc.
• effluent disposal facilities: - facilities must be provided for the effective disposal of the effluent without any public nuisance.
Environmental impact, and effluent disposal
All industrial processes produce waste products, and full consideration must be given to the difficulties and coat of their disposal. The disposal of toxic and harmful effluents will be covered by local regulations, and the appropriate authorities must be consulted during the initial site survey to determine the standards that must be met.
Local community considerations
The proposed plant must fit in with and be acceptable to the local community. Full consideration must be given to the safe location of the plant so that it does not impose a significant additional risk to the community.
Land (site considerations)
Sufficient suitable land must be available for the proposed plant and future expansion. The land should be ideally flat, well drained and have load-bearing characteristics. A full site evaluation should be made to determine the need for piling or other foundations.
Climate
Adverse climatic conditions at site will increase costs. Abnormally low temperatures will require the provision of additional insulation and special heating for equipment and piping. Stronger locations will be needed at locations subject to high wind loads or earthquakes.
Political and strategic considerations
Capital grants, tax concessions, and other inducements are often given by governments to direct new investment to preferred locations; such as areas of high unemployment. The availability of such grants can be the overriding consideration in site selection.
Plant layout
The economic construction and efficient operation of a process unit will depend on how well the plant and equipment specified on the process flow sheet is laid out. The principal factors are considered are:
· Economic considerations: construction and operating costs.
· The process requirements.
· Convenience of operation.
· Convenience of maintenance.
· Safety.
· Future expansion.
· Modular construction.
Costs
The cost of construction can be minimized by adopting a layout that gives the shortest run of connecting pipe between equipment, and at least amount of structural steel work. However, this will not necessarily be the best arrangement for operation and maintenance.
Process requirements
An example of the need to take into account process consideration is the need to elevate the base of columns to provide the necessary net positive suction head to a pump or the operating head for a thermosyphon reboiler.
Operations
Equipment that needs to have frequent attention should be located convenient to the control room. Valves, sample points, and instruments should be located at convenient positions and heights. Sufficient working space and headroom must be provided to allow easy access to equipment.
Maintenance
Heat exchangers need to be sited so that the tube bundles can be easily withdrawn for cleaning and tube replacement. Vessels that require frequent replacement of catalyst or packing should be located on the out side of buildings. Equipment that requires dismantling for maintenance, such as compressors and large pumps, should be places under cover.
Safety
Blast walls may be needed to isolate potentially hazardous equipment, and confine the effects of an explosion.
At least two escape routes for operators must be provided from each level in process buildings.
Plant expansion
Equipment should be located so that it can be conveniently tied in with any future expansion of the process.
Space should be left on pipe alleys for future needs, and service pipes over-sized to allow for future requirements.
Modular construction
In recent years there has been a move to assemble sections of plant at the plant manufacturer’s site. These modules will include the equipment, structural steel, piping and instrumentation. The modules are then transported to the plant site, by road or sea. The advantages of modular construction are:
· Improved quality control.
· Reduced construction cost.
· Less need for skilled labour on site.
Some of the disadvantages are;
1. Higher design costs more structural steel work.
2. More flanged constructions possible problems with assembly, on site.
2. Explain production planning and production control?
Once the entrepreneur has taken the decisions regarding the product design and production processes and system, his next task is to take steps for production planning and control, as this function is essentially required for efficient and economical production. One of the major problems of small scale enterprises is that of low productivity small scale industries can utilise natural resources, which are otherwise lying.
Small scale sector can play an important role, similar to the one played by small scale industries in other developed countries.
Planned production is an important feature of the small industry. The small entrepreneur possessing the ability to look ahead, organize and coordinate and having plenty of driving force and capacity to lead and ability to supervise and coordinate work and simulates his associates by means of a programme of human relation and organization of employees, he would be able to get the best out of his small industrial unit.
Gorden and carson observe production; planning and control involve generally the organization and planning of manufacturing process. Especially it consists of the planning of routing, scheduling, dispatching inspection, and coordination, control of materials, methods machines, tools and operating times. The ultimate objective is the organization of the supply and movement of materials and labour, machines utilization and related activities, in order to bring about the desired manufacturing results in terms of quality, quantity, time and place.
Production planning without production control is like a bank without a bank manager, planning initiates action while control is an adjusting process, providing corrective measures for planned development. Production control regulates and stimulates the orderly how of materials in the manufacturing process from the beginning to the end.
Production planning and control (ppc) is a process that comprises the performance of some critical; functions on either side, viz., planning as well as control.
Production planning: production planning may be defined as the technique of foreseeing every step in a long series of separate operations, each step to be taken at the right time and in the right place and each operation to be performed in maximum efficiency. It helps entrepreneur to work out the quantity of material manpower, machine and money requires for producing predetermined level of output in given period of time.
Routing: under this, the operations, their path and sequence are established. To perform these operations the proper class of machines and personnel required are also worked out. The main aim of routing is to determine the best and cheapest sequence of operations and to ensure that this sequence is strictly followed. In small enterprises, this job is usually done by entrepreneur himself in a rather adhoc manner. Routing procedure involves following different activities.