MECHANICAL DEPT, SAINTGITS COLLEGE OF ENGINEERING, KOTTAYAM

M702: Industrial Engineering

Module 1 Production and Productivity

Production and productivity: Types of Production; Continuous Production; Intermittent Production; Productivity; Productivity index; Factors affecting Productivity; Techniques for Productivity improvement.

Production
Production is defined as a process developed to transform a set of inputs like men, materials, money, materials, machinery and energy into a specified set of outputs like finished products and services in desired quantity and quality in order to achieve the objectives of the enterprise.

Productivity
Productivity is the quality or state of being productive. It is a concept that guides the management of production system and measures its success. It is a quality that indicates how well labor, capital, materials or energy are utilized. Productivity can also be defined as the ratio between output and input.
Productivity =

Difference between Production and Productivity

Production is a value addition process. Production system is an organized process of conversion of raw materials into useful finished products as shown in the figure below.
INPUT TRANSFORMATION PROCESS OUTPUT

MEN MACHINES MONEY MANAGEMENT INFORMATION ENERGY

GOODS SERVICES

Production of any commodity or services is the volume of output irrespective of the quantity or quality of resources employed to achieve that level of output. Productivity comes in effect when the element of efficiency with which the resources are employed is put forth.
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Types of Production
Different types of production are 1. Flow/Continuous Production. 2. Intermittent Production.
Production

Flow or Continuous Production

Intermittent Production

Mass Production

Process Production

Assembly Lines

Job Production

Batch Production

1. Flow/Continuous Production Continuous flow production situations are those where the facilities are standardized as to routing and flow since inputs are standardized. Therefore, a standard set of processes and sequence of processes can be adopted. Continuous or flow production refers to the manufacturing of large quantities of a single or at most a very few varieties of products with a standard set of processes and sequences. The work flows through a series of interconnected operations in such a way that the material passes from one stage to another without waiting or interruption. Steel mills, automobile plants, chemical plants etc are examples of this type of production system. Continuous or flow production can be applied to those industries which satisfy the following requirements: I. Uniform demand - The market demand for products should be stable and regular so that there is no piling up of stocks II. High volume production - Unless the volume of output is large enough, overhead costs of specialized machines may be very high.
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III. IV.

V.

VI.

Product standardization - The product must be standardized so as to permit the use of same process and material and a steady flow of output. Process balancing - There must be a proper balance between different stages of operations of production so as to maintain a uniform flow of product. Material flow - Correct quality and quantity of material should be fed to each process at the right time so as to maintain the flow of work. Preventive Maintenance (PM) - PM should be undertaken to minimize downtime and without waiting for breakdown of machinery.

Continuous or flow production is of different types. a. Mass Production refers to the manufacturer of standardized parts or components on a large scale. Standardization of materials, machines, products and processes is the basic feature of mass production. The parts manufactured under mass production are combined in assembly line for making different products. Generally, the degree of mechanization and automation is high. The production process is continuous. b. Process Production production is carried on continuously through a uniform and standardized sequence of operations. Highly sophisticated and automatic machines are used. Process production is employed in bulk processing of certain materials. Like for example crude oil is processed into petroleum, kerosene, diesel, gasoline etc. Chemicals, cement, and paper etc are other examples of process production. On the basis of the nature of production process, this type of flow production is again classified into analytic and synthetic production. In analytic process of production, a raw material is broken into different products. For example, crude oil is analyzed into gas, naphtha, petrol, etc. Synthetic process of production involves the mixing of two or more materials to manufacture a product. For example, caustic soda, acids, perfumes, etc are synthesized to manufacturer soap. When two or more
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components are combined to manufacture a finished product. Such flow production are called assembling process of production. c. Assembly Lines Assembly lines helps to improve the efficiency of production. It results in cost reduction. Assembly line is particularly useful when a limited variety of similar products is to be produced on a mass scale or in fairly large batches on a regular or continuous basis. In an assembly line, each machine must directly receive material from the previous machine and pass it on directly to the next machine. Therefore, the location of machines is automatically regulated by the sequence of the operations. Enough space should be provided for free movement of operator, material handling devices like forklifts, trucks etc. At the same time there should be economical utilization of floor space. Assembly line process is generally employed in assembling automobiles, radios, television etc. 2. Intermittent Production Intermittent production situations are those where the facilities must be flexible enough to handle a variety of products and sizes, or where the basic nature of the activity imposes change of important characteristics of the input. In instances such as these, no single sequence pattern of operations is appropriate, so the relative location of the operation must be a compromise that is best for all inputs considered together. Here the basic product design changes from time to time. Therefore, facilities should be flexible enough to handle a wide variety of products and of different shapes and sizes. Intermittent production may be of two types, namely, job production and batch production. a. Job Production involves the manufacturing of a single complete unit with the use of a group of operators and processes as per the customers order. Each product is different from others and no repetition is involved. The product is usually costly and nonstandardized. Here, goods are produced to specific customer orders. Ship building, electric power plant, furnace making, dam construction, printing press etc. are common types of job production.
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b. Batch Production the manufacture of a product in small or large batches or lots at intervals by a series of operations, each operation being carried out on the whole batch before any subsequent operation is performed. In this type of production, the work on any product is divided into few operations and each operation is completed for the whole lot before proceeding to the next operation. Each batch contains identical items but every batch is different from the other. Batch production is a mixture of mass production and job production. For example, the printing operation may be done by one group, the jobbing work by another, and so on. Industrial blowers, electric motors, book printing, machine tools, etc are usually done by batch system.

Productivity Index (Kinds of Productivity Measure)

1. Labor Inputs and Labor Productivity: The labor input is usually measured in terms of man-hours, where output can be measured in total quantity.
Overall Labor Productivity = Net Labor Productivity =

2. Machine Productivity:
Machine Productivity =
, , , , , , , , + + + .

3. Material Productivity:
Material Productivity =

4. Land Productivity:
Land Productivity =

Total Productivity Index =

Factors affecting Productivity

Factors influencing productivity can be classified broadly into two categories, namely controllable or internal factors and non-controllable or external factors. 1. Controllable or Internal Factors Product factor: Product is judged by its usefulness. The cost benefit factor of a product can be enhanced by increasing the benefit at the same cost or by reducing cost for the same benefit. Plant and equipment: The increased availability of plant through proper preventive maintenance and reduction of idle time increases the productivity. Productivity can be increased by paying proper attention to utilization, age, cost, etc. Technology: Innovative and latest technology improves productivity to a greater extend. Automation and information technology helps to achieve improvements in material handling, storage, communication system and quality control. Material and energy: Efforts to reduce material and energy consumption brings about considerable improvement in productivity. Human factors: Productivity is basically dependent upon human competence and skill. Ability to work effectively is governed by various factors like education, training, experience, etc. of the employees. Work Methods: Improving the ways in which the work is done improves productivity. Work study and industrial engineering techniques and training are the areas, which improve the work methods which in term enhances the productivity. Management Style: A flexible and dynamic management style is a better approach to achieve higher productivity.
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2. Non-controllable or External Factors Structural adjustment: It includes both economic and social changes. Economic changes that influence significantly are: shift in employment from agricultural to manufacturing industry; import of technology; industrial competiveness. Social changes such as education, womens participation in the labor force etc are some of the factors that play a significant role in the improvement of productivity. Natural resources: Manpower, land and raw materials plays a vital role in the improvement of productivity. Government and infrastructure: Government policies and programs, practices of government agencies, transportation etc influence productivity to a greater extend.

Reasons for Low-productivity

1. 2. 3. 4. 5. 6. 7. 8. Frequent machine breakdowns. Lack of managerial control. Idle men. Poor quality. Confusion in machine scheduling. Shortage of materials. Excess inventory. Large quantities of reworked materials.

Techniques for Productivity Improvement

1. Work study Scientific analysis and improvement of work in all its aspects is a very useful technique of increasing productivity. Work study results in improvements in plant layout, material handling system, process design and standardization, working condition etc. These in turn help to minimize defective work and waste.
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2. Research and Development (R&D) Continuing R&D leads to the discovery of better techniques of production and improvement in existing machinery, equipment, etc. The rate of technological progress is a direct determinant of productivity. Companies and countries spend huge sum of money on R&D activities. 3. Incentive scheme Wage incentive schemes seek to motivate employees by paying extra remuneration. Profit sharing or bonus, labor welfare measures and good working condition also helps in this objective. As a result, there is reduction in idle time caused by absenteeism, labor turnover, accidents and disputes. 4. Production Planning and Control Scientific task planning ensures timely supply of inputs, proper maintenance of plant, efficient work, scheduling, and regulation of day-to-day activities in the plant. 5. Workers participation in management Labor participation in management is considered an effective tool for improving productivity. It helps in developing mutual understanding and cooperation between management and workers. 6. Automation Mechanization, automation and rationalization are major breakthrough for increasing productivity. 7. Management By Objectives (MBO) MBO is a process whereby the superior and subordinates jointly identify the specific measurable goals, define results expected of each individual and jointly assess the contribution of every individual. The focus of MBO is on participative goal setting, joint evaluation of performance and results to be achieved. 8. Job enrichment Job enrichment is the process of redesigning a job in order to enlarge its scope and to give the worker more to do. Its purpose is to improve job satisfaction, motivation and morale of workers. 9. Flexi-time Flexi-time allows the workers to set their own work hours subject to a minimum number of hours per week. It helps to reduce worker alienation and to raise productivity. Flexi-time reduces tardiness, overtime and short-term absenteeism.

10.Quality of Work Life (QWL) QWL is a technique for improving productivity and quality of work. It consists of following elements: labor-management co-operation; collective bargaining; participative management. 11.Quality Circles (QC) Quality Circle is a small group of workers which regularly meets to discuss problems, investigate causes, recommend solutions and if authorized, to take corrective measures. A leader is appointed to direct and guide the circle.

References
[1] A.P. Verma, Industrial Engineering, 3rd ed.:S.K Kataria & Sons, 2007. [2] M Telsang, Industrial Engineering and Production Management, 2nd ed.: S. Chand & Company Ltd, 2009. [3] T.R. Banga, S.C. Sharma, Industrial Organization & Management, 3rd ed.: Khanna Publishers, 2000.

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