Unit-1

INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT

Introduction:
Production management is a branch of management which is related to the
production function, which is concerned with the process of exploitation of factors
of production to achieve the desired results.
Meaning of Production Management:
Production management is concerned with the decision making regarding the
production of goods and services at a minimum cost according to the demands of
the customers through the management process of planning, organizing and
controlling.
According to H A Harding, “Production management is concerned with those
processes which convert the inputs into the outputs. The inputs are various resources
like, raw materials, men, machines, methods etc and the outputs are goods and
services.
Operations management:
According to APICS, The association for operation management defines
Operation management as, “The field of study that focuses on the effectively
planning, scheduling, use and control of a manufacturing or service organization
through the study of concepts from design engineering, industrial engineering,
management information systems, quality management, production management,
inventory management, accounting and other functions as they affect the
organization.”
Classifications of Production system:
Production system is a set of interrelated component or sub system which
receive the inputs from the environment, transform it into desirable outputs.
 Production
system

Intermittent
Continuous or Production
Flow Production

Project Job shop

Batch
Assembly Production
Production
Mass Process Lines
Production Production

Synthetic Analytic
Production Production

The various classifications are,

1.Continuous production system:
It is the specialized manufacture of identical products on which the machinery and
equipment is fully engaged. The continuous production is associated with large
quantities and high rate of demand.
Types of continuous Production:
a)Mass Production:
It refers to the manufacture of standardized parts of components on a large scale
standardization of materials, machines, products and processes is the feature.
Ex: automobiles, plant, electronic industry etc.
b)Process Production:
It is the process that production is carried on continuously through a uniform and
standardized sequence of operations.
Ex: Crude Oil into Petrol, Kerosene, Gas.
It is sub divided into:
❖ Analytical Process:
Raw material is broken down into different products. Ex: Crude oil is
analysed into gas, petrol, kerosene, diesel etc.
❖ Synthetic Process:
 t involves the mixing of two or more materials to manufacture a product.
Ex: Lauric acid, Myristic acid, Plasmitic acid, Stearic acid, Linoleic acid
are synthesized to manufacture a soap.

c)Assembly lines:
Two or more components are combined to manufacture a finished products. It is
useful for limited variety of similar products produced in large scale on a continuous
basis.
II.Intermittent Production system:
The goods are manufactured specially to fulfill orders made by customers rather
than for stock.
Intermittent production system are those where the production facilities are flexible
enough to handle a wide variety of products and sizes.
It is sub divided into:
a) Project:
Project technology deals with one of a kind products that are tailored to the
unique requirements of each customer. Project can be small, medium or large
size depending upon the number of tasks involved.
Ex: construction of airports, dams, roads, ship building etc.
b) Job shop production:
Job, one-off or make complete are descriptions given to organization where
by the complete task is handled by a single worker or group of workers.
In this system, the goods are produced according to definite customers
orders and all manufacturing setups depend on the receipt of specific items.
Ex: Service given by repair shops, tailoring shops etc.

c) Batch Production:
The methods require that the work for any task is divided into parts as
operations and that each operation is completed throughout the whole batch
before the next operation is undertaken.
Ex: manufacturing of drugs and pharmaceuticals, medium and heavy
machineries.
These are the various classifications of production system.
Objectives of Productions and operations management:
There are mainly two objectives.
1. Ultimate objectives.
2. Intermediate objectives.
I.Ultimate objectives:
The primary responsibility of the manufacturing activity is to produce a
product at,
• Right quality:
The quality of the products are established based upon the customer needs. The right
quality is not necessarily best quality, it is determined by cost of product and the
technical characteristics.
• Right quantity:
The manufacturing organization should produce the products in right number
considering the market forces like, demand and supply which should not leads to
excess or shortage of products.
• Right time;
Timeliness of delivery is very important to judge the effectiveness of production
department. So it has to make the optimal utilization of input resources to achieve
its objectives.
• Pre established Cost:
Manufacturing costs are established before the product is actually manufactured,
and production has to be made according to that in order to reduce variation between
actual and the pre established cost. (standard cost)

II.Intermediate objectives:

• Machinery and equipment:

It considers:
• Acquisition of machinery and equipment.
• Utilization of machinery and equipment.
Additions and replacements should be made according to the requirements and
should be properly utilized through repair, maintenance and maximum occupancy
of machines.
• Materials:
The material objectives must be prescribed in terms of units, rupee value and space
requirements.The per unit material costs should be specified to increase the
inventory turnover.

• Manpower:
It is very important input which is allied with selection, placement, training,
rewarding and utilization of manpower which are considered in terms of employee
turnover rates, safety measurements, industrial relations, absenteeism Etc.
• Manufacturing services:
The provision of proper and adequate services directly affects the utilization of
inputs like, men, machines and materials. Facilities should be proper for water
supply, power and material handling.

Scope of Productions and Operations management:

Scope of POM in the areas of,
1. Activities related to production system designing:
This activity concerns the production engineering and includes the problems
regarding design of tools and jigs.
• Design, development and installation of equipment and selection
of optimum size of the firm requires technical expertise.
• It also concerns the techniques with regards to process analysis,
time study, materials handling etc.
Other Problems are:
• Human factor – Impact of production system on workers.
• Research and development activities.
2. Activities relating to analysis and control of activities:
It includes all decisions regarding production, administration and management.
Activities are:
❖ Production Planning:
It includes preparation of short term production schedules, plan for
maintaining the record of raw materials, semi finished and finished
products and how to utilize production resources.

❖ Production control:
 • Control of static inventor like, raw materials and other resources
through inventory control techniques.
• Control of flow of materials into the plants through judicious
purchasing.
• Control of work in progress through production control.
As production plans can not be activated unless they are
properly controlled.
❖ Quality control:
Product quality refers to the composite product characteristics of
engineering and manufacturing that determines the degree to which the
product in use will meet the expectations of the customers.

Functions of Productions and Operations management:

1. Production Planning:
It deals with the preparation of long and short term Programs. It comprises routing,
scheduling, and preparation of orders.The authority to proceed with a production
program is called work order.
Planning function includes the preparation of demand schedules for production
facilities.
2. Production Control:
Production manager control the production by taking steps to utilize the various
factors of production in an efficient manner to reduce cost and to meet customer
needs.
3.Quality Control:
Production manager maintains specific quality of the product by taking steps to
produce the goods according to the specifications and to minimize the defective
work.
4.Industrial Engineering:
Industrial engineering is concerned with the determination of methods and processes
of manufacturing activities. It also designs tools, zigs, fixtures, gauges and other
accessories required for operations.
5.Purchasing:
It plays a significant role in arriving at make or buy decisions. Specifications and
quality requirement of materials and equipment etc are laid down by production
department and makes the decisions about quantity , delivery date, price, supplier
etc.
6.Plant Engineering:
Plant engineering has the responsibility for maintaining the plant and equipment and
services including light, heat and power.
7.Manufacturing:
It is the actual process of conversion of raw materials into output of goods and
services by providing production programs, schedules, routes and work orders by
specifying methods, processes and standards of operations.
8.Method analysis:
Production manager must study the various alternatives and analyze them in right
perspective in order to choose the best one to reduce cost and to improve
productivity.
9.Inventory Control:
Production manager has to control the cost of production by reducing the wastage
of men and material by determining economic lot size, economic order quantity,
reorder levels etc.
10.Plant Layout and Materials handling:
Plant layout is an arrangement of machines and equipment in such a manner to
maintain flow of production.
An efficient plant layout aims at efficient material handling which reduces wastage
of men and material and helps in reducing the cost of production.
10.Work Measurement:
manager has to control and reduce the labour cost per unit at different levels of
production by using time and motion studies.
1. Other Functions:
Production manager has to perform engineering economics, cost
control, maximizing labour efficiency, standardization and storage, price
analysis, wage incentives to workers.
Problems of Productions and Operations Management:
1. Problem of location of the Plant:
The first and foremost problem of production planning is to take
decisions about the location of the plant and system. The best one has to be
 selected among various possible locations taking into account; factors like,
nearness to market and transport facilities.
2. Problem of Plant Layout:
The next problem is that of plant layout. So, management should design
the operation and equipment in such a way that may reduce the overall
material handling cost. Problems like, heating, lighting and other utility
needs.
3. Problem of Product Designing:
Any change in the design of the product will affect the design of the
plant and its layout that may be costly and complex for the enterprise. So,
design problem should be considered in advance.
4. Problem of Inventory and Production control:
For inventory control, decisions regarding Economic order quantity,
Reorder level and ABC technique of inventory control are to be taken with
a view to maintain process of production.
5. Problem of Quality Control:
The quality of the product must be controlled as per specification setout
by the management and already approved by the customers. Product
inspection and statistical quality control methods should be followed.
6. Problem of Labour Control:
It is a major cost element especially in services. So, production
planning needs labor appraisal and so much effort are needed to develop
work measurement and wage payment systems.
7. Problem of Cost Control and Improvements:
To achieve maximum production at less cost, management has to take
various decisions of controlling the wastages of material and labor by
maintaining balance between labor, material and overhead costs.

AUTOMATION:
The word Automation is derived from Greek words. “Auto” means, Self and
Mato means Moving. Automation therefore is the mechanism for systems that move
by itself.
Meaning:
Automation refers to the phenomenon where a job is performed without the
help of any human interference.
Or
Automation means, Performing a particular task with the help of machines.
 Automation is defined as, “A set of procedures and machinery that make it
possible to perform traditional human activities automatically.

Mechanization:
It is the replacement of people as a source of energy by machines.

Needs for Automation:

1. Increased Productivity:
Automation of manufacturing operations hold the promise of
increasing the productivity of labor. This means, greater output per hour of
labor input.
2. High Cost of Labour:
Higher investment in automated equipment has become economically
justifiable to replace manual operations.
3. Labor shortages:
Shortage of labor in many countries stimulate the development of
automation as a substitute for labor.
4. Safety:
By automating the operation and transferring the operator from an
active participation to a supervisory role, work is made safer.
5. High cost of Raw materials:
The high cost of raw materials in manufacturing results in the need for
greater efficiency in using these materials which results in reduction of scrap.
6. Improved Production Quality:
Automated operations not only produce parts at faster rates, but they
produce parts with greater consistency and conformity to quality
specifications.
7. Reduced Manufacturing Lead time:
With reduced manufacturing lead time automation allows the manufacturer
a competitive advantage in providing good customer service.
8. Reduction of Inprocess Inventory:
Holding large inventories of work in process represents a significant
cost to the manufacturer because it ties up capital. Automation reduces the
time.
9. High cost of not Automating:
The benefits of automation show up in intangible and unexpected ways
such as, improved quality, higher sales, better labor relations and better
company image.
10. Trend of Labour towards service sector:
 Due to the tendency that, factory work as tedious, demeaning and dirty,
which caused them to seek job in service sectors like, insurance, personal
services, legal, sales etc which reduced the workforce in factories.

Types of Automation:

Automation

Fixed Programmable Flexible

Automation Automation Automation

1. Fixed Automation:
It is appropriate for line and continuous flow process choices, fixed
automation produces one type of part or product in a fixed sequence of
simple operations.
Operations manager favor fixed automation when demand volumes are
high, product designs are stable and product life cycles are long.
These conditions compensate for the process’s two primary draw
backs.
❖ Large initial investment cost.
❖ Relative inflexibility.
Ex: Light Bulbs, Oil Refineries.

2. Flexible Automation:
Flexible automation can be changed easily to handle various products.
The ability to reprogram machine is useful for both low and high
customization processes. Ex: Garments, Printing,, Toys industry.
In case of high customization machine makes variety of products in
small batches where in low customization machine makes particular products.
3. Programmable Automation:
 The production equipment is designed with the capability to change the
sequence of operations to accommodate different product
configurations.
New programs can be prepared and entered into the equipment to
produce new products. Ex: Textile manufacturing, Cement
manufacturing.
Features:
➢ High investment in general purpose equipment.
➢ Low production rates relative to fixed automation.
➢ Flexibility to deal with changes in product configuration.
➢ Suitable for batch production.

Advantages of Automation:
1. Increased output and enhanced productivity:
Automation results in enhanced productivity and production because it
increases the speed of production, eliminates production bottlenecks, reduces
dead time.
2. Improved and Uniform quality:
The quality of production is immeasurably improved because the entire
production process, beginning with raw materials and ending with end
products is handled by machines.
3. Reduced cost:
Automation results in reduced total cost per unit of output.
4. Fewer accidents:
Automation results in a virtual elimination of labor and therefore less
number of accidents to workers.
5. Better production control:
Automation results in better control of the speed and flow of production
as a result of highly mechanical sequencing.

6. Less floor area required:

7. Increased overall profits of the concern:
8. Human fatigue is minimized:
9. Reduced maintenance requirements:
10. The workers avail better working conditions:
Disadvantages of Automation:
1. Loss of Expertise:
 Whenever a function or task previously performed by the human is
allocated to automation, there is a loss of skills on part of the human in
performing the task when need arise.
2. Complacency:
Trust results from the gradual acceptance of the reliability of the
automation overtime with successful performance. There are both negative
and positive aspects of the growing trust.
3. Lack of trust:
The reliability of the automation is central to the human operator
developing trust in the system and the willingness of the human to use
automation .automated systems may not be used if level of mistrust results
from poor reliability.
4. Loss of adoptivity:
System designers have often designed the action and functions of
automation in such a manner that the normal adaptive behaviourof human
cognition is thwarted and frequently becomes counter productive to the
actions of the automation.
5. Unpredictable development costs:
The research and development cost of automating a process is difficult
to predict accurately beforehand.
6. Initial costs are relatively high:
The automation of a new product requires a huge initial investment in
comparison with the unit cost of product.

UNIT-2
 Plant location :
The location where firm set up their operations is simply called as plant
location
Definition:
According to R.C.davis “the function of determining where the
plant should be located for maximum operating economy and
effectiveness”
Needs foe selection of a location:
• When there is new business
• Existing business needs to change place
• Markets and volumes of production
• Socio economic reasons
• When expand of business

FACTORS AFFECTING SELECTION OF A LOCATION:

1.availability of raw materials:
Area where industrial raw materials are easily available. location should be nearness
to raw material leads greater advantage
2.proximity to market:
Organization may choose to locate facilities close to locate facilities close to their
market .the closer the plants of facilities are to the consumer, the easier it is to
provide just in delivery.
3.integration with other parts of the organization:
It should be situated that its work can be integrated with that of the associated units
4.availabilty of amenities:
A location which provides good external amenities like housing, shops,community
services, communication systems etc.
5.suitabilty of climate:
The climate has its own importance in the location of a plant because of two reasons.
Certain industries required humid climate certain require cool climate
6.availability of services:
There are six main services which need to be considered:
a)gas b)electricity c)water d)drainage e)disposal of water
f)communication
7.regional regulations:
A study must be made of the appropriate by laws and of any special regulations
concerning the disposal of effluents, hiring etc.
8.safety requirement:
Some production units may present or may be believed to present, potential
dangers to the surrounding neighborhood geochemical factories, nuclear power
station etc.
9.availabilty of transport:
There are four types physical transportation like air,road,water,railways etc.
10..room expansion:
This is a most unlikely circumstances and adequate room for genuine expansion
should be allowed
Plant location models:
1.Factor rating method
2.Weighted factor rating method
3.Load-distance method
4.Centre of gravity method
5.Break even analysis
1.factor rating method:
Factor rating system are perhaps the most widely used of the general location
techniques because they provide a mechanism to combine diverse factors in easy to
understand format.in this method rating canused to give ;
• list the most relevant factor in the location
• rate each factor
• rate each location
• compute the product of rating

2.weighted rating method: In this method merge qualitative and quantitative

factors.facors are assigned based on relative importance and weightage score for
each site using a preference is calculated. the site with the highest weighted score is
selected as the best choice.
3.Load-distance Method
The load-distance method is a mathematical model used to evaluate locations based
on proximity factors. The objective is to select a location that minimizes the total
weighted loads moving into and out of the facility. The distance between two points
is expressed by assigning the points to grid coordinates on a map. An alternative
approach is to use time rather than distance.
4.Centre of Gravity
Centre of gravity is based primarily on cost considerations. This method can be used
to assist managers in balancing cost and service objectives. The centre of gravity
method takes into account the locations of plants and markets, the volume of goods
moved, and transportation costs in arriving at the best location for a single
intermediate warehouse.
5.break even analysis:
Break even analysis implies that at some point in the operations, total revenue equals
total cost. Break even analysis is concerned with finding the point at which revenues
and costs agree exactly. It is called ‘Break-even Point’
Location Theory:-
Location theory is concerned with the geographic location of economic
activity..Alfred Weber formulated a theory of industrial location in which an
industry is located where it can minimize its costs, and therefore maximize its
profits.
The costs to be reduced are,
• Transportation – To move raw – materials to the factory, and to move
finished products to the market.
• Higher labour costs reduce profit, so factory might do better where cheap
labour is available.
• Agglomeration:When a large number of enterprises cluster in the same area,
they can provide assistance to each other through shared talents, services and
facilities (like office furniture).

In Weber’s theory of industrial location the factory that determine the location of
industry are,
1.Primary causes (Regional factors):-
Transport costs and labour costs are the two regional factors, where he assumes that,
there are no other factors that influence the distribution of industry and should try to
reduce such costs.
The key factors to be considered are,
• The Weight to be transported.
• The distance to be covered.
• The type of transportation systems.
• The nature of region and kind of roads.

Weber classifies the raw- materials based on availability like, brick clay, water
and localized which are available in certain regions like, iron ore, minerals etc.
Based on its nature,
a) Pure and weight losing raw materials.
o Pure materials impart their total weight to the products
o If only a part enters into the product (wood, coal)
o It is weight losing.
Geographical distribution of the population would give risk to
differences in wages for labour, by locating towards cheaper labour
centers.
2.Secondary Causes (Agglomerative and Deglomerative factors):-
An Agglomerative factor is an advantage or a cheapening of production or
marketing which results from the fact that production is carried on at one place with
high co-efficient.
A Deglomerative factor is a cheapening of production which results from the
decentralization of production that is in more than one place with low co- efficient.
Criticisms of Weber’s Theory:-
1. Weber has been criticized for his unrealistic approach and deductive
reasoning. Where theory fails to explain locations resulting from
historical and social forces.
2. A. Predohl criticizes it as more a selective theory than a deductive
theory.
3. Weber assumes fixed labour centers and unlimited supplies of labour
which are unrealistic. The risk of industry requires more labours.
4. A. Robinson also considers Weber’s division of raw – materials into
ubiquities and localized as artificial.

Plant layout
MEANING:
A plant layout refers to the arrangement of machinery, equipment and other
industrial facilities such as receiving and shipping depatments,tool rooms,
maintenance rooms and employee amenities for the purpose ofachieving the
quickest and smoothest production at the least cost
DEFINTION:
According to J.LUNDY,” plant layout involves the allocation of space and
arrangement of equipment in such a manner that overall operations costs be
minimized”
Factors Influencing Plant Layout
1. Management Policy:
Management has to decide on many matters, e.g., nature and quality of
products, size of the plant, integration of production process, plant for
expansion, etc….
2. Manufacturing Process:
The type of manufacturing process, e.g., synthetic/analytical,
continuous/intermittent and repetitive /non –repetitive, will govern the type
of plant layout.
3. Nature of Product:
Small and light products can be moved easily to the machines whereas
for heavy and bulky products require more space for movements.
4. Volume of Production:
The plant layout and material handling equipment in the large scale
organization will be different from the same in the small scale manufacturing
industry.
5. Type of Building:
The plant layout in a single storey building will be different from that
in a multi –storey building. The covered area, the number of story’s, elevators
and stairs, parking and storage area all affect the layout.
6. Typeof Equipment:
The use of single purpose and multi -purpose machines substantially
affects the plant layout. Similarly, and vibrating machines require special
attention in the plant layout decision.
7. AvailabilityofTotal Floor Area:
The allocation of space for machines, work-benches, sub-store aisles,
etc. is made on thebasis of the available floor area. Use of overhead space is
made in case of shortage of space.
8. Arrangement of Material Handling Equipment:
 It is necessary to provide adequate aisles for free movement of material
handling equipment such as hand truck, fork truck etc.
9. Service Facilities:
The layout of factory must include proper service facilities required for
the comfort and welfare of workers. These include canteen, lockers, drinking
water, first aid etc.
10. Possibility of Future Expansion:
Plant layout is made in the light of future requirements and installations
of additional facilities.

Types of Plant Layout:

1. Product Layout:-

It is also called as, straight –line layout, processing layout, flow- line layout
or layout for serialized manufacture.
Product layout is the arrangement of machines in one line, depending upon
the sequence of operations.
Product layouts are used to achieve a smooth and rapid flow of large volumes
of goods or customers through a system.
Merits of Product Layout:
1. It avoids production bottlenecks.
2. Work-in -Progress is reduced and investment there on isminimized.
3. There is mechanization of materials handling and reduction in material
handling cost.
4. Greater incentive to a group of workers to raise their performance.
5. It facilitates better production control.
6. It requires less floor area per unit of production.

Demerits of Product Layout:

1. It is known for its inflexibility.

2. It is expensive.
3. There is difficulty of supervision.
4. Expansion is difficult.
5. Any break down of equipment disruptsthe whole system.

2. Process Layout:-
It is also called as, functional layout or job shop layout.
 In process layout, machines and services are grouped on a functional basis
and operations of the same type are performed in the same area.
Merits:
❖ Reduced investment of machines as they are general purpose
machines.
❖ Greater flexibility in the production.
❖ Better and more efficient supervision is possible through
specialization.
❖ Better utilization of men and machines.
❖ Greater incentive to individuals to increase their performance.
❖ No disruption in work schedules.

Demerits:
❖ It requires more floor space.
❖ Difficulty in production control.
❖ Difficulty of materials handling.
❖ Frequency of inspection.
❖ .It requires longer processing time.

3. Fixed Position Layout:-

It is also called as, fixed location layout.
It involves the movement of men and machines to the product
which remains stationary.
Merits:
❖ Men and machines can be used for wide variety of operations producing
different products.
❖ The investment on layout is very small.
❖ The worker identifies himself with the product and takes pride in it when the
work is complete.
❖ The high cost and difficulty in transporting bulky products are avoided.

Demerits:
❖ It usually involves a low content of work-in- progress.
❖ There appears to be low utilization of labour and equipment.
❖ It involves high equipment handling costs.

4. Cellular Manufacturing or Group Technology Layout:-

 In cellular manufacturing, machines are grouped into cells and the
cells functions somewhat like a product layout within a larger shop or
process layout.
Definition:
According to V.B,” Group technology is the realization that many
problems are similar and that by grouping similar problems, a single
solution can be found to a set of problems, thus saving time and effort”.
Merits:
➢ Reduced flow times.
➢ It saves process time.
➢ It helps to reduce inventory.
➢ It helps to produce variety of products.
➢ Rush order can be produced.
➢ It provides job satisfaction.
➢ It reduces absenteeism.
➢ It helps to improve the quality.

Demerits:
➢ It involves high cost.
➢ Not suitable for large variety of products.
➢ Not suits to all applications.
➢ Difficult to conceive.
➢ It is very impractical.

5. Combined Layout:
It is a combination of the product layout, process layout in most of
the industrial establishments in an efficient manner.

Space Requirement:
Space requirement finalizes the area (length, width, and then height),suitable to the
function and ventilation. Rules and regulations regarding plant layout should be
referred to at this stage.
Factor Considered For Space Requirement:
1. Regulations and bye-laws of the plan sanctioning authority.
2. Establishment of area for different unit:
a. Function,
b. Number of persons, and
c. Furniture requirement, etc.
3. Roominess.
4. Flexibility.
5. Sanitation.
6. Air conditioning.
7. Ventilation.

Organization of Physical Facilities:-

Different types of facilities:-
They are:-
1. Factory building.
2. Lighting.
3. Ventilation.
4. Air conditioning.
5. Noise control.
6. Sanitation.
A. Factory Building:-
Factory building is a factor which is the most important consideration for
every industrial enterprise.It is required to provide protection for men,
machines, materials, products etc.It is required to carry out the plant
operations.
Factors affecting factory building:-
1. Flexibility:-
Flexibility is necessary, because building is likely to become obsolete. So,
building should be designed in such a way that, it should be able to
accommodate different types of operations, as new plants cannot be offered
every time.
2. Product and equipments:-
 A product of a temporary nature may call for a less expensive building and that
would be a product of a permanent nature heavy product demands different
buildings.
3. Product and Equipments:-

Growth and expansions are natural to any industries. They are the indicators of the
prosperity of a business. So, building should be designed considering scope for
expansion like;
• Area of land.
• Facilities.
4. Employee facilities and service area:-

Employee facilities must find a proper place in the building design because they
profoundly affect the morale, comfort and productivity.
Service area like tool room, supervisor’s office, maintenance room should be there.

Types of Buildings:-
1. Single storey building:-
Single storey construction is preferable when material handling is different
because the product is big or heavy, natural lighting is desired, heavy floor loads
are required and frequent changes in layout are anticipated.

Merits:-
There is a greater flexibility in layout and production routing.
Expansion is easily ensured by the removal of walls.
Greater floor load bearing capacity for heavy equipment is ensured.
Danger of fire hazards is reduced because of the lateral spread of the building.
Effective supervision.
Maintenance cost can be reduced.

Demerits:-
High cost of land, particularly in the city.
High cost of heating, ventilating and cleaning of windows.
3.High cost of transportation for moving men and materials.

2. Multi - storey building:-

 Multi –storestructures are popular in cities, which are useful to manufacture
light products, when the acquisition of land becomes difficult and expensive and
when the floor load is less.
Merits:-
❖ Lower cost of heating and ventilation.
❖ Reduced cost of materials handling.
❖ Maximum operating floor space.
❖ Use of overhead storage.

Demerits:-
❖ Layout changes cannot be effected easily.
❖ A lot of floor space is wasted on elevators.
❖ Difficulty in supervision.
❖ Material handling becomes complicated.

3. High bay and monitor type:-

This is a single storey structure with this difference, that the roof truss is surrounded
by a monitor. The building is designed to give maximum overhead space for a given
floor area. The monitor offers good ventilation.
4. Special types:-
5. Buildings are constructed for specific purpose and they are inflexible
obsolescence is high because of rapid changes in technology.
Importance of Factory Building:-
1. It ensures a smooth operation of production.
2. It gives protection to property.
3. It reduces material handling costs.
4. It reduce work- in-progress, inventory.
5. It reduces service and maintenance charges.
6. It increases plant flexibility.
7. It increases employee comfort and morale.

B. Lighting:-
 Lighting of a sufficient intensity is essential to adequately perform
visual tasks and to reduce worker fatigue. How a space is used and what it is
used for influence, how lighting should be applied.
Features of Lighting:-
➢ Light should be of sufficient intensity for the particular operation being
performed.
➢ Light should be equally bright throughout the shop floor.
➢ Light should be diffused and not glaring.
➢ Light should not permit marked shadows.
➢ Dazzling light should be avoided.

Merits:-
1. Increased output and decreased cost.
2. Reduced accidents.
3. Improved product quality.
4. Better visibility.
5. Less spoilage and consequent rework.
6. Improved morale among employees.

➢ Kinds of Light Sources:-

1. Day light:-
Day lighting is that natural light which is received from the sum
through apertures in the building.
• Merits of Day Light:-
1. It is available in abundance.
2. It is available free of cost.
3. It requires no maintenance.
4. It is suitable for general lighting purpose.
• Demerits:-
1. It is available only during day time and varies with the seasons.
2. Its intensity cannot be changed to suit different requirements.
3. It is difficult to provide uniform throughout the building.
2. Artificial Lighting/ Electrical Light:-
It is also called as electrical light.
It refers to the illumination secured artificial means, such as the use of bulbs and
tubes.
It is used to provide additional local lighting on the work to provide special effects
such as modeling, reflections etc.
 • Merits:-
1. There is no need for more windows.
2. The illumination provided is constant.
3. It is suited for supplementary lighting.
• Demerits:-
1. It is expensive.
2. Problem of power failure.
1. Types of Light sources:-
1. Tungsten light sources.
2. Fluorescent tubes.
3. Mercury vapor lights.
4. Sodium vapor sources.
5. Metal halides.
6. Neon Lights.
7. Laser lights.
8. Incandescent lamps.
9. Electro luminescence.
10. Incandescent Lights.

C) Ventilation:-
Ventilation refers to the supply of air to an enclosed space and the
removal of air there from. That it is the free movement of air from outdoor
to indoor in a natural way.
Purpose of ventilation:-
1. Provides sufficient supply of air.
2. Remove the products of respiration of human occupants.
3. Remove harmful chemicals generated by processes.
4. Remove heat generated by people, and other equipments.
5. To maintain temperature and humidity.
6. Create some degree of air movement to have feeling of freshness.

Sources of Ventilation:-
a) Natural Ventilation:-
It is the movement of air into and out of the premises through
windows, doors or any openings without any mechanical aid.

• Merits:-
1. It is sustainable or does not contribute to pollution.
 2. Air is free and it saves space.
3. Cost effective.
• Demerits:-
1. Difficult to control.
2. For deep plans fresh air delivery not possible.
b) Mechanical ventilation:-
It is the supply and extraction of air using fans, of various types like,
centrifugal fans, axial flow fans, root extractors etc.

D) Air Conditioning:
-
It means, simultaneous control of temperature and humidity, and
distribution and purity of air by artificial means.
Factors affecting air conditioning:-
1. The local design weather conditions.
2. Building usage.
3. Energy recovery strategies available.
4. Whether low cost cooling system can be used.
5. Allowable variation in the indoor design air conditions.
6. The means by which building can be heated.
7. Peak energy requirements for heating and cooling.

Objectives of Air Conditioning:-

1. To avoid the precision measurement errors due to expansion of instrument
parts.
2. To increase workability.
3. To promote quality of workmanship.
4. To increase output and improve product quality.
5. To reduce corrosion and deterioration of certain materials.
6. To promote plant cleanliness and atmosphere.
7. To protect workers against harmful dust.

Features of Air Conditioning:-

1. It is the control of air temperature, humidity, cleanliness and distribution
of air.
2. Air motion is achieved by proper positioning of incoming air ducts and
exhaust outlets.
3. Humidity of the air is adjusted by adding moisture to it.
 E) Noise Control:-

Noise is an unwanted and unpleasant sound. Whether a sound is pleasant or not,

depends on the person hearing it and the circumstances in which it is heard.
The noise which is unpleasant and generated by machines should be controlled.
Noise Control Methods:-
1. Control at source.
2. Control by enclosures.
3. Control by absorption.
4. Control through ear protection.

Benefits of Noise control:

To organization:-
1. Reduced risk of compensation claims.
2. Reduced risk of penalties.
3. Productivity improvement.
4. Improves corporate image.

To Personnel:-
1. A reduced risk of hearing loss.
2. Assurance to their health.
3. Improved communications.
4. Less stress and fatigue.

F) Sanitation:
-
Sanitation is any system that promotes sanitary or healthy, living
conditions. It includes systems to manage waste water, solid waste, house
hold refuse, and ensuring people have safe drinking water.
Elements of Sanitation:-
1. Supply of potable water.
2. Disposal of waste and effluents.
3. Provision of food which is free from contamination.
4. Elimination of insects.
5. Good housekeeping.
6. Provision of personal services.
 G) Safety:-
The approach to be adopted in ensuring safer site layout design by
providing safety training, and continuous monitoring and review of adopted
measures by eliminating risks.
Need for safety:-
1. It is needed to eliminate accidents.
2. It is needed to reduce workman compensation.
3. It is required to educate all members regarding safety principles.
4. It is needed to achieve better morale.
5. It is needed to increase production.
6. To have good relations in industries.

Safety measures:-
1. Proper material handling.
2. Proper protection against fire, hazards.
3. Effective lubrication schedule.
4. Training for unskilled workers.
5. Sufficient lighting, ventilation etc.
6. Proper sanitation facilities.

H) Other Facilities:-
1. Drinking water.
2. First aid and medical facilities.
3. Rest facilities.
4. Feeding facilities.
5. Child care facilities.
6. Recreational facilities.

Location Theory:-
Location theory is concerned with the geographic location of economic
activity.Alfred Weber formulated a theory of industrial location in which an industry
is located where it can minimize its costs, and therefore maximize its profits.
The costs to be reduced are,
• Transportation – To move raw – materials to the factory, and to move
finished products to the market.
 • Higher labour costs reduce profit, so factory might do better where
cheap labour is available.
• Agglomeration:-

When a large number of enterprises cluster in the same area, they can provide
assistance to each other through shared talents, services and facilities (like office
furniture).
In Weber’s theory of industrial location the factory that determine the location of
industry are,
1. Primary causes (Regional factors):-

Transport costs and labour costs are the two regional factors, where he assumes that,
there are no other factors that influence the distribution of industry and should try to
reduce such costs.
The key factors to be considered are,

▪ The Weight to be transported.

▪ The distance to be covered.
▪ The type of transportation systems.
▪ The nature of region and kind of roads.

Weber classifies the raw- materials based on availability like, brick clay, water
and localized which are available in certain regions like, iron ore, minerals etc.
Based on its nature,
b) Pure and weight losing raw materials.
o Pure materials impart their total weight to the products
o If only a part enters into the product (wood, coal)
o It is weight losing.
Geographical distribution of the population would give risk to
differences in wages for labour, by locating towards cheaper labour
centers.
2.Secondary Causes (Agglomerative and Deglomerative factors):-

An Agglomerative factor is an advantage or a cheapening of production or

marketing which results from the fact that production is carried on at one place with
high co-efficient.
A Deglomerative factor is a cheapening of production which results from the
decentralization of production that is in more than one place with low co- efficient.
Criticisms of Weber’s Theory:-
5. Weber has been criticized for his unrealistic approach and deductive
reasoning. Where theory fails to explain locations resulting from
historical and social forces.
6. A. Predohl criticizes it as more a selective theory than a deductive
theory.
7. Weber assumes fixed labour centers and unlimited supplies of labour
which are unrealistic. The risk of industry requires more labours.
8. A. Robinson also considers Weber’s division of raw – materials into
ubiquities and localized as artificial.

Selection of suppliers:
Choosing and managing good relationship with suppliers can leads to long
run success of the business.
Steps involved in Selection of Suppliers:
1. Discovering potential suppliers:
The details of potential suppliers can be identified through
advertisement, trade industry journals and by different websites which
provides information about the sources of suppliers.
2. Evaluating Potential suppliers:
It is necessary to evaluate the suppliers by,
Supplier surveys.
Financial condition analysis.
Quality capability analysis
Capacity capability of analysis.
Service capability analysis.
Flexibility capability analysis.
3. Selecting Suppliers:
It is require to invite the suppliers to submit bids or proposals, and decide
whether bidding or negotiation as the basis of selection.
➢ Bidding v/s Negotiation:
The next step is the request for bids, and suppliers are need to
quote their prices in accordance with the terms and conditions of the
contract.
➢ Two step bidding or Negotiation:
 In the first step suppliers are selected on the basis of technical
proposals without mention of prices and shortlist few of them and then
ask those selected suppliers to participate in competitive bidding and
finalize the better supplier.
➢ Solicitation and responsibility for selection:
After selecting the suppliers it is required to give details of,
service required, quantity, quality, delivery date, place and time with
specified terms and conditions.
➢ Personnel involved in source selection:
Firstly, it may be handled by a single purchase manager who
conducts the analysis and makes the selection.
Secondly, it is through cross functional teams from various
departments like, purchasing, quality control, finance etc.
Third method, is through supply mangers, material engineers and
production planners.

4. Managing suppliers:
It is require to maintain good relationship with suppliers by making
payment on time, and evaluating their performance periodically, and also can
train and develop them to meet the firm’s present and future requirements.

Vendor rating:
A firm should review the performance of its vendor to find out how good its existing
suppliers are. The measurement system used is called vendor rating.
Criteria for evaluation:
▪ Timely delivery
▪ Adherence to quality
▪ Prices at which goods are offered

Factors influencing vendors

I-PRICING FACTORS:
1.Competitive pricing
2.Price stability
3.Price accuracy
4.Advance notice of price changes
5.Sensitive to costs
II-QUALITY FACTORS:
1.Compliance with purchase order
2.Conformity to speciation
3.Reliability
4.Reliability of repairs
5.durability
III-Delivery factors:
1.Time
2.Quantity
3.Lead time
4.Packging
5.documentation