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Manufacturing management PDF

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MANUFACTURING MANAGEMENT FRANKLIN G. MOORE, Ph.D. Professor of Industrial Management University of Michigan THIRD EDITION 1961 RICHARD D. IRWIN, INC. HOMEWOOD, ILLINOIS 2 0 4 5 2 4 6 0 0 5 1 0 9 3 p. d m 7/ 2 0 2 et/ n e. dl n a h dl. h p:// htt T / M G 6 2 0: 1 5 2 2- 0e 2-gl 1o 0o 2g n d- op s) e# es ngelss_u Ae California, Los hitrust.org/acc sity of ww.hat erw nivp:// hristina A. (Ugitized / htt Cdi stie, ogle- hriGo d for Cmain, eo neratblic D eu GP Biffin. Ubrary TS )S5 • Ml © 1953, 1958, AND 1961 BY RICHARD D. IRWIN, INC. AIX RIGHTS RESERVED. THIS BOOK OR ANY PARI THEREOF MAY NOT BE REPRODUCED WITHOUT THE WRITTEN PERMISSION OF THE PUBLISHER THIRD EDITION First Printing, August, 1961 Library of Congress Catalogue Card No. 61-14488 PRINTED IN THE UNITED STATES OF AMERICA 2 0 4 5 2 4 6 0 0 5 1 0 9 3 p. d m 7/ 2 0 2 et/ n e. dl n a h dl. h p:// htt T / M G 6 2 0: 1 5 2 2- 0e 2-gl 1o 0o 2g n d- op s) e# es ngelss_u Ae California, Los hitrust.org/acc sity of ww.hat erw nivp:// hristina A. (Ugitized / htt Cdi stie, ogle- hriGo d for Cmain, eo neratblic D eu GP PREFACE A European visitor to the United States was somewhat disillusioned after visiting several of our factories. He said, "After reading American text- books, I had the idea that all of your companies were well managed in every way but I find that this is not so. I have observed many poor practices being carried on." Perhaps we are like the farmer who would not go to a meeting on better farming methods because, he said, "I'm not farming now half as well as I know how." We do try to describe good management practices, not poor ones. Students should not be surprised after graduation to find that poor practices occur in many places. Since the second edition of Manufacturing Management, the trend toward quantitative approaches to problems has continued. We have followed this trend in this third edition by putting in considerably more quantitative material and reducing descriptive materials. We have con- tinued to emphasize decision making and have continued not only to 2 present c0urrent management practices but to give strong points, weak 4 points, da5ngers and pitfalls, so that the student gets an intelligent under- 2 standing 64of when to use a technique and when not to use it. When pr00esenting quantitative materials we have tried to do it so that 5 the stude1nt with little mathematical training can follow them and also so 0 that a tea9cher twenty years awav from his graduate school days can 3 follow it wp.ithout restudying his mathematics. d This trendm toward quantitative matters is a little dangerous, and students 7/need to be warned against thinking that manufacturing manage- 2 ment is a20ll formulas and numbers. One company recruiter commented about theet/ students he interviewed, "They all want to be operations re- n searcherse.." Changes dlin this edition of Manufacturing Management include the n addition ohaf considerably more material on manufacturing economics, break-evedl.n analysis, capital equipment replacement, the airplane industry's h learning cp://urve, and manpower planning. The material on operations re- search hahtts been expanded to cover several more techniques, including ioMno cnotme pCuaT / trelor sm heatsh obdese na nbdro tuhgeh sti mupp lteox da tme eatnhdo adn w eitxh taabmlepaleu sh.a Tsh bee cehna ipnt-er M cluded toG illustrate its programming and its use. Business games are also described6 . Besides these changes, all chapters have been rewritten and 2 new mate0:rial introduced. 1 Classroom5 users of Manufacturing Management will find two improve- 2 ments in 2-chapter-end study materials. First, wherever the subject material is suitable2-0, quite a few new qugleantitative type problems have been added. v 1o 0o 2g n d- op s) e# es ngelss_u Ae California, Los hitrust.org/acc sity of ww.hat erw nivp:// hristina A. (Ugitized / htt Cdi stie, ogle- hriGo d for Cmain, eo neratblic D eu GP vi PREFACE Second, the former study questions were intended as suggested written examination questions and so were confined to matters discussed in the chapters. Most of these questions are retained, but they have been aug- mented by the addition of many thought-provoking and discussion- provoking questions which go beyond the material in the text. This type of question helps stimulate classroom discussion and develops more per- sonal involvement as students are asked to put themselves into decision- making situations. To relate references more closely to the text subjects, the bibliography, formerly at the end of the book, has been broken up into separate short bibliographies and put at each chapter end. Only the latest and best- known books are listed, and they are listed only with the chapter to which they relate most closely. Older books are rarely listed since recent authors usually have incorporated in their books the best of the thinking 2 from earli0er books. Sources referred to in footnotes are not again listed 4 at the end5 of the chapter. 2 Last year,64 before this revision was started, a great many teachers took the time t00o fill out the questionnaire sent out asking them for suggestions. 5 Many wen1t further and also wrote letters suggesting changes not covered 0 by the qu9estionnaires. I am most grateful to all of those who answered the 3 questionnp.aires and those who wrote letters because their suggestions have d helped gumide me in making changes to improve the book. In particular, I have tried7/ to follow the concensus with respect to the writing style hy 2 retaining 20the flavor of informality yet avoiding the extremes that some- times cauet/sed the style rather than the message to be noticed. n FRANKe.LIN G. MOORE ANN AdlRBOR, MICHIGAN n July, 19ha61 dl. h p:// htt T / M G 6 2 0: 1 5 2 2- 0e 2-gl 1o 0o 2g n d- op s) e# es ngelss_u Ae California, Los hitrust.org/acc sity of ww.hat erw nivp:// hristina A. (Ugitized / htt Cdi stie, ogle- hriGo d for Cmain, eo neratblic D eu GP TABLE OF CONTENTS CHAPTER PAGE 1. INTRODUCTION 1 Origins of the Factory System. Early Development of Factories in the United States. Early Interest in Management. Frederick W. Taylor. Other Pioneers in the Management Movement. Management Today. Social Responsibilities. European Competitors and Markets. Population Changes. Management Literature and Associations. 2. ORGANIZATION FUNDAMENTALS 18 The Proper Form of Organization Depends on What It Has to Do. Every Organization Needs to Have One Single Responsible Head. Superiors Must Delegate Responsibility. Superiors Must Delegate Authority. Ad- ministrators Should Not Decide Every Minor Matter Themselves. No One Should Have Two Bosses. Superiors Should, Now and Then, Ask Subordinates for Their Ideas. Superiors Must Check Up on What Sub- 2 ordinates0 Do. 4 ?. ORGA5NIZATION STRUCTURES 30 2 Critical S64tages in Growth. Line Organizations. Taylor's "Functional" Organizat00ion. Line and Staff Organization in Small Companies. Line 5 and Sta1ff Organization in Large Companies. Place of the Staff in Organi- 0 zation S9tructure. Relationships of Line and Staff Departments. Co- 3 Ordinationp.. Staff Assistants. Committees. Outside Consultants. Organi- d zation Chmarts. 4. DEPA7/RTMENTS AND SPANS OF CONTROI 47 2 Execu20tives Must Set Up Departments and Choose Heads for Them. Set- ting Up Det/epartments in Going Concerns. Specialize Where Possible. The n "Spae.n of Control." THE LIVdlING ORGANIZATION 59 n Personal Ohabjectives of Officials. Informal Groups. The President's Job. Decision Mdl.aking. Reports. Characteristics of Good Reports. Parkinson's h Law. Leadp://ership at Lower Levels. Two-Way Communication. Con- sultative Mhttanagement. Morale. Outside Contacts. 6W. GrEitteNn T / PoEliciReAs.L C OoBntroJllabEilitCy ToIfV PoElicieSs. L AeaNdeDrs PaOnLdI CFIoEllowSers 7.4 M OrganizatGion for Growth. Expansion. Size Considerations. New Prod- ucts and O6 bsolescence. Decentralized Operations. 2 7. MANU0:FACTURING POLICIES 89 1 Integratio5 n. Intensive or Extensive Use of Facilities. Ownership of 2 Assets. "2-"Mechanization. Make or Buy. Living with Seasonal Changes. Defense C2-0ontracts. Plant Locagletion. '8. M1ANUFACTURINGo ECONOMICS 102 0o Break-Fn 2'.ven Charts. Thed-g "Contribution" Ratio. Machine Down-Time Economoics. Hours of Workp and Operating Efficiency. Economic Lots. The Learnes) ing Curve. Depreciase#tion. Depreciation Methods. Income Tax CvioinsideraAngeltions. Depreciation ess_uCash. California, Los hitrust.org/acc sity of ww.hat erw nivp:// hristina A. (Ugitized / htt Cdi stie, ogle- hriGo d for Cmain, eo neratblic D eu GP viii CONTENTS CHAPTER PAGE ;_. 9. CAPITAL INVESTMENT 124 " The "Forward" Look. "Savings" and Alternatives. Make or Buy in Capital Investment. Requests for Capital Funds. F.xtra Capital Needs. Discovering Machine Needs. Selection of Machines. 1 10. CAPITAL INVESTMENT, ANALYSIS METHODS 137 Capital Recovery. First-Year Performance. The "Payback" Period. Full- Life Performance—Regular Dollars. Rate of Return. MAPI F.valuation Charts. Postponing Replacement until Savings Arc Great. Savings and Cost Avoidance—The Parable of the Disappearing Savings. The Absolute Return. Marginal Returns. New Machines—How Many to Buy. Book Value of Old Machines. Book Life of Old Machines. Postconstruction Audits. \1/. PLANT LOCATIONS 158 2 ^t The C0ommunity Viewpoint. How Long Can a Location Stay Good? Re- 4 location. I5deal Locations. Freight Costs. Nearness to Market. Nearness 2 to Raw Ma64terials. Nearness to Other Plants and Warehouses. Com- munity Do00mination. Labor. Flectric Power. Water. Land Costs. Local 5 Taxes. 1Specialized Communities. Climate. Puerto Rico. Foreign Loca- 0 tions. Urb9an, Suburban, and Small-Town Locations. Organized Industrial 3 Districts. p.Sites. Choosing a Location. Sources of Information concern- d ing Locatimon. Moving to a New Location. \j£7/. FACTORY BUILDINGS AND SERVICES 180 2 The Nee20d for Flexibility. Types of Buildings. Building Costs. Getting Constructet/ion Started. Contract Prices. Room for Expansion. Service n Rooms. Ce.ommunications Systems in the Plant. Power. Lighting. Heat- ing the Pldlant. Air Conditioning. Noise and Vibration. Color. n U. GENhaERAL AND SPECIAL PURPOSE MACHINES .... 199 v*dl. h General Pp://urpose Machines. Combination General and Special Purpose Machineshtt. Special Purpose Machines. Continuous Manufacture. Auto- mmaattiicoanl.l yA T / uCtoonmtraotlilce dA sInsdemivibdluya. lP Msyacchhoinloegsi.c Tarl aEnsffefer cMtsa cohf iAnuetso amnadt iAount.o- M Effects Gof Automation on Managerial Work. "Depth" of Tooling. Capac- ity Bala6 nce. Tooling. Portable Tools. 2 \1,4. LA0:YOUT 214 1 Evidenc5 es of Poor Layout. Objectives of Layout. Layout Flexibility. 2 Relayout.2- Machine Space. Product Space. Service Area Space. Effects of Materia2-0ls Handling Equipglement. Overhead Space. Safety and the Ease of Mainte1nance. Layout Patteorns. Process Layout. Product Layout. 0o Straighn 2t Lines. Odd Angles.d-g Making a Layout. Yards and Premises. 'iSu oTRANSPORTATIOpN AND MATERIALS HANDLING 229 The Wases) teful Nature of Trase#nsporting Materials. Areas of Greatest WGetatisntge .P RaAngelurtlse st of oArs Rseemdubcliyn gS Mess_utaatteiroinasls. 1A nlaanlydzliinngg MCoastetsr.i aWls Hhaant dtolin Mgo.ve? "ViH.n^agn FaCd ir-oxl-iieJsndtgs e P California, Los O<tdahr"trghoSa uEn gvizeh. ar qMSstuiuAoispInN cm."heeTndVEtu.l eMhitrust.org/accaNsar, iteIenAdrci"Naelnst CiHPvEaaetnsh,d 2alEi4nn7dgq BDueipvumicdeegnse.tt .Cs F.o iTnxhtreoe lMldina Pgtae Ttrhirau Elcsk-quipment. ^Dep*artmxesity of n't a n/ dT hItes D"utIinehs.e Irneww.hatsnidt eIn veeffriscuiesn Ocyu"tsid eo fM Maainintetennaannccee. RWepoarirk. The Maintenance erw nivp:// hristina A. (Ugitized / htt Cdi stie, ogle- hriGo d for Cmain, eo neratblic D eu GP CONTENTS ix CHAPTER PAGE or Replace. Operations Research in Maintenance. Authorizing Mainte- nance Work. Maintaining Producing Machines. Maintenance in Line Production. Maintenance in Automation. Equipment Needed for Mainte- nance. Supervising Maintenance Workers. Maintenance Records. Charg- ing Maintenance Time and Materials to Jobs. Budgeting Maintenance Costs. Maintenance Workers' Wages. 17. RESEARCH AND DF.VELOPMENT 268 Pure and Applied Research. Who Does Research? Research Expendi- tures. Research Subjects. Industrial Espionage. The Research Organiza- tion. Research Centralization. Research Risks. Research Budgets and Allocations to Projects. Project Evaluation. Project Control. Develop- ment. Process Development. The "Innovation" Cycle. "Crash" Pro- grams. Yearly Models. Products Liability. Pilot Runs. 2 18. PRO0DUCT DESIGN 289 4 Form and5 Functional Design. Diversity of Design. Design by Imitation. 2 Product D64esign Responsibility. Warranties. Design Schedules. Design and Produ00ction Costs. Design for Volume Production. Redesign. Design 5 of Pans. M1iniaturization. Repairabiliry. Wires and Tubing. Drawings 0 and Spe9cifications. Tolerances. Standardization and Simplification. Ad- 3 vantages p.of Standardization. Disadvantages of Standardization. Preferred d Numberms. Patents. Patents as Legal Documents. Ownership of Patents. The Comp7/any Patent Department. Patent Protection. Trademarks. 2 19. IND20USTRIAL RELATIONS 313 Handling et/Employees Individually. Personnel Policies. The Place of the n Industriale. Relations Department in the Organization. Industrial Relations Departmedlnt Work. Industrial Relations Department Costs. Manpower n Planning. haShop Rules and Their Enforcement. Absenteeism. Discrimina- tion. Promdl.otion, Transfer, and Discharge. Reduced Operations—Cut or h Hours?p:// Suggestion Systems. 20. HIRINhttG AND TRAINING 330 THuirren.o Svero.T / uHricriensg o Rf aAtpiopsl icaanndt sT.h Tehire E Apfpfleiccat notn' Ss ePloeicntti oonf .V Autiehwor.i tSy toelection M and HiringG. Induction. On-the-Job Training. Training Supervisors. Execu6 tive Training. How to Teach Middle-Level Men. The Subject 2 Matter of 0:Training. Business Games. 1 LABOR 5 RELATIONS 352 2 The "Pr2-oblem" of Labor Unrest. The Blue-Collar Decline. Public Views toward La2-0bor. Labor Laws. Laglews Governing Labor Relations. Unions as Organi1zations. The Effecot of Unions on Labor Problems. Collective 0o Bargainn 2ing. Strikes. Lockod-guts. The Collective Bargaining Unit. Labor Contractso. Seniority. Grievapnces and Arbitration. Subjects of Grievance. Moral Re-es) Armament. se# 2Th2e. TImHEpoAngelr tFaOnRceE ofM thAeN Fo r3e7m6aess_un in the Organization. The Forgotten FCRa2on3eerd.qn e SutTmeirrraaeeAniddnF.."California, Los i EnFMogar FkTevoiYemnrrgeas umn tAsh eA Ne"nt tF.i toFDuEro deHremeEmsma.hitrust.org/acc pneWAl noML yPTaoeaHnreyka -3.eCg9ree 2Rnmeteelanretti'do"nssh RiFpeospr. er"emseePnnr.to aDdtuuivtceite.iso I nna-fnodrm Kingnowledge AW\ccoidreknintg ersity of R Caotensd iitni oFnasc tSorieasfe. .C www.hatSostsa foeft yS Eafqeutyip. mAcecnitd.e Anctc Hidaeznatr dPsre. vMeanktiinogn: The nivp:// hristina A. (Ugitized / htt Cdi stie, ogle- hriGo d for Cmain, eo neratblic D eu GP x CONTENTS CHAPTER PAGE Human Klcment. The Safety Engineer. Off-the-Job Safety. The Hos- pital or Infirmary, Employee Health. Industrial Disease. Safety and Health Regulations. 24. JOB EVALUATION AND APPRAISAL 407 What Is a Job? Job Descriptions. Sources of Job Information. Methods for Evaluating Jobs. Grade Descriptions. Simple Rankings. Factor Comparisons. Point Plans. The "Manual" or "Plan." Specifications and Actual Evaluation of Jobs. The Money Value of Points. Labor Grades. Effects of Job Evaluation. Job Clusters. Other Basic Considerations. Administration of Job Evaluation. Appraisal and Progress Review. Ap- praisal and Wage Rate Changes. Appraisal Methods. Factors Used in Appraisal. Problems in Employee Appraisal. Discussing Appraisals with Employees. Appraising Executives. 2 25. WAG0E INCENTIVES 432 4 Daywork 5versus Incentives. Output and Costs with Da\ work and Incen- 2 tives. Pos64itive and Negative Incentives. Characteristics of a "Good" Wage In00centive Plan. Determinants of Incentive Earnings. Measured 5 Daywork.1 Straight Piecework. 100 Per Cent Bonus Plans. Old Plans. 0 The Sca9nlon and Ruckcr Plans. Hybrid Plans. Production Checking. 3 Guarantep.es. Complexities Introduced by Inconsistent Standards. Tend- d ency towamrd Loose Rates. "Across-the-Board" Increases. Group Plans. Incentives7/ for Indirect Shop Workers. 2 26. WAG20E SUPPLEMENTS 455 "Fringeet/" Benefits. Fringe Costs. Health Payments. Payments for Time n Not We.orked. Extra Pay for Unusual Work Hours. Tools and Work Clothes. Odlver-All Bonus Plans. n 27. WAGhaE AND SALARY ADMINISTRATION 4<57 "Real"dl. Wages and Money Wages. Wage Policies. Wage Surveys. Laws h Affecting p://Wages. Wage "Patterns." "Escalator" Wage Changes. "Annual Improvemhttent" Wage Increases. Wage Differences. Wage Differences bDeiftfwereeennc eAT / sr.e Sas. hWift aDgieff eDrieffnecreesn.c Ses wkiiltlsh iDn iAffreeraesn.c Oesff.i cPero adnudc tFioanct Dorifyf eWrenacgees. M Office SGalaries. Foremen's and Supervisors' Salaries. Executive Salaries. Overtime6 . Daywork. Lost Time. Paying Shop Stewards for L'nion 2 .. Duties o0:n Company Time. 1 28. MO5 TION STUDY 488 2 Attitudes 2-toward Motion Study. Job Improvement Limitations. Motion Study'2-0s Payoff. Methods gleStudy for Future Jobs. What Motion Study Tries to D1o. Motion Study Moethods. Process Charts. Motion Study 0o Principlesn 2. Suggestive Qud-gestions. Micromotion Study. Thcrblig Analy- sis. Selloing Better Methodps. Motion Study's Value to Society. "29. TIMes) E STUDY ANse#D TIME STANDARDS 508 ASctutaanl daanrAngeldd ". OtNhero Wrmaaly"s to T Sess_uimee. tT Taikmineg S thet uTdimy eS Statnuddavr.d Ss. Peetrtfionrgm tahnec Tei mRaet- isWMRneaegrtt.veo haJsrotk.di oRSsuna.d California, Los stLeg?aim mmCieu ptMantltittanii nocignghn. .isTS nU itemno T iteoUai mnSsnsede aa otihitrust.org/accrnnfud d Td t DihyTm.eai mOe tWa etS.h MSeoratr ukcCt druoCoyndys.sy ccPi.old erWpeo. irvcMai nhtMaigocoe hnRDtihsnao.oe teHde sCsso ..Thw iMTam eMnicmegar eonSp syoTc riOomatupbreydi-c.y- Work?sity of ww.hat erw nivp:// hristina A. (Ugitized / htt Cdi stie, ogle- hriGo d for Cmain, eo neratblic D eu GP CONTENTS xi ^CHAPTER PAGE OPERATIONS RESEARCH 543 Areas of Use. Simulation. Queuing. The Flood Method for Assigning Jobs. Transportation Method. Linear Programming. Evaluation of Operating Research. ll. SYSTEMS ANALYSIS 573 Computers and Integrated Systems. Systems. Procedures. Systems Analysis and Development. PERT. Office Work. Forms. Filing. How Much Centralization? COMPUTERS 589 Computer Speeds. Computer Uses. Computer Control over Inventories. Process Control Computers. How Data Processors Work. Inputs. How Computers Remember. Output. Programming Computers. Computer Economics. Effects of Computers. 2 33. COS0T REDUCTION AND COST CONTROL 613 4 Does Yo5ur Labor Contract Permit Productivity? Caditz's Laws. The 2 Cost Cont64rol Attitude. Cost Reduction Programs. "Goals" versus Budgets. Making a 00Program Work. Living with Hard Times. Where to Look for 5 Cost Sa1vings. Scrap and Rework. Other Savings Opportunities. Re- 0 ports Ne9eded. Pitfalls in Cost Reduction. 3 34. BUDp.GETS AND COST CALCULATION 633 d Budgetsm. Budgets as Spending Limits. "Controllable" and "Noncontrol- lable" C7/osts. Making Up Budgets. Keeping the Budget Current. "Flex- 2 ible" B20udgets. Budget Variances. Calculating Costs. Past and Future Costs. Jet/ob-Lot Costs. Process Costs. "Direct" and "Indirect" Costs. n Cost "Ee.lements" and Cost "Units." Allocating Cost Elements to Cost Units. Allodlcating Overhead. "Absorption" of Overhead. Getting Basic n Figures. Chaost Accounting Problems. 35. QUAdl.LITY STANDARDS AND INSPECTION 652 h Purposes p://of Inspection. Expressing Quality Standards. Responsibility for Quahttlity. Testing and Inspection. How Often to Inspect. How Many tFolo Ionrs pveercstT / u. sIn Cspeenctrtainl gIn Psuprecchtaiosne.d I nGsopoedcst.io Inn sSpechtoinrgtc Momatienrgias.l sI ninsp Percotcioenss. M BonuseGs. Reducing Inspection Work. "Selective" Inspection. Jig, Fix- ture, and 6 Tooling Checking. Inspection and Testing Equipment. Gage 2 Checking.0: Disposition of Rejected Material. 1 36. STA5 TISTICAL QUALITY CONTROL 675 2 Areas of U2-se. Reliability. Attributes and Variables. "Representative" Sample2-0s. Size of Sampglele. The Normal Curve and the Standard Deviation. Control C1harts for Operationso. Control Charts for Variables. Control 0o Charts forn 2 Attributes. Acceptad-gnce Sampling. Operating Characteristic Curves. Soingle, Double, andp Sequential Sampling. The Average Outgoing Quality es) Level (AOQL). Sse#QC in Operation. Present-Day Use and Ad- m37in. iPsUtrRaCtiHAngelonA Sof SINtaGt i7st0i0cal Qess_uuality Control. TMPBDuheuresccu chPhyr uaiiCpnrsetcgiinnho California, Los igtannr.ss a aiH.ln i VozTgawi gDt iheMoetnnpa dM?anoraytrr m t kCMoeeh atBno.k tiRc eOeuhitrust.org/acc uor.sy grhD aaB eOntf ireOzdunaneysteri.eos TV .nP iS.mr oPaedul?euurctcetht i A naCFgnsooi arnntelhgytcre saaP iQscsr.ott sicMn.eu gaSda siulsnitr- uyePP.bsru o.Pcr doHrcouhnodcatwrutsaicionctntg-. sity of ww.hat erw nivp:// hristina A. (Ugitized / htt Cdi stie, ogle- hriGo d for Cmain, eo neratblic D eu GP xii CONTENTS CHAPTER PAGE ing Defense Contracts. Reciprocity. Bidding versus Negotiated Contracts. Purchase Contracts. Discounts. Purchasing Problems. Buying Machines. The Salvage Department. Miscellaneous Functions of the Purchasing De- partment. 38. INVENTORY CONTROL 732 Minimizing the Investment. Inventory ABC's. Sales Forecasting in Inventory Control. The Factory's Effect on Ordering Quantities. In- ventory Forecasting. Evaluating Sales. "Coverage" versus On-Hand. In- Process Inventories. Raw Materials. Supplies. Minimum-Maximum Controls. Reordering Points. Inventory Turnover. Dollar Limits. Time Limits. Periodic Reordering. Standard Quantities. Economic Lots. Re- placing for Known Future Demand. Ordering for Assembly's Needs. Receiving. Enclosed Stock Rooms. Open Stock Rooms. Physical In- 2 ventories0. Identification Systems. Identifying Materials. Materials Re- 4 quisitions5. Pricing the Materials Issued. 2 39. PROD64UCTION CONTROL 765 Productio00n Control Functions. Terms. The Production Control Depart- 5 ment. Ori1ginal Authority to Make Products. Parts. Service Parts. Ca- 0 pacity in S9chedule Making. "Producing" Authority. "Processing" Au- 3 thority. "p.Shop Instructions. Cost Estimating. d 40. ORDKmR CONTROL 787 Planning. 7/Order Scheduling. "Loads." Machine Scheduling. Operations 2 Research20 Type Scheduling Techniques. "Critical Path" Scheduling. Tool Control. Het/ow much Centralization? Dispatching. Replanning and Re- n scheduline.g. Graphic Controls. Electrical Production Reporting. Tabulat- ing Machidlnes. Reproducing Shop Directives. Plant Transportation. n Communihacation Systems. 41. OTHEdl.R KINDS OF PRODUCTION CON TROI 815 h Line Assep://mbled Products. Finished Assembly Line Control. Central Productiohttn Control. Factory Production Control. Subassemblies. Parts CMoannturfoal.c tSuT / rinegrv. i"ce CBonvaetcyho"rs. LMeaandu Tfiamcteusr.i n"g. LBoadlo"ck C Coonnttrrool.l .T Prraoncsepsosrtation M CompanyG Repair Shops. Repair Parts. APPEN7 DIX A. Random Numbers 833 2 APPEN0:DIX B. Per Cent of Cases in a Normal Distribution Less Than and 1 More Tha5 n the Mean by Tenths of Standard Deviations .... 834 2 APPEN2-DIX C. Complete Detailed Program Worked Out for Itself by IBM 704 Comp2-0uter for Problem ongle Pages 603 to 609 835 INDEX1 843 o 0o 2g n d- op s) e# es ngelss_u Ae California, Los hitrust.org/acc sity of ww.hat erw nivp:// hristina A. (Ugitized / htt Cdi stie, ogle- hriGo d for Cmain, eo neratblic D eu GP

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