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Ms. Ronita Sonio-Frias
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This document provides an introduction to operations management, exploring plant location and the factors that influence it. It covers factors such as market proximity, raw material availability, labor force, and transportation infrastructure.
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Management Science 7 “Introduction to Operations Management” MS. RONITA SONIO-FRIAS NO.7 Management Science Introduction to Operations Management Learning Objectives : ∙ The learn...
Management Science 7 “Introduction to Operations Management” MS. RONITA SONIO-FRIAS NO.7 Management Science Introduction to Operations Management Learning Objectives : ∙ The learners to be able to have the overview of what is operation management. NO. 7 Management Science NO. 7 Management Science NO. 7 Management Science Plant Location: Plant location is a strategic decision several factors influence this decision. The main objective of any business is to optimize its cost and revenue that is, minimize its costs and maximize its returns. The degree of significance for the selection of location for any enterprise mainly depends on its size and nature large scale industries requiring huge amount of investment there are many considerations other than the local demand in the selection proper plant location these plants cannot be easily shifted to other place and an error of judgment in the selection of site can be vary expensive to the organization. However, small-scale industry mainly selects the site where in accordance with its capacity; the local market is available for its products. It can easily shift to other place when there is any change in the market. NO. 7 Management Science Factors affecting plant location: Nearness to Market: If the plant is located close to the market the cost of transportation can be minimized. This also helps the producers to have direct knowledge of the requirements of the customers. Nearness to supply of raw materials: As far as possible the site selected should be near the source of raw materials, so that the cost of transportation can be minimized and storing cost can be reduced due to shorter lead time. Availability of labor: Availability of right kind of labor force in required number at reasonable rates is also a deciding factor in selection of site. Transport and communication facilities: Generally, industries have a tendency to locate the industrial units near the railway station, highway or port areas. Availability of power and fuel: Coal, electricity, oil and natural gas are the important sources of power in the industries. Ex: Tata iron and steel industry is established near the coal mines of Bihar. NO. 7 Management Science Climatic conditions: Climatic conditions largely affect certain production processes and also the efficiency of the employees. Ex: Textile mills require moist climate that why these plant located at Mumbai and Ahmedabad. Availability of water: Water is used in industries for processing as in paper in chemical industries, for generation of power in hydroelectric power, plants and also required for drinking sanitary purpose also. Ancillary industries: Many industries such as processing and assembly industries are not producing all the parts of their product but purchase some of the parts from ancillary industries producing it. Financial and other aids: For the development of backward regions central as well as state government provide certain incentives and facilities such as cash subsides, concession financial assistance, land, power and other facilities at cheaper rates, tax concession etc NO. 7 Management Science Plant Layout: A technique of locating machines, processes and plant services within the factory in order to secure the greatest possible output of high quality at the lowest possible total cost of production. NO. 7 Management Science Type of Plant Layout: 1.Productor line layout: This type of layout is developed for product-focused systems. In this type of layout only one product, or one type of product, is produced in a given area. In case of product being assembled, this type of layout is popularly known as an assembly line layout. The work centers are organized in the sequence of appearance. The raw material can treat one end of the line and goes from one operation to another rapidly with minimum of work-in-process storage and material handling. 2.Process or Functional layout: This type of layout is developed or process focused systems. The processing units are organized by functions into departments on the assumption that certain skills and facilities are available in each department similar equipment and operations are grouped together ,e.g., milling, foundry, drilling, plating, heat treatment etc. The use of process-focused systems is very wide in both manufacture and other service facilities such as hospitals, large offices, municipal services, etc. NO. 7 Management Science 3.Cellular or group layout: It is special type of functional layout in which the facilities are club bed together into cells. This is suitable for system designed to use the concepts, principles and approaches of group technology‘. Such a layout offers the advantages of mass production with high degree of automation even if the numbers of products are more with flexible requirement. In such a system the facilities are group into cells which are able to perform similar type of functions for a group of products. 4.Job Shop Layout: It is a layout for a very general flexible system that is processing job production, The preparation of such a layout is dependent on the analysis of the possible populations of orders and is a relatively, complex affair. 5. Projector Fixed position Layout: This is the layout for project type systems in which the major component is kept at a fixed position and all other materials, components, tools machines, work etc. are brought and assembly or fabrication is carried out. This type of layout is now not used very commonly as the machines required for manufacturing work are big and complicated. The fixed position layout is used only when it is difficult to move the major component and fabrication is to be carried out. Ex: production of ships. NO. 7 Management Science Principles of Plant Lay-out NO. 7 Management Science 1. Principle of Integration As a company grows, so too does its need for more systems and applications — each one playing a crucial function in its operations. For example, you might have customer relationship management (CRM) software to administer customer data, an accounting system to handle invoices, and an HR system to manage employees. But problems can occur if those systems aren’t integrated. Teams may work or make key decisions based on outdated data. So how can you ensure that everyone has access to the most up-to-date information? And how can you integrate your systems to ensure everything works together? NO. 7 Management Science What Is Business Process Integration? Business process integration (BPI) allows companies to connect their people, data, and applications. With BPI, organizations can better coordinate both internally and with partners, customers, and vendors to achieve better results. Processes become more complex as a company scales its operations. For example, managing purchase orders is easy enough for one vendor. But as you work with more vendors, you might add software to manage this process. Then you might add software to keep track of inventory, another to pay invoices, and another to manage your accounts. Before long, a single process can end up encompassing multiple technologies, which can affect productivity and impede your automation efforts because the data is isolated from each other. 39% of I.T. and engineering leaders say that integrations and fetching external data are some of the biggest challenges they face in implementing process automation. NO. 7 Management Science 3 Types of Process Integrations Not every system integration is the same. There are different types of integrations that allow systems to communicate with each other, which include: Native integrations: A native integration is when data seamlessly flows between software applications. These integrations are already baked into the software, so the setup process is more straightforward. You just need to allow permission between the apps you want to connect. API integrations: An API integration is when two or more applications share data with each other through their application programming interfaces (APIs). For example, you’d use a custom API to connect your online store with a payment processor to accept orders if there are no native integrations. Third-party integrations: Companies with specialized needs often develop in-house software. But it’s often more practical to use an existing tool to add a specific feature. You could use third-party integrations in these cases instead of developing a feature from scratch. NO. 7 Management Science 2.Principle of Continuous Flow The continuous flow process is a technique where products are manufactured nonstop using one process at one facility without break times. Batch manufacturing in pharmaceutical tablet production lines involves developing tablets in groups using multiple steps. One downside to batch manufacturing is processing costs can increase because the process is slower than continuous flow. Manufacturing processes that use certain materials like titanium require the batch manufacturing approach. The continuous flow process increases productivity due to manufacturing more products in less time. Batch manufacturing allows you to develop multiple products using one machine. NO. 7 Management Science Continuous Flow Process The continuous flow process is a technique where products are manufactured nonstop using one method at one facility without break times. During the continuous flow process for a pharmaceutical tablet production line, tablets move through the manufacturing process individually. Then, manufacturing experts identify and correct tablet defects and other manufacturing problems early on in the process. NO. 7 Management Science Batch Manufacturing Batch manufacturing in pharmaceutical tablet production lines involves developing tablets in groups using multiple steps. During batch manufacturing, subsequent tablet batches must wait until the current batch is complete before production can move forward. Then, the entire tablet batch goes to the final manufacturing stage together. In some batch manufacturing facilities, materials are shipped to another location between steps, resulting in weeks or months between production times. NO. 7 Management Science Continuous Flow Processes vs. Batch Manufacturing The main difference between continuous flow processes and batch manufacturing is the number of products produced. Because batch manufacturing involves processing multiple batches at once, it’s more difficult to assess quality control. This often results in defect identification after the process is completed. The continuous flow process makes locating and fixing product defects easier. Because products are completed individually during continuous flow, examining the first product and adjusting strategies if necessary ensure defect prevention early on in the process. NO. 7 Management Science Continuous Flow Process Roadblocks The continuous flow process is a superior solution for a wide range of applications. However, manufacturing processes that use certain materials like titanium require the batch manufacturing approach. Continuous flow can increase the risk of material contamination, but contamination risks can be mitigated with proper process implementation and monitoring. NO. 7 Management Science The Benefits of Using a Continuous Flow Process For many applications, the continuous flow process has a variety of benefits like: ❖ Reduced or zero-waste operations ❖ Increased productivity due to manufacturing more products in less time ❖ Improved quality by identifying and fixing defects early on ❖ Increased stability ❖ Reduced lead times Using the continuous flow process also creates a work environment where your employees can get in the zone and focus, allowing them to accomplish manufacturing goals more efficiently. There are minimal work-stopping problems with continuous flow because your team members don’t have to stall or wait around for the next completed batch. Problem-solving is also more seamless with the continuous flow process. Your employees can locate minor manufacturing issues before they become costly problems that affect your bottom line. NO. 7 3.Principle of Smooth Flow Science Management It states that bottlenecks, congestion points and bulk tracking should be removed by proper line balancing techniques. “Originally developed as a methodology to make production processes highly efficient, lean techniques have been adopted by more than 72 percent of machine shops across the country. For many of these, the techniques have helped them to dramatically increase their competitive edge, while continuing to remove wasteful practices and contribute to the bottom line.” Lean techniques are not limited to machine shops, productions plants, or manufacturing companies. They can help any business motivated to produce products and deliver services using as few resources as possible, while eliminating as much waste as possible. No matter the type of business, whether a restaurant, bakery, , small offices, or large processing plants all follow the same five Principles of Lean from the Toyota Production System. These principles are: Understand value from the customer perspective Understand the Value Stream Make the Value Stream Flow Create Pull NO. 7 Management Science Continuously Improve Each of these concepts is related to the others. The focus of this blog is on flow, and the seven flows of manufacturing, barriers to flow in organizations, and how to improve flow. Defining Flow Flow is how work progresses through a system. When a system is working well, or having “good” flow, it tends to move steadily and predictably, whereas, “bad” flow means the work starts and stops. Every time there is a breakdown in the flow, chances of accumulating waste increase. One goal is to strive for a consistent flow which generates more reliable delivery, and greater value to customers, teams, and stakeholders. NO. 7 Management Science Identifying the Seven Flows of Manufacturing Mike Wroblewski, Senior Operations Consultant for Gemba Consulting, explains in his Reliable Plant blog, the Seven Flows of Manufacturing by his Japanese sensei, Nakao-san: 1. The flow of raw material 2. The flow of work-in-process 3. The flow of finished goods 4. The flow of operators 5. The flow of machines 6. The flow of information 7. The flow of engineering Companies who successfully integrate the principles of Lean Manufacturing understand that when each of these seven types of flows are working in harmony, they are increasing their odds of producing finished goods and services that require little to no corrective action. Keeping production running, in such a smooth fashion, also helps to ensure that a company is creating efficiencies. NO. 7 Management Science Barriers to Flow If you want to improve flow, first remove all barriers. Figliolino Venanzio, Founder of Lean Six Sigma University, outlines both physical and intangible barriers to flow: Examples of Physical Barriers to Flow: ▪ Distance: Rather than transporting individual items, they are collected and shipped as a group ▪ Long Setup Times: When changing over tooling takes a long time, larger batches are run ▪ Batch-Oriented Machines: Some machines are designed to be most efficient with large runs. ▪ Poor Maintenance: Machines that break down frequently disrupt flow. Examples of Intangible Barriers to Flow: ∙ Unreliable Deliveries: When there is no trust that parts will arrive on time, extras are kept on hand ∙ Unreliable Quality: If people think that many parts will be unsuitable or will require rework, extras will be kept on hand NO. 7 Management Science ∙ Approval Processes: The approver is seldom standing by, so work is piled up until the next opportunity to get the go-ahead ∙ Lack of Faith: Some people just don’t believe flow is possible, so don’t even try ∙ Resistance to Change: Some people think flow might work, but like things to stay the same. Once companies identify and prioritize all of the barriers to flow, they are ready to implement the changes designed to improve the overall process of flow. NO. 7 Management Science Improving Flow Lee Candy, creator of Educational Business Articles, suggests 6 pointers to help companies develop flow within their processes: ✔ Map the process ✔ Identify and log all problems process owners experience ✔ Identify all waste in the current process ✔ Map an ideal state – the perfect process achieved in absence of all constraints ✔ Develop an action plan ✔ Actively monitor the new processes put into place by creating performance measures NO. 7 Management Science 4.Principle of cubic space: Space of a room, it the ceiling height is also utilized, more materials can be accommodated in the same space. Concept of Plant Layout: The concept of plant layout may be described as follows: 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.” NO. 7 Management Science Certain useful observations on the concept of plant layout are as follows: (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. (x) Hold down investment (i.e. keep investment at a lower level) in equipment. NO. 7 Management Science Objectives/Advantages of Plant Layout: (i) Streamline flow of materials through the plant. (ii) Minimize 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 utilization of men, equipment and space (vii) Increase employee morale (viii) Minimize interference (i.e. interruption) from machine ix) Reduce hazards affecting employees NO. 7 Management Science Principles of Plant Layout: While designing the plant layout, the following principles must be kept in view: (i) Principle of Minimum Movement: Materials and labor 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. NO. 7 Management Science (v) Principle of Overall Integration: (vii) Principle of Smooth Flow: All the plant facilities and services should The layout should be so designed as to reduce work be fully integrated into a single operating bottlenecks and facilitate uninterrupted flow of work throughout the plant. unit; to minimize cost of production. (viii) Principle of Economy: The layout should aim at effecting economy in terms of (vi) Principle of Safety: investment in fixed assets. There should be in-built provision in the (ix) Principle of Supervision: design of layout, to provide for comfort A good layout should facilitate effective supervision over workers. and safety of workers. (x) Principle of Satisfaction: A good layout should facilitate effective supervision over (iv) Principle of Interdependence: workers. (x) Principle of Satisfaction: Interdependent operations and processes A good layout should boost up employee morale, by should be located in close proximity to providing them with maximum work satisfaction. each other; to minimize product travel. NO. 7 Management Science Principles of Plant Layout-at a Glance A technique of locating machines, processes and plant services. Within the factory order to secure the greatest possible output of high quality at the lowest possible total cost of production. 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. NO. 7 Management Science Type of plant layout: 1.Production line layout: This type of layout is developed for product-focused systems. In this type of layout only one product, or one type of product, is producing a given area case of product being assembled, this type of layout is popularly known as an assembly line layout. The work centers are organized in the sequence of appearance. The raw material treat one end of the line and goes from one operation to another rapidly wit minimum of work-in-process storage and material handling. Following is an account of the various types of plant 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. NO. 7 Management Science 2.Process or Functional layout: This type of layout is developed or process focused systems. The processing units are organized by functions into departments on the assumption that certain skills and facilities are available in each department similar equipment and operations are grouped together ,e.g., milling, foundry, drilling, plating, heat treatment etc. The use of process-focused systems is very wide in both manufacture and other service facilities such as hospitals, large offices, municipal services, etc. 3.Cellularor group layout: It is special type of functional layout in which the facilities are clubbed together into cells. This is suitable for systems designed to use the concepts, principles and approaches of group technology‘. Such a layout offers the advantages of mass production with high degree of automation Even if the numbers of products are more with flexible requirement. In such a system the facilities are group into cells which are able to perform similar type of functions for a group of products. NO. 7 Management Science 4.Job Shop Layout: It isa layout for a very general flexible system that is processing job production, The preparation of such a layout is dependent on the analysis of the possible populations of orders and is a relatively ,complex affair. 5. Projector Fixedposition Layout: This is the layout for project type systems in which the major component is kept at a fixed position and all other materials, components, tools machines, work etc. are brought and assembly or fabrication is carried out. This type of layout is now not used very commonly as the machines required for manufacturing work are big and complicated. The fixed position layout is used only when it is difficult to move the major component and fabrication is to be carried out. Ex: production of ships. NO. 7 Management Science Product layout is depicted below: Product Layout 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. NO. 7 Management Science Disadvantages: 1. Lack of flexibility of operations, as layout cannot be adapted to the manufacture of any other type of product. 2. Large capital investment, because of special purpose machines. 3. Dependence of whole activity on each part; any breakdown of one machine in the sequence may result in stoppage of production. 4. Same machines duplicated for manufacture of different products; leading to high overall operational costs. 5. Delicate special purpose machines require costly maintenance / repairs. NO. 7 Management Science Suitability of Product Layout: Product layout is suitable in the following cases: 1. Where one or few standardized products are manufactured. 2. Where a large volume of production of each item has to travel the production process, over a considerable period of time. 3. Where time and motion studies can be done to determine the rate of work. 4. Where a possibility of a good balance of labor and equipment exists. 5. Where minimum of inspection is required, during sequence of operations. 6. Where materials and products permit bulk or continuous handling by mechanical parts. 7. Where minimum of set-ups are required. NO. 7 Management Science 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 Advantages: 1. Greater flexibility with regard to work distribution to machinery and personnel. Adapted to frequent changes in sequence of operations. 2. Lower investment due to general purpose machines; which usually are less costly than special purpose machines. 3. Higher utilization of production facilities; which can be adapted to a variety of products. 4. Variety of jobs makes the work challenging and interesting. 5. Breakdown of one machine does not result in complete stoppage of work. NO. 7 Management Science Disadvantages: 1. Backtracking and long movements occur in handling of materials. As such, material handling costs are higher. 2. Mechanization of material handling is not possible. 3. Production planning and control is difficult 4. More space requirement; as work-in-progress inventory is high-requiring greater storage space. 5. As the work has to pass through different departments; it is quite difficult to trace the responsibility for the finished product. NO. 7 Management Science Suitability of process layout: Process layout is suitable in the following cases, where: 1. Non-standardized products are manufactured; as the emphasis is on special orders. 2. It is difficult to achieve good labor and equipment balance. 3. Production is not carried on a large scale. 4. It is difficult to undertake adequate time and motion studies. 5. It is frequently necessary to use the same machine or work station for two or more difficult operations. 6. During the sequence of operations, many inspections are required. 7. 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. NO. 7 Management Science 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 Centre’s as per requirement. The final assembly of the product is done in a product type layout. NO. 7 Management Science 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. NO. 7 Management Science PRODUCTIVITY: Definition: Productivity is defined as the rate at which the goods and services are produced. It refers to the relationship between the inputs and the output. It is calculated as a ratio between the amount produced and the amount of resources (land, labor, capital, technology etc.) used in the course of production. In other words, Method of Production: Job production: In this system, goods are produced according to the orders with this method, individual requirements of the consumers can be met. Each job order stands alone and is not likely to be repeated. This type of production has a lot of flexibility of operation and hence general purpose machines are required. Factories adopting this type of production, are generally small in size. NO. 7 Management Science Advantages: 1. It is the only method, which can meet the individual requirement. 2. There is no managerial problem, because of very less number of workers, and small size of concern. Such type of production requires less money and is easy to start. Disadvantages: 1. There is no scope for continuous production and demand 2. As the purchase of raw materials is less, hence cost of raw materials per unit willbe slightly more. 3. For handling different type of jobs, only skilled and intelligent workers are needed increases. NO. 7 Management Science Batch production: This type of production is generally adopted in medium size enterprise. Batch production is in between job production and mass production. Batch production is bigger in scale than the job production. While it is smaller than that of mass production, batch production requires more machines than job production and fewer machines that the of mass production. Advantages: 1. While comparing with mass production it requires less capital 2. Comparing with job production, it is more advantageous commercially. 3. If demand for one product decrease then production, for another product may be increased, thus the risk of loss is very less. NO. 7 Management Science Disadvantages: 1. Comparing with mass production cost of scales and advertisement per unit is more. 2. Raw materials to be purchased are in less quantity than that in mass production; therefore it is slightly costlier than that of mass production because less quantity discount is available. NO. 7 Management Science Mass production: This method of production is used by concerns where manufacturing is carried on continuously in anticipation of demand though demand of the product may not be uniform through the year. In mass production, simplification and standardization of products are made with the help of specialized (one purpose) machine, articles of standardized nature can easily and economically be produced on a large scale. There is a small difference between mass production and continuous production. This is mainly in the kind of product and its relation to the plant. In mass production plant and equipment are flexible enough to deal with other products, involving same production process. Where as in continuous or process production only standardized product in a sequence produced. In this method layout and requirement of additional tools and equipment. NO. 7 Management Science Advantages: A smooth flow of materials from one work station to the next in logical order. Since the work from one process is fed directly into the next, small in process inventories result Total production time per unit short Simple production planning control system are possible Little skill is usually required by operations at the production line, hence training is simple, short and inexpensive. Disadvantages: 1. A breakdown of one machine may lead to a complete stoppage of the line that follows the machine. Hence maintenance and repair is challenging job. Since the product dictates the layout, changes in product design may require major changes in the layout. NO. 7 Management Science Work Study: Work study is one of the most important management techniques which is employed to improve the activities in the production. The main objective of work study is to assist the management in the optimum use of the human and material resources. Definition: Work study refers to the method study and work measurement, which are used to examine human work in all its contexts by systematically investigating into all factors affecting its efficiency and economy to bring forth the desired Improvement. NO. 7 Management Science Method Study: Definition: 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 cost it is also called motion study. Work Measurement: Definition: Work measurement is the application of techniques designed to establish time for a qualified worker to carry out a specified job at a defined level of performance. Work study has two parts, Method Study and Work Measurement. Method study deals with the techniques of analyzing the way to do a given job better, Work Measurement seeks to measure the time required to perform the job. NO. 7 Management Science Basic procedure for Method Study: Select: The work to be studied Record: All the relevant facts of the present or proposed method study by observation Examine: The recorded facts critically every thing that is done, considering in turn, the purpose of the activity, the place where it is performed, the sequence in which it is done, the person who is doing it and the means by which it is done. Develop: The most practical, economical and effective method considering all the circumstances. Define: The new method so that it can always be identified. Install: The method as standard practice Maintain: That standard practice by regular routine checks. NO. 7 Management Science Recording: The current process of doing the job has to be recorded, while doing so every detail however small it may be, has to be identified. Where the process is too long, involving many stages of production, inspection or transportation, the present process of doing the job is recorded sufficiently together with all the relevant information, using the process chart symbols. Recording Techniques: The recording techniques are of three types a) Process chart b) Diagrams c) Motion and film analysis d) Models NO. 7 Management Science A) Process Charts: 1) Out line process chart: This chart outlines the main events sequence wise considering only operations and inspections in the given job: Ex: TASK Changing refill of a Ball Point pen Chart begins : Unscrew the cap Chart ends : Screw the cap Chart by : -------------- Chart Ends : : -------------- NO. 7 Management Science 2.Flow process chart: These are scale drawings of the work place, which indicate where each activity takes place. This chart is capable of reflecting undue delays in transferring work between workstations duplication of work, and unfair work assignment, which may delay the completion process. It classified into three types: Man Type : It records what the worker does. Materials Type : It records what happens to the materials. Equipment Type : It records how the equipment used. NO. 7 Management Science 3.Two handed process chart: The two hand process chart is a chart is which the activities of a workers hand are recorded, in their relationship to one another. It is commonly used for repetitive and short operations 4.Multiple activity chart: A multiple activity chart is a chart in which the activities of more than one item (worker, machine or equipment) are recorded on a common time scale to show their inter relationship. By using separate vertical columns to represent the activities of different operators or machines on a common time scale, the chart shows very clearly the period of idleness on the part of any items during the process. NO. 7 Management Science Work Study: Work study is one of the most important management techniques which is employed to improve the activities in the production.The main objective of work study is to assist the management in the optimum use of the human and material resources. Definition: Work study refers to the method study and work measurement, which are used to examine human work in all its contexts by systematically. Investigating in to all factors affecting its efficiency and economy to bring for the desired improvement. NO. 7 Management Science NO. 7 Management Science NO. 7 Management Science NO. 7 Management Science Work Measurement: Work measurement is the application of technique to establish the time for a qualified worker to carry out a specified job at a defined level of performance. Procedure for Work Measurement: 1) Sect: 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 breakdown the job into its elements 3) Examine: The recorded data and the detailed breakdown critically to ensure the 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 compete the work cycle which is known as basic time. 5) Compile: The standard time for the operation or work place, in case of stop watch time study the various allowances to cover relation personal needs etc. are added to the basic time to estimate the standard time. NO. 7 Management Science Techniques of work measurement: NO. 7 Management Science 1) Time study: It is defined as the art of observing and recording the time required to do each detailed element of all industrial operation. 2)Synthesis from standard data: This one technique of work measurement to obtained synthetic times that are synthesis from element times previously obtained from direct time studies. The analysis and measurement stage are thus conducted prior to the actual study. 3)Predetermine motion time system (PMTS): Every element of work is composed of some combination of basic human motions. Apart from mental activity all works can broken down into elements that usually a fundamental movement of the body or body members. After this analysis stage the basic motions that have been isolated have a time allotted to them on the basis of predetermine motion times. NO. 7 Management Science 4)Analytical estimation: Analytical estimating serves as best for measuring work. In the analysis stage we find the usually these basic elements or much larger as compared to the elements in PMTS or time study. For measuring stages the time, which will be occupied by the element at a specific speed of working is estimated. 5)Work Sampling: It is work measurement technique which large number of instantaneous observation are made random interval over a specified period of time of a group of workers, machine and processes. Each observation records what is happening at that instant and the present observations recorded for a particular activity or delay is a measure of the percentage of time during which that activity or delay occurs. It can also defined as a method of finding the percentage occurrence of a certain activity by statistical sampling and random observations. Procedure for conducting time study: For conducting time study average workers and average machines are selected. This study id conducted by the time study expert, who should be familiar with all the information related to the job and the conditions in which it is being done. NO. 7 Management Science Direction: Read the article below about DITO Company. Pertaining to our topic answer the following key question: 1. As a new player in the telecom industry, how do you think DITO can penetrate the Philippines Telecom Industry going against the giant telecom providers. 2. What do you think the best possible marketing strategy they can apply. 3. Base in the articles, do you think DITO CME can still losses, recover their/ 02:12 and how? AM November 16, 2023 Philippine Daily Inquirer MANILA -Three listed companies controlled by Davao-based businessman Dennis A. Uy racked up losses amounting to P15 billion during the fist nine Debt payments force Dennis Uy firms to accumulate P15B in of 2023 amid rising debt costs while the group unloaded assets to support operations. Losses were led by DITO CME, Uy’s telecommunications holding firm, followed by casino firm PH Resorts Group and Chelsea Logistics and Infrastructu Holdings. losses DITO CME recorded a net loss of P12.96 billion, which was 50 percent lower than the same period in 2022, after it erased foreign exchange losses. Rev jumped 60 percent to P8.1 billion while interest expenses nearly doubled to P6.25 billion. By: Miguel R. Camus - Reporter / @miguelrcamusINQ Read more: https://business.inquirer.net/431769/debt-payments-force-dennis-uy-firms-to-accumulate-p15b-in-losses#ixzz8JBSIc7b0 NO. 7 Management Science Philippine Daily Inquirer / 02:12 AM November 16, 2023 MANILA -Three listed companies controlled by Davao-based businessman Dennis A. Uy racked up losses amounting to P15 billion during the fist nine months of 2023 amid rising debt costs while the group unloaded assets to support operations. Losses were led by DITO CME, Uy’s telecommunications holding firm, followed by casino firm PH Resorts Group and Chelsea Logistics and Infrastructure Holdings. DITO CME recorded a net loss of P12.96 billion, which was 50 percent lower than the same period in 2022, after it erased foreign exchange losses. Revenues jumped 60 percent to P8.1 billion while interest expenses nearly doubled to P6.25 billion. Read more: https://business.inquirer.net/431769/debt-payments-force-dennis-uy -firms-to-accumulate-p15b-in-losses#ixzz8JBSIc7b0 NO. 5 Management Science PR 5.1.1 For Flexible Distance Learning: Screenshot of hand written answer on bondpaper and uploaded at Edmodo Apps For Modular Distance Learning: Handwritten bondpaper and submitted at AISAT Campus Five days after the discussion. NO. 3 Management Science PR 3.1.1 “” Pen & Paper none NO.6 Management Science