Industrial Management: Notes

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OVERVIEW OF INDUSTRIAL
MANAGEMENT

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Concept of lndustrial Management
Development of lndustrial Management
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After reading this chapter, you will understand :

Difference between industrial management and production management

Organisation of an industry
Objectives of industrial management
Application areas of industrial management
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lmportance of industrial management
Problems faced in industrial management
Scope of industrial management
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1.1 TNTRODUCTTOX
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The term "Industrial Ivlu-ug"^ent" is quite confusing as different authors

introduetionJo1hesu-$eet. By the time you finish reading the third article of this
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chapter "Development of Industrial Management", the meaning, its nature,

scope and application areas will be quite evident and crystal clear. Some of the
discussion in these articles have been dealt in detail in the earlier courses of
"Industrial Psycholory/sociology" and "Engineering and Managerial
Economics". Here we will be giving only brief outlines. Those readers who are
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interested in detail may refer to the books on these subject by the author ofthis
book. we have purposely avoided repetition of detailed subiect matter here.
Industrial Management is the combination of twp word d
Mqntgerygnffndustrial implies referring_to industryl{ndust d
as of complex and sophistica[ed pethods to the production of
gc services''. The comprex and sophisticated methods refer to
the use of machines which improve the quantity and quality of production. In our

(1.1 )
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 Industrial Management: Notes

1-2 S hubham's Industria.l M anagement

context, "Industry" does not simply refer to activities related to manufacturing,

trade or business. It has a all sorts ofoperating or

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working organisations s. al, governmental and

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religious. On the other hand,_,management means planning, cii$aniiiing,
in'an
lar.r, tQ
nd to control". Flowever, this definition
r in terms of what at

ate
? Oliver Sheldon is
I ation of policy, it of
the organisations analJJemployment". However, our simple worhing definition
is aManagement is a process used to accomplish organizational goals".
The combination of these two words results in a new branch of engineering.
Industrial Management may be defrned as :

c\ ,],.2
CONCEPT OF INDUSTRIAL MANAGEMENT
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y- "The brqnch of engineering'that deals with the creation and management of
systems that integrates people, mqterials and energy in productiue ways." I

gtrategi_c
la man and
financial
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a
manaEeme
manageme s and storinE facts and
information fiii rs within the or
mariagement planning involves adjustm_ent coutrol 4qd
coJpglqlig4--It draws upon specialized knowledge and skill in the mathematical,
Human -
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resources

Marketing
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Production Management

,NDUSTRIAL
MANAGEMENI

Fig. (1) Concept of lndustrial Management

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 Industrial Management: Notes

Oueruiew of Industrial Maruagement t;i:

physical and social sciences together with the principles and methods of
engineering analysis and design. In this way it specifies, predict and evaluate the

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results obtained from such systems.

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t In its most comprehensive meaning, industrial management refers to the
systematic management of all aspects of the industry (or factory). The
techniques employed go beyond increasing productivity or controlling the
t mechanical cost factor. They also include organization structure, administration
and human/labour problems. This has been shown in frg. (1).

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(Industrial management involves studying the performance of machines as
rvell as people. to keep machines in good working
condition and t eir production. The flow of materials
through the plant is superuised to ensure that neither workers nor machines are
idle. Constant inspectiorz is made to keep output up to standard. Charts are used
lor recording the accomplishment of both workers and machines and for
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comparing them with established standards. Careful accounts are kept of the
cost of each operation. When a new article is to be manufactured, it is given a
design that will make it suitable for machine production, and each step in its
manufacture is planned, including the machines and materials to be used. i

Essentially, the industrial management is concerned with the e. i

sl,stem and its primary function is that of management. As such i a
serviie function. Service fung[qn_-peans tq,provide expert information. The I
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facts are gathered, problems aie subjected to analysis, tentative conclusions are .|'
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made-compared-tested for various alternatives and frnally the findings are .t
presented with recommendations to the top management. For doing all this I
various tools and techniques of industrial management are employed.
Note :r.!/J Industrial Management is a branch of engineering. As such the person
performing the functions of industrial management is an engineer by
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profession.
(2f Industrial Management and Industrial Engineering are synonymous terms.
(3) Industrial Management is different from production or operations
management and is explained later on in detail.

1.3 DEVELOPMENT OF INDUSTRIAL MANAGEMENT

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The term "industrial management" came into use in the United States
around the turn of the twentieth century after the Industrial Revolution.
/
llndustrial Revolution-The rise of factories,)
Before the Industrial Rev___ people worked with hand tools,
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manufactunlgaq!ic_!g__s11!heir own-homes or in small shops. In the third quarter

of t no_!9yer_was applied to machinery. People and machines
ivere brought together unde. one roof in factories, where the manufactur.ing,
processcouldbesuperv@nningdt{hoft-maTtagement.Inthe
next hundred yeiis factories grew rapidly in size, in degree of -fEthinization,
and in comp eration. However, the growth was accompanidl by much
rvaste and'lneffielency. Tn-[he-United States many engineers, spurred by the

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 Industrial Management: Notes

S hub fi am's I ndu strial M anag ement

increased competition of the post-Civil War era, began to seek ways of improving
plant efficiency.

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The result of Industrial Revolution was :

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chine pffir beg-a-n a;--osubJutute for human power
goods
systems became available whiqh

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o-g_s dgveloped to serve larger markets
and work that had become complex was felt to improve

Scientific Management
m The first sustained effort in the direction of improved efficiency was made
by Frederick W Taylor.
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m His principles of scientific management resulted in :
"
od to define
by selecting
ne.
and
t in one best
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ry Ford iqJrcdrce-d the divisioa qf_labour in the factories.
Human Relations Movement
Little attention was paid to the motivational content of work. The accidental
discovery of the importance of human relations was made by tIf Hiwl'horne
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sififies from 1927 to 1932. The research was supervised by Elton Mayo. Wtlt"
conducting productivity studies at Western Electric, Mayo demonstrated that
of rel3tions wi.!h
rygrk"fr_'
"*tqqig-l:y_9e gwide*range
as on compensation.
compfrsation. tql_p_g_.an
le.5!.-!,o. eventual split
an eventu?l spli[
ell
ot
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industrial management, with. one branch emphasizing an underslandlng gf
glCqp_l?ptig{hggry and behaviour and the _o,ther gmphasizing the mechanics of
pioduction,iiJo-'krro*n;J aperaficrrr. i'-- ilJscienee continied to provide the
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b4qip for studies of both branches, th e t was

increasin ized as a complex set of kqqwl s eased
specialization of management talents led to the dissipation of comprehensive
studies in industrial management, with more attention paid to specialties like
financial management, human resources management, and operations
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management.

Modern Trends
Following World War II, many of the dehumanizing aspects of factory life
were a leading concern of both union movements and studies to improve quality
of work life. Ulork.d-e-sign an{E-o_cio-technical 4pprqaqfres.!o ryqqk becaqe ths"
focus of industrial management. By the 1960s, however, the U.S. economy had

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 Industrial Management: Notes

Oueruiew of Industrial Managemerut 1.5

shifted to a service economy, with more than half of the labour in the country
employed in services. This shift was to be followed by the information revolution

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and extraordinarily high rates of global competitiveness, changes that had

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dramatic impacts on work content. The term "industrial management" became
increasingly irrelevant as the nature and content of work shifted to
computerization and other spheres of the economy.
f Modern technological devices, particularly in the areas of computers,
electronics, thermodynamics and mechanics, have made automatic and

ate
semi-automatic machines a reality. fhg-development of such automation is
bringing about a-second industrial revolution and is causing vast changes in
commerce as well as fhe way worli is organized. Such technological changes and
:he need to improve productivity and quality of products in traditional factory
s-r'stems also changed industrial management practices.
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Today, the segment of management that seeks improvements in efficiency

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and productivity is known as production and operations mclnagenxenf. Its most
recent developments includei.-ntegrated-meffroas of management that contain
elements of programmable technology, quality improvement, just-in-time
delivery lean production, and supply chain management.
In India, many colleges and universities provide degree in Industrial
Engineering. All big organisations like TISCO, TELCO, RIL, etc., employ
-ndustrial engineers. The reporting of such engineers is directly to the
:op-management.
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SELF.STUDY
Assignruent r: what are the ancient civilization examples that
required Industrial Management applications?
Assignment rr : which was the largest industrial plant of the medieval
rvorld? List its industrial management applications.
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1.4 INDUSTRIAL MANAGEMENT VERSUS PRODUCTION

MANAGEMENT
! y Industrial management deals with the analysis, design and contror of
productive systems. A productive system is any system that produces
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either a product or a service. on the other hand, production management

attempts to familiarize a person with concepts and techniques specific to
the analysis and management of a production activity.
-, . m Production managemu-nt is mostly associated with managing a
production environment. The design and analysis of productive system
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are outside its purview on the other hand, industrial management is

concerned with designing system and providing expert information
without actually operating the systems. Production or operations
management is a sub-speciality of industrial management.

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 Industrial Management: Notes

,'1;Ft .,, ' Sfru6fiant's Industrial Management

.5 INDUSTRTAL ORGANISATION
When we talk about management of an industry, we should be clear about

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what is to be managed. There are various departments in a big organisation

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engaged in various activities which play their own role in helping the production
department meet its objectives. Even in service organisations like banks,
software companies, hospitals, etc. there are various departments which have to
managed through industrial management. Here we will be discussing the
general organisation of a big manufacturing factory which can be modifred for

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any service-industry also according to its needs"
(l) Head of Production Depat'tment: Production head is the supreme
officer of production organisation. He is called worhs manager or general
manager. He is the person who is responsible for all the function of production
department and all the other sub-divisions of production organisation is
controlled and directed by him.

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(2) Manufacturing Department : Manufacturing department is that
portion ofproduction organization where the actual activities or operations are
performed for the transformation of raw material into finished goods. The head
of this department is called production rrlonager. The prime responsibility of
production manager is to ensure the production according to the predetermined
plan and directions received.
If the organisation is diversified, meaning producing different types of
product then in such a case the manufacturing department can be further
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divided in various sub-manufacturing department like manufacturing unit,
repairing unit, assembling unit, etc.
(3) Technical Department : The primary task of technical department
is to enhance the quality of finished goods by performing research and
development on modern techniques of production. Technical director is the head
of this department. Generally following sub-sections are included in this
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department :
(i) Development section
(iit Design section
(iii) Research section
(iv) Testing section
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(4) Prod.uction, Planning and Control Department ; The main

function of this department is preparation of production plan and execution of
that plan in order to achieve predetermined goals in a given period of time. This
department also controls all the other department related to production. The
head of this department is known as Production Controller
(5) Quality Contral Department : Generally the function of quality
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control is performed by production planning and control department but some

firms establish a separate quality control department to ensure the quality of
their finished product. Chief Inspeclor is the head of this department. He has a
group of inspectors under him. This department controls the quality at various
Ievel ofproduction.

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Oueruiew of Industrial Maruagement ,' li;,i

(6) Engineering Department : This department is headed by chief
engineer. Maintenance of machinery of firm as well as continuous improvement

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in machines and tools used in production are included in the function of this
department. Department also prepares various dies used in production.

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(7) Purchase Department : Generally the purchase department works
under the chief works manager. The main function of this department includes
the purchase of raw material, machine tools and other necessary items used in
production. This department evaluates the price and quality of purchased
material at the point of purchase.

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Various department send their requirement to purchase department which
purchases the items at favourable price.
(8) Sfore Department : Each firm establishes a store department
headed by chief store lzeeper to balance the demand and supply of raw material
and frnished goods. Availability of required type of material of required quality in

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adequate quantity, adequate andsafe handling, disposal of scrape, measurement
ofmaterial and record ofentries related to store in related books are the various
functions performed by the store department. Inventory management is also
performed by them.
(9) Maintenarlce Department : Maintenance department is a main and
necessary department of a manufacturing firm. Maintenance department looks
after the various assets of the frrm like machinery, building, vehicles, etc.
Department is headed by Maintenance Manger.
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(lO) Security Department i This department is responsible for security
in the industry. Department is headed by Security Director. Department
formulates the security related rules and execute the rules at all the level in the
concern. In case of any accident, investigation and analysis is done by this
department and department also prepares necessary documents.
Along with all above departments, some other departments are also
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established such as legal department, export-import department, Safety-Health

and Environment department, etc. in a big manufacturing concern.

.6 OBJECTIVES OF INDUSTRIAL MANAGEMENT

The ultimate objective of industrial management is to produce the right
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quantity of right quality goods at the right time. These are attained through :
(l) Manufacturing Costs: The unit cost of the product should be
estimated carefully and every effort should be made to stick to the cost
standards. For this purpose, the efforts should be made to segregate the costs
into two-direct costs and variable costs. Efforts should be made for the
following:
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(i) Reduction in the variable costs.

(ii) Reduction in the fixed costs.
(iii) Increase in the volume of production, so that the frxed costs may be
spread over more production resulting in the reduction in the per unit
absorption.

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 Industrial Management: Notes

1:.8:, Shu\frant'slndustriqlManagement
(iv) The allocation of the fixed overheads should be made on scientific basis.
(2) Machinery and Equipment : The objectives in the area of

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machinery and equipment are divided into :

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(i) Selection and acquisition of machinery and equipment according to
production process.
(ii) Utilization of machinery and equipment.
The adequacy of the existing machinery should be considered and proper
additions and replacements should be made according to the requirements.

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Efforts should also be made to increase the utilization rate of machinery through
repaiq maintenance and maximum occupancy of the machines.
(3) Materials : The materials objectives must be prescribed in terms of
units, rupee value and space requirements. The per unit materials costs should
be specifred and efforts should be made to increase the inventory turnover of all

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types of inventories-raw materials, work-in-progress and finished goods.
(4) Marupower: Manpower is an important as well as typical input in
manufacturing activities. So the objectives of the production activities are as
regards manpower must be closely allied with the objectives of selection,
placement, training, rewarding and utilization of manpower. Usually, these
objectives are considered in terms of employee turnover rates, safety
measurements, industrial relations, absenteeism, etc.
(5) Manufacturing Seraices: The provision of proper and adequate
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services directly affects the utilization of other inputs such as men, machines and
materials. Proper objectives should be set for the installation of important
facilities such as power, water supply, material handling, etc. In a condensed
form, it can be stated that the objectives of the manufacturing activities are-to
manufacture a quality product on schedule, at the lowest possible costs, with
maximum asset turnover, to achieve consumer satisfaction. This statement is
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closely related to the ultimate and intermediate objectives of the production

function.
(6) Product Quality : Generally, the product quality standards are often
established by the product specifications or by the consumers. The
manufacturing organization should try to translate such quality prescriptions
into some measurable objectives. It should be noted that the product quality
comes in conflict with the manufacturing cost objective and the manufacturing
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time-schedule. The maintenance of the quality should not result in increase in

manufacturing costs or delay in the production. A proper balance must be
maintained between quality and cost as well as quality and time-schedule.
(7) Manufacturing Schedule: There are many forces which compel
side-tracking in the manufacturing activity. The time schedule should not be set
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for the shipment alone; it should be broken up into all the sub-systems like
operating cycle time, inventory turnover rate, machine utilization rate, direct
and indirect man-hours per unit, capacity utilization, machine and Iabour idle
time, set-up, repair and maintenance time, etc. Time schedule objective directly
affects the cost, quality and the goodwill of the business in terms of regularity of
shipment.

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1.7 APPLICATIONS OF INDUSTRIAL MANAGEMENT *
Earlier, Indu,strial Ma4agement was mainly applied to manufacturing

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industries for impro ions; to 4evelop qork standqr_{s or

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to formulate produc policies. Later on, it's use started in
non-manufacturing activities such as construction and transportation, farm and
air-line operation and maintenance, public utilities, government and military
operations. Today also, Industrial Management find major applications in
manufacturing plants and industries. In the present era of cut-throat

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competition at various stages ofoperations, an enterprise should produce goods
and services keeping into consideration the requirements and satisfaction of the
potential customer. The objective should be to produce goods at least costs and to
the maximum satisfaction of the buyer. To meet this objective, application of
areas :

: Product design and development

yM e,ti4gfuoction and several branches of

manufacturing engineering, including
production engineering. If the design of the production is not good from the
production stand point, ii-may iequi.e cottly adjustments to the production
process in terms of equipment, material and man power. If the design is good,
production costs may be low enough to substantially enhance a firm's profrt
making position. The key role of good and effective product design is rapidly
beCiiming evident and firms prominent in competitive market tends to exploit
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details of design that reduce production costs or develop product features that
allow it to appeal to a wider market.
and Material HandHn[\ The physical arrangement
of ponents and the for handling the material
"q,riprr.lrt
during production process has considerable effect on cost of production. The
material handling system and the plant layout shouid be most efficient for the
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giv n.
od Study and Work Meosurement\ Method study and
me techniques are applied to find out the reld-tionship between output
of goods and services and input of human and material resources. If material
including scrap and waste, can be accurately measured and controlled, it is
possible to do so for labour component too. The problem associated with
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measuring labour efficiency are more diffrcult than with material, but they are
not unmeasurable. The measurement should try to frnd the most appropriate
method of performing various operation involved in a production systern so as to
obtain optimum use of resources and man-machine relationship in increasing
produc
J4) Forecasting is necessary if the business
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firm is its products and services. Sufficient time

must be allowed to get inputs and transform them into output at right time and
ritht place. Forecasts can be used as an analysis of past data, consideration of
current events and future developments. These forecasts becomes the basis for
the plants and schedules for buying, manufacturing, selling and other activities
of the firm.

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 Industrial Management: Notes

S[tu6 hqm,s Industrial Management

Schedulingil In order to co-ordinate

di h organisatiorr, a master plan of activities
and a schedule of their performance is needed. Careful planning anticipates the

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need for people, materials and equipment so that sufficient time between order

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and delivery of goods and services is available to make necessary changes, if
required. The planning and scheduling of a firm perform a co-ordinated effort
with resources and available time in attempting to utilise the full capacity to the

lri Inventory implies all the materials,

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r finished products kept in stocks for some
e items requires careful consideration and
analysis. The purchases should be planned in economic ]ot sizes and the time of
purchase should be so scheduled that the investment in the inventory is at lowest
possible level. This implies determination of economic lot sizes and re-order
level. It also involves exploring reliable sources for obtaining materials and
supplies.

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While planning, scheduling and inventory control
g quantity and timing of production, quality control
is responsible for providing quality. Quality must be designed and manufactured
into the product. Although customers may desire higher quality, they may not be
willing to pay the resulting price. In such a way quality standard should be set up
that will be acceptable to the customers and yet economically feasible to thl
product. It is a matter of flrnding a balance between too much and too little
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qualitv.
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(8) ? Control ) lt is very necessary in today,s highly
compet organisftion should invest its resources intelligently and
hat
carefully. A major part of these resources are utilised in production activities.
Through it is the prime responsibility of production manager to control the
quantity of the produced goods, proper Industrial Management avoids the
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situation of over-production and under-production. In case of over-production

the resources which are scare in nature will be wasted and in the situation of
under production organisation will be unable to meet the demand in the market.
So both the situations will adversely effect the profitability of the company.
(9[ Method Azalysis\ There can be a number of ways in which some
operatioa can be executed. Through Industrial Management we select the most
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efficient and economical method to perform the operation. Method analysis

improves the productivity of the concern and minimizes the cost of production.
(10) Worhers\ We have to motivate workers to generate their
interest d increase'iheir efforts. This can be done by providing them
wage incentives. This will result in an increase of labour productivity.
(111'Otnq
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Alongwith the above functions and

responsiliilitieq t functions can be included in this list of
functions. Activities such as arrangement of efficient labour, attracl funds,
devise systems for coordinated efforts, to be in touch with modern production
techniques, interaction with marketing, research and dwelopment
departments, meeting environmental and other legislations etc.

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 Industrial Management: Notes

Oueruiew of Ind.ustrial Management i:

1..S IMPORTANCE OF INDUSTRIAL MANAGEMENT
Earlier when the scope of business was limited and total production, total

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market and total demand was comparatively less, there was no accute need of

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industrial management. But now the world has been changed a lot. Now the
enterprises are broader and more diversified. Today the world is of high
production and competition. So the concept of industrial management is
continuously developing and spreading. In the world of cut throat competition
only those product can survive which can be proved to be the best. Now
organisations are focussing on quality control, standardisation and use of

ate
modern techniques in their production systems. The production function is
based upon the effective plans that serves organisation for achieving the
organisational objectives. So we can say that the industrial management is the
key function that plays a vital role in the success of organisation. The results of
industrial management are reflected in the serving of many interested parties of
an organisation such as :
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(l) The Consumers.' The consumers benefits from higher productivity,
better and reliable quality, reasonable price, satisfactory service and timely
delivery of goods.
(2) The Inaestors.' The investors get higher return on investment and
their investments obtain capital appreciation also. Market value of securities is
governed by the earning power and asset value ofthe business.
(3) The Community.' When all business which are operating in the
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community are prosperous, due to industrial management, we have economic
and social stability and the citizens of that community have pride and
satisfaction.
(4) The Suppliers.' Small or large companies depend upon other
companies as sources of raw materials, Components and services. We have
effective co-operation, best inter communication and mutual confidence between
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the business buyers and their suppliers. The company and its suppliers can have
enduring partnership for the satisfaction ofboth.
(5') The Employees.' The employees including the management get
higher remuneration, stable employment, security of jobs, better working
conditions and above all enhanced personal satisfaction through joy of
achievement. High employee morale due to job satisfaction gives higher output.
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(6) The Nation.. When all industries in the national economic system
demonstrate industrial management, the entire national economy wiil
accomplish all round security and prosperity.

^ 1.9 PROBLEMS OF INDUSTRIAL MANAGEMENT

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The job of industrial management is difficult because of changes in market,

technolory, attitude of people, government regulations, etc. The regular
problems faced in industrial management are :
(l) Problem of Location: Main problem of industrial management is
associated with the selection of plant location. While deciding for the location,

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 Industrial Management: Notes

1.12 Sfiu1fiam'slndustrialManagement

industrial management has to keep in mind various aspects such as availability

of efficient labour, nearness of the potential markel, climate and weather

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conditions, etc. All the conditioRs can not be favourable at all the times.
(2) Problem of selection of production Method. : After selection

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of the
location next main problem arises which is related to the selection of production
method. There are various alternative method of production available to produce
a particular product. Industrial management has to select the best
method as per
the requirement, sources available and quality of the method.
(3) Problem of, Plant Layaut: probrem of plant layout is one of

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the
important problem in front of the industrial management. The layout should be
such that it is most suitable for the production of that product and eliminate/
minimises the breakdown in production process.
(4) Problem of Designing of pr-oduct: After selection of labour, the
next problem arises related to the designing ofthe product. Designing ofproduct

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should be done carefully because frequent changes are not possible in the
designed product. while designing the product, factors such as specific, identity,
market demand, simplicity in production have to be considered.
(5) Problem of Production and rnaerutory corttrol: problem related
to production and inventory control is also a major problem. Sufficient raw
material for the production function and regular supply of finished product
according to market demand are two major .".po.r.iniuties of industrial
management. The stock of raw material and finished goods should not be more
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than the requirement. To ensure this the industrial .rru.rug"-"rrt is facilitated by
various methods such as Economic Order euantity tBOel, Re_order point
(ROP), ABC technique of Inventory Control, etc.
(6) Problem of Quality contror : Maintaining the quality of a product
can be seen as another important problem of industriai
the quality of frnished product, industrial management -u.rug"1n"rrt. To ensure
e-nsures inspection
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activities at various level of production. Standardisation is aiso done while

keeping this problem in mind.
(7) Labour Problem: For effective and quality production, the need
of
efficient and skilled labour arises. The aquision of effitient labour is also one of
the problem of industrial management. After acquiring the labour, their training
is also arranged by the industrial management. Industrial management should
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keep eyes on the producbion capacity of the labour and try to improve their
overall performance. Various methods such as work measurement, work
analysis, work supervision and motivational method of'wage payment, etc. can
be aplied by industrial management for this purpose.
(8) Problem of cost control : Any prodtict can survive in the market for
long time when it is available at lower price than its competitors. That can be
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possible only by cost control. cost can be controlled by reducing or eliminatilg

the wastage at all level and by maintaining economy in production. Cost control
is also one of the main problem of industrial management.
Apart from all these above problems, sometimes industrial management has
to deal with various problems such as pollution control, limited financial
resources ofthe organisation, government policies and regulations, etc.

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 Industrial Management: Notes

Oueruiew of Industrial Management 1.f3

,.,, ,.OPE OF INDUSTRIAL MANAGEMENT $,

l
The scope of industrial management can be discussed in two
broad areas :
4tf-Deglgning of the industrial system and product

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,I2) Analyzing and controlling the industrial system
,(ll Actiaities Relating to l11Q_us_U:igtl Sjlslem Designing: The
industrial managemenl work starts aGoo.tai ir,e ia6a oiproar"tro.,
of a certain
commodity comes in the mind of an entrepreneur. primary
task incrudes
preparation of product profile with the help of experts

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of technological
department and market serveys. plant location and piant layout
have to be
decided. Decision relating to the industria

yM election of an optimum plant

taken regarding production
production system design concerns the
neasurementandincrudesproblemsrdT:t[,11#E:;.il::1T:?J.ili#nt
the plant, materials handling and time studv.
Apart from these protrlems, the system designer should pay attention to
two other important problems, vrz. :
'(i) Human factor, i.e., the impact of production
tud
system on the workers
operating it and
..(ii) Research and development activities.
These two problems have a vitar impact on industrial system
designing.
-(2) Aatiuities Relating to Analysis and control of Actiuities : The
next problem after
-the designing of the industrial system is the analysis and
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control of thefproduction systemi It includes all decisions regarding production

administratioh and therefore alffunctions of the
applicable to the production system. These form -u.rug"-"rit so fbr as they are
th-e subject matter of the
industrial management. These activities are :
J. "(i) lrqluction_Planning: The first decision in this regard is production
planning. It includes preparation of short-term productior,
,""n"ar1"., plan for
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maintaining the records of raw materials and finished and semi-finished

stock,
specifying how the production resources ofthe concern are
to be employed over
some future time in response to the predicted demand for products
and services.1

--2G1) Production control: After pranning, tlq next managerial function is to

cqgfol-the production according to ttre proar"tion plans production
plans cannot be activated unless they are properly guided ,b-ecause
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and controlled. For

tbis purpose, production manager has to ,egulutu *tik assignme"t,
progress and remove discre
.*i"*-*o*
it*4qX, in _!\e iituai ara pUrrr"J
performances. The production , hai io*look ilter the production control
activities at three levels :
Control of static inventory such as raw materials, purchased parts,
finished goods and supplies through the inventory control
technique;

Page No 13 of 300.
 Industrial Management: Notes

ii i Shu\ham's Industrial Management

ontrol of flow of materials into the plants through the technique of
judicious purchasing;

l
ontrol of work-in-progress through production control.

ria
f ydlfu*9*qfrltoJ.: The other important decision concerns quality
the composite
deteiminffthi;
of the tustome
and

ate
s_.
__nspection
,!tv\ -C-o1o1dt:ryqtipfr qtith Olher Departments: No plan can be successful
until and unless,, it geJs an active support from rest of the departments of
organisation Fgl rl.LanC_e,-r,r-rarkqqg t provides the data related to
estimated demand withogt_whictr the pl-4n c4n not be prepared.'So
co-ordination with othertepartments is also included under the-scope of
industrial management.
&YQependgrut _ S9yui9_9s yM
aryd Departments: Various services
departments on which produciton plan is totally dependent is also included in
the scope of industrial management such as standardisation, simplification,
inspection, specialisation and quality control, inventory control, research and
and

development, diversification, employee amenities, pollution control, etc.

Evtew
tud
estioni
1. Defrne Industrial Management and explain its concept.
2, Trace the evolution and historical development of Industrial
Management.
3. How is Industrial Management different from Production Management?
4.
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How is an industry organised? How is this set-up different for service

organisation?
5. What are the principles of industrial management in an organisation?
6. What are the various objectives of industrial management?
7. Why is industrial management necessary?
8. What is industrial management human relation?
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9. What are the application areas of industrial management?

10. Describe clearly the various functions of industrial management in a
modern organisation.
11. What are the responsibilities of a person associated with industrial
management?
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12. What is the importance of industrial management?

13. What are the problems associated with industrial management?
14. What is the scope of industrial management?

trtrtr

Page No 14 of 300.