It is the art of getting work done through people with satisfaction for the organization and its members. It actively directs human efforts toward the achievement of a common vision.
Importance of management-
INVENTORY MANAGEMENT
Inventory- List of movable items or goods which help directly or indirectly in the production of goods for sale. There are many functions of inventory such as
Maintain smooth and better production flow.
Keep better customer relations.
Allow for a possible increase in output.
utilizes the advantage of price fluctuation.
Inventory Cost-
Purchase cost- Cost of purchasing the Quantity.
Ordering cost- When inventory purchases from outside, the cost associated with bringing inventory to the production system is called ordering cost.
Holding cost- Cost associated with keeping, storing, and maintaining inventory.
Shortage cost- Temporary or permanent loss of sale when demand cannot fulfill the requirement.
Continuous Order System-
In this, continuous data of every item is maintained in inventory. Whenever the inventory falls below a predominant level, a new order is placed to replenish the stock. The point where order take place is called reorder point.
The order quantity is selected such that total inventory cost is minimized and it is called economic order quantity. This is advantageous for items like - raw materials, repairing parts etc.
Periodic Inventory System-
In this, inventory is the count after a specified period of time. After finishing the review, a set amount of inventory is ordered to keep inventory stock up to the desired level. Here the inventory is not monitored continuously. Example - A college or School book store where textbooks are normally ordered after a specified period of time.
Inventory Classification-
ABC Analysis- In this, items are classified into A,B,C categories depending upon the usage value. For ‘A’ category inventory is kept almost to nil and frequent review is performed while for ‘C’ category inventory is kept large and reviewed after a long time.
VED Analysis- It this, VED stands for Vital, Essential, and Desirable. Here inventory is based of the importance of inventory in the system.
HML Analysis- In this, HML stands for High, Medium, and low. It is based on the price of inventory.
SDE Analysis- In this, SDE stands for Scare, Difficult, and Easy. It is based on the availability of inventory in the production system.
SEQUENCING
The aim of sequencing is to find the order in which different job processes in different machines so that idle time can be minimized and utilization of the system is optimized for smooth flow of material.
Here are some assumption in sequencing-
One job at one machine at a time
Time taken by a job from one machine to another machine is negligible.
Once the job started, fully completed.
Irrespective of order, the processing time is always constant.
PERT AND CPM
PERT
Event oriented
It follows a beta distribution curve
It is used for probabilistic activities.
It has three-time estimates
Usually do not consider in cost analysis
CPM
Activity oriented
It follows a normal distribution curve
It is used for deterministic activities
It is considered in cost analysis
Critical Path- Maximum time-consuming path from the first event to the last event in the network diagram. Time taken along a critical path is the minimum time to complete the project.
Any activity along the critical path is delayed for a certain amount of time then the whole project duration is also delayed by the same amount of time.
Crashing- It is done to determine optimum project duration corresponding to the minimum cost of the project.
FORECASTING
Forecasting is defined as the prediction of future sales or demand for a particular product.
Benefits of forecasting-
It helps in determining production volume and production rate.
It helps in form basis for the production budget.
It suggests the need for firm expansion.
It is essential for designing and development of the product.
Responsiveness- It indicates that the forecast pattern is fluctuating and swinging.
Stability- It indicates that the forecast pattern is stable and less fluctuating.
Forecasting Errors-
Correlation Coefficient- It indicates degree of closeness between two variables and its value ranges from -1 to 1.
LINE BALANCING
It is associated with the product layout in which products are processed as they pass through a line of work sentence.
Objectives- To combine the various operations of different work stations such that processing time at each work station is almost the same and equal to cycle time.
Advantages-
If the smoothness index is low then line balancing is good.
The most important part of preparation is to have the right amount of quality content which covers all the syllabus according to your examination. Always follow
standard textbooks for reference along with good quality coaching materials. Analysis of weakness is a must and for that always end up your subject with a subject test.
All important concepts and formulas are also present there.
It will help you in steady quick revision and save your precious time so that you can practice more problems related to Industrial Engineering.
Industrial Engineering is one of the important subjects in terms of marks in different examinations. By putting some extra effort it is easily possible to solve all the problems related to it.
Here are some sample snaps for Industrial Engineering. Pdf contains a total 14 no. of pages which covers every aspect of the Industrial Engineering
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