IInndduussttrriiaall EEnnggiinneeeerriinngg AAnndd PPrroodduuccttiioonn MMaannaaggeemmeenntt About the Author Dr. Telsang Martand Tamanacharya Professor Mechanical Engineering & Dean Academics of Sanjay Ghodawat University, Dr. Telsang is B.E. (Mech.) First Class with Distinction from Karnataka University Dharwad (1982), M.Tech (Industrial Engineering) from National Institute for Industrial Engineering (NITIE), Mumbai (1992) and Ph.D. in Mechanical Engineering from Dr. Babasaheb Ambedkar Technological University, Lonere Maharashtra. He is also D.B.M (Post Graduate Diploma in Business Mgt.), First Class, IMDR Poona (1985). With five years of Industrial experience and thirty years of teaching experience at UG and PG programs in engineering and management, Dr. Telsang is Fellow of Institution of Engineers (FIE) India and Fellow of Indian Institution of Production Engineers (FIIPE), Bangalore as well as Senior Member, IIIE Mumbai, Member of ISTE New Delhi and Life member and National Council Member of ISTD New Delhi. He is Advisory Board member BIOINFO Mechanical Engineering. He has contributed research papers at various National and International seminars and conferences and Journals. And is the author of 3 Books and 2 Monograms. Dr. Telsang has organized workshops for faculty and students in areas like educational Technology, TQM, Business Process Reengineering, Industrial engineering and is a recognized trainer of ISTD in the areas of Industrial Engineering and quality management. Awarded with Outstanding Academic award ’98, Instituted by RIT, Rajaramnagar and Best Teacher Award 2004 by K.E. Society’s Kasegaon, he has also received ISTE Best Engineering College Teacher Maharashtra 2011, Outstanding Engineering Educator Award 2016 by lndo-US collaboration for Engineering Education (IUCEE) and the Shivaji University Gunawant Shikshak Award 2015. His long association with Professional Bodies like ISTE, ISTD, Institutions of Engineers (IE) and IUCEE coupled with international exposure through visits of US top-ranking universities as a member of Indian delegation through lndo-Universal Collaboration for Engineering Education (IUCEE) adds to his already varied portfolio. Dr. Telsang has worked as Member of Board of Governance of RIT for 10 years, is member Finance and Planning committee and Member Secretary of Academic Council of RIT apart from being a reviewer for many national and international journals and Member of Editorial Board of Journal of Engineering Education Transformation. His areas of interests include Total Quality Management, Industrial Engineering and Operation Research. Production Management and Educational Technology. IInndduussttrriiaall EEnnggiinneeeerriinngg AAnndd PPrroodduuccttiioonn MMaannaaggeemmeenntt [Recommended text for Diploma, Undergraduate and Post Graduate Programs in Mechanical, Production and Industrial Engineering. A useful reference for BBA, MBA and Professional Engineers. A useful guide for GATE and UPSC and other Competitive Examinations.] Dr. MARTAND T TELSANG M.Tech (Ind. Engg). PhD Mechanical Engineering Fellow (IEI) India, Fellow (FIIPE) Bangalore, IUCEE Fellow (2017) Dean Academics, Sanjay Ghodawat University Kolhapur S Chand And Company Limited (ISO 9001 Certified Company) S Chand And Company Limited (ISO 9001 Certified Company) Head Office: Block B-1, House No. D-1, Ground Floor, Mohan Co-operative Industrial Estate, New Delhi – 110 044 | Phone: 011-66672000 Registered Office: A-27, 2nd Floor, Mohan Co-operative Industrial Estate, New Delhi – 110 044 Phone: 011-49731800 www.schandpublishing.com; e-mail: [email protected] Branches Ahmedabad : Ph: 27542369, 27541965; [email protected] Bengaluru : Ph: 22354008, 22268048; [email protected] Bhopal : Ph: 4274723, 4209587; [email protected] Bhubaneshwar : Ph: 2951580; [email protected] Chennai : Ph: 23632120; [email protected] Guwahati : Ph: 2738811, 2735640; [email protected] Hyderabad : Ph: 40186018; [email protected] Jaipur : Ph: 2291317, 2291318; [email protected] Jalandhar : Ph: 4645630; [email protected] Kochi : Ph: 2576207, 2576208; [email protected] Kolkata : Ph: 23357458, 23353914; [email protected] Lucknow : Ph: 4003633; [email protected] Mumbai : Ph: 25000297; [email protected] Nagpur : Ph: 2250230; [email protected] Patna : Ph: 2260011; [email protected] Ranchi : Ph: 2361178; [email protected] Sahibabad : Ph: 2771238; [email protected] © S Chand And Company Limited, 1998 All rights reserved. No part of this publication may be reproduced or copied in any material form (including photocopying or storing it in any medium in form of graphics, electronic or mechanical means and whether or not transient or incidental to some other use of this publication) without written permission of the copyright owner. Any breach of this will entail legal action and prosecution without further notice. Jurisdiction: All disputes with respect to this publication shall be subject to the jurisdiction of the Courts, Tribunals and Forums of New Delhi, India only. First Edition 1998 Subsequent Edition and Reprints 2002, 2004 (Twice), 2005, 2006 (Twice), 2007, 2008 (Twice), 2009, 2010, 2011, 2012, 2013 (Twice), 2014 (Twice), 2015 Third Revised Edition 2018 ISBN: 978-93-525-3379-4 Product Code: H3IEP62PAQC10ENAC18O This Book is dedicated to the loving memory of my beloved brother Late Krishna Telsang and Revered father Late Tamanacharya Telsang Preface to the Third Revised Edition Rapid changes in technologies are the driving forces for both the industry and business at global as well as national levels. Customer still remains in focus and is king in the competitive manufacturing environment. The increase in capabilities of manufacturing accompanied by expectations of customer is building pressure on both speed and variety. Customers are becoming more demanding and expect the product to be designed and manufactured in a tailor – made fashion to meet individual requirements (mass customization). The ever increasing demand and expectations have shortened product life cycle and also customer wanting more personalized treatment. One more noticeable change is the shift in strategy of companies to focus on their core competencies and outsourcing has become more prominent demanding interconnectivity or networking of manufacturing substantially. The implication of this is that companies are now integrated as the customer of their suppliers and integrated with customers whom they supply. This has created need to design and manage same very complex supply chains networks. Information technology has helped to solve many of the enterprise issue and helps to integrate all functions of the organization. The response to changing manufacturing environment is two-fold. The organization of the book has been changed and the contents have been adjusted to more closely to reflect the current needs. Organization of the book (Third Edition) The book is reorganized into six sections: Section 1: Work System Design Section 2: Production System Design Section 3: Manufacturing Planning and Control Section 4: Quantitative Techniques for Operations Decisions Section 5: Supply Chain Management Section 6: Advances and Trends in Operations Management. Special feature of the third edition This edition of the book retains all the good features of the second edition with respect to presentation, simplicity of the language and format. With due response to feedbacks both from my fellow faculty, students and industry persons, the focus of the book is reorganized to include the perspective and approach right from how the product idea is translated into a physical product. All the aspects have been covered comprehensively and lucidly so that it serves both students and practioners. The salient features are: 1. Entire book is re-organized into six sections with 29 brand new chapters (with 5 free chapters on the website). 2. Each chapter starts with chapter learning outcomes (it is mandatory for NBA accreditation to write course outcome chapter outcomes to practice OBE). 3. More solved and illustrative examples to make concepts clear and case studies to include practicing aspects. 4. Conceptual clarity helps students to prepare for competitive examinations like GATE, UPSC. 5. New and evolving concepts like Reconfigurable manufacturing, Green manufacturing and Remanufacturing are added to acquaint readers with new and advanced trends in manufacturing. 6. A special note on manufacturing cost concepts is added to give a focus on costing. Dr. Martand T Telsang Acknowledgement Constructive criticism and feedback from students and faculty has worked as a great motivation for revising the book and coming up with chapters that address the latest operation management technologies around the globe. Special thanks to entire academic fraternity of industrial Engineering and Production/operations Management for recommending the book for the courses in Engineering and Management. I am very much thankful to President Mr. Sanjay Ghodawat, Trustee Mr. Vinayak. Bhosale and Hon. Vice Chancellor Dr. Venkatesh A Raikar, Er. Shripad S Adhyapak and Registrar Dr. B.M. Hirdekar of Sanjay Ghodawat University Kolhapur for their support and encouagement. I acknowledge with thanks to management and the contribution of my fellow teachers at Rajarambapu Institute of Technology, all my M. Tech Students and special thanks to Dr. S.K Patil Dean Academics of RIT and Dr. Anand Mishrikoti, Professor Dean VDRIT Haliyal. My special thanks to my mother Padmavati, My Better half Mrs. Kshama, My Father in law Er. Sripad Adhyak and Mrs. Sarala Adhyapak and My Beloved Trupti, Manoj and Madhurya for their uncondional support and motivation. Kolhapur Dr. Martand T Telsang Disclaimer : While the authors of this book have made every effort to avoid any mistakes or omission and have used their skill, expertise and knowledge to the best of their capacity to provide accurate and updated information. the author and S.Chand does not give any representation or warranty with respect to the accuracy or completeness of the contents of this publication and are selling this publication on the condition and understanding that they shall not be made liable in any manner whatsoever. S. Chand and the author expressly disclaim all and any liability/responsibility to any person, whether a purchaser or reader of this publication or not, in respect of anything and everything forming part of the contents of this publication. S.Chand shall not be responsible for any errors, omissions or damages arising out of the use of the information contained in this publication. Further, the appearance of the personal name, location, place and incidence, if any; in the illustrations used herein is purely coincidental and work of imagination. Thus the same should in no manner be termed as defamatory to any individual. Contents SECTION I: WORK SYSTEM DESIGN 1. Introduction to Industrial Engineering 9–21 1.1 Definition 9 1.2 History and Development of Industrial Engineering 10 1.3 Contributions to Industrial Engineering 11 1.4 Activities of Industrial Engineering 12 1.5 Industrial Engineering Approach 13 1.6 Objectives of Industrial Engineering 14 1.7 Functions of an Industrial Engineer 14 1.8 Techniques of Industrial Engineering 14 1.9 Place of Industrial Engineering in an Organisation 15 1.10 Industrial Engineering in Service Sector 16 1.11 Systems Approach 17 Summary 19 References for Further Reading 20 Review Questions 20 2. Productivity and Production Performance 22–48 2.1 Introduction 22 2.2 Concept 23 2.3 Definitions of Productivity 23 2.4 Production and Productivity 24 2.5 Expectations from Productivity 25 2.6 Benefits from Productivity 25 2.7 Dynamics of Productivity Change 25 2.8 Productivity Measures 26 2.9 Advantages and Limitations of Productivity Measures 27 2.10 Productivity Measurement Models 31 2.11 Factors Influencing Productivity 32 2.11.1 Controllable Factors (Internal Factors) 33 2.11.2 External Factors 33 2.12 Productivity Improvement Techniques 34 2.13 Levels of Productivity Measurements 35 2.14 Measuring Manufacturing Performance 36 2.14.1 Capacity Utilization 36 2.14.2 Labour Productivity 36 2.14.3 Re-Visit of Capacity Utilization 37 2.14.4 Yield 37 2.14.5 What is Visual Management? 38 2.15 Common Production KPIS 38 2.16 Quality, Cost and Delivery (QCD): Measuring Manufacturing Performance 40 Summary 46 References for Further Reading 47 Review Questions 47 3. Work-Study 49–58 3.1 Introduction 49 3.2 Importance of Work-Study 50 3.3 Advantages of Work-Study 50 3.4 Work-Study Procedure 51 3.5 Work Simplification and Work-Study 52 3.6 Human Considerations in Work-Study 52 3.7 Work-Study and the Management 52 3.8 Work-Study and Supervisor 53 3.9 Work-Study and the Workers 53 3.10 Work-Study Man 53 3.11 Influence of Method and Time Study on Production Activities 54 3.12 Concept of Work Content 54 3.13 Reasons for Excess Work Content 55 3.14 Techniques to Reduce Work Content 56 3.15 Work-Study as a Tool to Improve Productivity 57 Summary 57 References for Further Reading 58 Review Questions 58 4. Method Study 59–95 4.1 Introduction 59 4.2 Objectives of Method Study 60 4.3 Scope of Method Study 60 4.4 Steps Involved in Method Study 61 4.5 Selection of the Job for Method Study 62 4.6 Recording Techniques 63 4.7 Recording Techniques 64 4.7.1 Charts 65 4.7.2 Diagrams 73 4.8 Micro-Motion Study 75 4.9 Memo Motion Study 77 4.10 Cycle Graph and Chronocycle Graph 78 4.11 Critical Examination 78 4.12 Operation Analysis 80 4.13 Development and Selection of New Method 82 4.14 Principles of Motion Economy 82 4.15 Installation of the Proposed Method 92 4.16 Maintain the Proposed Method 92 Summary 92 References for Further Reading 93 Review Questions 93