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IE Manual

This document provides information about a lab manual for an Industrial Engineering course. It includes an index listing 12 assignments that students will complete related to topics like method study, work measurement, routing and scheduling, demand forecasting, economic order quantity, capacity planning, supply chain modeling, plant layout, material handling systems, and performance appraisal. The first assignment focuses on conducting a case study method study, with objectives like improving processes and procedures, layout, ergonomics, quality, and productivity. It provides background on method study, including its scope, recording techniques like flow charts and diagrams, and basic symbols used like operations, inspections, transportation, delays, and storage.

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0% found this document useful (0 votes)
116 views67 pages

IE Manual

This document provides information about a lab manual for an Industrial Engineering course. It includes an index listing 12 assignments that students will complete related to topics like method study, work measurement, routing and scheduling, demand forecasting, economic order quantity, capacity planning, supply chain modeling, plant layout, material handling systems, and performance appraisal. The first assignment focuses on conducting a case study method study, with objectives like improving processes and procedures, layout, ergonomics, quality, and productivity. It provides background on method study, including its scope, recording techniques like flow charts and diagrams, and basic symbols used like operations, inspections, transportation, delays, and storage.

Uploaded by

aiexplorer009
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BE-MECH

Industrial Engineering
Dr.DY Patil Institute of Technology Pimpri,Pune-18

DEPARTMENT OF MECHANICAL ENGINEERING

LAB Manual of

Industrial Engineering

Faculty I/C HOD


(Mech. Engg. Dept.) (Mech. Engg. Dept.)
INDEX

Sr.No. Name of Practical/Tutorials Page


No.

1. Case study based Assignment on Method Study.

2. Hands on Assignment on application of Work Measurement technique(s).

3. Assignment on simulation of Routing & Scheduling Model

4. Assignment on simulation of Manufacturing System / Service System Operations for


demand forecasting of the given product using any two methods.
5. Assignment on simulation determination of EOQ and plot the graphs.

6. Assignment on analysis of Manufacturing / Service Operation for Capacity Planning.

7. Case study based assignment on supply chain model.

8. Assignment on analysis of (selected) plant layout modeling and simulation for bottleneck /
line balancing.
9. Assignment on analysis of material handling system - modeling simulation for the selected
plant layout.
10. Case study based assignment on identification of Key Result Areas for performance
appraisal for selected company (3600 feedback).
11. Case study based assignment on cost-revenue model analysis.

12. Assignment on industrial safety audit of selected work environment.


PRACTICAL NO.: 1
AIM: Case study based Assignment on Method Study.
OBJECTIVES:
1) The improvement of processes and procedures,
2) The improvement of factory, shop and work place layout and of the design of plant and equipment.
3) Economy in human effort and reduction of unnecessary fatigue.
4) Improvement in the use of materials, machines and manpower.
5) The development of better physical working environment.
6) To find the best way of doing a job.
7) To standardize the best method.
8) To train the individual worker in its practice as per standardized method.
9) Reduction of waste and scrap, improvement in quality.
10) Effective material handling.
11) Greater job satisfaction, higher standards of safety and health.
12) Improvement in the flow of production and processes.
INTRODUCTION:
 Method study is the systematic recording and critical examination of existing and proposed ways of doing
work as a means of developing and applying easier and more effective methods and reducing costs.
 Method study is basically conducted to simplify the work or working methods and must go towards
higher productivity. It is always desirable to perform the requisite function with desired goal minimum
consumption of resources. Method signifies how a work is to be done i.e. description of how we consume
resources in order to achieve our target?
 “A procedure for examining the various activities associated with the problem which ensures a
systematic, objective and critical evaluation of the existing factors and in addition and imaginative
approach while developing improvements”.
 It is concerned with the development of efficient and economical work methods. Proper development of
these methods calls for the co-operative efforts of the design engineer, process engineer, and method
analyst.
SCOPE OF METHOD STUDY:
The scope of method study is not restricted to only manufacturing industries. Method study techniques can be
applied effectively in service sector as well. It can be applied in offices, hospitals, banks and other service
organizations. The areas to which method study can be applied successfully in manufacturing are:
1) To improve work methods and procedures.
2) To determine the best sequence of doing work.
3) To smoothen material flow with minimum of back tracking and to improve layout.
4) To improve the working conditions and hence to improve labour efficiency.
5) To reduce monotony in the work.
6) To improve plant utilization and material utilization.
7) Elimination of waste and unproductive operations.
8) To reduce the manufacturing costs through reducing cycle time of operations.
RECORDING AND EXAM AIDS
The job should be selected for the method study upon the
following considerations,
1) The method study Involves cost and time: If sufficient
returns are not attained, the whole exercise will go
waste. Thus the money spent should be justified by the
savings from it. The following guidelines can be used
for selecting a job:
a) Bottleneck operations which are holding up
other production operations.
b) Operations involving excessive labour.
c) Operations producing lot of scrap or
defectives.
d) Operations having poor utilization of
resources.
e) Backtracking of materials and excessive
movement of materials.
2) Technical Aspects
The method study man should be careful enough to
select a job in which he has the technical knowledge
and expertise. A person selecting a job in his area of
expertise is going to do full justice. Other factors
Basic Procedure/Steps In Method Study
which favor selection in technical aspect are:
a) Job having in consistent quality.
b) Operations generating lot of scraps.
c) Frequent complaints from workers regarding the job.
3) Human Considerations
Method study means a change as it is going to affect the way in which the job is done presently and is not
fully accepted by workman and the union. Human consideration plays a vital role in method study. These are
some of the situations where human aspect should be given due importance:
a) Workers complaining about unnecessary and tiring work.
b) More frequency of accidents.
c) Inconsistent earnings.
Recording Techniques
The next step in the basic procedure, after selecting the work to be studied, is to record all the facts relating to
existing method. The success of whole procedure depends upon the accuracy with which the facts are recorded,
because they will provide the basis of both the critical examination and the development of the improved method.
Purpose of recording can be summarized as follows:
1) To enable the process to be clearly understood.
2) To present the existing facts for analysis.
3) To submit the proposals to the management in a form this can be easily understood.
4) To guide supervisors and operators regarding detailed operating instructions.
According to the nature of the job being studied and the purpose for which the record is required, the following
are the most generally used techniques.
1) A Charts: Indicating process sequence.
a) Outline process chart.
b) Flow process chart — Man type.
c) Flow process chart — Material type.
d) Flow process chart — Equipment type.
e) Two — Handed process chart.
2) B Charts: Using a time scale.
a) Multiple activity charts.
b) SIMO Chart.
c) P.M.T.S. Chain.
3) C Diagrams indicating movement and models:
a) Flow diagrams.
b) String diagrams.
c) Cycle graph.
d) Chrono-cycle graph.
e) Travel chart.
f) Two and three Dimensional models.
Method Study Symbol:
1) Operation:
An operation occurs when an object is intentionally changed in one or more of its characteristics (physical or
chemical). This indicates a main step in the process, method or procedure. An operation always takes the
object one stage ahead towards completion.
Examples of operations are,
a) Turning, drilling, milling etc
b) Chemical reactions.
c) Welding, brazing and riveting.
d) Lifting, loading and unloading.
e) Getting instructions from supervisor
f) Taking dictation.
2) Inspection:
An inspection occurs when an object is examined and compared with standard for quality and quantity.
The inspection examples are,
a) Visual observations for finish.
b) Count of quantity of incoming material.
c) Checking the dimensions.

3) Transportation:
A transport indicates the movement of workers, materials or equipment from one place to another.
The examples are,
a) Movement of materials from one work station to another.
b) Workers travelling to bring tools.
4) Delay: (Temporary Storage)
A delay occurs when the immediate performance of the next planned thing does not take place.
The examples are,
a) Work waiting between consecutive operations.
b) Workers waiting at tool cribs.
c) Operators waiting for instructions from supervisor.
5) Storage
Storage occurs when the object is kept in an authorized custody and is protected against unauthorized
removal. For example, materials kept in stores to be distributed to various work centers.
OPERATION PROCESS CHART:
It is also called outline process chart. An operation process chart gives the bird’s-eye view of the whole process
by recording only the major activities and inspections involved in the process. Operation process chart uses only
two symbols, i.e., operation and inspection. Operation, process chart is helpful to:
a) Visualize the complete sequence of operations and inspections in the process.
b) Know where the operation selected for detailed study fits into the entire process.
c) In operation process chart, the graphic representation of the points at which materials are introduced into
the process and what operations and inspections are carried on them.
d) E.g. Flow process chart (man, material, equipment type), travel chart, two-handed chart and multiple
activity charts. etc.
Construction of the Chart
A start is made by drawing an arrow to show the entry of the main materials, writing above the descriptions of the
components, and below the line the description of the condition. As each - operation, inspection takes place, the
symbol is entered and numbered in sequence, with a brief description on the right hand side and the time required
for the operation on the left side. During assembly process, the major process is charted towards the right hand
side of the chart and the subsidiary process on its left hand side. These are joined to each other and to the main
trunk at the place of entry of the material or subassembly. The chart does not show where the work takes place.
Or who performs it.
Objectives of the chart:
1) It helps to decide whether a further and more detailed record is needed.
2) It is used in the design stage to assist the layout of the plant and location of one department with respect
to the other.
3) It helps the analyst to visualize the process for examination as a means for better understanding and
improvement of the process.
4) It shows clearly the relationship between various parts and materials which enter the final assembly.
Task for students:
1) Student need to choose a day to day activity like going to library /petrol pump / shopping mall /parking /
admin area and list out those activities to form chart using method symbols. study
2) Student can record the activities during industrial visit for project work / internship / industrial visit / any
mechanical workshop etc and list out those activities to form chart using method.
Flow Process Chart

FLOW PROCESS CHART MAN/MATERIAL/EQUIPMENT TYPE

Chart No.: Sheet No.: SUMMARY


Subject Charted: Activity Present Proposed Savings

Date: Operation O
Activity: Transportation

Inspection
Method: Present/Proposed
Delay D
Storage

Location: Time:
Operator(s): Clock No.: Distance:

Charted By: Cost:


Approved BY:
Description Distance Time Symbol Remarks
(m) (Min.)
O D

Total

CONCLUSION:
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………...
PRACTICAL NO.: 2
AIM: Hands on Assignment on application of Work Measurement technique(s).
OBJECTIVES:
1) Comparing alternative methods.
2) Assessing the correct initial manning (manpower requirement planning).
3) Planning and control.
4) Realistic costing.
5) Financial incentive schemes.
6) Delivery date of goods.
7) Cost reduction and cost control.
8) Identifying substandard workers.
9) Training new employees.
INTRODUCTION:
- Work measurement is the application of technique designed to establish the time for a qualified worker to
carry out a specified job at a defined level of performance.
- Work measurement is the application of techniques designed to establish the time for an average worker
to carry out a specified manufacturing task at a defined level of performance. It is concerned with the
length of time it takes to complete a work task assigned to a specific job.
- the purposes of work measurement are to reveal the nature and extent of ineffective time, from whatever
cause, so that action can be taken to eliminate it; and then to set standards of performance of such a kind
that they will be attainable only if all avoidable ineffective time is eliminated and the work is performed
by the best available method and by personnel suitable in training and ability to their tasks.
USES OF WORK MEASURMENT:
1) To reveal the existence of ineffective time. Work measurement provides the management with a means of
measuring the time taken in the performance of an operation or series of operations in such a way that
ineffective time is detected and can be separated from effective time.
2) To compare the efficiency of alternative methods. Other conditions being equal the method which
requires the least time will be the best method.
3) To balance the work of members of team in association with multiple activity charts so that the labour on
a job is properly balanced.
4) To determine with the help of man and machine charts, the number of machines an operator can run.
5) To set the time standards for carrying out the work. The time standards once set may then be used.
6) To provide information on which estimates of tenders, selling prices and delivery promises can be based.
7) To provide information on which the planning and scheduling of production can be based, including the
equipment and labour requirements for carrying out the work and for effective utilization of available
capacity.
8) As a basis for realistic and fair incentive scheme.
9) To assist in the organization of labour by enabling a daily comparison to be made between actual times
and target times.
10) To provide information for labour cost control and to enable standard costs to be fixed and maintained.
11) As a basis for labour budgeting and budgetary control systems.
TECHNIQUES OF WORK MEASUREMENT:
1) Time study(stop watch technique): A work measurement technique for recording the times and rates of
working for the elements of a specified job carried out under specified conditions and for analyzing the
data so as to determine the time necessary for carrying out the job at the defined level of performance.
2) Synthetic data (synthesis): A work measurement technique for building up the time for a job or parts of
the job at a defined level of performance by totaling element times obtained previously from time studies
on other jobs containing the elements concerned or from synthetic data.
3) Work sampling: A technique in which a large number of observations are made over a period of time of
one or group of machines, processes or workers. Each observation records what is happening at that
instant and the percentage of observations recorded for a particular activity, or delay, is a measure of the
percentage of time during which that activities delay occurs.
4) Predetermined motion time study (PMTS): A work measurement technique whereby times established for
basic human motions (classified according to the nature of the motion and conditions under which it is
made) are used to build up the time for a job at the defined level of performance. The most commonly
used PMTS is known as Methods Time Measurement (MTM).
5) Analytical Estimating: A work measurement technique, being a development of estimating, whereby the
time required to carry out elements of a job at a defined level of performance is estimated partly from
knowledge and practical experience of the elements concerned and partly from synthetic data.
6) Historical data: This method uses the past-performance data. Here, past performance is used as a
guideline for setting work performance standards. The main advantage of this technique is that it is simple
to understand, quicker to estimate and easier to implement. However, past performance is not the best
basis for fixing performance standards. This is because there may be many changes in technology,
employees’ behavior, abilities, etc.

Table: Work measurement techniques and applications


Basic procedure for work measurement:
The following steps are necessary for carrying out the work measurement systematically.
1) Select: The work to be studied and determine the objectives of the study.
2) Record: All the relevant data relating to circumstances in which the work is being done, the methods to be
used. Break down the job into its elements.
3) Examine: The recorded data and the detailed breakdown critically to ensure that most effective method
and motions are being used and that unproductive elements are separated from productive elements.
4) Measure: The time required to complete each element using the appropriate work measurement
techniques and calculate the time required to complete the work cycle which is known as basic time.
5) Compile: The standard time for the operation or work cycle. In case of stop-watch time study the various
allowances to cover relaxation, personal needs etc. are added to the basic time to estimate the standard
time.
6) Define: Precisely the series of activities and method of operation for which the time has been compiled
and issue the time standards for the activities and methods specified.
WORK SAMPLING:
- Work sampling is a fact finding tool, to measure activities and delays while a man is working and
percentage of that he is not working and to measure manual tasks that is to establish time standards for an
operation.
- Work sampling is defined as, “A technique in which a statistically competent number of instantaneous
observations are taken, over a period of time, of a group of machines, processes or workers”. Each
observation recorded for a particular activity or delay is a measure of the percentage of time observed by
the occurrence.
- It also states that the percentage of observations recorded on an operation in any state is a reliable
estimate of the percentage time the operation is in that state, provided, “sufficient number of observations
are taken at random,”.
Procedure for Conducting a Work Sampling Study:
The following steps are involved in making sampling study:
1) Decide on the objective of the study: It is very important to first set the objectives of study as the duration
of the study, number of observations, the design study sheet and elemental breakdown depends upon the
objective.
2) Obtain the approval of the supervisor of the department in which work study is to be conducted. Make
sure that the operators to be studied and the other people in the department understand the purpose of the
study. Obtain their cooperation.
3) Decide upon work and delay elements: Work and delay elements represent the headings under which the
observations are to be recorded. The nature of the work and delay elements differ from company to
company depending upon the objective of the study and the work
4) Decide upon the duration of the study: The duration of study depends upon the objective, number of
observers, the accuracy desired and the frequency of occurrence of the activity.
5) Determine the desired accuracy of results: This may be stated as the standard error of a percentage or
desired accuracy. The confidence level is also to be stated.
6) Make a preliminary estimate of the percentage occurrence of the activity or delay to, be measured.
7) Design the study:
a) Determine number of observations to be made.
b) Determine number of observers needed.
c) Determine the number of days or shifts needed for the study.
d) Make the detailed plans for taking observations.
e) Design the observation form.
8) Make the observations according to the plan, analyze and summarize the data.
9) Check the accuracy or precision of the data at the end of the study
10) Prepare the report and state conclusions.
Advantages:
1) It involves much less cost as compared to stop watch time study.
2) It can be carried out with little training.
3) It can time long operations which are almost impractical to be measured by stop watch time study. It is
very advantageous for timing group activities.
4) It does not need any timing device like stop watch or microchronometer, etc. (vi) Even if the study gets
interrupted in between, it does not introduce any error in the results.
5) Observations can be made within the desired accuracy.
6) Large number of observations extended over days/weeks damp down the influence of day-to-day
fluctuations on the results.
7) It can increase efficiency by uncovering the sources of delay.
Limitations
1) It is uneconomical both as regards time and money to study activities of short duration by Work
Sampling.
2) It is also uneconomical in case one worker or one machine is to be studied.
3) It does not break the job into elements and thus does not provide element details.
4) It does not assist in improving work method.
5) It normally does not account for the speed at which an operator is working.
6) Workers may not understand the principles of work sampling and hence may not trust it.
7) Observations, neither random nor sufficient in number may produce inaccurate results.
Applications/Uses
1) To determine working time and idle time of men and machines.
2) To time long duration activities which are regular/irregular, frequent/infrequent.
3) To estimate the time for which material handling equipments are actually operating in a day.
4) To estimate allowances for unavoidable delay.
5) In describing resource utilization patterns.
6) For the purpose of cost control and accounting.
7) In estimating the percentage utility of the inspectors and time standards for indirect labour.
8) In stores, hospitals, warehousing, offices, farm work, repair and maintenance work, textile industry,
machine shops, etc.
9) It is used when the cost of using other work measurement techniques for timing a job appears to be great.
STUDY:
- As per ILO, It is a work measurement technique for recording the times and rates of working for the
elements of a specified job carried out under specified conditions, and for analyzing the data so as to
obtain the time necessary for carrying out the job at a defined level of performance.
- The art of observing and recording the time required to do each detailed element of an industrial operation
which includes manual, mental and machining operations.
- The application of techniques designed to establish the time for a qualified worker to carry out a specified
job at a definite level of performance.
Advantages of Time Study:
1) To determine the standard times for various operations,
this helps in fixing wages and incentives.
2) To estimate the cost of a product accurately.
3) It helps in production control.
4) To predict accurately completion of work so that
customers can be promised for delivery on a fixed date.
5) Using the time study techniques, it can be found that
how much machines operator can run.
Techniques of work measurement:
1) Time study
a) Stopwatch method
b) Time recording machine
c) Motion picture camera
2) Standard data (Predetermined motion time study)
a) Work factor
b) Method study measurement (MTM)
Procedure for time study
c) Basic motion tie study
3) Work sampling
ALLOWANCES:
The normal time for an operation does not contain any allowances for the worker. It is impossible to work
throughout the day even though the most practicable, effective method has been developed. Even under the best
working method situation, the job will still demand the expenditure of human effort and some allowance must
therefore be made for recovery from fatigue and for relaxation. Allowances must also be made to enable the
worker to attend to his personal needs. The allowances ale categorized as,
1) Relaxation allowance:
Relaxation allowances are calculated so as to allow the worker to recover from fatigue. It is an addition to the
basic time intended to provide the worker with the opportunity to recover from the physiological and
psychological effects of carrying out specified work under specified conditions and to allow attention to
personal needs. The amount of allowance will depend on nature of the job. Relaxation allowances are of two
types—fixed allowances and variable allowances. Fixed allowances constitute: (a) Personal needs allowance
which is intended to compensate the operator for the time necessary to leave, the workplace to attend to
personal needs like drinking water, smoking, washing hands. Women require longer personal allowance than
men. A fair personal allowance is 5% for men and 7% for women. And second is (b) Allowances for basic
fatigue, this allowance is given to compensate for energy expended during working. A common figure
considered as allowance is 4% of the basic time.
2) Variable Allowance:
It is allowed to an operator who is working under poor environmental conditions that cannot be improved,
added stress and strain in performing the job. The variable fatigue allowance is added to the fixed allowance
to an operator who is engaged on medium and heavy work and working under abnormal conditions. The
amount of variable fatigue allowance varies from organization to organization.
3) Interference Allowance:
It is an allowance of Lime included into the work content of the job to compensate the operator for the
unavoidable loss of production due to simultaneous stoppage of two or more machines being operated by him.
This allowance is applicable for machine or process controlled jobs. Interference allowance varies in
proportion to number of machines assigned to the operator. The interference of the machine increases the
work content.
4) Contingency Allowance:
A contingency allowance is a small allowance of time which may be included in a standard time to meet
legitimate and expected items of work or delays, the precise measurement of which is uneconomical because
of their in frequent or irregular occurrence. This allowance provides for small unavoidable delays as well as
for occasional minor, extra work. Some of the examples calling for contingency allowance are:
a) Tool breakage involving removal of tool from the holder and all other activities to insert new tool into the
tool holder.
b) Power failure of small duration.
c) Obtaining the necessary tools & gauges from central tool store. These allowances not exceed 5%.
5) Policy Allowance
Policy allowances are not the genuine part of the time study and should be used with utmost care and only in
clearly defined circumstances. The usual reason for making the policy allowance is to line up standard times
with requirements of wage agreement between employers and trade unions. The policy allowance as defined
by ILO: “A policy allowance is an increment, other than bonus increment, applied to a standard time (or to
some constituent part of it, e.g., work content) to provide a satisfactory level of earnings for a specified level
of performance under exceptional circumstances. Policy allowance is sometimes made as imperfect
functioning of a division or part of a plant.”
STANDARD TIME DETERMINATION:
Standard time is the time allowed to an operator to carry out the specified task under specified conditions and
defined level of performance.

1. Normal Time = (Observed time X rating) / 100.


2. Performance rating factor = predetermine times for element / Average actual time value for same element.
[B] For work sampling study:
1. Number of observations at a confidence level of 95% is (N) = [4(1- P)] / A2P
Where, P = activity percentage, A = limit of accuracy.
2. Overall time per unit (T0) = Production time (duration of study) / number of pieces produced.
If, T0 = overall time per piece, N = Total number of observations
NP = (NM + NH) Observations of production activity, NM = observations of machine controlled work, NH =
observations of manual controlled work
3. Effective time per piece (TE) = (T0  NP) / N
4. Machine controlled effective time ™ = (TE  NM) / NP
5. Manual (hand) controlled time (TH) = (TE  NH) / NP.
6. Normal time per piece = (TH  R) + TM.
INTRODUCTION TO PMTS (Predetermined Motion Time Analysis):
A standard time for a job or an operation may be established by time study, by work sampling or by the use of
predetermined times. A predetermined time system consists of a set of time data and a systematic procedure
which analyses and subdivides any manual operation of human task into motions, body motions, or other
elements of human performance, and assigns to each the appropriate time value. This system of time data was
originally developed from extensive studies of all aspects of human performance through measurement,
evaluation and validation procedures. Predetermined times are the tabulated values of normal times required to
perform individual movements such as moving an arm from one position to another. etc. The total times needed to
perform the operation are the sum of the times needed for basic motions. By arranging the basic motions and
aggregating associated times, an existing task can be analyzed or a proposed operation can be timed without
actually performing it.
Types of PMTS:
1. Methods time analysis (MTA): A. B. Segur of Oak Park Illinois was one of the first to establish the
relationship between the time element and the motion itself. Segur stated that the method must be well
defined before an attempt is made to time-analyze the motions involved. He developed a table of
improvement principles involving many of his basic motions such as hold, grasp, preposition, position,
avoidable delay and balance delay. The improvement principle involved here is in the elimination of the left
hand as a holding device. In MTA, motion values are given up to fifth decimal.
2. Work factor system (WF): This is first system of PMTS to have a general use with the work factor system it is
possible to determine the work factor time for manual tasks by the use of predetermined data. A detailed
analysis of each of the task is made based upon the identification of major variables of work and the use of
work factor as a unit of measure. Then the standard time from the table of motion values is applied to each
motion.
Four major variables of work factor system are
a) Body member.
b) Distance.
c) Manual control.
d) Weight or resistance.
This system is applicable to highly repetitive system.
Advantages of PMT:
1) Short cycle jobs can be timed accurately.
2) Rating, the most difficult part of the time study is not necessary.
3) The results obtained are consistent.
4) A reasonable estimate of work contained can be obtained before the task is actually carried out.
Methods Time Measurement (MTM)
Methods Time Measurement procedure is defined as, “A procedure which analysis any manual operation or
method into the basic motion required to perform it and assigns to each motion to predetermined time standards
which is determined by the nature of the motions and the conditions under which it was made”. The primary
objective of MTM is to improve the methods of operation and it establishes method accurately before production
starts by determining correct times and operations. A basic motion is, “any motion which starts from rest, moves
through space and ends at rest.
Advantages of MTM
1) Developing effective methods and plans in advance of beginning production.
2) Improving existing methods.
3) Establishing time standards.
4) Cost estimating.
5) Training supervisors to become method conscious.
6) Research in the areas like operating methods, performance rating.
MTM procedure recognizes eight manual movements, nine pedal and trunk movements and two ocular
movements. Thus there are nineteen fundamental motions to be considered in the establishment of any motion
pattern. The time for each of these motions is determined not only by the physical conditions involved in the
motions performance but also by the nature of the conditions under which it is made. Thus, the time for a given
motion is affected by a combination of physical and mental conditions.
INTRODUCTION TO “MAYNARD OPERATION SEQUENCE TECHNIQUE” (MOST)
H.B. Maynard and Company has introduced MOST system and this new system was brought into practice in the
United States in 1975. It has gained a wide recognition as a major contribution to the body of Industrial
Engineering. This technique has a wide application and can be successfully applied in all industries ranging from
ship building to electronics, automobile, textile. Applications have been made in offices, assembly shops,
materials handling, maintenance and other such operations.
Levels of MOST and their Applications:
Maxi MOST: At the highest level, Maxi-MOST is used to analyze operations that are likely to be performed
lesser than 150 times per week. An operation in this category is less than 2 minutes to more than several hours in
length.
Basic MOST: At the intermediate level, operations that are likely to be performed more than 150 times but lesser
than 150 times per week should be analyzed with basic MOST.
Mini MOST: At the lowest level, mini-MOST provides the most detailed and precise methods analysis. In
general, this level of detail and precise is required to analyze any operation likely to be repeated more than 1500
times per week.
Application of MOST
This technique finds its application for method improvement. It helps to established the standards and also for
determining the production delays and labour performance index.
Comparison of various work measurement techniques:
Factors Work sampling PMT Stop watch timing
1. Speed, time required to measure and Average to fast Slow to average Average
established standard.
2. Training and skill required Low to moderate High Moderate to high
supervision.
3. Cost employee time, equipment etc. Average Fairly high Average
4. Assistance in methods improvement. Low to moderate High Good
5. Accuracy, objective, distortion. Fair to good Very high Good to high
6. Acceptability: employee, supervisor
7. Interruption of work operations Fair Good Fair to good
8. Applicability: for physical, clerical, Moderate Low Fairly high
professional work Very good Average Average
9. Savings: how quickly how much
10. Usability: in scheduling production, Average to high High Average to high
evaluating performance. Average to high High High
11. Reporting requirement difficulty of
furnishing data. Average Average Average
Work sampling Time study
1. Impractical or costly operation and can be 1. Measuring many operations which are impractical are
measured by work sampling. costly.
2. Simultaneous study of several operators or 2. Such study cannot be made by single observer.
machines can be made by single observer. 3. A stop watch is necessary for time study.
3. A stop watch is not needed for work 4. More tedious and causes more fatigue.
sampling studies. 5. Good for short cycle jobs
4. It causes less fatigue and less tedious 6. Accuracy is high
5. Not good for short cycle jobs. 7. Does account for speed of operator
6. Insufficient observations may lead to 8. Economical for studying single workmen or small
inaccurate results. group of workmen.
7. It does not account for speed of operator.
8. Uneconomical for studying single workmen
or small group.

PMT MTM
1. Analysis of a manual operations or the manual 1. Analysis of manual operations or method and he
portion of an operation. conditions under which it is made.
2. Proposed by F. W. Taylor and Gilbreth. 2. Proposed by H. B. Maynard.
3. Works on 17 Gilbreth elements. 3. Recognizes 8 manual movements.
4. Aid greatly in attainment of both accuracy and 4. Same as PMTS
consistency in labour measurement alone. 5. Same as PMTS
5. Procedure is not simple. 6. Time = 0.00001 hour = 0.0006minute = 0.036
6. Unit of time second.
7. Does not recognize non productive time periods 7. Does not recognize non productive time periods.
8. Fairly accurate predictions. 8. Same as PMTS.

Task for Students:


Each student has to make time study of various activities, e.g. Workshop, Daily life routine or any related
example and by recording suitable observations make calculations for Standard time by considering allowances
and other related factors.
Time study sheet
DEPARTMENT: SECTION:

OPERATION: SHEET NO.


PLANT/MACHINE: CLOCK NO.
MACHINE NO.: DATE:
TOOLS AND GAUGES: STUDIED BY:
CHECKED BY:
EL ELEMENT DESCRIPTION Observed Time Total Average R B.T.
NO. O.T. O.T.
1 2 3 4 5

O.T.= Observed Time =


R= Rating =
B.T.= Basic Time =
STD.TIME= Basic Time + Allowances =
(Basic Time= Observed Time x Rating Factor) =

CONCLUSION:
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PRACTICAL NO.:3
Aim: Assignment on simulation of Routing & Scheduling Model.
Objective:
1. The main objective of both routing and route scheduling is to cut down on your expenses, such as mileage
and vehicle capital costs.
2. To learn the following parameters,
 Defining route constraints and parameters;
 Planning routes;
 Dispatching routes;
 Monitoring routing activity;
 Auditing routing activity;
 Improving planned routes.
Software: Flexsim 2018
Theory:
Routing, route scheduling, and route optimization are all critical processes for creating reliable and cost-effective
routes. Those three processes all sound like the same thing, but each process is actually a distinct concept,
especially route optimization. Knowing the difference between route optimization and routing/route
scheduling will help you reduce fuel expenses, deliver more stock with the same number of vehicles, and make
your delivery operations more efficient overall.
Routing (also called route planning) can be defined as the process of creating the most cost-effective route by
minimizing distance or traveled time necessary to reach a set of planned stops.
Routing is a critical process of logistics systems, especially due to the high competition and narrowing margins in
the global market. Routing of goods and services incurs huge costs for vehicle operation, fuel, labor and
maintenance.
Route scheduling is the process of assigning an arrival and service time for each stop, with drivers being assigned
shifts that adhere to their working hours.
The main objective of both routing and route scheduling is to cut down on your expenses, such as mileage and
vehicle capital costs. But other objectives come into play as well.
For example, in school bus routing and route scheduling, the objective could be to minimize the total number of
student-minutes on the bus. For food delivery, the objective is to deliver within the time period that you promised
to your customers. Every industry has different goals.
Problem statement: An electronic manufacturing unit has two product type
40% of the type 1 product process by Group A Machines
60% of the type 2 product process by Group B Machines
The product arrives at the interval of 2.5 minutes (exponentials). The processing time for each machine of both
types is 10 minutes.
Do the simulation for Routing & Scheduling of given plant layout in FlexSim 2018. Build a model that uses lists
for routing items in a simple job shop model.
Run model for 48 hours. (24*60 =1440minutes)
Find:
Total Parts Arrived, Dispatched and Work in Progress, Average Work in Progress
Solution:
1. Install and Open the Flexsim Software 2018.
2. Click on New Model
3. Select Model Units as Given in Problem
After just selecting Time Unit as Minutes, rest of the parameters kept as default as shown in Figure below and
then press OK.

4. Use Fix Resources from the Menu to Create Layout


Click on the icon “Source” and drag it to the screen and place it. Similar to “Source” click, drag and place
“Queue”, “Processor” and “Sink” to create a shop floor layout.
5. Connect them using Connect Object Tool

There is shortcut way to connect object is by Pressing “A” button and connecting the objects.
6. Double Click on Source Icon and Assign Parameters
Change the name of Source as Entry and Assign Inter Arrival Time as 2.5 Minutes as shown below.

Then click on Triggers Sub Menu, Click on the “+” icon and in “Data” Set Type by Percentage
After Assigning the values 60% and 40%, now click on “+” Icon to set Visual by Color by Case, after these click
Apply and OK.
(Set Item Type by Percentage, Set Color By Case)

7. Click on Processor and Change Name and Assign Type of Material and Time to Process
Rename the name of the Processor, Assign Time for Setup and Process.

Now click on the Flow Tab and Assign Pull Strategy as mention in the problem that First Three machines will
pull only Type 1 Specific Item. Press Apply and OK.
Use the same method for Second and Third Processor, Rename them as Machine 2 Group A and Machine 3
Group A and Assign the Pull strategy as above.
After Group A Machines, simmilarly rename the Processor with Machine 4 Group B and Machine 5 Group B and
Assign the Pull strategy as above but here select Type 2 Item.
8. Assign Run Time
Assign Run time as given in Problem as 1440 Minutes and Click Reset

9. Click on the Run Icon


Now after clicking the run, the product flow is visible. You can change the run speed as per your convenience.
10. Analyze the result
To analyze the result click on each object, Clicking on the Source will give you the number of product received
by layout and clicking on the Sink will give you final throughput by the layout. Clicking over processor will give
percentage amount of Idle Time and Processing Time.
11. Result
Total Product at Entry Point = 557
Total Product at Sink Point = 549
Work in Progress (WIP) = 8
Average Work in Progress
Click on the Dashboard, Add Dashboard and then select Average Work In Progress, Add the objects as shown in
figure, Click on Apply and OK.
After that Reset and Run, you will get the Average Work in Progress at
Dashboard.
CONCLUSION:
Plant manufactures 2 kinds of product, having 5 processors. It is difficult to schedule the sequence of flow of
material manually. Simulation software plays important role in this to schedule the flow without creating any
bottleneck. Here, types of product are only two; if number of types of product gets increased then complexity will
increase. In such situation simulation software will play an important role.
PRACTICAL NO.:4
Aim: Assignment on simulation of Manufacturing System / Service System Operations for demand forecasting of
the given product using any two methods.
Objective:
1. Demand forecasts enable the manufacturing department to plan production to meet customer
requirements.
2. The forecasts also support the purchasing department's efforts to correlate deliveries of materials and
supplies with production schedules.
3. The forecast also alerts finance to the level of investment in plant, equipment and inventory required to
meet demand as well as the budgets to be created to manage the business.
4. The demand forecasts also affect the personnel department's hiring and training decisions and the
marketing department's assignment of resources to particular product groups or marketing campaigns.
Theory:
FORECASTING
- A planning tool that helps management in its attempts to cope with the uncertainty of the future, relying
mainly on data from the past and present and analysis of trends.
- Forecasting starts with certain assumptions based on the management's experience, knowledge, and judgment.
These estimates are projected into the coming months or years using one or more techniques such as Box-
Jenkins models, Delphi method, exponential smoothing, moving averages, regression analysis, and trend
projection.
- It is the process of making predictions of the future based on past and present data and analysis of trends.
A commonplace example might be estimation of some variable of interest at some specified future date.
- Forecasting is the use of historic data to determine the direction of future trends. Forecasting is used by
companies to determine how to allocate their budgets for an upcoming period of time.
- This is typically based on demand for the goods and services it offers, compared to the cost of producing
them. Investors utilize forecasting to determine if events affecting a company, such as sales expectations, will
increase or decrease the price of shares in that company.
- Forecasting also provides an important benchmark for firms which have a long-term perspective of
operations.
Demand forecasting is a combination of two words; the first one is Demand and another forecasting. Demand
means outside requirements of a product or service. In general, forecasting means making an estimation in the
present for a future occurring event. Here we are going to discuss demand forecasting and its usefulness.
Demand Forecasting
It is a technique for estimation of probable demand for a product or services in the future. It is based on the
analysis of past demand for that product or service in the present market condition. Demand forecasting should be
done on a scientific basis and facts and events related to forecasting should be considered.
Therefore, in simple words, we can say that after gathering information about various aspects of the market and
demand based on past, an attempt may be made to estimate future demand. This concept is called forecasting of
demand.
For example, suppose we sold 200, 250, 300 units of product X in the month of January, February and March
respectively. Now we can say that there will be a demand of 250 units approx. of product X in the month of April,
if the market condition remains the same.
Usefulness of Demand Forecasting
Demand plays a vital role in decision making of a business. In competitive market conditions, there is a need to
take correct decision and make planning for future events related to business like sale, production etc.
The effectiveness of a decision taken by business managers depends upon the accuracy of the decision taken by
them. Demand is a most important aspect for a business for achieving its objectives. Many decisions of business
depend on demand like production, sales, staff requirement etc. Forecasting is the necessity of business at an
international level as well as domestic level.
Demand forecasting reduces risk related to business activities and helps it to take efficient decisions. For firms
having production at the mass level, the importance of forecasting had increased more. A good forecasting helps a
firm in better planning related to business goals.
There is a huge role of forecasting in functional areas of accounting. Good forecast helps in appropriate
production planning, process selection, capacity planning, facility layout planning, and inventory management
etc. Demand forecasting provides a reasonable data for the organization’s capital investment and expansion
decision. It also provides a way for the formulation of suitable pricing and advertisement strategies.
Following is the significance of Demand Forecasting:
 Fulfilling objectives of the business
 Preparing the budget
 Taking management decision
 Evaluating performance etc.
Moreover, forecasting is not completely full proof and correct. It thus helps in evaluating various factors which
affect demand and enables management staff to know about various forces relevant to the study of demand
behavior.
The Scope of Demand Forecasting
The scope of demand forecasting depends upon the operated area of the firm, present as well as what is proposed
in the future. Forecasting can be at international level if the area of operation is international. If the firm supplies
its products and services in the local market then forecasting will be at local level.
The scope should be decided considering time and cost involved in relation to the benefit of the information
acquired through the study of demand. Cost of forecasting and benefit flows from such forecasting should be in a
balanced manner.
Types of Forecasting
There are two types of forecasting:
 Based on Economy
 Based on the time period
1. Based on Economy
There are three type of forecasting based on the economy:
 Macro-level forecasting: It deals with the general economic environment relating to the economy as
measured by the Index of Industrial Production (IIP), national income and general level of employment
etc.
 Industry level forecasting: Industry level forecasting deals with the demand for industry’s products as a
whole. For example demand for cement in India, demand for clothes in India etc.
 Firm-level forecasting: It means forecasting the demand for a particular firm’s product. For example,
demand for Birla cement, demand for Raymond clothes etc.
2. Based on the Time Period
Forecasting based on time may be short-term forecasting and long-term forecasting
 Short-term forecasting: It covers a short period of time, depending upon nature of the industry. It is
done generally for six months or less than one year. Short-term forecasting is generally useful in tactical
decisions.
 Long-term forecasting casting: Long-term forecasts are for a longer period of time say, two to five
years or more. It gives information for major strategic decisions of the firm. For example, expansion of
plant capacity, opening a new unit of business etc.
Forecasting methods can be classified as:
1) Averaging methods.
 Equally weighted observations
2) Exponential Smoothing methods.
 Unequal set of weights to past data, where the weights decay exponentially from the most
recent to the most distant data points.
 All methods in this group require that certain parameters to be defined.
 These parameters (with values between 0 and 1) will determine the unequal weights to be
applied to past data.
Averaging methods
1) If a time series is generated by a constant process subject to random error, then mean is a useful
statistic and can be used as a forecast for the next period.
2) Averaging methods are suitable for stationary time series data where the series is in equilibrium
around a constant value ( the underlying mean) with a constant variance over time.
Exponential smoothing methods
1) The simplest exponential smoothing method is the single smoothing (SES) method where only
one parameter needs to be estimated
2) Holt’s method makes use of two different parameters and allows forecasting for series with trend.
3) Holt-Winters’ method involves three smoothing parameters.
Time series Models Causal (Associative) Models
Assumptions
History (in terms of the components of time series  Historical relationship between "dependent" and
trend, seasonality, cycles) will repeat itself “independent" variables will remain valid in
future.
 Independent variables are easy to predict.
Procedures
 Collect several periods of history  Collect several periods of history on the independent and
 Try many different methods and choose the one that the dependent variables
minimizes a chosen measure of error  Using linear or non-linear and singular or multiple
 Use the method chosen to predict future. regression analysis, establish the relationship that
minimizes mean squared error of forecast v/s actual
 Predict the independent variable(s) first. Then
using the established relationship between the
independent and the dependent variables, predict the
dependent
variable.
Data Requirement and Availability
 Detailed data by Stock Keeping units (SKUs) is necessary  Aggregate data is all that is needed. However, sometimes,
and often available relevant data may not be available.
Time Requirement and Availability
 Time available to do the forecasting is very short(days)  Time available to do the forecasting is usually several
months
Application
 Products in the their growth or maturity phase  Products in the their growth or maturity phase
Short term forecasts Medium term forecasts
Task for Students:
1) Calculate the trend of sales using 3 and 4 months moving average sales data for corresponding month is
given as follows,
Month Jan Feb March April May June July Aug. Sep. Aug Nov
Sales 40 49 57 50 64 68 80 71 91 82 86
Forecast the demand for month of December.
2) ABC company uses exponential smoothing with α=0.15 for estimating a demand. Following table shows
the demand for 6 months. The forecast for June is 500 units. Estimate the forecast for December.
Month June July Aug. Sep. Aug Nov
Demand 450 505 516 488 467 554
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PRACTICAL NO.:5
Aim: Assignment on simulation determination of EOQ and plot the graphs.
Objective: The objective of the economic order quantity is to minimize the total,
1) Annual Holding Cost
2) B, Annual Purchase Cost
3) Annual Ordering Cost
4) Annual Inventory Cost
Theory:
If product demand is greater than a company’s available supply, customers may purchase products elsewhere.
When they do so, the company loses revenues and possibly forfeits its customers' goodwill. If product demand is
less than supply, the business stores more than the optimum inventory levels, which increases the company’s
inventory costs. The economic order quantity model determines the optimal inventory levels a business should
maintain to meet customer demand and minimize its inventory costs.
Economic order quantity (EOQ) is the order size that minimizes the sum of ordering and holding costs related
to raw materials or merchandise inventories. In other words, it is the optimal inventory size that should be ordered
with the supplier to minimize the total annual inventory cost of the business. Other names used for economic
order quantity are optimal order size and optimal order quantity.
The economic order quantity is computed by both manufacturing companies and merchandising companies.
Manufacturing companies compute it to find the optimal order size of raw materials inventory and merchandising
companies compute it to find the optimal order size of ready to use merchandise inventory.
The ordering and holding costs
The two significant factors that are considered while determining the economic order quantity (EOQ) for any
business are the ordering costs and the holding costs.
A brief explanation of both the costs is given below:
Ordering costs
The ordering costs are the costs that are incurred every time an order for inventory is placed with the supplier.
Examples of these costs include telephone charges, delivery charges, invoice verification expenses and payment
processing expenses etc. The total ordering cost usually varies according to the frequency of placing orders.
Mostly, it is directly proportional to the number of orders placed during the year which means If the number of
orders placed during the year increases, the annual ordering cost will also increase and if, on the other hand, the
number of orders placed during the year decreases, the annual ordering cost will also decrease.
Holding costs
The holding costs (also known as carrying costs) are the costs that are incurred to hold the inventory in a store or
warehouse. Examples of costs associated with holding of inventory include occupancy of storage space, rent,
shrinkage, deterioration, obsolescence, insurance and property tax etc. The total holding cost usually depends
upon the size of the order placed for inventory. Mostly, the larger the order size, the higher the annual holding
cost and vice versa. The total holding cost is some time expressed as a percentage of total investment in inventory.
The economic order quantity is the level of quantity at which the combined ordering and holding cost is at the
minimum level.
Relation between the ordering and holding cost:
There is an inverse relationship between ordering cost and holding cost. Keeping the annual demand constant if
for example the number of orders decreases, the ordering cost will also decrease but the holding cost will rise and
vice versa.
Economic Order Quantity Model
For many small businesses, the primary source of revenue is inventory turnover. If a company maintains too large
an inventory, inventory storage, spoilage and obsolescence costs can increase operating costs and decrease a
company’s income. The economic order quantity model minimizes these inventory costs by determining the
optimal inventory quantity the company should keep on hand and ensuring inventory arrives in time to meet
customer needs. The EOQ model accomplishes these goals by monitoring inventory and, when inventory levels
fall below a certain point, ordering the inventory needed to avoid shortages. To meet these requirements, the EOQ
model determines the optimal-reorder quantity for each order as well as the appropriate-reorder point.
EOQ Model Assumptions
To determine the point at which a company must receive vendor shipments to maintain required inventory levels,
the EOQ model assumes that demand is constant, company operations deplete inventory at a fixed rate and that
inventory replenishment occurs instantaneously. By making these assumptions, the model eliminates the need to
consider such costs as those due to over- and under-stock. As a result, the primary concern of the EOQ model is
the tradeoff between order costs and holding costs.
EOQ Calculation
The EOQ model finds the economic order quantity by taking the square root of 2 multiplied by the number of
units sold per year and the order-placement cost divided by a unit's carrying cost per period. Annual usage may
equal the prior year's units sold, forecast-sales units or a combination of both. In turn, the order-placement cost
includes order-processing costs, shipping and order-receipt costs and stocking costs. Such costs include the cost to
create a purchase order, process the materials on receipt, process a vendor invoice and issue a payment. Carrying
costs are the variable per-unit-holding costs, such as credit interest, inventory-insurance costs and storage costs.
Minimize Order Costs
The EOQ model attempts to minimize order costs, such as requisition and purchase order processing costs,
shipping costs, stocking costs and invoice processing costs. A larger order quantity decreases the frequency with
which a company places orders and minimizes a company’s order costs, whereas a smaller order quantity
increases the ordering frequency and order costs. The EOQ model helps a company make the tradeoff between
storage costs and order costs by identifying the quantity a company should use to replenish its inventory, which
minimizes both its order costs and holding costs.
Minimize Holding Costs
The EOQ model identifies optimal inventory levels to optimize production processes by preventing stock outs and
minimizing total costs, including holding costs, such storage costs and the opportunity cost of committing capital
to the company’s inventory rather than other business opportunities. Larger order quantities mean a larger
inventory, but a lower number of stock-outs and the increased likelihood that stock will be available to meet
customer requirements. But larger-order quantities mean higher storage or holding costs, including inventory
obsolescence. In addition, if money is tied up in inventory, it can’t be used elsewhere in ways that might generate
a higher return. Smaller order quantities decrease the average-inventory size and the company’s storage costs and
increase stock-outs and decrease customer satisfaction.
The computation of economic order quantity (EOQ) is based on the following assumptions:
1. The total number of units to be consumed during the period is known with certainty.
2. The total ordering cost remains constant throughout the period.
3. The inventory cost remains constant throughout the period.
4. There are no cash or quantity discounts available.
5. The whole quantity of ordered inventory is delivered in one batch.
6. The optimal quantity for each invariable or stock item is computed separately.
7. The lead time does not fluctuate and the order is received on time with the total order quantity.
Economic order quantity formula
The following formula is used to determine the economic order quantity (EOQ):

Where,
 D = Demand per year
 Co = Cost per order
 Ch = Cost of holding per unit of inventory
Example
The material DX is used uniformly throughout the year. The data about annual requirement, ordering cost and
holding cost of this material is given below:
 Annual requirement = D: 2,400 units
 Ordering cost = C0: $10 per order
 Holding cost = Ch: $0.30 per unit
Required: Determine the economic order quantity (EOQ) of material DX using above data.
Solution:

2  D Co 2  2400 10 48000


EOQ  Ch   0.30  160000  400Units
0.30

The economic order quantity for material DX is 400 units. Now, we can compute the number of orders to be
placed per year, annual ordering cost, and annual holding cost and combined annual ordering and holding cost as
follows:
Number of orders per year
= Annual demand/EOQ
= 2,400 units/400 units
= 6 orders per year
Ordering cost
= Number or orders per year × Cost per order
= 6 orders × $10
= $60
Holding cost
= Average units × Holding cost per unit
= (400/2) × 0.3
= $60
Combined ordering and holding cost at economic order quantity (EOQ):
= Ordering cost + Holding cost
= $60 + $60
= $120
Notice that both ordering cost and holding cost are $60 at economic order quantity. The holding cost and
ordering cost at EOQ tend to be the same.
Tabular determination of economic order quantity (EOQ)
Under tabular approach of determining economic order quantity, the combined ordering and holding cost is
computed at different number of orders and their respective order quantities. This approach is also known as trial
and error approach of determining economic order quantity.
This approach is illustrated below using the same data as used in the above example:

*Average units × Holding cost per unit: 1,200 units × 0.30 = $360
Notice that the quantity of 400 units with 6 annual orders and a combined ordering and holding cost of $120 is the
most economical quantity to order. Other order quantities that result in more or less than six orders per year are
not so economical. For example, if only one order for the whole annual requirement of 2,400 units is placed, the
combined ordering and holding cost comes to $370 which is far higher than the cost at economic order quantity of
400 units.
Task for students:
The John Sports Inc. purchases tennis balls at $20 per dozen from its suppliers. The John Sports will sell 34,300
dozens of tennis balls evenly throughout the year. The total cost to handle a purchase order is $10. The insurance,
property tax and rent for each dozen tennis balls in the average inventory is $0.40. The company wants a 5%
return on average inventory investment.
Required:
1. Compute the economic order quantity.
2. Compute the total annual inventory expenses to sell 34,300 dozens of tennis balls if orders are placed
according to economic order quantity computed from above.
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PRACTICAL NO.:6
Aim: Assignment on analysis of Manufacturing / Service Operation for Capacity Planning.
Objective:
1) To maintain a balance between required capacity and available capacity.
2) Other objectives of Capacity Management are to:
 Produce and maintain an up to date Capacity Plan
 Provide advice and guidance
 Ensure service performance meets or exceeds agreed targets
 Assist with diagnosis and resolution of performance and capacity related incidents and problems
 Assess impact of all changes on the Capacity Plan, services and resources
 Ensure proactive measures to improve performance of service are implemented, where cost-
justifiable.
Capacity planning based on the timeline is classified into three main categories long range, medium range and
short range.
Long Term Capacity: Long range capacity of an organization is dependent on various other capacities like
design capacity, production capacity, sustainable capacity and effective capacity. Design capacity is the
maximum output possible as indicated by equipment manufacturer under ideal working condition.
Production capacity is the maximum output possible from equipment under normal working condition or day.
Sustainable capacity is the maximum production level achievable in realistic work condition and considering
normal machine breakdown, maintenance, etc.
Effective capacity is the optimum production level under pre-defined job and work-schedules, normal
machine breakdown, maintenance, etc.
Medium Term Capacity: The strategic capacity planning undertaken by organization for 2 to 3 years of a time
frame is referred to as medium term capacity planning.
Short Term Capacity: The strategic planning undertaken by organization for a daily weekly or quarterly time
frame is referred to as short term capacity planning.
Goal of Capacity Planning
The ultimate goal of capacity planning is to meet the current and future level of the requirement at a minimal
wastage. The three types of capacity planning based on goal are lead capacity planning, lag strategy planning
and match strategy planning.
Factors Affecting Capacity Planning
Effective capacity planning is dependent upon factors like production facility (layout, design, and location),
product line or matrix, production technology, human capital (job design, compensation), operational
structure (scheduling, quality assurance) and external structure ( policy, safety regulations)
Forecasting v/s Capacity Planning
There would be a scenario where capacity planning done on a basis of forecasting may not exactly match. For
example, there could be a scenario where demand is more than production capacity; in this situation, a
company needs to fulfill its requirement by buying from outside. If demand is equal to production capacity;
company is in a position to use its production capacity to the fullest. If the demand is less than the production
capacity, company can choose to reduce the production or share it output with other manufacturers.
Software: Flexsim 2018
Problem statement: Do the analysis of given plant layout for capacity planning in FlexSim 2018. Use the
following resources, task executors and parameters.
Sr. Task Executers / Resources Parameters
No.
1 Part Arrival time time uniform (5,7) minutes .
2 Processor 1 QTY:1 at time and process time :10 minute
3 Processor 2, 3 Qty :1 for each capacity 1000, process time
uniform (7,12) minutes each
Run model for 24 hours. (24*60 =1440minutes)
Find:
1) Total Part arrived and dispatched.
2) Average time required for part to dispatch.
3) Average work in progress.
4) Machine utilization.
5) Find out the capacity of to produce good in 1440 minutes.
Solution:
1. Install and Open the Flexsim Software 2018.
2. Click on New Model
3. Select Model Units as Given in Problem

After just selecting Time Unit as Minutes, rest of the parameters kept as default as shown in Figure below and
then press OK.
4. Use Fix Resources from the Menu to Create Layout
Click on the icon “Source” and drag it to the screen and place it. Similar to “Source” click, drag and place
“Queue”, “Processor” and “Sink” to create a shop floor layout.
5. Connect them using Connect Object Tool

There is shortcut way to connect object is by Pressing “A” button and connecting the objects.

6. Assign the Parameters at Source


Click on Inter Arrival Drop Down Arrow, Select Statistical Distribution as Uniform ( Given in Problem)
After that Assign value as 5,7 as per the given data

Press Apply and OK


7. Assign the Parameters at Processor 1
Double click on the processor and assign processing time as 10 minutes as given in problem and click Apply and
then OK.

8. Assign the Parameters at Processor 2 & 3


Double click on the processor 2, Click on Process Time Drop Down Arrow, Select Statistical Distribution as
Uniform (Given in Problem), assign processing time and click Apply and then OK.

Repeat the same process for Processor 3.


9. Assign Run Time
Assign Run time as given in Problem as 1440 Minutes and Click Reset

10. Click on the Run Icon


Now after clicking the run, the product flow is visible. You can change the run speed as per your convenience.

11. Analyze the result


To Analyze the result click on each object. Clicking on the Source will give you the number of product received
by layout and clicking on the Sink will give you final throughput by the layout. Clicking over processor will give
percentage amount of Idle Time and Processing Time.
12. Result
Total Product at Entry Point = 144
Total Product at Sink Point = 142
Work in Progress (WIP) = 2
Average Work in Progress
Click on the Dashboard, Add Dashboard and then
select Average Work In Progress, Add the objects as shown
in figure, Click on Apply and OK. After that Reset and Run,
you will get the Average Work in Progress at Dashboard.
Machine Utilization
Once Again Click on the Dashboard, Add Dashboard and then select from State Templates, State Bar, Add the
objects (All Processors) as shown in figure, Click on Apply and OK. After that Reset and Run, you will get
Percentage Processing and Lead Time at Dashboard.

Conclusion:
With help of simulation software it is very easy to analyze plant layout. Percentage utilization of each processor
effects on the capacity of plant. Percentage utilization of given plant is (99.61+66.28+27.11)/3 = 64%.It means
that if plant is fully utilized up to its capacity then production can be increased nearly twice as of now.
Practical No: 7
Aim: Case study based assignment on supply chain model.
Objectives: The Basic objective is to achieve efficient fulfillment of demand, drive outstanding customer value,
enhance organizational responsiveness, build network resiliency, and facilitate financial success.
Theory:
Supply chain management (SCM) is the management of the flow of goods and services. It includes the movement
and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of
consumption. Interconnected or interlinked networks, channels and node businesses are involved in the provision
of products and services required by end customers in a supply chain. Supply chain management has been defined
as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of
creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply
with demand and measuring performance globally."

A supply chain is the connected network of individuals, organizations, resources, activities and technologies
involved in the manufacture and sale of a product or service. Your company’s supply chain starts with the sale
and delivery of the raw material necessary for production and ends with the delivery of the product or service to
the end consumer. Because there are so many steps along the way, SCM allows you to look at each step of the
process to make sure you focus on efficiencies and are not losing value. The end result is getting a better product
or service to the consumer more efficiently.
Supply chain management can become increasingly important to your organization as global markets and
networks expand. Through supply chain management, you can boost customer service, reduce operating costs and
improve your company’s financial position. Supply chain management can also have a larger global impact, such
as reducing pollution and energy consumption and assisting in distribution of goods in a disaster situation.
Scope:

Key activities:
 Primary
 Setting customer service goals
 Transportation
 Inventory management
 Location
 Secondary, or supporting
 Warehousing & Materials handling
 Acquisition (purchasing)& Protective packaging
 Product scheduling& Order processing
Task for Students:
Every student has to submit printout of case study on supply chain management which should include all area of
working. Don’t attach Research paper publication.
Practical No.: 8
Aim: Assignment on analysis of (selected) plant layout modeling and simulation for bottleneck / line balancing.
Objectives:
The basic objectives of plant layout are, to provide optimum space to organize equipment and facilitate movement
of goods and to create safe and comfortable work environment. To promote order in production towards a single
objective.
Theory:
Concept of Plant Layout:
Plant layout is a plan for effective utilization of facilities for the manufacture of products; involving a most
efficient and economical arrangement of machines, materials, personnel, storage space and all supporting
services, within available floor space.
“Plant layout is a plan of optimum arrangement of facilities including personnel, equipment’s, storage space,
material handling equipment and all other supporting services along with the decision of best structure to contain
all these facilities.”
(i) Plant layout is very complex in nature; because it involves concepts relating to such fields as engineering,
architecture, economics and business management.
(ii) Most of managers now realize that after the site for plant location is selected; it is better to develop the layout
and build the building around it – rather than to construct the building first and then try to fit the layout into it.
Objectives/Advantages of Plant Layout:
Following are the objectives/advantages of plant layout:
(i) Streamline flow of materials through the plant
(ii) Minimise material handling
(iii) Facilitate manufacturing progress by maintaining balance in the processes
(iv) Maintain flexibility of arrangements and of operation
(v) Maintaining high turnover of in-process inventory
(vi) Effective utilisation of men, equipment and space
(vii) Increase employee morale
(viii) Minimise interference (i.e. interruption) from machines
(ix) Reduce hazards affecting employees
(x) Hold down investment (i.e. keep investment at a lower level) in equipment.
Principles of Plant Layout:
(i) Principle of Minimum Movement:
Materials and labour should be moved over minimum distances; saving cost and time of transportation and
material handling.
(ii) Principle of Space Utilization:
All available cubic space should be effectively utilized – both horizontally and vertically.
(iii) Principle of Flexibility:
Layout should be flexible enough to be adaptable to changes required by expansion or technological development.
(iv) Principle of Interdependence:
Interdependent operations and processes should be located in close proximity to each other; to minimize product
travel.
(v) Principle of Overall Integration:
All the plant facilities and services should be fully integrated into a single operating unit; to minimize cost of
production.
(vi) Principle of Safety:
There should be in-built provision in the design of layout, to provide for comfort and safety of workers.
(vii) Principle of Smooth Flow:
The layout should be so designed as to reduce work bottlenecks and facilitate uninterrupted flow of work
throughout the plant.
(viii) Principle of Economy:
The layout should aim at effecting economy in terms of investment in fixed assets.
(ix) Principle of Supervision:
A good layout should facilitate effective supervision over workers.
(x) Principle of Satisfaction:
A good layout should boost up employee morale, by providing them with maximum work satisfaction.
Types of Plant Layout:
Two basic plans of the arrangement of manufacturing facilities are – product layout and process layout. The only
other alternative is a combination of product and process layouts, in the same plant.
Following is an account of the various types of plant layout:
(a) Product Layout (or Line Layout):
In this type of layout, all the machines are arranged in the sequence, as required to produce a specific product. It is
called line layout because machines are arrange in a straight line. The raw materials are fed at one end and taken
out as finished product to the other end.
Special purpose machines are used which perform the required jobs (i.e. functions) quickly and reliably.
Product layout is depicted below:

Advantages:
1. Reduced material handling cost due to mechanized handling systems and straight flow
2. Perfect line balancing which eliminates bottlenecks and idle capacity.
3. Short manufacturing cycle due to uninterrupted flow of materials
4. Simplified production planning and control; and simple and effective inspection of work.
5. Small amount of work-in-progress inventory
6. Lesser wage cost, as unskilled workers can learn and manage production.
Disadvantages:
7. Lack of flexibility of operations, as layout cannot be adapted to the manufacture of any other type of
product.
8. Large capital investment, because of special purpose machines.
9. Dependence of whole activity on each part; any breakdown of one machine in the sequence may result in
stoppage of production.
10. Same machines duplicated for manufacture of different products; leading to high overall operational
costs.
11. Delicate special purpose machines require costly maintenance / repairs.
Suitability of product layout:
Product layout is suitable in the following cases:
12. Where one or few standardized products are manufactured.
13. Where a large volume of production of each item has to travel the production process, over a considerable
period of time.
14. Where time and motion studies can be done to determine the rate of work.
15. Where a possibility of a good balance of labour and equipment exists.
16. Where minimum of inspection is required, during sequence of operations.
17. Where materials and products permit bulk or continuous handling by mechanical parts.
18. Where minimum of set-ups are required.
(b) Process Layout (or Functional Layout):
In this type of layout, all machines performing similar type of operations are grouped at one location i.e. all lathes,
milling machines etc. are grouped in the shop and they will be clustered in like groups.
A typical process layout is depicted below:

Advantages:
19. Greater flexibility with regard to work distribution to machinery and personnel. Adapted to frequent
changes in sequence of operations.
20. Lower investment due to general purpose machines; which usually are less costly than special purpose
machines.
21. Higher utilization of production facilities; which can be adapted to a variety of products.
22. Variety of jobs makes the work challenging and interesting.
23. Breakdown of one machine does not result in complete stoppage of work.
Disadvantages:
24. Backtracking and long movements occur in handling of materials. As such, material handling costs are
higher.
25. Mechanization of material handling is not possible.
26. Production planning and control is difficult
27. More space requirement; as work-in-progress inventory is high-requiring greater storage space.
28. As the work has to pass through different departments; it is quite difficult to trace the responsibility for
the finished product.
Suitability of process layout:
Process layout is suitable in the following cases, where:
29. Non-standardised products are manufactured; as the emphasis is on special orders.
30. It is difficult to achieve good labour and equipment balance.
31. Production is not carried on a large scale.
32. It is difficult to undertake adequate time and motion studies.
33. It is frequently necessary to use the same machine or work station for two or more difficult operations.
34. During the sequence of operations, many inspections are required.
35. Process may have to be brought to work, instead of “vice-versa”; because materials or products are too
large or heavy to permit bulk or continuous handling by mechanical means.
(c) Combination Layout:
In practice, plants are rarely laid out either in product or process layout form. Generally a combination of the two
basic layouts is employed; to derive the advantages of both systems of layout. For example, refrigerator
manufacturing uses a combination layout.
Process layout is used to produce various operations like stamping, welding, heat treatment being carried out in
different work centres as per requirement. The final assembly of the product is done in a product type layout.
(d) Fixed Position Layout:
It is also called stationary layout. In this type of layout men, materials and machines are brought to a product that
remains in one place owing to its size. Ship-building, air-craft manufacturing, wagon building, heavy construction
of dams, bridges, buildings etc. are typical examples of such layout.
Software: Flexsim 2018.
Problem statement: Do the analysis of given plant layout in FlexSim 2018.
Use the following resources, task executers and parameters.
Sr. No. Task Executers / Resources Parameters
1. Source Input is unlimited
2. Lathe QTY:1 at time and process time :10 minute
3. Queue Qty :1 capacity 1000
4. CNC QTY:1 at time and process time :5 minute
5. Queue Qty :1 capacity 1000
6. Drill QTY:1 at time and process time :7 minute
7. Queue Qty :1 capacity 1000
8. Mill QTY:1 at time and process time :15 minute
9. Transporter QTY:1 at time
10. Sink output
Assign operator for the each Processor. (Lathe, Drill, Mill ,CNC)
Run model for 48 hours. (48*60 =2880minutes)
Find:
1) Total Part arrived and dispatched.
2) Average time required for part to dispatch.
3) Average work in progress.
4) Check for bottleneck.

5) If bottleneck is there then suggest solution.


Procedure:
Input / Output Ports (A-Connects)
Input/output ports are the most common types of port connections. These ports are usually used to connect two
fixed resources together so that they can exchange flow items. The output port of an upstream object is connected
to the input port of a downstream object. An output port is where the flow item exits the object and an input port
is where the flow item enters the object.
Input/output ports are graphically represented as a small red or green triangle. Input ports will look like an arrow
pointing in toward the object. Output ports will look like an arrow pointing away from the object.

Center Ports (S-Connects)


Center ports are usually used to connect task executers to fixed resources, but they can connect any two objects
that need to reference each other. When the center ports of two objects are connected, it creates an abstract
reference point between those two objects. Center ports enable objects to communicate or interact in complex
ways:
Transporting flow items - Fixed resources can use the task executers connected to their center ports to transport
flow items to a downstream fixed resource.
Setting up and processing - Some fixed resources have setup and processing times (processors, combiners,
separators, multi-processors). These objects can require the presence of a task executer connected to their center
ports during setup and processing times.
General reference - Objects can have center port connections in order to communicate with or reference each
other.
In FlexSim, center ports are graphically represented as a red square:

Extended Connections
FlexSim has another type of connection known as an extended connection. Only network node and traffic control
objects can use extended connections. You might possibly use extended connections to build travel networks, but
you will probably only use them in rare circumstances. For that reason, this chapter will focus primarily on
input/output and center port connections.
Port Rankings
You need to understand how ports are ranked in
FlexSim if you want to use ports to create certain types
of flows such as round robin, random, conditional, etc.
See Common Types of Flows for more information.
Every time you create a port connection between two
objects, FlexSim automatically assigns a rank to that
connection. The first port connection you make will have
a rank of 1, the second will have a rank of 2, etc.
For example, the queue in the following image has three
output ports. The output port going to Processor1 is
ranked 1, the output port to Processor2 is ranked 2, and
the output port to Processor3 is ranked 3. Notice that the
output ports are visually arranged on the queue according
to their ranking order:
You could also view the port rankings by double-clicking the queue to open its properties window. On the
General tab in the Ports group, click the Output Ports to view the rankings:

See Changing Port Rankings for more information.

Open and Closed Ports


Another important concept you should understand about ports is how to know when a port is open or closed and
why. Simply put, an open port is ready to push or pull flow items. A closed port is not ready to push or pull flow
items. During a simulation run, open ports are green and red ports are closed:

In the example in the previous image, the first processor's input port is closed because it is processing a flow item
and cannot accept any more items. The second processor's input port is open because it is available to process
flow items.
Plant layout and output according to given parameters.
Solution against bottleneck.
Results:

Sr. No. Before After


Total Part Arrived 209 209
Total Part dispatched 187 208
Average time required to dispatched the part 2880/187 2880/208
Average work in progress 209-187 209-208
Bottleneck is occurred at milling machine Mill 1 Bottleneck is eliminated

There is no bottleneck at milling after adding mill 2.


Conclusion:
With help of simulation software it is very easy to analyze plant layout. Also Bottleneck can be identified
easily. Initially bottleneck is occurred at mill 1. After adding mill 2 bottleneck is eliminated. But in real life
situation cost factor of milling machine must be consider minimizing the cost of production.
PRACTICAL NO.:9
Aim: Assignment on analysis of material handling system - modeling simulation for the selected plant layout.

Theory:
Material handling is a necessary and significant component of any productive activity. It is something that goes
on in every plant all the time. Material handling means providing the right amount of the right material, in the
right condition, at the right place, at the right time, in the right position and for the right cost, by using the right
method. It is simply picking up, moving, and lying down of materials through manufacture. It applies to the
movement of raw materials, parts in process, finished goods, packing materials, and disposal of scraps. In general,
hundreds and thousands tons of materials are handled daily requiring the use of large amount of manpower while
the movement of materials takes place from one processing area to another or from one department to another
department of the plant. The cost of material handling contributes significantly to the total cost of manufacturing.
In the modern era of competition, this has acquired greater importance due to growing need for reducing the
manufacturing cost. The importance of material handling function is greater in those industries where the ratio of
handling cost to the processing cost is large. Today material handling is rightly considered as one of the most
potentially lucrative areas for reduction of costs. A properly designed and integrated material handling system
provides tremendous cost saving opportunities and customer services improvement potential.
DEFINITIONS
There are many ways by which material handling has been defined but one simple definition is “Material handling
is the movement and storage of material at the lowest possible cost through the use of proper method and
equipment”.
Other definitions are:
 “Material handling embraces all of the basic operations involved in the movement of bulk, packaged, and
individual products in a semisolid or solid state by means of machinery, and within limits of a place of
business”.
 “Material handling is the art and science of moving, storing, protecting, and controlling material”
 “Material handling is the preparation, placing, and positioning of materials to facilitate their movement or
storage”.
OBJECTIVES OF MATERIAL HANDLING
The primary objective of a material handling system is to reduce the unit cost of production. The other
subordinate objectives are:
1. Reduce manufacturing cycle time
2. Reduce delays, and damage
3. Promote safety and improve working conditions
4. Maintain or improve product quality
5. Promote productivity
 Material should flow in a straight line
 Material should move as short a distance as possible
 Use gravity
 Move more material at one time
 Automate material handling
6. Promote increased use of facilities
 Promote the use of building cube
 Purchase versatile equipment
 Develop a preventive maintenance program
 Maximize the equipment utilization etc.
7. Reduce tare weight
8. Control inventory
Reduce Cost of Handling
The total cost of material handling per unit must decrease. The total cost per unit is the sum of the following:
1. Cost of material handling equipment – both fixed cost and operating cost calculated as the cost of
equipment divided by the number of units of material handled over the working life of the equipment.
2. Cost of labor – both direct and indirect associated cost calculated in terms of cost per unit of material
handled.
3. Cost of maintenance of equipment, damages, lost orders and expediting expenses, also calculated, in
terms of cost per unit of material handled.
Reduced Manufacturing Cycle Time
The total time required to make a product from the receipt of its raw material to the finished state can be reduced
using an efficient and effective material handling system. The movement of the material can be faster and
handling distance could be reduced with the adoption of an appropriate material handling system.
LIMITATIONS OF AUTOMATED MATERIAL HANDLING SYSTEMS:
A good management practice is to weigh benefits against the limitations or disadvantages before contemplating
any change. Material handling systems also have consequences that may be distinctly negative. These are:
1. Additional investment
2. Lack of flexibility
3. Vulnerability to downtime whenever there is breakdown
4. Additional maintenance staff and cost
5. Cost of auxiliary equipment.
6. Space and other requirements:
The above limitations or drawbacks of adopting mechanized handling equipment have been identified not to
discourage the use of modern handling equipment but to emphasize that a judicious balance of the total benefits
and limitations is required before an economically sound decision is made.
Software: Flexsim 2018.
Problem statement: Do the analysis of given plant layout for material handling. Plant manufactures a type of
product; Plant uses an automatic guided vehicles (AGV) for handling the product. Use following resources, task
executors and parameters. Do the simulation of given plant layout in FlexSim 2018.

Sr. Task
Parameters
No Executors/Resources

Input is unlimited.
1 Product
Inter-arrival time: 3 minutes

Dispatcher control All Automatic guided vehicle. AGV are guide through
2 Queue
the Dispatcher

QTY:1
Load Time 0 minute.
3 Automatic Guided Vehicle Unload Time 0 minutes.
Max Speed 60 meter/minute.
Capacity 03 at a time.

4 Sink Output

Run model for three days. Company works in double shift. Shift duration is of 8 hours.
Find:
1) Total Part arrived and dispatched.
2) Average time required for part to dispatch.
3) Average work in progress.
Solution
1) Install and Open the Flexsim Software 2018.
2) Click on New Model
3) Select Model Units as Given in Problem
After just selecting Time Unit as Minutes, rest of the parameters
kept as default as shown in Figure below and then press OK.
4. Draw and Connect AGV Paths
From the library, Use AGV Tools and Draw first Straight Paths, but keep in mind the direction of travel of
Automated Guided Vehicle. The Straight Path consists of Arrow.

Select Straight Path, draw the Straight Lines as shown below

Now Use Join Paths and connect these line, Maintain the direction of motion of AGV

5. Use Fix Resources from the Library Menu to Create Layout


Click on the icon “Source” and drag it to the screen and place it. Similar to “Source” click, drag and place
“Queue”, “Processor” and “Sink” to create a shop floor layout.
6. Connect them using Connect Object Tool

There is shortcut way to connect object is by Pressing “A” button and connecting the objects.

7. Place Control Point at the Path


Use AGV Library and Drag the Control Point Exactly at the Path (Check the Path Should Turn Yellow when
placing it)
8. Connect these control points to Queue and Sink
Connect Object Press Keyboard Alphabet “A” and connecting Control Point 1 to Queue and Control Point 2 to
Sink.

9. Place Task Executor (Automated Guided Vehicle ) to the Layout


Use task executor tab and click and drag task executor in the layout. Connect this task executor to the control
point using Connect Object tool or pressing A Key boad key.

After this Press Reset Button

Now Connect Center Ports of Queue and Task Executor


This can be done either by using tool from menu or pressing “S” key of Keyboard. Connect Queue to the Task
Executor.
10. Assign Transport to Queue
Double click on Queue, Click over the Queue Tab, Click Perform Batching and set Target batch Size to 3 and
Check Flush contents between batches.

Click over the flow tab and click on Check Box to Use Transport. Press Apply and OK.
11. Assign Arrival Time to Source
Double click on Source and Assign Arrival Time as 3 Minutes as given in problem.

Press Apply and OK.


12. Assign Task Executor Capacity and Maximum Speed
Double click on Task Executor and Assign Capacity as 3 and Maximum Speed to 60 meters per minute.

Click Apply and OK.


13. Attach loads as Trailer to Network Path
Double Click on the network Path, click on Network Properties
Click on checkbox of the Attach Loads as Trailer to Network Path

Click Apply and then OK.


14. Set Run Time
As given in the problem to run the model for three days. Company works in double shift. Each shift duration is 8
hours.
So it will be
= 8 hours X 2 Shifts X 3 Days
= 48 Hours
= 2880 Minutes
Click on the Drop Down Arrow on Run Time Tab and Set the values as above

15. Reset and Run


Now Click Reset and Run the Model. You can increase or decrease speed as per your convenience
16. Analyze the result
To Analyze the result click on each object. Clicking on the Source will give you the number of product received
at layout and clicking on the Sink will give you final throughput by the layout.
17. Result
Total Product at Entry Point = 959
Total Product at Sink Point = 957
Work in Progress (WIP) = 2
Average time required for part to dispatch =2880/ 957
= 3 Minutes
Average Work in Progress
Click on the Dashboard, Add Dashboard and then select Average Work In Progress, Add the objects as shown in
figure, Click on Apply and OK.
After that Reset and Run, you will get the Average Work in Progress at
Dashboard.

Conclusion
With help of simulation software we analyzed the given plant layout for material handling system. After doing
analysis we found that 1 automated guided vehicle can easily handle the total production without creating any
piling up of Product manufactured.

Practical No.: 10
Aim: Case study based assignment on identification of Key Result Areas for performance appraisal for selected
company (3600 feedback).
Practical No.: 11
Aim: Case study based assignment on cost-revenue model analysis.
Practical No.: 12
Aim: Assignment on industrial safety audit of selected work environment.

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