FOR NOTES ON POM http://www.see.ed.ac.uk/~asherloc/OM/OM0203/Notes/OMNotes.ht Work Study Work Study !or s the "as#s !

or work s$ste the ost e!!ect#'e des#%&. The purpose o! work des#%& #s to #de&t#!$ ea&s o! ach#e'#&% &ecessar$ !u&ct#o&s. Work study a# s at # pro'#&% the easure e&t a&d the esta"l#sh e&t o! t# e ethod

e(#st#&% a&d proposed wa$s o! do#&% work a&d esta"l#sh#&% sta&dard t# es !or work per!or a&ce. )ork des#%& #&'ol'es *o" des#%&+ work stud$ a&d work easure e&t .t# e stud$/: ea&s o! de'elop#&% a&d appl$#&% eas#er a&d ethods sta&dards a&d worker co pe&sat#o&. Work Study #s e&co passed "$ two tech&#,ues -

0. Method study #s the s$ste at#c record#&% a&d cr#t#cal e(a #&at#o& o! e(#st#&% a&d proposed wa$s o! do#&% work+ as a a&d reduc#&% costs. 2. Work measurement .or T# e stud$/ #s the appl#cat#o& o! tech&#,ues des#%&ed to esta"l#sh the t# e !or a ,ual#!#ed worker to carr$ out a spec#!#ed *o" at a de!#&ed le'el o! per!or a&ce. There #s a close l#&k "etwee& whereas work sta&dard

ethod stud$ a&d work

easure e&t. Method stud$ #s co&cer&ed

w#th the reduct#o& o! the work co&te&t a&d esta"l#sh#&% the o&e "est wa$ o! do#&% the *o" easure e&t #s co&cer&ed w#th #&'est#%at#o& a&d reduct#o& o! a&$ #&e!!ect#'e t# e assoc#ated w#th the *o" a&d esta"l#sh#&% t# e sta&dards !or a& operat#o& carr#ed out as per the ethod. ea&s o! e&ha&c#&% the product#o& e!!#c#e&c$ .product#'#t$/ o! the !#r Importance of Work-Study )ork stud$ #s a "$ el# #&at#o& o! waste a&d u&&ecessar$ operat#o&s.

1t #s a tech&#,ue to #de&t#!$ &o&-'alue add#&% operat#o&s "$ #&'est#%at#o& o! all the !actors a!!ect#&% the *o". 1t #s the o&l$ accurate a&d s$ste at#c procedure or#e&ted tech&#,ue to esta"l#sh t# e sta&dards. 1t #s %o#&% to co&tr#"ute to the pro!#t as the sa'#&%s w#ll start # throu%hout the l#!e o! the product. ed#atel$ a&d co&t#&ue

Advantages of Work-Study

1t helps to ach#e'e the s ooth product#o& !low w#th operat#o&s.

#&# u

#&terrupt#o&s.

1t helps to reduce the cost o! the product "$ el# #&at#&% waste a&d u&&ecessar$ 1t creates "etter worker- a&a%e e&t relat#o&s. 1t ass#sts #& or%a&#2at#o&. eet#&% the del#'er$ co #t e&t. 1t helps #& reduc#&% re*ect#o&s a&d scrap+ a&d h#%her ut#l#2at#o& o! resources o! the 1t helps to ach#e'e "etter work#&% co&d#t#o&s. 1t helps #& des#%&#&% "etter workplace la$out. 1t helps #& # pro'#&% upo& the e(#st#&% process or a&d s# pl#!#cat#o&. ethods a&d helps #& sta&dard#2at#o&

1t helps #& esta"l#sh#&% the sta&dard t# e !or a& operat#o& or *o" wh#ch #s used #& a&power pla&&#&% a&d product#o& pla&&#&%.

Work-Study Procedure )ork-stud$ #s a procedure or#e&ted a&d s$ste at#c stud$ to esta"l#sh the o&e "est wa$ .sta&dard/ ethod o! do#&% a& operat#o& "$ #&'est#%at#o& a&d a&al$s#s o! all the deta#ls re%ard#&% the *o" or operat#o& carr#ed out as per the esta"l#shed sta&dard Steps Involved in Work-Study 0. SE3E4T 5o" or Process to "e stud#ed6 2. RE4OR7 all the deta#ls co&cer&#&% *o" us#&% 'ar#ous record#&% tech&#,ues6 3. E89M1NE recorded !acts cr#t#call$ "$ ask#&% ,uest#o&s l#ke who+ what+ whe&+ wh$6 :. 7E;E3OP >. 7EF1NE &ew ost eco&o #cal ethod6 <. ME9S=RE the a ou&t o! work #&'ol'ed a&d set sta&dard t# e to do that *o"6 ethod a&d sta&dard t# e6 ethod as a sta&dard pract#ce6 ethod as a%reed sta&dard. ach#&es a&d ater#als a&d e&. ?. 1NST933 the &ew @. M91NT91N &ew 9&$ product#o& s$ste ethods ethod.

Work Simplification and Work-Study #s character#2ed "$ the coord#&at#o& o! Rap#d cha&%e #& tech&olo%$ a&d #&troduct#o& o! &ew tech&olo%#es are ore co ple(. Au a& !actor has "eco e all the co puter co&trols are catch#&% up. ak#&% the processes a&d

ore # porta&t thou%h auto at#o& a&d

The process

a&a%e e&t #s ke$ to the success o! the product a&d co pa&$. Method stud$ a# s

at #de&t#!$#&% the ke$ processes a&d process para eters. 9 deta#led #&'est#%at#o& #s carr#ed out to %et all the &ecessar$ deta#ls #& order to a&al$2e the e(#st#&% process a&d "reak the process #&to parts .operat#o&s/ wh#ch helps to pla& a&d co&trol. 9 deta#led a&al$s#s w#th respect to process #&puts . e&+ ater#al+ a&d o&e$/ a&d also the process para eters #s carr#ed out to # pro'e the process a&d to %et the des#red le'el o! output "oth #& ter s o! ,ual#t$ a&d ,ua&t#t$. The work s# pl#!#cat#o& starts w#th the a&al$s#s o! the product a&d a deta#led e'aluat#o& w#th re%ards to whether #t ca& "e cha&%ed #& such a wa$ as to the waste+ el# #&at#&% &o&-'alue add#&% operat#o&s+ des#%& a power!ul tool to ake work s# pl#!#cat#o&. a&a%e e&t #s to a&u!acture the r#%ht ,ua&t#t$ a&d ,ual#t$ o! ethods o! a&u!acture are !#(ed ake #t eas#er to produce "$ reduc#&% od#!#cat#o&+ etc. Thus work-stud$ #s

Influence of Method and Time Study on Production Activities The "as#c o"*ect#'e o! product#o& %oods at the predeter #&ed t# e a&d pre-esta"l#shed cost. )ork-stud$ #s tool to ach#e'e th#s o"*ect#'e. 7ur#&% the product des#%& a&d process des#%&+ the a&d process pla&&#&% #s do&e us#&% the sta&dard t# es a&d sta&dard #t w#ll take to co plete the *o". Process a&al$s#s a&d sta&dard t# es help to ha'e a co&trol o& ,ual#t$ a&d ,ua&t#t$ o! a&u!actured products. Based upo& the sta&dard t# es+ sta&dard costs are deter #&ed a&d th#s helps to a&al$2e the 'ar#a&ce "etwee& actual a&d sta&dard costs. 4o&troll#&% o! product cost .wh#ch #s a !u&ct#o& o! ethod a&d sta&dard t# e/ #s 'er$ uch esse&t#al to "e #& co pet#t#o&. Sta&dard t# e !or s the "as#s !or co pe&sat#o&. Th#s helps to l#&k wa%es a&d the work co&te&t. Thus work-stud$ appl#ed #& r#%ht sp#r#t helps to acco pl#sh the product#o& o"*ect#'es. ethod. Methods a&al$s#s

%u#de w#th respect how the work #s to "e "est acco pl#shed a&d t# e sta&dards #&d#cate how lo&%

Work Study and Industrial Engineering

inShare

Introduction

To sur'#'e #& the curre&t co pet#t#'e a&d %lo"al e&'#ro& e&t+ #t #s # porta&t !or the or%a&#2at#o& to co&t#&uousl$ look at wa$s to # pro'e e!!#c#e&c$ a&d product#'#t$. 1t &eeds to d#sco'er a &ew+ eas$ a&d cost-e!!ect#'e wa$ o! a&u!actur#&% or pro'#d#&% ser'#ces. )ork stud$ a&d #&dustr#al e&%#&eer#&% pla$ # porta&t role #& *o" s# pl#!#cat#o&+ *o" des#%&+ *o" e&r#ch e&t+ 'alue a&al$s#s/e&%#&eer#&%+ ethod a&al$s#s+ operat#o&al a&al$s#s+ etc. )ork stud$ has "ee& ut#l#2ed "$ co pa&#es to *o" product#'#t$. 1&dustr#al e&%#&eer#&% #s the latest ethod e plo$ed to # pro'e product#'#t$. 1t deals w#th des#%&+ e&ha&ce e&t a&d sett#&% up o! e&%#&eer#&% s$ste s e&co pass#&% pla&ts+ ach#&er$+ workers+ etc.
Work Study

Work study uses techniques like method study and ork measurement to understand human ork potential in terms of time spend on completing a task! looking at ays to make the task simpler and easy! as to increase productivity and efficiency . )ork stud$ #s !#eld used to !#&d#&% wa$s o! #&creas#&% o& *o" per!or a&ce+ opt# u usa%e o! pla&t a&d ach#&er$+ sta&dard#2at#o& o! work ethods+ etc. There!ore+ o"*ect#'es o! work stud$ are as !ollows:

Scientific and controlled analysis of existing available methods of executing a task. Measuring performance of mentally and the physically qualified workers, establishing it as standard for performance measurement. ptimum utili!ation of workers, plant, machinery and other resources at minimum cost. Improved productivity and enhance worker mood. Increasing efficiency of organi!ation.

For a& or%a&#2at#o&+ product#'#t$ ca& "e #&creased o'er a per#od o! t# e+ #! workers are e!!#c#e&t a&d are !ocused. There!ore+ ad'a&ta%es o! work stud$ are as !ollows:

Increase in production efficiency. "igher levels of production and optimum utili!ation of resources. #fficient flow of material and products. #fficient handling of material and better layout. $ecreased cost of production as times spend on the %ob is decreased. Increased morale of workers with an increase in safety and efficiency. &enchmark and standard performance level are established, thus providing targets for organi!ation.

&etter %ob satisfaction and incentive planning due to work study.

Method Study

1t #s a sc#e&t#!#c process to "etter *o" des#%&. 1t stud#es the e(#st#&% *o" process a&d proposed *o" process as to #de&t#!$ the appropr#ate *o" process wh#ch results #& e!!#c#e&t a&d cost e!!ect#'e operat#o&s. There!ore+ o"*ect#'es o! ethod stud$ are as !ollows:

'o study existing work process and proposed work process. 'o find out new methods of increased production and reduction of cost. 'o achieve optimum utili!ation of resources.

Method stud$ e&sures that there #s a& #&crease #& o'erall product#'#t$ a&d pro!#ta"#l#t$ o! or%a&#2at#o&. Method stud$ #&'ol'es !ollow#&% procedures:

Selection of work to be studied. (ecording the present method. )ritical examination of the facts. $evelopment of most practical, economic and effective method. Installation of new method. Maintenance of new method and practices checking

Industrial #ngineering

1&dustr#al e&%#&eer#&% #s co&cer&ed w#th de'elop#&% the ost e!!ect#'e a&d e!!#c#e&t wa$ to use pla&t+ ach#&er$+ ater#als+ etc. The a#& o"*ect#'es o! #&dustr#al e&%#&eer#&% are as !ollows:

'o increase productivity without incurring the incremental costs. 'o encourage automation as to decrease human intervention. 'o develop efficient and effective operation work cycle.

Work Measurement "efinition

)ork easure e&t #s the appl#cat#o& o! tech&#,ues des#%&ed to esta"l#sh the t# e !or a ,ual#!#ed worker to carr$ out a spec#!#ed *o" at a de!#&ed le'el o! per!or a&ce.

The Purpose of Work Measurement

Method stud$ #s the pr#&c#pal tech&#,ue !or reduc#&% the work #&'ol'ed+ pr# ar#l$ "$ el# #&at#&% u&&ecessar$ o'e e&t o& the part o! ater#al or operat#'es a&d "$ su"st#tut#&% %ood ethods

!or poor o&es. )ork easure e&t #s co&cer&ed w#th #&'est#%at#&%+ reduc#&% a&d su"se,ue&tl$ el# #&at#&% #&e!!ect#'e t# e+ that #s t# e dur#&% wh#ch &o e!!ect#'e work #s "e#&% per!or ed+ whate'er the cause. )ork easure e&t+ as the &a e su%%ests+ pro'#des a&a%e e&t w#th a ea&s o! easur#&% the t# e take& #& the per!or a&ce o! a& operat#o& or ser#es o! operat#o&s #& such a wa$ that #&e!!ect#'e t# e #s show& up a&d ca& "e separated !ro e!!ect#'e t# e. 1& th#s wa$ #ts e(#ste&ce+ &ature a&d e(te&t "eco e k&ow& where pre'#ousl$ the$ were co&cealed w#th#& the total.

The #ses of Work Measurement

Re'eal#&% e(#st#&% causes o! #&e!!ect#'e t# e throu%h stud$+ # porta&t thou%h #t #s+ #s perhaps less # porta&t #& the lo&% ter tha& the sett#&% o! sou&d t# e sta&dards+ s#&ce these w#ll co&t#&ue to appl$ as lo&% as the work to wh#ch the$ re!er co&t#&ues to "e do&e. The$ w#ll also show up a&$ #&e!!ect#'e t# e or add#t#o&al work wh#ch a$ occur o&ce the$ ha'e "ee& esta"l#shed. 1& the process o! sett#&% sta&dards #t a$ "e &ecessar$ to use work easure e&t:

a. To co pare the e!!#c#e&c$ o! alter&at#'e ethods. Other co&d#t#o&s "e#&% e,ual+ the ethod wh#ch takes the least t# e w#ll "e the "est ethod. ". To "ala&ce the work o! e "ers o! tea s+ #& assoc#at#o& w#th ult#ple act#'#t$ charts+ so that+ as &earl$ as poss#"le+ each e "er has a task tak#&% a& e,ual t# e to per!or . c. To deter #&e+ #& assoc#at#o& w#th a& a&d &u "er o! ach#&es a& operat#'e ca& ru&. The t# e sta&dards+ o&ce set+ ach#&e ult#ple act#'#t$ charts+ the

a$ the& "e used:

d. To pro'#de #&!or at#o& o& wh#ch the pla&&#&% a&d schedul#&% o! product#o& ca& "e "ased+ #&clud#&% the pla&t a&d la"our re,u#re e&ts !or carr$#&% out the pro%ra e o! work a&d the ut#l#sat#o& o! a'a#la"le capac#t$. e. To pro'#de #&!or at#o& o& wh#ch est# ates !or te&ders+ sell#&% pr#ces a&d del#'er$ pro #ses ca& "e "ased. !. To set sta&dards o! ach#&e ut#l#sat#o& a&d la"our per!or a&ce wh#ch ca& "e used !or a&$ o! the a"o'e purposes a&d as a "as#s !or #&ce&t#'e sche es. %. To pro'#de #&!or at#o& !or la"our-cost co&trol a&d to e&a"le sta&dard costs to "e !#(ed a&d a#&ta#&ed. 1t #s thus clear that work easure e&t pro'#des the "as#c #&!or at#o& &ecessar$ !or all the act#'#t#es o! or%a&#s#&% a&d co&troll#&% the work o! a& e&terpr#se #& wh#ch the t# e ele e&t pla$s a part. 1ts uses #& co&&ect#o& w#th these act#'#t#es w#ll "e ore clearl$ see& whe& we ha'e show& how the sta&dard t# e #s o"ta#&ed.

Techniques of ork measurement

The !ollow#&% are the pr#&c#pal tech&#,ues "$ wh#ch work 0. T# e stud$ 2. 9ct#'#t$ sa pl#&% 3. Predeter #&ed :. S$&thes#s !ro <. Est# at#&% >. 9&al$t#cal est# at#&% ?. 4o parat#'e est# at#&% O! these tech&#,ues we shall co&cer& oursel'es pr# ar#l$ w#th t# e stud$+ s#&ce #t #s the "as#c tech&#,ue o! work easure e&t. So e o! the other tech&#,ues e#ther der#'e !ro #t or are 'ar#a&ts o! #t. ot#o& t# e s$ste s sta&dard data easure e&t #s carr#ed out:

$% Time Study
T# e Stud$ co&s#sts o! record#&% t# es a&d rates o! work !or ele e&ts o! a spec#!#ed *o" carr#ed out u&der spec#!#ed co&d#t#o&s to o"ta#& the t# e &ecessar$ to carr$ out a *o" at a de!#&ed le'el o! per!or a&ce. 1& th#s tech&#,ue the *o" to "e stud#ed #s t# ed w#th a stopwatch+ rated+ a&d the Bas#c T# e calculated. $%$ &equirements for Effective Time Study The re,u#re e&ts !or e!!ect#'e t# e stud$ are: a. 4o-operat#o& a&d %oodw#ll ". 7e!#&ed *o" c. 7e!#&ed ethod d. 4orrect &or al e,u#p e&t e. Cual#t$ sta&dard a&d checks !. E(per#e&ced ,ual#!#ed ot#'ated worker %. Method o! t# #&% h. Method o! assess#&% relat#'e per!or a&ce #. Ele e&tal "reakdow& *. 7e!#&#t#o& o! "reak po#&ts k. Record#&% ed#a

O&e o! the ost cr#t#cal re,u#re e&ts !or t# e stud$ #s that o! ele e&tal "reakdow&. There are so e %e&eral rules co&cer&#&% the wa$ #& wh#ch a *o" should "e "roke& dow& #&to ele e&ts. The$ #&clude the !ollow#&%. Ele e&ts should "e eas#l$ #de&t#!#a"le+ w#th de!#&#te "e%#&&#&%s a&d e&d#&%s so that+ o&ce esta"l#shed+ the$ ca& "e repeatedl$ reco%&#sed. These po#&ts are k&ow& as the "reak po#&ts a&d should "e clearl$ descr#"ed o& the stud$ sheet. Ele e&ts should "e as short as ca& "e co&'e&#e&tl$ t# ed "$ the o"ser'er. 9s !ar as poss#"le+ ele e&ts - part#cularl$ a&ual o&es - should "e chose& so that the$ represe&t &aturall$ u&#!#ed a&d d#st#&ct se% e&ts o! the operat#o&. $%' Performance &ating T# e Stud$ #s "ased o& a record o! o"ser'ed t# es !or do#&% a *o" to%ether w#th a& assess e&t "$ the o"ser'er o! the speed a&d e!!ect#'e&ess o! the worker #& relat#o& to the o"ser'erDs co&cept o! Sta&dard Rat#&%. Th#s assess e&t #s k&ow& as rat#&%+ the de!#&#t#o& "e#&% %#'e& #& BS 303@ .0E?E/: The &u er#cal 'alue or s$ "ol used to de&ote a rate o! work#&%. Sta&dard rat#&% #s also de!#&ed .#& th#s Br#t#sh Sta&dard BS303@/ as: FThe rat#&% correspo&d#&% to the a'era%e rate at wh#ch ,ual#!#ed workers w#ll &aturall$ work+ pro'#ded that the$ adhere to the spec#!#ed ethod a&d that the$ are ot#'ated to appl$ the sel'es to the#r work. 1! the sta&dard rat#&% #s co&s#ste&tl$ a#&ta#&ed a&d the appropr#ate rela(at#o& #s take&+ a ,ual#!#ed worker w#ll ach#e'e sta&dard per!or a&ce o'er the work#&% da$ or sh#!t.F 1&dustr#al e&%#&eers use a 'ar#et$ o! rat#&% scales+ a&d o&e wh#ch has ach#e'ed w#de use #s the Br#t#sh Sta&dards Rat#&% Scale wh#ch #s a scale where 0 correspo&ds to &o act#'#t$ a&d 000 correspo&ds to sta&dard rat#&%. Rat#&% should "e e(pressed as D8D BS. Below #s a& #llustrat#o& o! the Sta&dard Scale: Rat#&% )alk#&% Pace 0 &o act#'#t$ <0 'er$ slow ?< stead$ 000 "r#sk .sta&dard rat#&%/ 02< 'er$ !ast 0<0 e(cept#o&all$ !ast The "as#c t# e !or a task+ or ele e&t+ #s the t# e !or carr$#&% out a& ele e&t o! work or a& operat#o& at sta&dard rat#&%. Bas#c T# e G O"ser'ed T# e ( O"ser'ed Rat#&%

The result #s e(pressed #& "as#c

#&utes - BMDs.

The work co&te&t o! a *o" or operat#o& #s de!#&ed as: "as#c t# e H rela(at#o& allowa&ce H a&$ allowa&ce !or add#t#o&al work - e.%. that part o! co&t#&%e&c$ allowa&ce wh#ch represe&ts work. $%( Standard Time Sta&dard t# e #s the total t# e #& wh#ch a *o" should "e co pleted at sta&dard per!or a&ce #.e. work co&te&t+ co&t#&%e&c$ allowa&ce !or dela$+ u&occup#ed t# e a&d #&ter!ere&ce allowa&ce+ where appl#ca"le. 9llowa&ce !or u&occup#ed t# e a&d !or #&ter!ere&ce a$ "e # porta&t !or the easure e&t o! ach#&e-co&trolled operat#o&s+ "ut the$ do &ot alwa$s appear #& e'er$ co putat#o& o! sta&dard t# e. Rela(at#o& allowa&ce+ o& the other ha&d+ has to "e take& #&to accou&t #& e'er$ co putat#o&+ whether the *o" #s a s# ple a&ual o&e or a 'er$ co ple( operat#o& re,u#r#&% the s# ulta&eous co&trol o! se'eral ach#&es. 9 co&t#&%e&c$ allowa&ce w#ll pro"a"l$ !#%ure ,u#te !re,ue&tl$ #& the co p#lat#o& o! sta&dard t# es6 #t #s there!ore co&'e&#e&t to co&s#der the co&t#&%e&c$ allowa&ce a&d rela(at#o& allowa&ce+ so that the se,ue&ce o! calculat#o& wh#ch started w#th the co plet#o& o! o"ser'at#o&s at the workplace a$ "e take& r#%ht throu%h to the co p#lat#o& o! sta&dard t# e. )ontingency allo ance 9 co&t#&%e&c$ allowa&ce #s a s all allowa&ce o! t# e wh#ch a$ "e #&cluded #& a sta&dard t# e to eet le%#t# ate a&d e(pected #te s o! work or dela$s+ the prec#se easure e&t o! wh#ch #s u&eco&o #cal "ecause o! the#r #&!re,ue&t or #rre%ular occurre&ce. &ela*ation allo ance 9 rela(at#o& allowa&ce #s a& add#t#o& to the "as#c t# e to pro'#de the worker w#th the opportu&#t$ to reco'er !ro ph$s#olo%#cal a&d ps$cholo%#cal e!!ects o! carr$#&% out spec#!#ed work u&der spec#!#ed co&d#t#o&s a&d to allow atte&t#o& to perso&al &eeds. The a ou&t o! the allowa&ce w#ll depe&d o& the &ature o! the *o". E(a ples are: Perso&al <-?I E&er%$ output 0-00I No#s$ 0-<I 4o&d#t#o&s 0-000I e.%. Electro&#cs <I +ther allo ances Other allowa&ces #&clude process allowa&ce wh#ch #s to co'er whe& a& operator #s pre'e&ted !ro co&t#&u#&% w#th the#r work+ althou%h read$ a&d wa#t#&%+ "$ the process or ach#&e re,u#r#&% !urther t# e to co plete #ts part o! the *o". 9 !#&al allowa&ce #s that o! 1&ter!ere&ce wh#ch #s #&cluded whe&e'er a& operator has char%e o! ore tha& o&e ach#&e a&d the ach#&es

are su"*ect to ra&do stoppa%e. 1& &or al c#rcu sta&ces the operator ca& o&l$ atte&d to o&e ach#&e+ a&d the others ust wa#t !or atte&t#o&. Th#s ach#&e #s the& su"*ect to #&ter!ere&ce wh#ch #&creased the ach#&e c$cle t# e. 1t #s &ow poss#"le to o"ta#& a co plete p#cture o! the sta&dard t# e !or a stra#%ht!orward operat#o&. a&ual

'% Activity Sampling

9ct#'#t$ sa pl#&% #s a tech&#,ue #& wh#ch a lar%e &u "er o! #&sta&ta&eous o"ser'at#o&s are ade o'er a per#od o! t# e o! a %roup o! ach#&es+ processes or workers. Each o"ser'at#o& records what #s happe&#&% at that #&sta&t a&d the perce&ta%e o! o"ser'at#o&s recorded !or a part#cular act#'#t$ or dela$ #s a easure o! the perce&ta%e o! t# e dur#&% wh#ch the act#'#t$ or dela$ occurs. The ad'a&ta%es o! th#s ethod are that

0. 1t #s capa"le o! easur#&% a&$ act#'#t#es that are # pract#cal or too costl$ to "e easured "$ t# e stud$. 2. O&e o"ser'er ca& collect data co&cer&#&% the s# ulta&eous act#'#t#es o! a %roup. 3. 9ct#'#t$ sa pl#&% ca& "e #&terrupted at a&$ t# e w#thout e!!ect. The d#sad'a&ta%es are that 0. 1t #s ,u#cker a&d cheaper to use t# e stud$ o& *o"s o! short durat#o&. 2. 1t does &ot pro'#de ele e&tal deta#l. The t$pe o! #&!or at#o& pro'#ded "$ a& act#'#t$ sa pl#&% stud$ #s: a. The proport#o& o! the work#&% da$ dur#&% wh#ch workers or ach#&es are produc#&%. ". The proport#o& o! the work#&% da$ used up "$ dela$s. The reaso& !or each dela$ ust "e recorded. c. The relat#'e act#'#t$ o! d#!!ere&t workers a&d ach#&es. To deter #&e the &u "er o! o"ser'at#o&s #& a !ull stud$ the !ollow#&% e,uat#o& #s used:

)here:

(% Predetermined Motion Time Systems

9 predeter #&ed ot#o& t# e s$ste #s a work easure e&t tech&#,ue where"$ t# es esta"l#shed !or "as#c hu a& ot#o&s .class#!#ed accord#&% to the &ature o! the ot#o& a&d the co&d#t#o&s u&der wh#ch #t #s ade/ are used to "u#ld up the t# e !or a *o" at a de!#&ed le'el o! per!or a&ce. The s$ste s are "ased o& the assu pt#o& that all a&ual tasks ca& "e a&al$sed #&to "as#c ot#o&s o! the "od$ or "od$ e "ers. The$ were co p#led as a result o! a 'er$ lar%e &u "er o! stud#es o! each o'e e&t+ %e&erall$ "$ a !ra e-"$-!ra e a&al$s#s o! !#l s o! a w#de ra&%e o! su"*ects+ e& a&d wo e&+ per!or #&% a w#de 'ar#et$ o! tasks. The !#rst %e&erat#o& o! PMT s$ste s+ MTM0+ were 'er$ !#&el$ deta#led+ #&'ol'#&% uch a&al$s#s a&d produc#&% e(tre el$ accurate results. Th#s atte&t#o& to deta#l was "oth a stre&%th a&d a weak&ess+ a&d !or a&$ pote&t#al appl#cat#o&s the ,ua&t#t$ o! deta#led a&al$s#s was &ot &ecessar$+ a&d proh#"#t#'el$ t# e -co&su #&%. 1& these cases Fseco&d %e&erat#o&F tech&#,ues+ such as S# pl#!#ed PMTS+ Master Sta&dard 7ata+ Pr# ar$ Sta&dard 7ata a&d MTM2+ could "e used w#th ad'a&ta%e+ a&d &o %reat loss o! accurac$. For e'e& speed#er appl#cat#o&+ where so e deta#l could "e sacr#!#ced the& a Fth#rd %e&erat#o&F tech&#,ue such as Bas#c )ork 7ata or MTM3 could "e used.

,% Synthesis
S$&thes#s #s a work easure e&t tech&#,ue !or "u#ld#&% up the t# e !or a *o" at a de!#&ed le'el o! per!or a&ce "$ total#&% ele e&t t# es o"ta#&ed pre'#ousl$ !ro t# e stud#es o& other *o"s co&ta#&#&% the ele e&ts co&cer&ed+ or !ro s$&thet#c data. S$&thet#c data #s the &a e %#'e& to ta"les a&d !or ulae der#'ed !ro the a&al$s#s o! accu ulated work easure e&t data+ arra&%ed #& a !or su#ta"le !or "u#ld#&% up sta&dard t# es+ ach#&e process t# es+ etc "$ s$&thes#s. S$&thet#c t# es are #&creas#&%l$ "e#&% used as a su"st#tute !or #&d#'#dual t# e stud#es #& the case o! *o"s ade up o! ele e&ts wh#ch ha'e recurred a su!!#c#e&t &u "er o! t# es #& *o"s pre'#ousl$ stud#ed to ake #t poss#"le to co p#le accurate represe&tat#'e t# es !or the .

-% Estimating
The tech&#,ue o! est# at#&% #s the least re!#&ed o! all those a'a#la"le to the work easure e&t pract#t#o&er. 1t co&s#sts o! a& est# ate o! total *o" durat#o& .or #& co o& pract#ce+ the *o" pr#ce or cost/. Th#s est# ate #s ade "$ a cra!ts a& or perso& !a #l#ar w#th the cra!t. 1t &or all$ e "races the total co po&e&ts o! the *o"+ #&clud#&% work co&te&t+ preparat#o& a&d d#sposal t# e+ a&$ co&t#&%e&c#es etc+ all est# ated #& o&e %ross a ou&t.

.% Analytical estimating

Th#s tech&#,ue #&troduces work easure e&t co&cepts #&to est# at#&%. 1& a&al$t#cal est# at#&% the est# ator #s tra#&ed #& ele e&tal "reakdow&+ a&d #& the co&cept o! sta&dard per!or a&ce. The est# ate #s prepared "$ !#rst "reak#&% the work co&te&t o! the *o" #&to ele e&ts+ a&d the& ut#l#s#&% the e(per#e&ce o! the est# ator .&or all$ a cra!ts a&/ the t# e !or each ele e&t o! work #s est# ated - at sta&dard per!or a&ce. These est# ated "as#c #&utes are totalled to %#'e a total *o" t# e+ #& "as#c #&utes. 9& allowa&ce !or rela(at#o& a&d a&$ &ecessar$ co&t#&%e&c$ #s the& ade+ as #& co&'e&t#o&al t# e stud$+ to %#'e the sta&dard t# e.

/% )omparative estimating
Th#s tech&#,ue has "ee& de'eloped to per #t speed$ a&d rel#a"le assess e&t o! the durat#o& o! 'ar#a"le a&d #&!re,ue&t *o"s+ "$ est# at#&% the w#th#& chose& t# e "a&ds. 3# #ts are set w#th#& wh#ch the *o" u&der co&s#derat#o& w#ll !all+ rather tha& #& ter s o! prec#se cap#tal sta&dard or cap#tal allowed #&ute 'alues. 1t #s appl#ed "$ co par#&% the *o" to "e est# ated w#th *o"s o! s# #lar work co&te&t+ a&d us#&% these s# #lar *o"s as F"e&ch arksF to locate the &ew *o" #& #ts rele'a&t t# e "a&d - k&ow& as )ork Jroup.

0acility 1ocation - 0actors Influencing the 1ocation Fac#l#t$ 3ocat#o& #s the r#%ht locat#o& !or the ad'a&ta%e !ollow#&% are the cr#t#cal !actors: O'erall o"*ect#'e o! a& or%a&#2at#o& #s to sat#s!$ a&d del#%ht custo ers w#th #ts product a&d ser'#ces. There!ore+ !or a& or%a&#2at#o& #t "eco es # porta&t to ha'e strate%$ !or ulated arou&d #ts the a&u!actur#&% u&#t. 9 a&u!actur#&% u&#t #s the place where all #&puts such as raw a&u!actur#&% u&#t #s the locat#o&. co pet#t#o&+ cost a&d correspo&d#&% ater#al+ e,u#p e&t+ sk#lled la"ors+ etc. co e to%ether a&d a&u!acture products !or custo ers. O&e o! a&u!actur#&% !ac#l#t$+ #t w#ll ha'e su!!#c#e&t access erc#al success+ a&d co pet#t#'e to the custo ers+ workers+ tra&sportat#o&+ etc. For co

ost cr#t#cal !actors deter #&#&% the success o! the

Fac#l#t$ locat#o& deter #&at#o& #s a "us#&ess cr#t#cal strate%#c dec#s#o&. There are se'eral !actors+ wh#ch deter #&e the locat#o& o! !ac#l#t$ a o&% the assoc#ated e!!ects% 0acility location is a scientific process utili2ing various techniques

. 3ocat#o& Select#o& Factors For a co pa&$ wh#ch operates #& a %lo"al e&'#ro& e&t6 cost+ a'a#la"le #&!rastructure+ la"or sk#ll+ %o'er& e&t pol#c#es a&d e&'#ro& e&t are 'er$ # porta&t !actors. 9 r#%ht locat#o& pro'#des

ade,uate access to custo ers+ sk#lled la"ors+ tra&sportat#o&+ etc. 9 r#%ht locat#o& e&sures success o! the or%a&#2at#o& #& curre&t %lo"al co pet#t#'e e&'#ro& e&t. 1&dustr#al#2at#o& 9 %eo%raph#c area "eco es a !ocal po#&t !or 'ar#ous !ac#l#t$ locat#o&s "ased o& a&$ !actors+ para eters a&d #ssues. These !actors are ca& "e d#'#ded #&to pr# ar$ !actors a&d seco&dar$ !actors. 9 pr# ar$ !actor wh#ch leads to #&dustr#al#2at#o& o! a part#cular area !or part#cular a&u!actur#&% o! products #s Errors #& 3ocat#o& Select#o& Fac#l#t$ locat#o& #s cr#t#cal !or "us#&ess co&t#&u#t$ a&d success o! the or%a&#2at#o&. So #t #s # porta&t to a'o#d #stakes wh#le ak#&% select#o& !or a locat#o&. Errors #& select#o& ca& "e d#'#ded #&to two "road cate%or#es "eha'#oral a&d &o&-"eha'#oral. Beha'#oral errors are dec#s#o& ade "$ e(ecut#'es o! the co pa&$ where perso&al !actors are co&s#dered "e!ore success o! locat#o&+ !or e(a ple+ o'e e&t o! perso&al esta"l#sh e&t !ro ho etow& to &ew locat#o& !ac#l#t$. No&-"eha'#oral errors #&clude lack o! proper #&'est#%at#'e pract#ce a&d a&al$s#s+ #%&or#&% cr#t#cal !actors a&d character#st#cs o! the #&dustr$. 3ocat#o& Strate%$ The %oal o! a& or%a&#2at#o& #s custo er del#%ht !or that #t &eeds access to the custo ers at #&# u poss#"le cost. Th#s #s ach#e'ed "$ de'elop#&% locat#o& strate%$. 3ocat#o& strate%$ helps arket+ de a&d !orecast #& d#!!ere&t arkets+ "est a&u!actur#&% a&d ser'#ce locat#o&. a&u!actur#&% !ac#l#t$+ #t w#ll ha'e erc#al success+ a&d the co pa&$ #& deter #&#&% product o!!er#&%+ locat#o& to access custo ers a&d "est Factors 1&!lue&c#&% Fac#l#t$ 3ocat#o& 1! the or%a&#2at#o& ca& co&!#%ure the r#%ht locat#o& !or the co pet#t#'e ad'a&ta%e !ollow#&% are the cr#t#cal !actors: )ustomer Pro*imity3 Fac#l#t$ locat#o&s are selected closer to the custo er as to reduce tra&sportat#o& cost a&d decrease t# e #& reach#&% the custo er. 4usiness Area3 Prese&ce o! other s# #lar co&duc#'e !or !ac#l#t$ esta"l#sh e&t. Availa5ility of Skill 1a5or3 Educat#o&+ e(per#e&ce a&d sk#ll o! a'a#la"le la"or are a&other # porta&t+ wh#ch deter #&es !ac#l#t$ locat#o&. a&u!actur#&% u&#ts arou&d akes "us#&ess area su!!#c#e&t access to the custo ers+ workers+ tra&sportat#o&+ etc. For co ater#al+ la"or a&d prese&ce o! s# #lar a&u!actur#&% !ac#l#t#es. Seco&dar$ !actors are a'a#la"le o! cred#t !#&a&ce+ co u&#cat#o& #&!rastructure a&d #&sura&ce.

0ree Trade 6one7Agreement3 Free-trade 2o&es pro ote the esta"l#sh e&t o! !ac#l#t$ "$ pro'#d#&% #&ce&t#'es #& custo

a&u!actur#&%

dut#es a&d le'#es. O& a&other ha&d !ree trade ater#als #s a&other cr#t#cal !actor #&

a%ree e&t #s a o&% cou&tr#es pro'#d#&% a& #&ce&t#'e to esta"l#sh "us#&ess+ #& part#cular+ cou&tr$. Suppliers3 4o&t#&uous a&d ,ual#t$ suppl$ o! the raw deter #&#&% the locat#o& o! a&u!actur#&% !ac#l#t$.

Environmental Policy3 1& curre&t %lo"al#2ed world pollut#o&+ co&trol #s 'er$ # porta&t+ there!ore u&dersta&d#&% o! e&'#ro& e&tal pol#c$ !or the !ac#l#t$ locat#o& #s a&other cr#t#cal !actor. 0acility 1ayout - +58ectives! "esign and 0actors Affecting the 1ayout 1&troduct#o& For a& or%a&#2at#o& to ha'e a& e!!ect#'e a&d e!!#c#e&t o! a&u!actur#&% #& a& appropr#ate a&u!actur#&% u&#t+ #t #s # porta&t that spec#al atte&t#o& #s %#'e& to !ac#l#t$ la$out. Fac#l#t$ la$out #s a& arra&%e e&t o! d#!!ere&t aspects a&&er as to ach#e'e des#red product#o& results. Fac#l#t$ la$out co&s#ders a'a#la"le space+ !#&al product+ sa!et$ o! users a&d !ac#l#t$ a&d co&'e&#e&ce o! operat#o&s. 9& e!!ect#'e !ac#l#t$ la$out e&sures that there #s a s ooth a&d stead$ !low o! product#o& e,u#p e&t a&d a&power at #&# u allocat#o& o! space !or eco&o #c act#'#t$ #& the pla&t. There!ore+ !ac#l#t$ la$out pla&&#&% #s to des#%& e!!ect#'e work!low as to workers 9 e,u#p e&t+ ore product#'eFac#l#t$ 3a$out O"*ect#'e ater#al+ #&# al cost u&der sa!e a&d co !orta"le o'e e&t o! %oods a&d ater#al+ cost. Fac#l#t$ la$out looks at ph$s#cal a#& o"*ect#'e o! the ake e,u#p e&t a&d

odel !ac#l#t$ la$out should "e a"le to pro'#de a& #deal relat#o&sh#p "etwee& raw a&power a&d !#&al product at

e&'#ro& e&t. 9& e!!#c#e&t a&d e!!ect#'e !ac#l#t$ la$out ca& co'er !ollow#&% o"*ect#'es:

To pro'#de opt# u

space to or%a&#2e e,u#p e&t a&d !ac#l#tate

to create sa!e a&d co !orta"le work e&'#ro& e&t.

To pro ote order #& product#o& towards a s#&%le o"*ect#'e To reduce o'e e&t o! workers+ raw ater#al a&d e,u#p e&t odate &ew product l#&e or To pro ote sa!et$ o! pla&t as well as #ts workers To !ac#l#tate e(te&s#o& or cha&%e #& the la$out to acco tech&olo%$ up%radat#o& To #&crease product#o& capac#t$ o! the or%a&#2at#o&

9& or%a&#2at#o& ca& ach#e'e the a"o'e- e&t#o&ed o"*ect#'e "$ e&sur#&% the !ollow#&%:

Better tra#&#&% o! the workers a&d super'#sors. 4reat#&% aware&ess a"out o! health ha2ard a&d sa!et$ sta&dards Opt# u ut#l#2at#o& o! work!orce a&d e,u#p e&t E&coura%#&% e power e&t a&d reduc#&% ad #&#strat#'e a&d other #&d#rect work

Factors a!!ect#&% Fac#l#t$ 3a$out Fac#l#t$ la$out des#%&#&% a&d # ple e&tat#o& #s #&!lue&ced "$ 'ar#ous !actors. These !actors 'ar$ !ro

#&dustr$ to #&dustr$ "ut #&!lue&ce !ac#l#t$ la$out. These !actors are as !ollows: The des#%& o! the !ac#l#t$ la$out should co&s#der o'erall o"*ect#'es set "$ the or%a&#2at#o&.

Opt# u O'erall

space &eeds to "e allocated !or process a&d tech&olo%$. easure as to a'o#d #shaps. a&a%e e&t pol#c#es a&d !uture d#rect#o& o! the or%a&#2at#o&

9 proper sa!et$

7es#%& o! Fac#l#t$ 3a$out Pr#&c#ples wh#ch dr#'e des#%& o! the !ac#l#t$ la$out &eed to take #&to the co&s#derat#o& o"*ect#'e o! !ac#l#t$ la$out+ !actors #&!lue&c#&% !ac#l#t$ la$out a&d co&stra#&ts o! !ac#l#t$ la$out. These pr#&c#ples are as !ollows:

0le*i5ility3 Fac#l#t$ la$out should pro'#de !le(#"#l#t$ !or e(pa&s#o& or Space #tili2ation3 Opt# u space ut#l#2at#o& reduces the t# e #& o'e e&t a&d pro otes sa!et$.

od#!#cat#o&. ater#al a&d people odels o!

)apital3 4ap#tal #&'est e&t should "e !ac#l#t$ la$out.

#&# al whe& !#&al#2#&% d#!!ere&t

7es#%& 3a$out Tech&#,ues There are three tech&#,ues o! des#%& la$out+ a&d the$ are as !ollows: 0. T o or Three "imensional Templates3 Th#s tech&#,ue ut#l#2es de'elop e&t o! a scaled-dow& odel "ased o& appro'ed draw#&%s. #& c#rcular or #& a stra#%ht 2. Sequence Analysis3 Th#s tech&#,ue ut#l#2es co puter tech&olo%$ #& des#%&#&% the !ac#l#t$ la$out "$ se,ue&c#&% out all act#'#t#es a&d the& arra&%#&% the l#&e. 3. 1ine 4alancing3 Th#s k#&d o! tech&#,ue #s used !or asse "l$ l#&e. T$pes o! Fac#l#t$ 3a$out There are s#( t$pes o! !ac#l#t$ la$out+ a&d the$ are as !ollows:

3#&e 3a$out Fu&ct#o&al 3a$out F#(ed Pos#t#o& 3a$out 4ellular Tech&olo%$ 3a$out 4o "#&ed 3a$out+ a&d 4o puter#2ed Relat#'e 9llocat#o& o! Fac#l#t$ Tech&#,ue

)apacity Planning
inShare

The product#o& s$ste des#%& pla&&#&% co&s#ders #&put re,u#re e&ts+ co&'ers#o& process a&d output. 9!ter co&s#der#&% the !orecast a&d lo&%-ter pla&&#&% or%a&#2at#o& should u&dertake capac#t$ pla&&#&%. 4apac#t$ #s de!#&ed as the a"#l#t$ to ach#e'e+ store or produce. 0or an organi2ation! capacity ould 5e the a5ility of a given system to produce output ithin the specific time period . 1& operat#o&s+ a&a%e e&t capac#t$ #s re!erred as a& a ou&t o! the #&put resources a'a#la"le to produce relat#'e output o'er per#od o! t# e. 1& %e&eral+ ter s capac#t$ #s re!erred as w#th#& a &or al work#&% schedule. a(# u product#o& capac#t$+ wh#ch ca& "e atta#&ed

4apac#t$ pla&&#&% #s esse&t#al to "e deter #&#&% opt# u ut#l#2at#o& o! resource a&d pla$s a& # porta&t role dec#s#o&- ak#&% process+ !or e(a ple+ e(te&s#o& o! e(#st#&% operat#o&s+ od#!#cat#o& to product l#&es+ start#&% &ew products+ etc.
Strategic )apacity *lanning

9 tech&#,ue used to #de&t#!$ a&d easure o'erall capac#t$ o! product#o& #s re!erred to as strate%#c capac#t$ pla&&#&%. Strate%#c capac#t$ pla&&#&% #s ut#l#2ed !or cap#tal #&te&s#'e resource l#ke pla&t+ ach#&er$+ la"or+ etc. Strate%#c capac#t$ pla&&#&% #s esse&t#al as #t helps the or%a&#2at#o& #& eet#&% the !uture re,u#re e&ts o! the or%a&#2at#o&. Pla&&#&% e&sures that operat#&% cost are a#&ta#&ed at a #&# u poss#"le le'el w#thout a!!ect#&% the ,ual#t$. 1t e&sures the or%a&#2at#o& re a#& co pet#t#'e a&d ca& ach#e'e the lo&%-ter %rowth pla&.

)apacity *lanning )lassification

4apac#t$ pla&&#&% "ased o& the t# el#&e #s class#!#ed #&to three ed#u ra&%e a&d short ra&%e.

a#& cate%or#es lo&% ra&%e+

1ong Term )apacity3 3o&% ra&%e capac#t$ o! a& or%a&#2at#o& #s depe&de&t o& 'ar#ous other capac#t#es l#ke des#%& capac#t$+ product#o& capac#t$+ susta#&a"le capac#t$ a&d e!!ect#'e capac#t$. 7es#%& capac#t$ #s the a(# u output poss#"le as #&d#cated "$ e,u#p e&t a&u!acturer u&der #deal work#&% co&d#t#o&. Product#o& capac#t$ #s the co&d#t#o& or da$. a(# u output poss#"le !ro e,u#p e&t u&der &or al work#&%

Susta#&a"le capac#t$ #s the a(# u product#o& le'el ach#e'a"le #& real#st#c work co&d#t#o& a&d co&s#der#&% &or al ach#&e "reakdow&+ a#&te&a&ce+ etc. E!!ect#'e capac#t$ #s the opt# u product#o& le'el u&der pre-de!#&ed *o" a&d work-schedules+ &or al ach#&e "reakdow&+ a#&te&a&ce+ etc. Medium Term )apacity3 The strate%#c capac#t$ pla&&#&% u&dertake& "$ or%a&#2at#o& !or 2 to 3 $ears o! a t# e !ra e #s re!erred to as ed#u ter capac#t$ pla&&#&%. Short Term )apacity3 The strate%#c pla&&#&% u&dertake& "$ or%a&#2at#o& !or a da#l$ weekl$ or ,uarterl$ t# e !ra e #s re!erred to as short ter capac#t$ pla&&#&%.
+oal of )apacity *lanning

The ult# ate %oal o! capac#t$ pla&&#&% #s to eet the curre&t a&d !uture le'el o! the re,u#re e&t at a #&# al wasta%e. The three t$pes o! capac#t$ pla&&#&% "ased o& %oal are lead capac#t$ pla&&#&%+ la% strate%$ pla&&#&% a&d atch strate%$ pla&&#&%.
,actors -ffecting )apacity *lanning

E!!ect#'e capac#t$ pla&&#&% #s depe&de&t upo& !actors l#ke product#o& !ac#l#t$ .la$out+ des#%&+ a&d locat#o&/+ product l#&e or atr#(+ product#o& tech&olo%$+ hu a& cap#tal .*o" des#%&+ co pe&sat#o&/+ operat#o&al structure .schedul#&%+ ,ual#t$ assura&ce/ a&d e(ter&al structure . pol#c$+ sa!et$ re%ulat#o&s/
,orecasting v.s )apacity *lanning

There would "e a sce&ar#o where capac#t$ pla&&#&% do&e o& a "as#s o! !orecast#&% a$ &ot e(actl$ atch. For e(a ple+ there could "e a sce&ar#o where de a&d #s ore tha& product#o& capac#t$6 #& th#s s#tuat#o&+ a co pa&$ &eeds to !ul!#ll #ts re,u#re e&t "$ "u$#&% !ro outs#de. 1! de a&d #s e,ual to product#o& capac#t$6 co pa&$ #s #& a pos#t#o& to use #ts product#o& capac#t$ to the !ullest. 1! the de a&d #s less tha& the product#o& capac#t$+ co pa&$ ca& choose to reduce the product#o& or share #t output w#th other a&u!acturers.

What is Aggregate Planning 9 - Importance and its Strategies

inShare

Introduction

9& or%a&#2at#o& ca& !#&al#2e #ts "us#&ess pla&s o& the reco e&dat#o& o! de a&d !orecast. O&ce "us#&ess pla&s are read$+ a& or%a&#2at#o& ca& do "ackward work#&% !ro the !#&al sales u&#t to raw ater#als re,u#red. Thus a&&ual a&d ,uarterl$ pla&s are "roke& dow& #&to la"or+ raw ater#al+ work#&% cap#tal+ etc. re,u#re e&ts o'er a ed#u -ra&%e per#od .> o&ths to 0@ o&ths/. Th#s process o! work#&% out product#o& re,u#re e&ts !or a ed#u ra&%e #s called a%%re%ate pla&&#&%.
,actors -ffecting -ggregate *lanning

Aggregate planning is an operational activity critical to the organi2ation as it looks to 5alance long-term strategic planning ith short term production success. Follow#&% !actors are cr#t#cal "e!ore a& a%%re%ate pla&&#&% process ca& actuall$ start6

- complete information is required about available production facility and raw materials. - solid demand forecast covering the medium/range period ,inancial planning surrounding the production cost which includes raw material, labor, inventory planning, etc. rgani!ation policy around labor management, quality management, etc.

For a%%re%ate pla&&#&% to "e a success+ !ollow#&% #&puts are re,u#red6

-n aggregate demand forecast for the relevant period #valuation of all the available means to manage capacity planning like sub/ contracting, outsourcing, etc. #xisting operational status of workforce 0number, skill set, etc.1, inventory level and production efficiency

9%%re%ate pla&&#&% w#ll e&sure that or%a&#2at#o& ca& pla& !or work!orce le'el+ #&'e&tor$ le'el a&d product#o& rate #& l#&e w#th #ts strate%#c %oal a&d o"*ect#'e.

-ggregate planning as an

perational 'ool

9%%re%ate pla&&#&% helps ach#e'e "ala&ce "etwee& operat#o& %oal+ !#&a&c#al %oal a&d o'erall strate%#c o"*ect#'e o! the or%a&#2at#o&. 1t ser'es as a plat!or to a&a%e capac#t$ a&d de a&d pla&&#&%. 1& a sce&ar#o where de a&d #s &ot atch#&% the capac#t$+ a& or%a&#2at#o& ca& tr$ to "ala&ce "oth "$ pr#c#&%+ pro ot#o&+ order a&a%e e&t a&d &ew de a&d creat#o&. 1& sce&ar#o where capac#t$ #s &ot "$ 'ar#ous alter&at#'es such as.

atch#&% de a&d+ a& or%a&#2at#o& ca& tr$ to "ala&ce the "oth

2aying off.hiring excess.inadequate excess.inadequate excess.inadequate workforce until demand decrease.increase. Including overtime as part of scheduling there by creating additional capacity. "iring a temporary workforce for a fix period or outsourcing activity to a sub/ contrator.

Importance of -ggregate *lanning

9%%re%ate pla&&#&% pla$s a& # porta&t part #& ach#e'#&% lo&%-ter or%a&#2at#o&. 9%%re%ate pla&&#&% helps #&:

o"*ect#'es o! the

-chieving financial goals by reducing overall variable cost and improving the bottom line Maximum utili!ation of the available production facility *rovide customer delight by matching demand and reducing wait time for customers (educe investment in inventory stocking -ble to meet scheduling goals there by creating a happy and satisfied work force

-ggregate *lanning Strategies

There are three t$pes o! a%%re%ate pla&&#&% strate%#es a'a#la"le !or or%a&#2at#o& to choose !ro . The$ are as !ollows.
1. Level Strategy

9s the &a e su%%ests+ le'el strate%$ looks to a#&ta#& a stead$ product#o& rate a&d work!orce le'el. 1& th#s strate%$+ or%a&#2at#o& re,u#res a ro"ust !orecast de a&d as to #&crease or decrease product#o& #& a&t#c#pat#o& o! lower or h#%her custo er de a&d.

9d'a&ta%e o! le'el strate%$ #s stead$ work!orce. 7#sad'a&ta%e o! le'el strate%$ #s h#%h #&'e&tor$ a&d #&crease "ack lo%s.
2. Chase Strategy

9s the &a e su%%ests+ chase strate%$ looks to d$&a #call$ atch de a&d w#th product#o&. 9d'a&ta%e o! chase strate%$ #s lower #&'e&tor$ le'els a&d "ack lo%s. 7#sad'a&ta%e #s lower product#'#t$+ ,ual#t$ a&d depressed work !orce.
3. Hybrid Strategy

9s the &a e su%%ests+ h$"r#d strate%$ looks to "ala&ce "etwee& le'el strate%$ a&d chase strate%$.