9) a) Draw a flow chart to explain the procedure to schedule ‘n’ jobs on two

machines:

Ans: The following are the ten steps involved to schedule ‘n’ jobs on two machines:

Step 1) Prepare list of the jobs to be processed on the two machines.

Step 2) Estimate processing time for each job on each machine.

Step 3) Construct a job array, called sequencing matrix. To construct the matrix the jobs
to be processed are recorded row head wise, the machines to be employed to process the
jobs are recorded column head wise and the processing time of each job is recorded
against the under the respective machine.

Step 4) Scan the job array and identify the smallest processing time.

Step 5) If the smallest time appears:

i. On the first machine, A, assign the corresponding jobs as close to the

beginning of the job sequence as possible.
ii. On the second machine, schedule the corresponding job as close to the end
of the job sequence as possible.
iii. If there is a tie of minima for both machines i.e., if the smallest element
occurs on both machines, (one minimal element on each machine), select
among the tied up jobs the one with the smallest time on the first machine
and schedule it as early in the job sequence as possible.
iv. If the tie of the minima occurs among the elements of the first machine,
select among the tied up jobs the one with the smallest time on the second
machine and schedule it as early in the job sequence as possible.
v. If the tie for the minima occurs among the elements in the second
machine, select among the tied up jobs the one with the smallest time on
the first machine and schedule it as late in the sequence as possible.
Step 6) Delete from the array the jobs scheduled and its corresponding processing times.

Step 7) Repeat steps 4, 5, 6 and 7 for remaining processing times, placing the jobs next to
first or next to last until all jobs are scheduled.

Step 8) Calculate the total elapsed time to process all jobs through the two machines.

Step 9) Calculate the idle time for machines A and B.

Fig: Flow chart for”n jobs: 2 machines” sequencing model

START

Construct a sequencing matrix with

n jobs and two machines (A & B)

Scrutinize processing time of all

jobs on both machines and select the
smallest time

Does the No
smallest
time occur
on first Schedule the job
corresponding to the
Yes smallest time as close
to the end of the job
Schedule the job corresponding to the sequence as possible
smallest time as close to the beginning of
the job sequence as possible.

Delete the job scheduled and its

corresponding processing times

No Have all
jobs been
scheduled

Yes
Calculate start and finish time of
each job on machine A

Calculate start and finish time of

each job on machine B

Determine total elapsed time to

process all jobs though two machines

Calculate idle time of each machine

STOP
b) Five jobs A, B, C, D and E are required to be processed on two machines M1 and
M2. Each job has to be processed on machine M1 and then on machine M2. The
order of the completion of jobs has no significance. The processing time hours for
five jobs on the two machines is as under:

Job

Machine A B C D E

Machine #1 4 17 14 9 11

Machine #2 5 7 12 2 6

Ans: The smallest time in the job array is 2 hours and it appears for the first stage. The
corresponding job D therefore is scheduled last and its entry is made in the last cell of the
sequencing bar.

Delete the corresponding job schedule leaves us 4 jobs in the array.

The next smallest time is 4 hrs and it occurs on the job A which is present in the sequence
of Machine #1. Therefore the entry is made in the first cell of the sequencing bar.

A D

Deleting the job schedule leaves us with 3 more entries in the array.

The next smallest time is 6 and is present in the job E, which is present in the sequence of
Machine #2. Therefore the entry is made in the last but one cell of the bar.

A E D

Deleting the job schedule leaves us with 2 more entries in the array.

The next smallest time is 7 and is present in the job B, which is present in the sequence of
Machine #2. Therefore the entry is made in the 3rd cell of the bar.

A B E D
 Since the last job is left unscheduled, it is therefore placed in the empty cell:
Therefore the optimum sequence, therefore is A, C, B, E & D

A C B E D

2. What is Production Planning and Control? What are its key functions? How does
PPC contribute to the two basic objectives namely “long term growth of business”
and “Profit of the company”?
Ans: Introduction: Production Planning is a centralized activity (normally conducted in
the office) and includes such functions as order preparation, material control, process
planning, tools control and scheduling. Production control, on the contrary, a diffused
activity (usually conducted in the shops) and includes such functions as dispatching,
progressing and expediting.

Functions of Production Planning & Control:

Control Functions Optional Functions

1) Order Preparation includes activities like1. Cost Estimation concerns preparation of pre-
making of work orders, converting work orders production cost estimates to be used by sales
into shop orders, preparing auxiliary orders, and department for quotation purposes.
releasing such orders to shops to authorize (Alternatively this function may be assigned
manufacturing activity. to costing department or industrial engineering
2) Materials control concerns preparation of dept)
materials estimates indenting non-stick2. Work Measurement concerns fixation of
materials, ascertaining availability of materials time to be allowed to a qualified workman to
purchased to stock, continual follow-up with carryout a specified task, under specified
purchase and store for timely receipt of conditions and at the defined level of
materials, advising store to allocate required performance. Work measurement employs
quantities of available materials (alternatively scientific, well-known techniques like time
on their receipt) against specific shop orders. study, analytical estimating etc (Alternatively,
3) Processing Planning or Routing concerns work measurement work may be assigned to
fixation of method of manufacture operations industrial engineering dept.)
and their sequence, machine tools for each3. Sub Contract concerns off-loading of work
operation, jigs and fixtures, measuring on outside vendors for economic reasons or to
instruments and gauges etc to enable shops to augment existing manufacturing facilities.
produce goods of the right quality at the lowest Sub-contract work alternatively may be
cost. handled by Materials/Purchase Dept.
4) Tools Controls concerns preparation of4. Capacity Planning concerns estimation of
estimates of cutting tools (Standard as well as requirements of men and machines as the
non-standard tools), gauges and measuring basics of decision making to meet the firm’s
instruments including jigs & fixtures, indenting increased volume of business (Some
non-stock tooling, follow-up with tool room for companies prefer to assign this function to
timely manufacture of jigs & fixtures, periodical engineering dept)
replenishment of worn-out-non-consumable
tooling (e.g. work aborts, collets, copying
masters, Allen keys, spanners. etc.)
5) Scheduling concerns preparation of machine 5) Demand Forecasting concerns making
loads, fixation of calendar dates of various projection of company’s product market,
operations to be performed on a job, coordination though, long term forecasts are given by sales
with sales to confirm delivery dates of new items department but short term forecasts required for
and periodical preparation of dispatch schedules materials planning, machines loading,
or regular items. subcontracting etc, may be prepared by PPC
departments.
6) Dispatching concerns preparation and
distribution of shop orders and manufacturing
instructions to be concerned department as their
authority to perform the work according to the
predetermined schedule.

7) Progressing concerns collection of data from

manufacturing shops, recording of progress of
work, and comparing progress against the plan.

8) Expediting concerns intensive progress chasing

to identify delays and interruptions which may
hold up production, devising cures from time to
time to keep rate of production in line with the
schedule communicating possible failure in
delivery commitments to sales department.

b) Long term Growth of business and Profit of the Company:

Long term growth of business and profitability are the two basic objectives of an
organization. For long term growth, the company must have enough orders and for
enough orders it must have large number of satisfied customers.

Five essentials to achieve customers’ satisfaction are:

1) Timely delivery
2) Advance communication in case of expected late shipments
3) Short lead time in emergency
4) Consistent and good quality of products
5) Competitive price.

Good production planning and control is necessary to meet these essentials of customers’
satisfaction. Good PPC system is also necessary to minimize waiting time costs, overtime
costs, inventory costs and other manufacturing overheads. Goods PPC system helps to
improve utilization or resources morale of the employees.
 3) (a) How does Production Planning differ from Production Control?
Ans:
Production Planning: It is the determination, acquisition and arrangement of all
facilities necessary for future production of items. In other words, production planning is
essentially a pre-production activity, associated with the design of the production system.

Production Control: It is the corollary to short term production planning or scheduling

and is quite simply concerned with the implementation of production schedules.

Production Planning Versus Production Control

PLANNING (Planning the Work) CONTROL (Working the plan)

1) Planning involves collection and maintenance of1) Control involves dissemination of data,
data regarding time standards, materials and preparation of reports regarding output, machine
their specifications, machines and their process and labour utilization, labour efficiency,
capabilities, drawing and operational layouts percentage defectives etc.
etc.
2) Planning is seeing that requirements-tools,2) Control is seeing that the requirements are
machines, men, instructions, authorizations and actually made available at the right place in the
the like-well be available at the right time and in right quantities.
the right quantities and are of proper quality.
3) Planning involves preparation of load charts and3) Control involves actual seeing that the jobs are
fitting various work orders into uncommitted started and completed as per schedule prepared
time available on the company’s facilities (men by scheduling cell of the PPC.
or machines).
4) Planning involves preparation of all necessary4) Control involves actual issue of forms and paper
forms and paper work work.
5) Planning involves designing suitable feedback5) Control involves keeping track of what is
as to what may happen. happening and collecting information as to what
6) Planning involves forward thinking as to the has happened.
remedial action to be taken if the job fails6) Control involves suggesting remedial action
behind schedule. when the job is falling behind schedule.

Planning therefore, is a centralized activity (in Control is thus a diffused activity (in the shops)
the office) and includes such function as and includes functions such as dispatching,
materials control, tools control, preprocess progressing and expediting.
planning and scheduling.
(b) What type of information is necessary for efficient functioning of PPC
department? Which department in the organization originates this information?
Ans: Introduction: The efficiency of Production Planning and Control department
depends upon the information it gets from other departments and the accuracy of such
information. To prepare load and schedule chat, it must know the preventive maintenance
schedule. To give realistic delivery date, it must know the work content of each job.
Production Planning and Control department generally requires the following
information:

Information Details Source Department

Concerning originating indicated
Information

1. Production 1. Quantity to be manufactured. Sales order or Order Sales

programme. 2. Delivery date. Acceptance
1. Kind and quality of material.
2. Quantity of material required Drawings/Bill of Drawing Office
2. Production 3. Stock on hand and reservations Material
materials 4. Lead time required for Stock Cards
procurement. Stores Purchase
1. Standard and special tooling
3. Tooling Tool Card
1. Dimensional requirements. P.P.C
4. Quality 2. Finish requirements Drawings
Standards 3. Tolerance requirements Customer’s feedback Drawing office
4. Hardness desired. Sales Department
1. Operations and their sequence.
Process sheets
2. Machine tool for each indicated Capacity charts PPC
5. Operation operation PPC
Methods. 3. Jigs and fixtures needed Experience
4. Speeds & Feeds.
Route sheets PPC
1 List of Operations and their
6. Path of Sequence
Materials. 2. Alternatives possible Plan layout
Industrial Engineering
7. Operation time. 1. Setup time and standard time for Work Measurement
each operation
data
8. Scheduling P.P.C
1. Starting and finishing dates. Machine Load &
Scheduled charts
9. Progress of Production
Work. Daily production
1. Work Completed as on date.
reports/Time
ticket/Perforated slips
4) How do the following management decisions influence design of the PPC system?

(i) Plan for meeting occasional increase in demand.

(ii) Status of the PPC department in the organization
(iii) Degree of centralization
(iv) Internal structure of PPC department.

Ans: PLANNING MEETING SEASONAL OR OCCASIONAL INCREASE IN

DEMAND:
This influences greatly the production planning and control system which the company
should have. Alternatives available to the company and associated activities are as under:

i) Having factors of production for the peak demand and utilizing extra capacity
to manufacture products of non-seasonal nature or taking up subcontract work
etc.
ii) Having factors of production for the least demand and meeting requirements
of extra capacity by overtime or by holiday working or by hiring capacity or
by sub-contracting etc. Production planning and control and the purchasing
function under such a situation assumes very important role in the company.

STATUS OF THE PPC DEPARTMENT IN THE COMPANY:

The status of PPC department in the company depends upon the company’s
manufacturing processes.

If the work is highly repetitive and the number of workmen is not very large, the work of
planning may be performed directly by the line staff, there being thus no formal PPC
department in the company. And in manufacturing units where plant and machinery is
laid out as per sequence of operations and there is little difference in machine capacity for
different products, the PPC may be sub-division of the manufacturing department.

In firms, where either the product variety is very large or where machine capacities are
different for different products, or where plant and machinery is laid out as per function
in different departments not related to each other, PPC should be set up as an independent
department with the head of the department responsible to the managing director, General
manager, or works manager, depending upon the magnitude and complexity of the
planning functions and the size of the firm.

DEGREE OF CENTRALISATION:
Degree of centralization implies extent to which planning activities are performed by
PPC. Two systems in general are available:

i) Centralized Planning where the functions of production planning is

controlled centrally by staff specialist (s).
ii) Decentralized Planning where planning is carried out by line executive-
foremen-who direct normal work in their respective departments.
Both types of planning, centralized as well as decentralized planning, have their relative
advantages and disadvantages, the centralized planning takes away the burden of
planning from the line staff thus leaving free to handle men and machines more
effectively.

Decentralized planning gives line staff sense of participation and opportunity to use their
experience but it takes away lot of their valuable time in performing planning functions
The trend today is towards the blend of “Centralized” and “Decentralized” system, called
semi-centralized planning. It combines the merits of both the systems and it especially
gives better results in a large industrial complex.

Under semi-centralized planning, the scheduling of operations within the pre-fixed period
and allotment of work to men and machines is done by line staff while overall co-
ordination of materials ordering, sub-contract work planning, progressing and follow-up,
capacity planning man power planning, maintenance planning etc, is done centrally by
the staff specialists.

THE INTERNAL STRUCTURE OF THE PPC DEPARTMENT

Internal structure implies the functions to be assigned to PPC which depends on the
nature of industry the size of the company and the management policies. Different
companies assign different functions to the PPC department. It is common practice to
assign following functions to PPC department:

i) Order Preparation. v) Scheduling

ii) Materials Control vi) Dispatching
iii) Tools Control vii) Progressing
iv) Process planning viii) Expediting.

Few companies assign following four areas to PPC department:

i) Cost Estimation iii) Sub-Contracting
ii) Work Measurement iv) Capacity planning

The functions actually to be assigned depend on the size of the company.

This aspect also considers assigning of various functions of production control to

different cells which again depends on the size of the company. In a medium or large
sized industry there may be following important cells in PPC department:

i) Materials Control Cell vi) Progressing Cell

ii) Tools Control Cell vii) Cost Estimation Cell
iii) Process Planning Cell viii) Sub-Contract Cell
iv) Scheduling Cell ix) Work Measurement Cell
v) Dispatching Cell

Each cell may be headed by a senior engineer and supported by planning assistant(s) and
clerk(s).
 A representative production planning and control department of a medium size firm is
illustrative in the following figure.

General
Manager

Development Production Planning Inspection & Plant

Factory Production
Department & Control Quality Control Maintenance

Order Material Process Tools

Preparation Control Planning Control Scheduling Dispatching Progressing

6) (a) “Data given on the process sheet can be put to lot many uses in the organization”
Discuss.
Ans: Introduction: Process planning is the process of establishing the shortest and most
economical path that each part is to follow from the point it is received as raw materials until it
leaves as furnished part or a finished product. Process planning indicates operations to be
performed and their sequence; specified the machine tool for each indicated operation; shows the
necessary tooling (jigs and fixtures, cutting tools, cams and templates, measuring instruments,
and gauges) for each indicated operation; gives manufacturing data such as speeds and feeds;
sometimes the specifications of the skill for each operation. The document which incorporates
this vital information is called process sheet or route sheet.

Text: The information contained in the process sheet can be put to a variety of uses:

(i) Scheduling: The scheduling cell of PPC can obtain for each operation the set-
up and the processing time. This information helps them to prepare load and
schedule charts

(ii) Materials Movement: The Shop supervisor and the dispatch clerk can know
where the jobs require to be sent for the next operation.
 (iii) Cost Reduction and Cost Control: A process sheet gives an idea of the
tooling (standard tools, jigs and fixtures, templates, gauges and measuring
instruments) which could be arranged prior to the starting of the operation.
This cuts down set-up time and reduces labour cost and overheads.

(iv) Costing: Costing group can use the information to determine pre and post
production cost of each component.

(v) Method of Working: Method study engineer without going on the shop floor
can know as to how presently the part is being manufactured.

(vi) Requirement of manpower and machines: Set up times and processing

times given in different route sheets may be consolidated machine wise into
total man-hours or machine-hours required to enable the management to take
decisions concerning requirements of manpower and machines.

(vii) Shop efficiency: Operation wise time data given in the process sheet is also
helpful to the shop personnel to know whether the shop performance is in line
with the expected performance.

(b) A Small pump shaft is to be manufactured from a round bar on four machines in
a workshop. It is first cut to length on a power hack-saw which can produce 12
pieces per hour. The cut pieces are then “faced to length” and “centered” on a
special facing and centering machine. Once this machine is set-up (taking 30
minutes), the operator can complete 30 pieces per hour. Faced and centered pieces
are next moved to the copying lathe. It takes 45 minutes to set up the copying lathe
and 3 minutes to turn each piece. The final operation is cutting of the keyways on a
special purpose key-way milling machine. It takes 8.50 minutes to cut hey-way on
each piece. 8.0 minutes are required to set-up the hack-saw and 10 minutes to set-up
the key-way milling machines. After cutting the key-ways the parts are debarred
and inspected.

Draw up a process sheet for the manufacture of this part. Though tooling and
gauges do not require to be indicated yet their relative position on the process sheet
should be shown.
Sol:

PTO
 Part Name: Pump Shaft
Process Sheet Part No. : P0401125
Set Up Time
Op. No. Operation Description Machine Tooling Set up Std min
1 Power Hack Saw 80 60
Cutting it to Length
2 Spiral Machine 30 60
Faced to length & Center 12
3 Lathe Machine 45 3
Copying Lathe 30
4 Key way milling 10 8.50
Cutting Keyways
Machine
REVISION DATE:

Prepared by Checked by KALLURI ENGINEERS

(Signature & Date) (Signature & Date) HYDERABAD - 500070.

7 (a) Why is it necessary to record the progress of work? What different methods
are available to collect information?
Ans: Introduction: Progressing is the process of checking actual performance against
the production plan and reporting exceptional deviations to the concerned authorities for
the corrective action. Progressing function consists in keeping a watch on flow of
materials, recognition of delays and interruptions, taking steps to rush up the remaining
operations and communicating possible delays to the customer (wherever necessary)

It is sometimes argued that progressing is only a substitute for poor planning. Should a
driver take his hands off the steering wheel because the road is straight? Should a pilot
divert his attention from the control board because the weather is fine? No! They can’t do
this, similarly, progressing is required even if the material control and process planning
functions are discharged satisfactorily, scheduling is done properly, manufacturing orders
are released. There are usually a number of factors which tend to push the schedules off
the mark. Some of the notable ones are as under:

• Delay in receipt of material from vendor(s)

• Excessive absenteeism (more than the normal)
• Machines breakdowns
• Excessive spoilage
• Errors in drawings
• Strikes and acts of Gods.
The need for progressing is also created when the customers do the follow up on their
own to know the status of their orders.

Methods to collect information:

(i) Physical Count

(ii) Daily production report
(iii) Job Card
(iv) Perforated route sheet
(v) Detachable sheet

(b) Explain with a diagram any two methods to collect data on progress of work.
Ans: Daily Production Report: It is prepared by the supervisor, this is another method
of obtaining feedback. A daily production report contains fixed space to record:

 Operator’s Name and Token number

 Machine on which he worked
 Time spend
 Quantity produced
 Quantity checked by the patrolling inspector
 Results of the inspection
 Idle time and its reasons.

This report may be prepared either by the shop supervisor or the patrolling inspector
and is collected at the end of the shift or the next day by the progress clerk of the PPC
department. This method is best suited for large workshop having a process type of
layout producing number of non-standard parts.
 SECTION : Gear Shop
DATE : 12.11.04
DAILY PRODUCTION REPORT SHIFT : First Shift

Machin Operator’s Part Name & Hours Worked Qty. First Inspection Tole Idle
e Name Code No. produc Qty. OK OK Rej Code Hours
From To ed _
507 A.R. Yande Double Gear: 7AM 3.30 PM 78 20 20 - -
29 teeth ½ Hr
508 -do- Cam Shaft Gear 7AM 3.30 PM 42 18 17 1 E
(Op. No. 80) ½ Hr
509 Manjit Idler Gear 7AM 3.30 PM 60 15 15 - G

Axle Shaft 7AM 3.30PM

208/1 R. B. Kale 34 20 20 -
(Op. No. 90) - -
Agro Control 7AM 3.30PM G 1 Hr
208/2 -do- 6 6 2 2
Shaft (Op. 120)

Perforated route sheet:

It is a useful method of production feed back/collecting data on progress of work. The

route sheet for each job carries part number, product or assembly number it is in, list of
operations to be performed, and the necessary information. The route sheet is handed
over to the supervisor or is tied to the product. As soon as each operation is completed,
the operator or the supervisor signs the lower portion of the route sheet, detaches it, and
returns to the progress section for their analysis.

This method is suitable for tool rooms, jobbing shops or workshops producing one or few
numbers of a component.

SHOP ORDER OP. NO. OPERATION DATE OF SIGN

NO. DESCRIPTION COMPLETIION
2002 130 Inspect
2002 120 Grind Chamfer
2002 110 Thread Grind
2002 100 Grind OD
2002 90 Grind total length
2002 80 Grind bore and face
2002 70 Heat treat
2002 60 Inspect
2002 50 Cut keyway
2002 40 Finish blank
2002 30 Rough blank
2002 20 Drill 50 hole
2002 10 Saw off

Fig: Perforated route sheet for manufacture of a thread roll

10 (a) What are the steps involved in solving an assignment problem.

Ans: Introduction:

Hungarian method is the most efficient method for solving an assignment problem
involving minimum objective. Though its standard procedure is for balanced problems,
minimization problem, free from restrictive, but it can be applied to even special
situations by adopting additional steps.
Basic Principles:
The Hungarian method is based on the following properties:

(i) If a constant element is added or subtracted from every element of any row or
column in the given cost matrix, an assignment that minimizes the total cost in
the original matrix also minimizes the total cost in the revised matrix.
(ii) In an assignment matrix, solution having zero total cost is the optimal
solution.

Assumptions:

(i) Each facility is capable of performing each task

(ii) Tasks differ in their work contents and facility in their capabilities

(iii) Only one task can be assigned to each facility

(iv) As only one task can be assigned to each facility, the assignment matrix must
be of n x n size. (In case the matrix is not square, dummy rows or columns,
equal to the difference, are added).

Procedural steps to solve standard assignment problems:

A standard assignment problem is a balanced assignment problem (i.e., number of

tasks equal number of facilities), incorporates no restriction in allocation and involved
minimization objective, Hungarian method to solve such problem requires following
steps:

Step 1: Express the problem into n x n assignment matrix

Step 2: Select the smallest element in each row and subtract it from every element of
that row.

Step 3: Select the smallest element in each column of the reduced matrix obtained
from step 2 and subtract it from every element of that column.

Step 4: Cover all zero elements by minimum number of straight lines (horizontal and
vertical lines only). If the number of lines drawn is equal to n(number of
rows/columns), the solution is optimal and proceed to Step 7. if the number of lines
drawn is smaller than n, go to step 5.

Step 5: Select the smallest uncovered element (i.e., smallest element not covered by
the lines), subtract it from all uncovered elements including itself, and add it to the
elements covered twice (i.e. elements located at the intersection of any two lines), and
reproduce other elements (i.e. elements through which only one line passes) as they
are.
 Step 6: Repeat steps 4 and 5 until an optimal solution is obtained.

Step 7: Given the optimal solution make the job assignments as follows:

(a) Examine the rows one by one starting with the first row until a row with
an exclusive zero (i.e. row with exactly one zero) is found. Mark the zero
by enclosing it in a square indicating assignment of the task to the facility.
Cross out all zeroes (if any) in the column as they cannot be used to make
other assignments.

(b) Examine next the columns for any mutual exclusive zero and mark each as
above, crossing out the remaining zeroes in that row.

(c) Repeat steps (a) and (b) successfully until either of the following
conditions occur:

i. All zeros have been marked / crossed and each row contains one
marked zero. This means that the optimal solution has reached.

ii. All zeros have not been marked / crossed. The remaining
unmarked zeros lie at least two in each row and column. This
means that more than one optimal solution exists.

(b) A drawing office incharge has four tasks and equal number of draught men. His
estimate of time for each job – draught men combination is given (in hours) in the
following matrix:

Draughtmen
Processing time (Hours)

Jobs D1 D2 D3 D4

J1 25 25 20 15

J2 35 20 15 20

J3 25 15 20 18

J4 30 10 25 20
Find out the optimal assignment.

Sol:
Step1: “Express the problem into n x n assignment matrix”. This step has already done in
the case problem.

Step2. “Subtract the smallest element in each row from every element in its row so as to
obtain atleast one zero in each row.”

15, 15, 15 & 10 are the smallest in 1st, 2nd, 3rd and 4th rows respectively. Subtraction of the
smallest element in the row from every element in its row gives rise to an assignment
matrix shown in the following table.

Draughtmen
Processing time (Hours)

Jobs D1 D2 D3 D4

J1 10 10 5 0

J2 20 5 0 5

J3 10 0 5 3

J4 20 0 15 10
Step 3. Subtract the smallest element in each column of assignment matrix obtained in
step 2 from every element in its column. This step gives rise to yet another assignment
matrix…

Draughtmen
Processing time (Hours)

Jobs D1 D2 D3 D4

J1 0 10 5 0

J2 10 5 0 5

J3 0 0 5 3

J4 10 0 15 10

Connect all zeros in the assignment matrix obtained in step 3 by minimum number of
straight lines. Min 4 straight lines are required to connect all zeros.

Step 4.
(a) “Examine the rows one by one, starting with the first row until with an exclusive
zero (i.e. row with exactly one zero) is found. Mark the zero by enclosing it in a
square indicating assignment of the task to the facility. Cross out all zeros in the
same column as they cannot be used to make other assignments.
(b) Examine next the columns for any mutual exclusive zero and mark each as above,
crossing the remaining zeros in that row.

Here…
1) Row J1 has two exclusive zeros which occur at Junction J1 D1 and J1 D4 hence
the allocation of task J1 is postponed for the time being.
2) Row J2 has 1 exclusive zero which occurs at junction J2 D3 hence Job J2 is
assigned to D3.
3) Row J3 has two exclusive zeros which occur at Junction J3 D1 and J3 D2 hence
the allocation of task J1 is postponed for the time being.
4) Row J4 has 1 exclusive zero which occurs at junction J4 D2 hence Job J2 is
assigned to D2.
5) With the allocation of J2 and J4 we have 2 jobs left out unassigned. Looking at
the matrix again, we see that the Under J3 there are 2 zeros out of which the
position D2 is already assigned to J4 and cannot be reassigned to J1 as this is a
 mutual exclusive zero assignment matrix. So the only position left out is J3D1.
Hence the job J3 is assigned to D1.
6) With the allocation of Job J3 to D1 we are left out with J1. Considering the
exclusive assignment matrix. The Job J1 can only be assigned to D4. Hence
J1D4.

So the Optimal assignment matrix is the following

Jobs Draught Men Processing Time

J1 D4 15

J2 D3 15

J3 D1 25

J4 D2 10

Total Processing Time: 65 Hours

11 (a) what is critical ratio scheduling? What advantages does this technique have
over other technique?
Ans:
Introduction: Critical ratio scheduling is a technique for establishing and maintaining
priorities among the jobs-be it in a production control department for the purpose of
scheduling or expending in a purchase department for the purpose of “Purchase order
follow up” or in any other department of the company. The technique utilities concept of
ratios called Critical ratios which provide time relationship between when a
product/part/material is required and when it can be made available/supplied.

Definition: A Critical ratio in its simplest form, may be stated as the ration of “time when
a product is required“to the “time when the product can be supplied”.

I.e. Critical Ratio = Time when a product is required

Time when the product can be supplied

For E.g.,

Critical Ratio = The Product is required in 20 days.

The product can be made available in 10 days

= 2.
A critical ratio of 2 implies that the time available to deliver the product is twice the time
required to manufacture the product, similarly, a critical ratio of ½ will mean that the time
available to deliver the product is half of the time required to manufacture the product.
This also suggests that the processing time must be reduced to half of the normal
expected time otherwise the product will not be delivered on time.

Interpretation of critical ratios: Critical ratios have the following significance:

A critical ratio of

(i) Greater than one means that there is sufficient time and job can be completed
ahead of the schedule.

(ii) Equal to one implies that job is just on schedule and requires to be closely
watched.

(iii) Less than one suggests that the job is critical and needs to be expedited to
complete it on schedule.

In general, the smaller the critical ratio, the more critical the job is from delivery point of
view.

Advantages: This technique of critical ratio scheduling helps to:

 Determine the relative job priorities for scheduling.

 Make automatic adjustment in the shop schedule when there are changes in
demand and job progress.

 Reduce dependence on expeditors since a properly designed critical ratio system,

coupled with necessary progress reporting, identifies critical jobs.

 Compare both stock and made to order jobs on a common basis.

 Prevent crises in scheduling of production

 Exercise control by exception.

Critical ratio scheduling, when applied to activities of production control department

helps in establishing and maintaining priorities among the jobs and when applied to
purchase follow up on pending orders.

The technique helps to identify components/parts/ materials which require expediting of

their pending quantities from their suppliers.
The technique utilizes the concept of ratios called critical ratios which provide a time
relationship between a product / part /material is required and when it can be made
available / supplied.

(b) Write few typical critical ratios and explain what they signify?
Ans:

1) A total of 20 work orders completed over last one quarter were analyzed and
following data on ineffective timer per operation (days) was obtained:

2.0 2.5 6.0 3.0 2.8

0.8 1.20 3.5 2.7 1.8
3.2 5.80 3.4 4.9 2.3
4.9 2.06 1.6 0.6 0.9

Calculate

(i) The average time per operation the component stayed on the
shop floor due to waiting queuing, hunting, job splitting, change
in priorities, power failure, machine break down etc.
(ii) What total lead time should be considered for component with
the following details?

Batch quantity = 300 no.s

Total set up time = 12 hrs
Total processing time = 18 min
No. of operations = 5
Average labour efficiency = 80 %
against performance standards

N.B: The Company works two shifts per day, each shift of 8 hrs duration.

Sol:
(a) Expected ineffective time per operation is

N
EIT = ∑ Xi, P(Xi)
1

The computational process is given in the table below:

 Probability
Range of Mid Frequency P(Xi) that
ineffective value Tally Total Relative ineffective Xi .P (Xi)
time per
frequency time per
operation Xi Marks operation
(days)
shall be Xi
Upto 1 .5 /// 3 0.15 0.15 0.075

1–2 1.5 //// 4 0.20 0.20 0.300

2–3 2.5 ////// 7 0.35 0.35 0.875

3–4 3.5 // 2 0.10 0.10 0.350

4–5 4.5 // 2 0.10 0.10 0.450

5-6 5.5 // 2 0.10 0.10 0.550

20 Total: 2.600

Therefore, expected value of ineffective time per operation = 2.60 days

(b) Total Lead time is given by the formula

N N
TLT = P + ∑ (W + T) + ∑ S+QR
1 1 HXE

Where,

P = Order preparation time = 7 days (assumed)

W = Expected value of ineffective time per operation x No. of

Operations
= 2.60 x 5
= 13 days
T = Transit time between operations x No. of operations
= 0 (Transit time assumed to be insufficient)
 And
N
∑ S+QR = 12 + 18 / 60 X 300
1 HXE 16 X 0.80

= 7.97 days

Therefore,

TKT = 7 + 13 + 7.97

= 28 days.

2) National Engineering Company utilizes critical-ratio-scheduling technique

for the purpose of scheduling and expediting. The status of few made-to-
stock items is given in the table below.

Average lead time

remaining (to
Stock-on Safety Average daily complete remaining
S.No hand stock consumption operations) (days)

1 1320 840 60 4
2 480 120 30 15
3 520 80 40 10
4 785 235 50 30

Calculate critical ratio for each of the items and decide on the action to be taken.

Sol:

Critical Ratio = Lead time available (LTA)

Lead time required (LTR)

For made to stock items

LTA = (Stock on hand) – (Safety stock)

Average daily consumption
LTR = Lead time required to the complete remaining operations

= This has been given in the problem

Critical ratios for above items have been calculated in the table below:
 Lead time Lead Time
S.No available (LTA required Critical ratio

1 1320 - 840 / 60 = 8 4 8 / 4 = 2.00

2 480 - 120 / 30 = 12 15 12 / 15 = 0.80

3 520 - 80 / 40 = 11 10 11 / 10 = 1.10

4 785 - 235 / 50 = 11 30 11 / 30 = 0.37

From the above critical ratios, we can conclude that progress of item

(i) At serial 1 is more than satisfactory. The item is likely to get completed on
time and not much of attention is required to be paid to it.
(ii) At serial 2 is unsatisfactory. The item has become critical either because its
consumption has risen above its average or the job has been delayed. In any
case, its progress must be accelerated to avoid potential stock out.
(iii) At serial 3 is just satisfactory. The item needs to be closely monitored
(iv) At serial 4 is extremely critical. Every possible avenue should be explored to
expedite the remaining operations.

12 (a) What are make or buy decisions? What costs are considered while finding the
cost to make and cost to buy?

Ans: Introduction: Make or buy decisions generally concern items required to the
company’s own design. No firm can manufacture each and every item of its product. It is
neither possible nor desirable. Items which do not form the company’s product line are
always purchased from outside. An automobile firm for example requires to purchase raw
materials, forgings, castings, tyres, tubes, bulbs, wires, bearings, automotive wheels, etc,
from others. Similarly, an engineering firm needs to buy grinding wheels, oils and
greases; tools etc., since the manufacture of these items require totally a different
manufacturing process.

Items which require specialized technical knowledge or procurement of special

equipment are generally sub-contracted. A small firm for example normally gets its items
heat-treated, surface coated (zinc plating, or galvanizing, or phosphating) from outside to
get benefit of low price.

The exclusion of the above categories of items leaves the firm with items which require
to be manufactured to its design either at the home plant or to be purchased from outside
suppliers. The decision whether to make the item at the home plant or buy it from outside
vendors is referred to as “make-or-buy” decision.

Costs to be considered while making a make or buy decision:

Cost analysis refers to the determination of cost to make the item and cost to buy it. A
complete and correct assessment of the various elements of the cost is essential to make
sound economic decisions.

The following data needs to be collected and analysed.

Particulars Departments originating the information

Raw materials Purchase
Landed cost of the item Purchase or sub-contracting
being cub-contracted
Weight of raw materials/ Purchase/Production Planning & Control
Casting/forgings
Weight of finished component Production Planning & Control
Present utilization of company’s facilities Production Planning & Control
Methods of manufacture (Route sheet) Production Planning & Control
Set up times and operational times Industrial Engineering
Machine hour cost and labour hour cost Costing/Industrial Engineering /
Sales/Finance

The analysis is based on annual requirements of components against the following

elements:
(a) Raw Material: The raw material cost consists of cost of raw materials less value
recovered during to the sale of scrap like turnings, borings, end pieces etc. The
raw material cost is considered towards the cost to make. However, if the raw
material is supplied to the vendor free of cost, the cost of such materials also
required to be considered towards cost to purchase.

(b) Labour cost: Labour cost implies the wages and costs of other benefits
(Provident fund, E.S.I., bonus, gratuity etc.) payable to the workmen engaged on
the job. This cost however, requires to be considered only when additional labour
force needs to be employed while production capacity is available.

(c) Tooling cost: Jigs and fixtures generally require to be made if the item is to be
machined at the home plant. The jigs and fixtures once made maintain their
accuracy only for certain quantity, say “n” pieces, after which again a new set of
jigs and fixtures require to be made. The cost of tooling thus requires to be
amortized over “n” pieces and the annual cost of such tooling requires to be added
to “cost to make”.

At times, when an item is purchased from outside vendors, certain special cutting
tools (broaches, hobs, shaping cutters etc.) and jigs and fixtures require to be
 supplied to the vendor free of cost. The cost of such tooling, therefore, requires to
be considered separately as tooling cost towards “cost-to-buy”

(d) Overhead cost: the bulk of cost associated with a make or buy decision is the
cost of production capacity. This is the area where most often mistakes are made.
These costly errors can be avoided by keeping a single fact in mind that the costs
which influence make or buy decisions are just the incremental costs the costs
which will be incurred if the part currently made is purchased or vice versa.

(e) Recoupment cost: Recoupment cost implies the setup costs (if the item is to be
manufactured at the home plant) or the procurement cost (if the item is to be
purchased). Set-up cost is the “preparation cost” of the machines and it varies
depending upon the number of production runs in a year. The procurement cost is
the cost of raising a purchase order and processing the deliveries from the
vendor(s) and it varies depending upon the frequency of receipts of the item from
the vendor(s).

(f) Outside operations cost: The item manufactured at the home plant may require
sub-contracting of certain operations such as rough blanking, heat treatment,
plating etc. The cost of such operations requires to be considered separately
towards “cost to make”

(g) Purchase cost: Purchase cost includes the price given to the vendor, packing and
forwarding, excise, sales tax, transport cost, control etc.

(h) Capacity cost: Capacity cost implies the cost of capacity rendered idle if the item
currently being manufactured is purchased. Such a cost requires to be added to
“cost to buy”.

1. “Production Planning and Control department is called the nerve center of a

production unit” Discuss.

Ans: Introduction: Good production planning and control system is a must for a firm to
enable it to make reliable promises and then to stick to them. It is also essential to devise
methods which will ensure selection of right equipment, right tooling and enable the shop
to make the job in the simplest but in the fool proof way. The following costs can be
controlled / avoided through better production, planning and control, which make it the
nerve center of a production unit.

(a)Waiting time: “Time waste is the easiest of all wastes and yet the hardest to correct
because it does not litter the floor” remarked Henry Ford once. This statement is as
true as death. Excessive waiting time is really a big hazard – a big expense.

A closer look around the department can enable us to spot some of these time leaks.
We will find some of our workmen waiting at that tool crib. Some may be waiting for
raw materials. Other may be waiting for the tools to be sharpened. Yet there may be
 some waiting for prints and instructions for the next job. These little time leaks, if
considered in isolation, do no mean much but too many of these can certainly add to a
large amount, may be larger than few big ones. To reduce waiting time, each
supervisor must know as to when the job in hand must be completed and when next
job should get started so that necessary tools. Gauges, prints, materials, etc. for the
next job can be kept ready.

(b) Hunting Time: “An Operative in an engineering concern spends more than 2% of his
time in wandering or looking for the things he needs to do the jobs” we will find them
sharing their tools with other operators. Lot of operative’s time is wasted in searching for
straps, clamps, bolts, nuts and washers.” We can reduce this ineffective time by fixing
right place for everything and providing our men a set of everything they need well in
advance of starting of the job. Good production planning and control can convert some of
these time leaks into useful production hours.

(c) Stalling: “Workers usually try to coincide the end of their jobs with the end of the day by
stretching the jobs in hand”. A worker usually tends to delay the completion of job so that
he does not need to start a fresh job towards the end of the day. “why start now, I wont be
able to finish it in my shift” is the commonest attitude among our workmen. We can
somewhat avoid this by setting the system where by each workman knows when he is
expected to complete the job-in-hand and what is his next work assignment. Scientific
scheduling can do this!

(d) Interrupted workloads: “Unplanned over lapping of operations lead to idle machines
and job split-ups”. Interrupted work from the previous operation not only results in partial
utilization of the next machine but also seriously undermine morale of the shop. Careful
production planning can prevent such unnecessary losses of time.

(e) Costly overtime: “Poor planning is the common cause of overtime.” Prolonged overtime
is not merely the extra strain on the finance of the company but means much more.
Excessive overtime and hence extra time earnings make the workers accustomed to a new
standard of living and any action on the part of the management to reduce or discontinue
overtime is disliked by the workers. It is just not palatable to them. The mere knowledge
that the company intends to do away with the overtime make the workers slow down
their pace and thus the company is forced to overtime working. It then becomes a vicious
circle and once caught in it the company cannot come out of it. The result is of anybody’s
guess. The workers go on getting overtime day after day and month after month and thus
worsening the already worsened situation. The overall effect is thus the lowering of
efficiency – firstly because of accumulation of fatigue and secondly because of slackering
of pace to get overtime.

The need for overtime arises due to:

 Unrealistic delivery dates without there being any leeway for unforeseeable.
 Acceptance of too many rush orders.
 Frequent delays in receipt of materials
 Excessive machine breakdowns
 Lack of qualified workers
 Insufficient manpower or machines.
The majority of the causes cited above can be avoided by proper planning

(f) Unproductive time of the machines: “Productivity of factors of production to a large

extent depends on the quality of supervision”. The prime responsibility of the
supervisory staff is to ensure that the company’s machines work for maximum time
and the loss of time due to different reasons is kept at minimum. The production time
of the machines is lost due to weaknesses in one or more of the following supervisory
functions:

 Operators’ unauthorized absenteeism and the failure of the supervisor to make

substitute arrangement
 Enforced idle time of the machine for want of smooth movement of materials on
the shop floor
 Lack of effective supervision which cause idle time of the machines since
operators merely shop around, visit unnecessarily places of personal needs, steal
longer tea breaks, resume work 5-10 min late in the beginning of the shift and
after lunch break and close work 10-15 min prior to lunch break and the end of
the shift.
 Idle time of the machines due to delayed action by the supervisor to trace defects
to the source and stoppage of the machines by the workmen until then.
 Wastage in factors of production enumerated above occurs not only because of
poor quality of supervision but also when the supervisory staff gets burdened with
routine functions namely materials planning, tools planning, movement of
materials on the shop floor, machine loading, expediting etc. PPC relieves
supervisory staff from clerical functions and thereby enable them to spend more
time for training of workmen, proper allocation of work to workmen, trouble
shooting and maintaining shop discipline.

(g) Higher overhead costs: Since production planning anc control relieves supervisory
staff from a number of clerical responsibilities, they get more time for training of
workmen, troubleshooting, maintaining shop discipline and improvising methods of
work. At the same time they can handle more workmen and more machines, which
reduce supervisory overheads.

(h) Poor labour efficiency: “Workmen who get accustomed to working intermittently
never work continuously”. This is no exaggeration. It is a fact based on human
physiology and it holds good not only for workmen but also for supervisory
personnel. Many a times in large companies, jobs get delayed due to irregular
deliveries of materials, interruptions from the supervisors, improper loading and
scheduling, lack of sufficient volume of work etc. and as a result workmen are either
rendered idle or are utilized for part of the time. And if such delays are frequent,
workmen get accustomed to partial working and thus the efficiency of the shop floor
suffer a set back. They even do not work continuously when sufficient work is
available.
 PPC can prevent such a situation by exercising better control on availability of tools
and materials monitoring a close control on work-in-progress on the shop floor, re-
allocating jobs from other machines by shifting idle operators to other machines,
changing the route, ensuring smooth movement of materials from and into the
different shops, and reporting cases of idle time of men and machines to enable the
scheduler to release new jobs.

(i) Investment in inventories: Good production planning and control can help the firm
to ensure continuity in production with minimum inventory investment. Stock outs
and higher inventory investment result if the requirements of materials are not
indented on time and also if materials on receipt are not allowed properly to the work
orders as per job priorities. Shop personnel can neither do forward planning of
materials nor can they keep track of receipts and issues of materials. Only a
centralized agency such as PPC can co-ordinate the activities of shops, stores
department and the buying department.

Timely Quick Lower Better co-ordination

Better
deliveries feedback on capital between production,
availability
job status investment sales & stores.

PRODUCTION
PLANNING &
CONTROL

Effective Better job Cost reduction Effective utilization of Good return on

supervision satisfaction & cost control factors of production investment

Fig: Effect of production planning and control on the firm’s operations

(j) Lowered morale: A department plagues by rush orders, broken deliveries,

uneven work loads, frequent revisions in process, costly overtime, excessive
machine breakdowns and the like can hardly be expected to have good morale. An
integrated approach to production, planning and control can go a long way to
eliminate or atleast minimize the occurrences of the above mentioned losses.

Certainly production, planning and control is the nerve center of a production unit.