Industrial Engineering and Management
Pravin Kumar
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Disclaimer: This is a promotional copy. Please ignore any errors that you may find in this copy as this is not final. Copyright © 2015 Pearson India Education Services Pvt. Ltd This book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out, or otherwise circulated without the publisher’s prior written consent in any form of binding or cover other than that in which it is published and without a similar condition including this condition being imposed on the subsequent purchaser and without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), without the prior written permission of both the copyright owner and the publisher of this book. ISBN 978-93-325-4356-0 First Impression Published by Pearson India Education Services Pvt. Ltd, CIN: U72200TN2005PTC057128, formerly known as TutorVista Global Pvt. Ltd, licensee of Pearson Education in South Asia. Head Office: A-8 (A), 7th Floor, Knowledge Boulevard, Sector 62, Noida 201 309, Uttar Pradesh, India. Registered Office: Module G4, Ground Floor, Elnet Software City, TS-140, Blocks 2 & 9, Rajiv Gandhi Salai, Taramani, Chennai 600 113, Tamil Nadu, India. Fax: 080-30461003, Phone: 080-30461060. www.pearson.co.in, Email:
[email protected] Compositor: SRS Technologies, Puducherry. Printed in India.
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Contents Chapter 1
Chapter 2
Chapter 3
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Industrial Engineering and Production Systems
1
1.1 Introduction 1.2 Historical Development of Concepts in Industrial Engineering and Management 1.3 Production Systems 1.4 Selection of Production Systems 1.5 Productivity Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings
1 2 4 8 9 19 20 21 22 23
Facility Location and Layout
24
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10
24 24 26 26 30 34 36 37 40 43 45 45 47 47 49
Introduction Facility Location Transportation Method Centroidal Method Facility/Plant Layout Systematic Layout Planning Block Diagram Assembly Line Balancing Group Technology Cellular Manufacturing Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings
Forecasting
50
3.1 Introduction 3.2 Forecasting Methods 3.3 Time-series Forecasting 3.4 Forecasting Performance Measurement
50 52 54 69
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iv Contents
Chapter 4
Chapter 5
Chapter 6
Summary Multiple Choice Questions Review Questions Exercises References and Further Readings
71 71 73 73 75
Aggregate Planning
76
4.1 Introduction 4.2 Aggregate Planning Strategies 4.3 Mixed Strategy Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings
76 77 82 86 86 87 88 89
Capacity Planning: MRP, MRP II and ERP
90
5.1 Introduction 5.2 Materials Requirement Planning 5.3 MRP II 5.4 Enterprise Resource Planning Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings
90 90 99 101 103 103 105 105 106
Inventory Control 6.1 Introduction 6.2 Classifications of Inventory 6.3 Inventory Costs 6.4 Continuous and Periodic Inventory Review Systems 6.5 Economic Order Quantity 6.6 Reorder Point 6.7 Order Quantity for Variable Demand Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings
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108 108 109 111 112 112 123 125 126 126 128 128 129
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Contents v
Chapter 7
Product Design and Development 7.1 Introduction to Engineering Design 7.2 Product Concept and Concept Selection 7.3 Product Life Cycle 7.4 Morphology of Design 7.5 Standardization, Simplification, Differentiation and Diversification 7.6 Interchangeability and Modular Design 7.7 Concurrent Engineering 7.8 Economic Considerations in Product Design 7.9 Aesthetic Considerations in Design 7.10 Ergonomic Considerations in Design Summary Multiple Choice Questions Review Questions References and Further Readings
Chapter 8
Manufacturing Systems 8.1 Introduction 8.2 Flexible Manufacturing System 8.3 CAD/CAM 8.4 Lean Manufacturing 8.5 Agile Manufacturing Summary Multiple Choice Questions Review Questions References and Further Readings
Chapter 9
Material Handling Systems 9.1 Introduction 9.2 Relationship between Material Handling and Plant Layout 9.3 Functions of Material Handling Systems 9.4 Objectives of Material Handling Systems 9.5 Principles of Material Handling Systems 9.6 Types of Material Handling Equipments Summary Multiple Choice Questions Review Questions References and Further Readings
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131 131 134 136 138 139 140 141 144 145 145 146 146 148 148
149 149 150 154 160 166 168 168 170 171
172 172 172 173 173 173 174 185 185 187 187
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vi Contents
Chapter 10
Production Planning and Control 10.1 Introduction 10.2 Objectives of PPC 10.3 Production Planning 10.4 Factors Affecting PPC Summary Multiple Choice Questions Review Questions References and Further Readings
Chapter 11
Work Study and Ergonomics 11.1 Introduction 11.2 Method or Motion Study 11.3 Micromotion Study 11.4 Memo-motion Study 11.5 Time Study or Work Measurement 11.6 Work Measurement Techniques 11.7 Predetermined Motion Time System 11.8 Principle of Motion Economy 11.9 Work Sampling 11.10 Job Design 11.11 Job Rating or Evaluation 11.12 Merit Rating Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings
Chapter 12
Reliability and Maintenance Engineering
189 189 190 191 196 197 197 199 199
200 200 201 211 211 213 214 220 221 222 224 225 225 231 231 233 234 234
236
12.1 Introduction 236 12.2 Reliability Curves 237 12.3 Failure Pattern 239 12.4 Basic Reliability Models 242 12.5 Evaluation of System Reliability (RS)248 12.6 Improvement in Reliability of a System 255 12.7 Design Guidelines for Reliability 256
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Contents vii
12.8 Reliability Testing 12.9 Maintainability 12.10 Design for Maintainability 12.11 Maintenance Costs 12.12 Availability 12.13 Serviceability 12.14 Housekeeping and 5S Concepts Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings
Chapter 13
Cost Accounting and Depreciation 13.1 Introduction 13.2 Cost Elements 13.3 Cost Accounting 13.4 Computation of Material Variances 13.5 Break-Even Analysis 13.6 Depreciation Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings
Chapter 14 Replacement Analysis and Selection among Alternatives 14.1 Introduction 14.2 Replacement of Items that Fail Completely 14.3 Replacement of Items that Deteriorate 14.4 Replacement of the Defender Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings
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256 257 260 261 261 262 264 265 265 267 267 268
269 269 271 272 273 274 280 293 293 295 295 297
298 298 299 307 321 332 332 334 335 336
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viii Contents
Chapter 15
Value Engineering 15.1 Introduction 15.2 Types of Value 15.3 Seven Phases of Value Analysis 15.4 Application of Value Analysis 15.5 Advantages of Value Analysis 15.6 Value Analysis of a Graphite Pencil by Matrix Method 15.7 Function Analysis System Technique Summary Multiple Choice Questions Review Questions Exercise References and Further Readings
Chapter 16
Linear Programming and Transportation Problem 16.1 Introduction to Linear Programming 16.2 Simplex Technique 16.3 Big-M Method 16.4 Two-Phase Method 16.5 Duality 16.6 Graphical Method 16.7 Introduction to Transportation Problem 16.8 Tabular Method to find the Basic Feasible Solution of Transportation Model 16.9 Test of Optimality using MODI or U-V Method Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings
Chapter 17
Assignment and Sequencing Models 17.1 Introduction to Assignment Problem 17.2 Sequencing Problem Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings
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337 337 337 338 339 340 340 342 342 342 345 345 345
346 346 348 351 355 357 361 363 363 374 385 386 388 388 390
391 391 396 402 402 404 404 405
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Contents ix
Chapter 18
Waiting Line Theory 18.1 Introduction 18.2 The Service Characteristics 18.3 Mathematical Distributions 18.4 Waiting Line Models Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings
Chapter 19
Principles of Management 19.1 Introduction 19.2 Classical School of Management 19.3 Systems Approach 19.4 Contingency Approach 19.5 Behavioural Approach 19.6 Quantitative Approach 19.7 Functions of Management 19.8 Levels of Management 19.9 Skills of Manager 19.10 Managerial Roles 19.11 Theory of Motivation 19.12 Administration and Management Summary Multiple Choice Questions Review Questions References and Further Readings
Chapter 20 Firm’s Ownership, Organizational Design and Structure 20.1 Introduction 20.2 Sole Proprietorship 20.3 Cooperative Society 20.4 Partnership 20.5 Corporation 20.6 Joint Hindu Family Business 20.7 Joint Stock Company 20.8 Multinational Corporation
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406 406 407 409 411 425 425 427 427 428
429 429 431 435 435 435 436 436 438 440 441 442 443 444 444 446 446
447 447 447 448 448 450 451 453 457
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x Contents
20.9 Departmentalization 20.10 Classification of Organizations 20.11 Delegation of Authority Summary Multiple Choice Questions Review Questions References and Further Readings
Chapter 21
Project Management PERT and CPM 21.1 Introduction 21.2 Project Life Cycle 21.3 Project Appraisal 21.4 Project Structure 21.5 Terminology used in Project Scheduling 21.6 Project Crashing (Optimization through CPM) 21.7 Resource Levelling Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings
Chapter 22
Total Quality Management 22.1 Introduction 22.2 Definitions of Quality 22.3 Differences between Quality of Goods and Services 22.4 Dimensions of Quality 22.5 Quality Planning, Assurance and Control 22.6 Costs of Quality 22.7 Evolution of Quality Concepts 22.8 Quality Gurus and their Philosophies 22.9 Total Quality Management 22.10 7-Basic Tools for Quality Control 22.11 Quality Function Deployment 22.12 Quality Awards Summary Multiple Choice Questions Review Questions References and Further Readings
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458 459 463 464 464 466 467
468 468 470 471 473 476 483 491 492 492 494 494 495
496 496 496 497 497 498 499 501 502 509 511 516 516 522 523 524 525
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Contents xi
Chapter 23
Statistical Quality Control 23.1 Introduction 23.2 Sources of Variations 23.3 Chart Techniques 23.4 Control Charts for Variables 23.5 Control Chart for Trends 23.6 Process Under Control 23.7 Process Out of Control 23.8 Process Capability and Specification Limits 23.9 Process Capability 23.10 Limitations of Chart for Variables 23.11 Control Charts for Attributes 23.12 Count of Defect Chart 23.13 Demerits Classification and Control Chart 23.14 Lot-by-Lot Acceptance Sampling 23.15 Sampling Plan 23.16 Properties of OC Curves 23.17 Consumer–Producer Relationship 23.18 Sampling Plan Design 23.19 Average Outgoing Quality 23.20 Average Sample Number 23.21 Average Total Inspection 23.22 Sequential Sampling Plan Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings
Chapter 24
Six-Sigma, ISO 9000 and 14000 24.1 Introduction 24.2 6σ Measurement 24.3 DMAIC Methodology 24.4 Six-Sigma Belts 24.5 ISO 9000 24.6 Eight Management Principles 24.7 Major Changes between the 1994 and 2000 Versions of the ISO 9001 Standard 24.8 Implementing ISO 9000 QMS
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526 526 526 527 528 537 538 538 540 541 542 542 549 554 555 556 562 564 564 568 569 571 572 574 575 576 577 581
582 582 582 584 585 586 587 587 588
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xii Contents
24.9 EMS: Introduction 24.10 ISO 14000 Summary Multiple Choice Questions Review Questions References and Further Readings
Chapter 25
Supply Chain Management 25.1 Introduction 25.2 Four Fundamentals of Supply Chain (4Fs of SCM) 25.3 Drivers of Supply Chain Performance 25.4 Risk Pooling 25.5 Bullwhip Effect 25.6 Supply Chain Information Systems Summary Multiple Choice Questions Review Questions References and Further Readings
Chapter 26
Decision-Making 26.1 Introduction 26.2 Decision-Making Environments 26.3 Decision Tree Analysis Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings
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593 594 596 597 598 599
601 601 602 603 604 604 606 610 610 612 612
614 614 615 625 627 628 630 630 631
Appendix 1
632
Appendix 2
635
Appendix 3
636
Appendix 4
637
Appendix 5
642
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Preface Industrial Engineering & Management is a core subject for Mechanical and Production Engineering students. It is also taught to the students of other engineering branches as an open elective subject. This book is also very useful regarding Production and Operations Management, Statistical Quality Control, Total Quality Management for undergraduate students of engineering and post graduate students of management. It has been observed that very few good books are available in Industrial engineering, which fulfills the complete requirements of engineering students. Many books are available on the same title, but they are diverted from their focus; many contents of those books are not related to Industrial Engineering. The contents related to industrial engineering are not properly addressed and also there is a lack of flow among the contents. To remove these discrepancies, I planned to compile a book focused on core knowledge of Industrial Engineering and Operations Management. The main purpose of the proposed book is to fulfill the requirements of engineering students. I taught the same for last 15 years. In this book, the views of many faculty as well as students have been incorporated. The topics have been explained in depth with the suitable examples. Presentation of the topics is the user friendliness. Simple language, proper sequence, useful contents, and aesthetic design are the strength of this book. These are very helpful for better understanding of the readers. At the end of the each chapter, some multiple choice questions, review questions and unsolved numerical problems are given. The solution of the unsolved problems and the power point presentation of each chapter are available online. The reader of this book can access the website easily. The contents of this book are broadly divided into three parts: Industrial Engineering, Operations Research, and Operations Management. In Industrial Engineering, production systems, productivity, plant location and layout, forecasting, inventory control, manufacturing systems, material handling systems, value engineering, production planning and control, cost accounting and depreciation, work study have been discussed. In Operations Research, only those topics are covered, which are required for better understanding of Industrial Engineering such as linear programming, transportation problems, assignment problems, sequencing of jobs, replacement analysis, queuing theory, and decision Making. In Operations Management, those topics are covered that are required for shop floor/production management, e.g., aggregate planning, material requirement planning, enterprise resource planning, project management, principles of management, total quality management, statistical quality control, ISO 9000 & 14000, and supply chain management. I hope, this book will be very useful for the readers and fulfill their requirements.
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About the Author Pravin Kumar obtained his Ph.D. degree from IIT Delhi; M.Tech. from IT BHU (Now IIT BHU), Varanasi; and B.Sc. Engg. (Mechanical) from B.C.E. Bhagalpur. Presently, he is working as an Assistant Professor in Department of Mechanical Engineering, Delhi Technological University (Formerly Delhi College of Engineering). He has more than 15 years of teaching and research experience. He has worked in various engineering colleges and business schools such as IIIT Allahabad, Asia-Pacific Institute of Management Delhi, Delhi School of Management, Career Institute of Technology and Management, Faridabad. His areas of expertise are Industrial Engineering, Operations Management, Quality Management, Operations Research, Supply Chain Management, and Production Engineering. He has developed many curriculums related to Production and Operations Management at Delhi Technological University, IIIT Allahabad, Career Institute of Technology and Management. He is a life member of Indian Institution of Industrial Engineering, System Society of India, and Society of Operations Management, India. He has published more than 30 research papers in International Journals and Conferences and also authored some books on Engineering Economy and Mechanical Engineering.
Acknowledgment I am grateful to the following people for their help and motivation in the completion of this book. Dr. Nao Kant Deo, Dr. Rajkumar Singh, Prof. D. S. Nagesh, Prof. Samsher, Dr. R. K. Singh, Prof. R. S. Mishra, Prof. Moinudddin, Prof. S. K. Garg, Prof. Pradeep Kumar for his moral support and motivation in research and publication work. My colleagues from DTU Mr. Nand Kumar, Mr. K. Srinivas, Mr. Girish Kumar, Mr. M. S. Niranjan, Mr. N. A. Ansari, Mr. M. S. Rangnath, Md. Zunaid, Mr. R. K. Yadav, Mr. Sanjay Kumar, Dr. Suresh Kumar, Mr. Rakesh Kumar, Mr. Saurabh Agrawal, Dr. A. K. Agrawal, Dr. Qasim Murtza, Dr. Amit Pal, Dr. K. Manjunath, Mr. D. K. Vishwakarma, Mr. Devanand, and Dr. Anil Haritas for their encouragement and moral support. When I conceptualized the idea to write a book on Industrial Engineering and Management at that time I was working as an Associate Professor at Indian Institute of Information Technology, Allahabad (on lien). I am thankful to the faculty of IIITA, Prof. Anurika Vaish, Dr. Vrijendra, Dr. Abhishek Vaish, Dr. Ranjit Singh, Dr. Saurabh Mishra, Dr. Shashikant Roy, and Prof. M.D. Tiwari (Vice Chancellor, Barkatulla University, Bhopal) for their cooperation and valuable suggestions. I specially thank to my Guru Prof. Ravi Shankar and Prof Surendra S. Yadav from IIT Delhi for their guidance and appreciation. I am also thankful to the Delhi Chapter of Indian Institution of Industrial Engineering (IIIE), Prof J. M. Mahajan, Prof. D. K. Banwet, Mr. R. Sampat,
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xvi About the Author
Mr. C. P. Gupta, Mr. A. K. Guha for their encouragement and support. I acknowledge the support of my friends Dr. Krishnendu, Mr. D. K. Agrawal, Dr. Vijay Kumar, Dr. Faisal Ahmad, Mr. S. K. Jha, Dr. Basant Bhuiyan, Prof. Tilak Raj, Mr. Vinit Jain, and Mr. Mahesh Chand. I am grateful to my wife Dr. Prerna Sinha and Sons Harshit Anand and Arpit Anand for their patience and loving participation in accomplishing this work. I also express my gratitude to my parents, elder brothers and sister, father-in-law and mother-in-law, who remain a continuous source of inspiration for me. I acknowledge the appreciation of Ms. Kanchan Prabha, Asst. Legal Manager, Indian Overseas Bank, Barauda, Anand Vardhan, and Priyanka Rani. I am also grateful to all the well-wishers, whose names could not be mentioned here, for their direct and indirect support in accomplishing the work. Last but not least, I am immensely grateful to the editorial team of Pearson Ms. Anita Yadav and Mr. Vipin Kumar for their continuous support during book writing and editing processes. This book could not have attained its present form both in content and presentation, without their active interest and direction. They devoted their valuable time to bring the book in present form. Pravin Kumar New Delhi
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