Operations Research & Methodology project report

PRODUCTION PLANNING
OF
MACHINE SHOP,
TAYO ROLLS LTD.
PANKAJ KUMAR
M15026, BME (2015-2018)
OPERATIONS MANAGEMENT
XLRI,JAMSHEDPUR

ACKNOWLEGEMENT
I take the opportunity of submitting this dissertation to express my deep regards
towards those who have offered their invaluable assistance and guidance in the hour of need.
I sincerely acknowledge with a deep sense of gratitude and show inductance to
Mr. O P PRADHAN (Works Manager) of M/s. TAYO ROLLS LTD,Gamharia, for
encouragement they gave me during the initial phase of the project. I highly obliges to
production staff of M/s. TAYO ROLLS LTD,Gamharia for their guidance, advice and co-
operation.
Mr. O P PRADHAN (Works Manager) and all my colleagues have been
inspiring. And without their inspiration, guidance, the project would have mare a dream. I
would also like to thank to Mr. Trishit Bandopadhyay of XLRI JAMSHEDPUR for his
kind support, guidance and help for selecting this project and allowing me to go ahead with
this project.
Last but not the least, I would also like to thanks all my friends & family
members, who had directly or indirectly given their kind co-operation and
encouragement. I admit that co-operation and morality are keywords to success.
(PANKAJ KUMAR)

PREFACE
I take an opportunity to present this project report on "MACHINE SHOP
PRODUCTION PLANNING" and put before the readers some useful
information regarding my project.
I have made sincere attempts and taken every care to present this matter in
precise and compact form, the language being as simple as possible.
I am sure that the information contained in this volume would certainly prove
useful for better insight in the scope and dimension of this project in its true
perspective.
The task of completion of project though being difficult was made quite
simple, interesting, and successful due to deep involvement and complete
dedication of my colleagues.

INDEX
1. INTRODUCTION TO COMPANY- TAYO ROLLSLTD
2. INTRODUCTION TO PPC
3. SCOPE OF MACHINE SHOP PPC
4. PRODUCTIONCONTROLS
5. MAKE OR BUY ANALYSIS
6. PLANT PLANNING AND FACILITY PLANNING
7. CAPACITYPLANNING
8. CAPACITY REQUIREMENT PLANNING
9. MASTER PRODUCTION SCHEDULING
10. INTEGRATED MATERIALS MANAGEMENT
11. PLANT LAYOUT
12. PLANTMAINTENANCE
13. QUALITY QUALITY ASSURANCE
14. TAYO ROLLS LTD. MACHINE SHOP PPC
15. CONCLUSION
16. BIBLIOGRAPHY

INTRODUCTION TO COMPANY
Tayo Rolls Limited (formerly Tata-Yodogawa Limited) is a metal fabrication and
processing company headquartered in Jamshedpur, India and a subsidiary of Tata
Steel. Tayo Rolls' products are primarily cast rolls, forged rolls, special castings
and pig iron.
Tayo Rolls is listed on the Bombay Stock Exchange with code no.504961.
Tata-Yodogawa Limited was founded in 1968 as a joint venture between Tata Steel and the
Japan-based Yodogawa Steels.Shares in Tata-Yodogawa were offered to the public in 1969.
In September 1989, Tata-Yodogawa formed a technical alliance with the Austria-based
Eisenwerk Salzauwerfen. In 1995 Tata-Yodogawa began the production of special castings for
power plants.
The name of the company was changed to Tayo Rolls in December 2003. In January 2010 Tayo
Rolls opened a new facility for the manufacture of forgings and forged rolls, constructed at a cost
of Rs 168 crore.
We have several departments:
Enquiry received by: Marketing Department
Supply order received by : Marketing Dept.
Marketing provides sales order to PPD (Production Planning & Dispatch).
PPD designs monthly production plan for the Melting department.

PPD designs monthly production plan for the foundry(FDY).
PPD designs monthly production plan for Machine Shop (MCS)
PPD designs monthly production plan for forge shop (FS).
PPD designs monthly production plan for Induction Hardening Shop n(IHS).
Based on generated enquiry, Sales planner conducts SECM (Sales enquiry committee meeting)
to check the feasibility of successful production of job.
In Sales enquiry committee meeting representative from Foundry, Melting, Forge Shop, IH Shop
and finally machining at Machine Shop.
We have work based on cycle time.
Foundry: Cycle time of product in foundry is almost 10 days to 30 days base on product mixed.
Machine Shop: Cycle time of product mixed is from days 5 days to 15 days for cast rolls and 7-
10 days for forge rolls.
Machine Shop has capacity to manufacture rolls from 3o kg to 30 Tones.
We have 50 machines in our machine shop and production capacity of 1300 Tons per month. We
have achieved 1200 tones once.
We have: 22 conventional lathes.
08 CNC lathes
10 milling machines
07 grinding machines
Product rolled ( Thin Gauge or Thicker Gauge)
 Stands where roll will be used
 Condition of Slab , Ingot, Billet & Bar
 Operation related condition like Slippage, Fire crack, Spalling etc.
 Existing Roll Problem
 Roll Pass design ( For Long Product Mill)

Products
Cast & Forged Rolls - Applications in Steel Industry
Factors affecting roll specification
 Mill Operation
 Product rolled
 Product Quality
 Roll Grades
 Required Properties
 Roll & Mill design
Challenges & Mill demand:
 Demand for higher productivity.
 Thin gauge rolling.
 Faster speed of rolling.
 Prolong campaign life / Less frequent changing of rolls
 Demand for less mill down time.
 Improved Mill cooling / condition.
 Energy saving
 Less off-take during grinding
 Better Strip Profile / Surface Finish of Strip
 High compressive strength
 High Thermal load
Centrifugally Cast Roll
Horizontal Spin Casting process
 Shell metal is poured into spinning horizontal
mold directly into the barrel portion of the roll.
 Temp. of the spinning shell metal is monitored
through radiation pyrometer.
 After shell solidification mold is made vertical &
core metal is poured.

Introduction to the Principle of Production Planning and Control:
“The highest efficiency in production is obtained by manufacturing the required
quantity of a product, of the required quality, at the required time by the best and
cheapest method” – PPC is a tool to coordinate all manufacturing activities in a production
system.
Production planning and control essentially consists of planning production in a
manufacturing organization before actual production activities start and exercising control
activities to ensure that the planned production is realized in terms of quantity, quality,
delivery schedule and cost of production.
Production planning involves the organization of an overall manufacturing /
operating system to produce a product.
The various activities involved in production planning are designing the product,
determining the equipment and capacity requirement, designing the layout of physical
facilities and material and material handling system, determining the sequence of operations
and the nature of the operations to be performed along with time requirements and specifying
certain production quantity and quality levels.
Objective of production planning is to provide a physical system together with a set

of operating guidelines for efficient conversion of raw materials, human skills and other
inputs into finished products.
Factors determining Production Planning Procedures:
The production planning used, varies from company to company. Production
planning may begin with a product idea and a plan for the design of the product and the
entire production/operating system to manufacture the product. It also includes the task of
planning for the manufacturing of a modified version of an existing product using the
existing facilities. The wide difference between planning procedures in one company and
another is primarily due the differences in the economic and technological condition under
which the firms operate. The three major factors determining production-planning
procedures are:
Volume of Production:
The amount and intensity of production planning is determined by, the volume and character of
the operation and the nature of the manufacturing processes. Production planning is expected to
reduce manufacturing costs. The planning of production in case of custom order job shop is limited to
planning for purchase of raw materials and components and determination of works centers, which
have the capacity of manufacturing the product.
Nature of Production Processes:
In job shop, the production planning may be informal and the development of work methods is
left to the individual workman who is highly skilled. In high volume production, many product
engineers are involved and they put enormous amount of effort in designing the product and the
manufacturing processes.
Nature of Operation:
Detailed production planning is required for repetitive operation. For example in case of
continues production of cast rolls.
The variants in manufacturing approach are:
 Manufacturing to order, which may or may not be repeated at regular intervals.
 Manufacturing for stock and sell (under repetitive batch production).

Objectives of Production Planning and Control
 To deliver quality goods in required quantities to the customer in the required delivery
schedule to achieve maximum customer satisfaction and minimum possible cost.
 To ensure maximum utilization of all resources
 To ensure production of quality products
 To minimize the product through-put time or production/ manufacturing cycle time
 To maintain optimum inventory levels.
 To maintain flexibility in manufacturing operation.
 To co-ordinate between labour and machines and various supporting departments
 To plan for plant capacities for future requirements
 To remove bottle neck at all stages of production and to solve problems related to
production.
 To ensure effective cost reduction and cost control
Three stages in Production Planning and Control function are:
1. Planning – Choosing the best course of action among several alternatives.
2. Operation – Execution as per plan
3. Control - Maintaining the performance by comparing the actual results with
performance standards set and taking appropriate correction action if necessary to
reduce variance.
Role of Machine shop Production Planning and Control :
There are varieties of production management responsibilities viz:
 Product design.
 Job design and process design.
 Equipment selection and replacement.
 Labour skills and training programs.
 Input material selection including raw material and sub-contracting.
 Plant selection and layout.
 Scheduling steps of the plan.
 Implementing and controlling the schedule.
 Operating the production system.

Machine shop production planning is done over a short-range time span developed by the
junior level management. It is concerned with the utilization of existing facilities rather than creation
of new facilities. It involves proper utilization of key resources such as, raw materials, machine
capacity, energy etc.
Short-term planning takes into account current customer orders, priorities, material
availability, absenteeism rate, cash flows etc. and it is designed to respond quickly to changes in
production levels and market conditions.
Short range planning establishes short range schedules which specify the quantity of specific
products to be produced in each week of the planning horizon which varies from a week to a few
months.
Machine shop planning involve the day to day issues and decisions related to operations
planning.
SCOPE OF MACHINE SHOP PRODUCTION PLANNING
Production Planning and Control encompasses following areas:
1. Materials: Planning for procurement of raw materials, components, and spare parts in
the right quantities and specifications at the right time from the right source at the
right price. Purchasing, storage, inventory control, standardization, variety reduction,
value analysis, and inspection are the other activities associated with material.
2. Methods: Choosing the best method of processing form several alternatives. It also
including determining the best sequence of operations (process plans) and planning for
tooling, jigs and fixtures etc.
3. Machines and equipments : Manufacturing methods are related to production facilities
available in the production systems. It involves facilities planning, capacity planning,
allocation, and utilization of plant and equipments, machines etc.
4. Manpower : Planning for manpower (labour and managerial levels) having appropriate
skills and expertise.
5. Routing : Determining the flow of work material handling in the plant, and sequence of
operations or processing steps. This is related to consideration of appropriate shop
layout and plant layout, temporary storage locations for raw materials, components
and semi-finished goods, and of materials handling systems.
Route sheet : A route sheet is a document providing information and instruction for
converting the raw materials into finished parts or products. It defines each step of the
production operation and lays down the precise path or route through which the product will

flow during the conversion process. Route sheet contains the following information:
 The operations required and their desired sequence.
 Machine or equipment to be used for each operation.
 Estimated set-up time and operation time per piece.
 Tools, jigs and fixtures required for the operation.
 Detailed drawing of parts, sub-assemblies and final assemblies.
 Specification, dimensions, tolerances, surface finishes and quality standards
to be achieved.
 Specification of raw material to be used.
 Speed, feed etc. to be used on machine tools for the operations to be carried on.
 Inspection procedure and metrology tools required for inspection.
 Packing and handling instructions during movement of parts and subassemblies
through the operation stages
6. Estimating : Establishing operation times leading to fixation of performance standards
both for workers and machines. Estimating involves deciding the quantity of products to
be produces and cost involved in it on the basis of sales forecast.
Estimating manpower, machine capacity and materials required meeting the planned
production targets are the key activities before budgeting for resources.
7. Loading : Machine loading is the process of converting operation schedules into practice
in conjunction with routing. Machine loading is the process of assigning specific jobs to
machines, men, or work centers based on relative priorities and capacity utilization.
Loading ensures maximum possible utilization of productive facilities and avoids
bottlenecks in production. It is important to avoid either overloading or under
loading the facilities, work centers or machines to ensure maximum utilization of
resources.
8. Scheduling: Scheduling ensures that parts, sub-assemblies, and finished products are
completed as per required delivery dates. It provides a timetable of manufacturing
activities.
Objectives of scheduling are :
 To prevent unbalance use of time among work centers and departments.
 To utilize labour such that the output is produced within established lead time
or cycle time so as to deliver the products in time and complete production
at minimum total cost.

9. Dispatching : This is concerned with the execution of the planning functions. It gives
necessary authority to start a particular work which has already been planned under routing
and scheduling functions. Dispatching is release of orders and instructions for the starting of
production in accordance with the route sheets and schedule charts.
10. Inspection : This function is related to maintenance of quality in production and of evaluating
the efficiency of the processes, methods and labour so that improvements can be
made to achieve the quality standards set by product design.
11. Evaluating : The objective of evaluation is to improve performance. Performance of
machines, processes and labour is evaluated to improve the same.
12. Cost control : Manufacturing cost is controlled by wastage reduction, value analysis,
inventory control and efficient utilization of all resources.
PRODUCTION CONTROLS
Importance of Control Function:
The function of production control is to :
 Provide for the production of parts, assemblies and products of required
quality and quantity at the required time.
 Co-ordinate, monitor & feed back to manufacturing management, the results of the
production activities, analyzing and interpreting their significance and taking
correction action if necessary.
 Provide for optimum utilization of all resources.
 Achieve the broad objectives of low cost production and reliable customer
service.
Benefits of Production Control:
1. Improvement in profits through:
 Maintenance of a balanced inventory of material, parts. (WIP) Work in
process and finished goods.
 Balanced and stabilized production.
 Maximum utilization of equipment, tooling, labour (manpower) and
manufacturing and storage space.
 Minimum investment in inventory.
 Reduction in direct costs.

 Reduction set up costs
 Reduction scrap and rework costs
 Reduction in inventory costs
2. Competitive advantages:
 Reliable delivery to customers
 Shortened delivery schedules to customers
 Lowe production costs and greater pricing flexibility.
 Orderly planning marketing of new or improved products.
Elements of Production Controls:
 Control of planning: Assure receipt of latest forecast data from sales and production,
bill of materials data from product engineering and routing information from process
engineering.
 Controls of materials: Controls of inventory and providing foe issue of material to the shop
and movement of materials within the shop.
 Control of tooling: Check on the availability of tooling and provide foe issue of tools to
departments from tool cribs.
 Control of manufacturing capacity: Determine the availability of equipment and labour
capacities and issue realistic production schedules and provide a means of recording
completed production.
 Control of activities: Release order and information at assigned times.
 Controls of information: Distribute timely information and report showing deviations
from plan so that correction action can be taken and provide data on production
performance measurement for future planning.
Production Control System:
The production Control system consists of a group of procedural elements that operates as a whole to
fulfill the four functions listed under importance of control functions.
The elements of production control systems are:
 Means of setting the system in motion such as production orders.
 Methods to determine lead-time for production.
 Methods to control and monitor production operations including means to:

 Determine what and where work to be done
 Determine when work is to be done
 Issue orders to production shops and ensure that work is completed.
 Techniques for measuring and recording data machine utilization, scrap and indirect
labour that can serve as a basis for manufacturing action leading to optimum utilization of
facilities and low cost operation.
Factors Determining Production control Procedures:
 Nature of Production: The manufacturing firms are classified as intermittent, continuous or
composite production firms, depending on the length of processing time without set up
changes.
 Complexity of Operations: Generally the complexity of production planning and control function
increases with the increase in the variety of operations.
 Magnitude of operations: The size of operation (i.e. the time taken to complete the operation) and
the distance traveled by the parts from operation to operation are important in establishing proper
production control procedures.
Production Planning and Control:
Production Planning and Control function essentially consists of planning production in a
manufacturing organization before actual production activities start and exercising control activities
to ensure that the planned production is realized in terms of quantity, quality, delivery schedule and
cost of production.
Phases in Machine shop PPC functions :
a) Planning phase – a) Pre-planning; b) Active Planning.
 Pre-planning activity involves product planning and development, demand
forecasting, resource planning, facilities planning, plan planning, plant location and plant
layout.
 Active planning involves planning for quality, determination of product-mix, routing,
scheduling, material planning, process planning, facility planning, capacity planning and
tool planning.
b) Action phase : Execution or implementation phase includes dispatching and progressing
function.
c)Control phase: Includes status reporting, material control, tool control, inventory control,
quality control, labor output control and cost control.

Benefits of Machine shop production planning and control function:
Production planning and control function is the nerve center or heart of the production
management function. It coordinates all phases of the production system. An efficient production
planning and control function results in higher quality, better utilization of resources, reduced
inventories, reduced manufacturing cycle time, faster delivery, better customer service, lower
production costs and lower capital investment and higher customer satisfaction. Efficient utilization of
resources results in higher productivity and economy of production, timely delivery and right quality of
goods/services at the right cost will improve customer satisfaction. Minimization of breakdown of
machines, plant and equipments minimize idle time of equipments and labour and ensures even flow
of work through the plant facilities. This will improve employee discipline and morale in the
organization.
An efficient production planning and control system enables the firm to improve its sales
turnover, market share and profitability and provides a competitive advantage for the firm due to
balanced inventory levels and higher quality, flexibility and dependability and lower prices which are
the performance factor for the firm.
Limitation of Machine shop production planning and control function
 Production planning and control function is based on certain assumptions or forecasts of
customer’s demand, plant capacity, availability of materials, power etc. If this assumption
go wrong, PPC becomes ineffective.
 Employee may resist changes is production levels set as per production plans if such plans
are rigid.
 The production planning process is time consuming when it is necessary to carry out
routing and scheduling functions for and complex products consisting of a large no of parts
going into the product.
 Production planning and control function becomes extremely difficult when the
environmental factors change very rapidly such as technology, Customer’s taste
regarding fashion or style of products needed, government policy and controls change
frequently, stoppage of power supply by electricity boards due power cuts, break in
supply chain due to natural calamities such as floods, earthquakes, war etc.
Measuring Effectiveness of PPC function :
The task of PPC department is mainly to coordinate the activities of various
departments, which supports production department viz., purchase, stores , industrial engineering,

quality control, design, maintenance etc. Hence the effectiveness of PPC Department can be
generally measured by the company’s success in meeting the demand and its ability to produce
quality products and deliver them in the delivery schedules desired by the customers at a
reasonable price that is acceptable to customers and thereby achieve maximum customer satisfaction.
There are four specific areas in which effectiveness of PPC function can be measured.
They are
 Delivery : This can be measured by finding out the number of deliveries effected on
time and those got delayed over a period of time
 Inventory levels : The value of average inventory held annually value of obsolete
inventory, value of non-moving and surplus inventories and the inventories and the
inventory turnover ratio are indicators of efficiency in inventorymanagement.
 Production / operation management : Comparison of planned and actual production
indicates the performance of PPC function. Number of overtime hours worked,
machine utilization ratio etc is also indicator of effectiveness of PPC function.
 The expenditures incurred for carrying out the various function of PPC dept. vis-à-vis
the production values and sales revenue realized.
PPC in Different Production systems
1) P.P.C. in Job Production
Job production involves manufacture of products to meet specific customer requirements of
special orders. The quantity is usually small. Examples of job production are manufacture of large
turbo generators, boilers, steam engines, processing equipments, material handling equipments, ship
building etc.
Under job production we may have three types according to regularity of manufacture
namely,
a) A small number of products produced only once.
b) A small number of products intermittently when the needed arises.
c) A small no of products produced periodically at known interval of time. PPC
function is relatively in job production because of the following reasons
 Every job order is of different nature and has different sequence of operations.
There is no standardization routing for job orders.
 Specific job orders are assigned to different workstations as per availability of capacity.
 Production schedules drawn depend on the relative priority assigned to several of

job orders.
 Scheduling is dependent on assessment of production times and estimating is
based on judgment.
2) P.P.C. in Batch Production
Batch production is the manufacture of a number of identical articles either to meet a
specific order or to satisfy continuous demand. The decision regarding tooling and jigs and fixtures are
dependant on the quantities involved in the production batch.
In batch production too there can be three types namely:
a) A batch produced only once
b) A batch produced at repeatedly at irregulars interval, when the need arises
c) A batch produced periodically at known intervals, to satisfy continuous demand.
Here again planning and control become more simplified as quantities increase and as
manufacture becomes more regular. Two problems that may arise in batch production are due to
size of batch and due to scheduling of production.
The solution to this problem depends on whether the production is governed by
a) External customer orders only
b) Whether the plant is producing for internal consumption i.e. a
subassembly used in the final product.
Characteristics of P.P.C. function in Batch production:
a) Before issuing manufacturing order, need for new raw material and tools,
overloading and underloading of particular machines or work centers must be
anticipated.
b) As products are diversified and several orders are handled simultaneously in different
work centers scheduling and follow of becomes difficult task.
c) Dispatching has to be done efficiently to avoid delays and bottlenecks in the
production process.
3) P.P.C. in Continuous Production:
Continuous production is normally associated with large quantities of production and with a high
rate of demand. Continuous production is justified when the rate of production can be sustained by the
market. Two types of Continuous Production can be :
a) Mass production
b) Flow production

 In mass production, a large number of identical articles is produced, inset of advanced
mechanization and tooling, the equipment need to be specially designed for the component to be
manufactured.
 In flow production, the plant and equipment and layout have been primarily designed to
manufacture a particular product. A decision to switch over to a different kind of product needs
basic changes in the equipments and layout, especially when special purpose machines and
complex material handling systems are used.
 PPC in Continuous production is usually far simpler that in job or batch production.
Extensive effort is required for detailed planning before production starts but both scheduling
and control need not be elaborate usually. The output is either limited by available capacity or
regulated within even limits to conform to production targets based on periodic sales forecast.
Requirements of effective Production Planning And Control System:
 Sound organizational structure with mechanism for proper delegation of authority
and fixation of responsibility at all levels.
 Information feed back system should provide reliable and up-to-date
information to all persons carrying out PPC functions.
 Standardization of materials, tools, equipments, labour, quality, workmanship etc.
 Trained personnel for using the special tools, equipments and manufacturing processes.
 Flexibility to accommodate changes and bottlenecks such as shortage of materials,
power failure, machine breakdowns and absenteeism of employees.
 Appropriate management policies regarding production and inventory levels, product –
mix and inventory turnover.
 Accurate assessment of manufacturing lead times and procurement lead time.
 Plan capacity should be adequate to meet the demand. The plant should be flexible to
respond to the introduction of new products, changes in product-mix and production rate.
MAKE OR BUY ANALYSIS
The capacity of the firm to produce finished products depends on at what stage the firm
beings the manufacturing process if it starts with basic raw materials, the total output will be much
less than if many of the parts and components are purchased form vendors. The form is faced with

a decision of whether to make or buy each part or subassembly.
Make or buy decisions are basically questions of specialization and vertical integration. Each
and every subassembly has a detailed design drawing specifying the materials and piece parts
required to make the subassembly or the raw material required to make the piece part. The process
planning engineer has to make an important decision of “Make or Buy” after studying the detailed
drawing of assemblies, parts and components.
Many components, subassemblies, and piece parts can be either bought,
subcontracted or producing – house.
Consideration in Make or Buy Decision :
In the economic consideration based on cost of manufacture versus cost or buying the
item, the least cost alternative is selected. Economic analysis of make or buy analysis is based on
Break-even-analysis or Economic Batch Quantity or Economic Order Quantity Concepts.
There are some non economic consideration such as :
 Availability of supply or alternative sources of supply for components and sub- units.
 Control of trade secrets and design secretes.
 Quality and reliability consideration.
 Research and development facilities available in-house.
 Delivery schedules to be met.
 Reliability of supply of outside suppliers.
 Lead time required for procurement.
 Availability of manufacturing capacity (in-house).
 Employee references.
When to Make :
Some of the reasons that may lead a firm to make a product or components in- house
instead of purchasing it are:
 Lower cost because the firm doesn’t have to pay for the vendor’s overhead or profit.
 Assurance of availability because the firm doesn’t have to depend on vendors.
 Better control on quality.
 Availability of appropriate manufacturing equipment and expertise.
When to Buy :
 When the part can be bought from the vendors at lower cost, higher quality and faster
delivery times than would be possible if the firm made them in- house.
 When the firm uses only a few numbers of a particular item and special

equipments are needed to produce it in-house, then the firm will look for an outside
vendor.
 When an outside vendor can sell an item at a lower cost than the purchasing firm would
have to spend to produce it.
 When the vendors hold patents on the required item.
 When opportunity cost of producing are much higher than that of buying.
 When the vendors are able to meet the requirements of the purchasing firm in terms
quality, quantity, price and delivery period.
PLANT PLANNING AND FACILITY PLANNING :
How to establish the long-range production capacity to produce the products
/services for a firm, is a critical part of setting operations strategy. Land and production equipment
may need to be purchased, specialize production technological might have to be developed and new
plants may need to be located. The decisions involved have long- lasting effects and are subject to great
risk.
The internal arrangement of workers, production processes and departments within facilities
is a crucial part of positioning strategy that affect the ability to provide the desired volume, quality
and cost of products. It also included facilities planning or planning of processing equipment, plant
utilities and services, plant building or other plant facilities such as communication system, material
handling system and storage system. Facilities planning refers to the determination of how much of
long range production capacity is needed, when it is needed, where production facilities should be
located and the layout and the characteristics of this facilities.
Importance of Plant Planning :
 Plant planning is a long range planning which beings with a choice of a suitable location or
the site for the plant and end with the installation of the complete production system.
 The right plant the firm to produce the desired quantity and quality of the products at minimum
possible cost.
 The choice of the plant helps to minimize the capital investment.
 It provides job satisfaction to employees by providing safe and health working condition.
 Effective planning and arrangement of plant, equipments, machinery, buildings, etc., is
essential to remain profitable in a competitive business environment.

Objectives of Plant Planning:
 Ultimate objective is to set up an optimum plant system that will provide highest efficiency
in manufacturing i.e., at lowest possible cost.
 An effective integration of all factors affecting the lay out of physical facilities.
 Efficient utilization of resource such as m/c, labor and space.
 Logical workflow and smooth sequence of operation.
 Compactness to minimize movement of material and labour for processing.
 Satisfaction, safety, and convenience to all employees.
 Provision of facilities for future expansion.
 System flexibility to adapt to changes in product design and volume of output.
Scope of Plant Planning :
The scope of plant planning covers planning for all plant and equipments, machinery,
facilities and utilities.The major components of plant planning are :
 Selection of the production system and plant design.
 Design of plant buildings
 Manufacturing process design
 Selection of equipments and machinery
 Decision of plant layout and shop layout
 Plant utilities and services
 Selection of material handling system and equipments
 Design of communication and control system
The objective of plant planning is to integrate all this elements to install and efficient plant
with reasonable flexibility in operating the plant.
Aggregate Planning:
Aggregate Planning involves planning the best quality to produce during time periods in the
intermediate – range horizon (often 3months to 1 year) and planning the lowest cost method of
providing the adjustable capacity to accommodate the production requirements. For the
manufacturing operations, aggregate planning involves planning workforce size, production rate
(Work hours per week) and inventory levels.
Capacity Panning:
Facility planning includes determination of how much long range production capacity is needed, when
additional capacity is needed, where production facilities should be located and the layout and

characteristics of the facilities.
Production Capacity :
Capacity in general is the maximum production rate of a facility or a firm. It is usually expressed
as volume of output per period of time.
Capacity indicates the ability of a firm to meet customer demand.
Operations mangers are concerned with capacity because
 They want sufficient capacity to meet customer demand in time.
 Capacity affects cost efficiency of operations, the ease or difficulty of
scheduling output and the costs of maintaining the facility.
 Capacity requires an investment of capital
Types of Capacity :
1. Fixed capacity : the capital assets the company will have at a particular time are known as
the fixed capacity. They can not be easily changed within the intermediate range time
horizon. Fixed capacity represents an upper limit to the internal capacity that the company
can use in its efforts to meet demand.
2. Adjustable capacity : It is on and the size of work force, the number of hours per week they
work, the number of shifts and extent of sub-contracting.
3. Design capacity of a facility is the planned rate of output of goods or services under
normal of or full-scale operating condition. It is also known as installed capacity. It sets
the maximum limit to capacity and serves to judge the actual utilization of capacity.
4. System capacity is a maximum output of specific product or product-mix that the system of
workers and machines i.e., the productive system is capable of producing as an integral
whole. It is less that or a equal to the design capacity of the individual component because the
system may be limited by:
 The product-mix
 Qualityspecifications
 The current balance of equipment and labour
5. Potential capacity is that which can be made available within the decision horizon of the top
management.
6. Immediate capacity is that which can be made available within the current budgeted period.
7. Effective capacity is the capacity which is used within the current budget period. It is also
known as practical capacity or operating capacity. No plant can work upto the maximum or

the theoretical capacity (installed or designed capacity) because of loss of capacity due to
scheduling delays, machine breakdown, and preventing maintenance. This results in the plant
working at an efficiency less than 100%. Also the actual output will be less that the
designed output due to the rejection and scarp.
8. Normal capacity or rated capacity: This is the estimated quantity of output or production
that should be achieved as per estimation done by Industrial Engg. Department. Actual
capacity is usually expressed as a percentage of rated capacity. For example, the rated
capacity of steel plant maybe express as one lakh tones of steel per month. This is also some
times called average capacity of the plant.
9. Actual or Utilized capacity : This the actual output during a particular time period the actual
output may be less that the rated output because of short-range factors such as actual demand,
employee absenteeism, labour inefficiency and low productivity levels.
Measurement of capacity :
Capacity of the plant can be expressed as the rate of output viz., units per day, or per week, or per
month, tones per month, gallons per hour, labour hours/day, etc. But for organization whose product
lines are more divers, it is difficult to find a common unit of output. More appropriate measure of
capacity for such firms is to express the capacity in terms of money value of output per period of time
(day, week or month). Capacity may be measured in terms of input or output of the conversion process.
Capacity Decisions :
Major consideration in capacity decisions are:
 What size of plant? How much capacity to install?
 When capacity is needed? When to phase-in capacity or phase-out capacity?
 At what cost? How to budget for cost?
Determination of capacity :
Capacity determination is a strategic decision in plant planning or factory planning.
Capacity decisions are important because:
 They have a long term impact
 Capacity determines the selection appropriate technology, type of labour and
equipments, etc.
 Right capacity ensures commercial viability of the business venture.
 Capacity influences the competitiveness of a firm.

Factor affecting Determination of plant capacity :
1. Market demand for a product/service.
2. The amount of capital that can be invested.
3. Degree of automation desired.
4. Level of integration (i.e., vertical integration)
5. Type of technology selected.
6. Dynamic nature of all factors affecting determination of plant capacity, viz., changes in
product design, process technology, market conditions and product life cycle, etc.
7. Difficulty in forecasting future demand and future technology.
8. Obsolescence of product and technology over a period of time.
9. Present demand and future demand both over short range, intermediate range and long-
range time horizons.
10. Flexibility for capacity additions.
Interrelationship between capacity and other issues :
1. Relationship between capacity and location decisions:
Decisions about capacity are often inseparable from location decisions. Usually
capacity expanded by installing new units at new location taking into considerations
location factors such as market segment, transportation costs, location of competitors, etc.
2. Relationship between capacity and plant layout :
The plant capacity determines the physical relation between various processes use in
the conversion process which in turn determines the layout of the plant. In product-layout
or product-focused productive system, the capacities of various work centers or
machines have to be balanced to get approximate the same rate of output from various
work centers or machines. Once the layout is installed it is not possible to change the
capacity in the short term time horizon.
3. Relationship between Capacity and Process Design :
In some cases, the rated capacity depends on the type of the conversion process
selected. For example, the conversion processes selected for the manufacture of steel is
different for mini steel plants from that use for major steel plants.
4. Relationship between Capacity and Equipments selection :
The installed capacity of plant determine the standard labour or equipment hours that can
be achieved and also determine the number of machines or equipments that must be installed to
get the desired output capacity.

Capacity Planning :
Capacity planning is concerned with defining the long term and short term capacity needs of a firm and
determining how these needs will be met.
Need for Capacity Planning :
Capacity planning is necessary when an organization decides to increases its production
or introduce new products into the market. Once capacity is evaluated and a need for new or
expanded facilities is determined, decisions regarding facility location and process technology selection
are taken.
Capacity Planning Decision :
Capacity planning involves activities such as
 Assessing existing capacity
 Forecasting future capacity needs
 Identifying alternative ways to modify capacity
 Evaluating financial, economical, and technological capacity
alternatives.
 Selecting a capacity alternative most suited a achieve the strategic mission of
the firm. Capacity planning involves decisions that must merge consumer
demands with human, material and financial resources of the organization.
CAPACITY REQUIREMENT PLANNING (CRP) :
Capacity requirement planning is a technique for determining what labour / personnel and equipment
capacities are needed to meet the production objectives symbolized in the master production schedule
(MPS) and the material requirement planning (MRP-l).MRP-l and CRP establish specifically what
materials and capacities are needed and when they are needed.
Capacity Requirement planning (CRP) Process :
End item requirements arising from the aggregate plan and MPS are exploded in to tentative planned
order for components by the MRP system. The CRP system converts those order into standard labour
and machine hour of load on the appropriate workers and on the machines as identified from the
work centers status and shop routing files. The output is a load-projection report work centre wise. If
the work center capacities are adequate, the planned order releases are verified for the MRP system and
release orders become purchase and shop orders. Work loads reports are also used for controlling input or
output. If the initial load projection reports reveals in adequacy of capacity in any work center, either the
capacity must be increased (By using overtime or subcontracting) or the master production schedule must
be revised.
CRP inputs The major inputs of CRP process are
 Planned orders and released orders from MRP system

 Loading information from the work center status file.
 Routing information from the shop routing file
 Changes, which modify capacity, give alternative routings or altered planned
orders.
MASTERPRODUCTION SCHEDULING:
The master schedule (or master production schedule or MPS) sets the quantity of each item
(finished product) to be completed in each time period (week or month) of the short range-planning
horizon. Master production schedules are developed by reviewing market forecasts, customer
orders, inventory levels, facility loading, and capacity information regularly. The MPS is a plan for
future production of end items over a short- range planning horizon that usually spans from a few
weeks to several months. It is an important link between marketing and production.
Objectives of Master Production Scheduling :
 To schedule end item to be completed promptly and when promised to customers.
 TO avoid overloading or under loading the production facility so that
production capacity is efficiently utilized and low production costs results.
Function of Master Production Schedule :
The MPS formalizes the production plan and converts it into specific material and capacity
requirements. This leads to the assessment of labour, material and equipment needs for each job.
Then the MPS derives the entire production and inventory system by setting production targets and
responding to feedback from all downstream operations. It is the beginning of all short-range
production planning. from the MPS, material requirement planning (MRP) develops short range
schedules for producing parts that go into the end items in every work center of the production
system. The MRP develops short-range plans for purchasing the raw materials and components that
are required to produce the product.
Some key functions of MPS are:
 Translating aggregate plans into specific end items,
 Evaluating alternative schedules,
 Generating material requirements,
 Generating capacity requirements,
 Facilitating information processing,
 Maintaining valid priorities,
 Utilizing capacity effectively.
INTEGRATED MATERIAL MANAGEMENT :
Introduction :

Integrated Material Management can be defined as a systems approach in planning,
procurement, storage and material handling, with the objective of optimizing the company’s investment
in materials. Conventionally, objective of the material function has been to ensure that the right
quantity of material, of the right quality has to be received at the right time from the right source at
the right price. To achieve these objectives, there are separate activities and sub-activities, such as
material planning inventory control, purchasing source development, vendor rating warehousing, and
disposal.
In the context of Total Quality Management (TQM) the key objectives of Materials
management are getting refined to:
a) Internal Customer satisfaction
b) Cost reduction by elimination of waste
c) Contribution to reduction of cycle time for product development including new
products
d) Inventory and Logistics Management
Integrated materials management functions :
a) Material Planning and Control : This function deals with determining requirements
of raw materials, components consumables for the purpose of production, taking in
consideration :
 Required service level i.e. material availability as and when required by the
user.
 Optimum inventories or in other words the minimum possible inventory for
maximum service level.
Material planning and control is based on a number of selective inventory control
techniques. The most commonly known is the A-B-C analysis i.e. separating the vital few
from the trivial many. Another important analysis is V-E-D analysis i.e. Vital-Essential-
Desirable.
b) Purchasing: The purchasing department’s activity takes off from the receipt of material
indents or requisitions from the materials planning. In case of one time requirement of
capital purchases, the requirements to the purchase dept will be directly communicated by
users in the form of purchase requests. It is the responsibility of the purchase dept to decide
commercial terms for economic purchases, by proper analysis of the requirements
indicated, selection of right source and scheduling the delivery taking into account the lead-
time involved.
c) Stores: The store receives bins and issues materials. To this extent, stores will be responsible

for proper housekeeping; preservation of material received and keeps proper control of
materials. Major functions of the stores include:
 Receiving raw materials, components, consumables, packaging materials etc.
 Warehousing the items in identifiable locations once the materials are accepted.
 Accounting the transaction.
 Minimize obsolescence by following proper system like FIFO and good
housekeeping.
 Transportation of materials particularly finished goods.
PLANT LAYOUTS
Introduction:
Plant layout is the most effective arrangement and coordination of physical plant facilities to
allow greatest efficiency in the combination of men, materials, and machine for operating any
manufacturing unit.
Layout of plant has been defined as “a floor plan for determining and arranging the desired
machinery and equipment of a plant, where established or contemplated, in the one best place, to
permit the quickest flow of material at the lowest cost and with the least amount of handling in
processing the product from receipt of raw materials to shipment of finished products.
Factors for Consideration before a Good Layout can be contemplated :
1. Products : Description, shapes, size, weight quantity specifications, quality- foe the
present as well as for future planning say 5-10 years. Changes in the design-effect on
manufacturing sequence, machinery, effect on material handling on other factors.
2. Production Planning : Directly affects the material flow and the layout of physical
facilities. Process method and sequences for the current future production to be
considered.
3. Production system : Whether jobbing or batch production-continuous process-layout
of machine and facilities. Wanted Change for jobbing type- function layout ‘Mass
Scale Production-Line or Product, Repeat Order for same or similar type. Combination
of two types of layout would be good.
4. Purchase and Inventory Policy : It will have a direct effect on the materials and part
storage and on material handling for above space required for storage and inspection and
hence bearing on facilities layout.

5. Material Handling System : Such as manual/mechanized movement and types of handling
devices to be used-has influence on types of layout. The system however shall have a
bearing on production system.
6. Technological Change : New machines improve higher output and economy. There shall
be corresponding changes in process sequence and product quality, may cause changes in
the product range, which was not possible with the old technology. Each change effects the
layout facilities.
7. Safety: Safety provision at each work center and relation location of facilities as
demanded by safety considerations, affect the layout. Meeting only layout needs of
personnel, production, and workflow is not enough.
8. Maintenance : A good layout provides better facilities for maintenance.
Types of Layout :
Following categories of layout of production facilities exist in manufacturing
organization :
1. Process of functional layout
2. Product or line layout
3. Fixed position layout
 Process Layout : Arrangement where machines doing the same process are kept together,
e.g., in machine shop all lathes located in one area in another area milling machines, in
another area all drilling machines, inspection in one area and assembly in another area.
Relative location of these department or areas may be such as to suit normal sequence of
operations in machining of parts. Intermittent production system follows process layout.
 Product Layout : This is an arrangement where the machine are laid out in a way that suits
the how of production in one line without having to have any back tracking or zigzag
movement e.g., in producing one part the operation involves turning, milling, drilling and
milling-the machine shall be laid out in a sequence of operations. Say, first lathe, then
milling machine. For this the products shall be large in numbers, to last long (i.e. Demand).
 Fixed Position Layout : This is used mostly in case of large ships, aircraft. Here the products
are stationary but men, machines and tools move from location to location. Conditions
when the process layouts are generally found to be more economical are :
1. When the company produces small quantity that needs few days or weeks to produce.
Several different products are to be manufactured which also keep changing i.e., product
life is short.

2. When the production capacity is limited and there is need to load difference kind of
equipment to their full or near full capacity.
3. When the average numbers of operations on products are not too many and handling
costs are small.
PLANT MAINTENANCE
Introduction :
Plant implies all physical means of production in a manufacturing system. These can be
machine tools, fixtures, land, building and other facilities. These facilities are subject to
deterioration due to their use and exposure to environmental conditions. The process of
deterioration, if not checked or rectified or reconditioned may take these facilities unserviceable
after some time, this checking or rectification is done through the process of maintenance. Thus
maintenance means to maintain the facility in the system up to desired level of efficiency i.e. to keep
assets in a satisfactory condition or restore these to the condition. Maintenance ensures conditions of
the facility such that it permits uninterrupted implementation of plan requiring their use.
Objectives of Plant Maintenance :
The management of maintenance activity has to concern itself with provision of interrupted
production process at minimum cost and maximum reliability. The following are the objectives of
plan maintenance:
 To maximize the amount of time the assets will be available for use for the purpose for
which these were procured.
 To preserve the value of assets by reducing the rate of at which they deteriorate.
 To perform the activities of maintenance in the most economical manner.
 To plan and schedule maintenance work so as to anticipate and prevent interruptions
in operations.
Types of Plant Maintenance :
Plant maintenance strategy can be broadly classified in to two classes viz.
Breakdown maintenance and preventive maintenance.
Breakdown Maintenance :
This is also known as Corrective maintenance. For non-critical equipment it is usually the
policy to allow it to run without much routing attention.

Disadvantages of Breakdown Maintenance :
 It results in dislocating production process and cause excessive delays or reduction in
output.
 Wages are to be paid for idle time resulting in loss profit.
 There may be more material wastage.
 Failure of machine can cause accident leading to loss of life.
Preventive Maintenance :
All machine deteriorate with use an exposure, deterioration of machines implies change in
dimensions of it various components and weakening of its members due to fatigue, impact and
corrosion. Such deterioration indicated by :
 Inability of the machine to take specified load.
 Reduction in the speed of the machine.
 Deterioration in quality of the output by any machine.
 Reduction in operational life of the machine.
Preventive maintenance is an activity which prevents breakdowns, cut operating costs and
improve quality of the product.
Advantages of Preventive maintenance :
 Less production downtime because of fewer breakdowns.
 Lesser overtime payment for maintenance worker and repairs than for breakdown
repair.
 Fewer large scale repairs and fewer repetitive repairs.
 ewer product rejects, less spoilage, better quality control.
 Reduction in maintenance cost.
 Lower unit cost of manufacture.
 Ensures greater safety of worker.
Total Productive Maintenance :
Total Productive Maintenance (TPM) is a maintenance program concept. Philosophically,
TPM resembles Total Quality Management (TQM) in several aspects, such as
 Total commitment to the program by upper level management is required.
 Employees must be empowered to initiate corrective action.
 A long-range outlook must be accepted as TPM may take a year or more to implement
and is as on-going process.

The dual goal of TPM is zero breakdowns and zero defects. When breakdowns and defects
are eliminated, equipment operation rates improve, costs are reduced, inventory can be minimized, and
as a consequence labor productivity improves.
A complete definition of TPM includes the following five elements :
 TPM aims to maximize equipment effectiveness.
 TPM establishes a through system of PM for the equipment’s entire life span.
 TPM is implemented by various departments. (engineering, operation,
maintenance)
 TPM involves every single employee, from top management to workers on the shop floor.
 TPM is based on the promotion of PM through motivation; autonomous small group
activities.
TPM is a concept of maintenance, which encompasses the entire organization. It aims to eliminate
breakdown and defects by participation of everyone in the organization.
QUALITY CONTROL / QUALITY
ASSURANCE
Quality can be defined as the total composite product and service characteristic of marketing,
engineering, manufacture and maintenance through which the product and service in use will meet
expectations of the customer.
Quality is determined by the following characteristics of a product or service :
 Reliability
 Serviceability and maintainability
 Safety
 Attract ability
Quality control / Quality Assurance is an effective system for integrating the quality
development, quality maintenance, and quality improvement efforts of the groups in an organization
so as to enable marketing, engineering, production and service at the most economical levels, which
allow for full customer satisfaction.
Meaning and procedure of Quality Control / Quality Assurance :
Total Quality control is a process for delegation of responsibility and authority for a
management activity while retaining the means of assuring satisfactory results.

Steps For Quality Control / Qualit Assurance
Step 1: Setting Standards:
 Determine the required cost-quality, performance-quality and reliability-quality standards for
the product.
 This is done by collecting the present data, analyzing the cost, performance, reliability,
and safety qualities of each department and setting realistic targets on the basis of data
collected. It also takes help of Quality function Deployment.
Step 2: Appraising Conformance :
 Comparing the conformance of the manufactured product or service offered to the above
standards.
 This step makes use of statistical tools like control charts.
Step 3: Acting when necessary :
 Correcting problems and their causes throughout the full range of those marketing, design,
engineering, production, and maintenance factors, which influence user satisfaction.
Step 4: Planning for improvements :
 Developing a continuous effort to improve the cost, performance, safety, and reliability
standards.
Scope and Jobs of Quality Control / Quality Assurance :
The quality control believes that control must start with identification of customer quality
requirements and end only when the product has been placed in the hands of the customer who
remains satisfied.
Total quality control guides the coordinated action of people, machines, and
information to achieve this goal.
Thus the scope of quality control is all stages of the industrial cycle:
 Marketing evaluates the level of quality which customers want and for which they are willing
pay.
 Engineering reduces this marketing evaluation to exact specifications.
 Purchasing chooses, contracts with, and retains vendors for parts and materials.
 Manufacturing selects jigs. Tools, and processes for production.
 Manufacturing Supervision and shop operators exerts a major quality influence during parts

making, subassembly and final assembly.
 Mechanical inspection and Functional test check performance of products by comparing
conformance to specifications.
 Shipping influences the caliber of packaging and transportation.
 Installation and product service help ensure proper operation by installing the product
according to proper instructions and maintaining through service.
TAYO ROLLS L td. is a Roll Manufacturing company (Cast & Forged Roll
manufacturing), unit located at Gamharia, Jamshedpur Jharkhand Following are the core production
processes :-
 Hammer Forging
 Metal pouring
 Casting
 Annealing (Shells)
 Polishing & Drying (Shells)
 Assembling (Shell)
 Machining
 Induction Hardening
Also Supporting Activities to the production processes in the shop floor are :
 Quality Assurance,
 ToolingManagement
 Maintenance
 Production planning and control
 New Product Development
 Product Supply Management
 Stores management
 Purchasing
 Stores Management
 HR Admn & Training
 Packing & Dispatch.
The list of Production machines / equipments is as under:

Sr
no
Machine / Equip. Name Remark / Function Location
1 Header-D Shell forging Shop floor
2 Header-B Shell forging Shop floor
(PLC control)
3 Header –A
Shell forging
Special (LF)
Shop floor
4 Vibratory Bowl - Polishing Polishing Shop floor
5 Mini Dryer Drying Shop floor
6 Centrifuge Removing oil Shop floor
7 Furnace No.1 Annealing Shop floor
8 Furnace No.2 Annealing Shop floor
9 Nail P New m/c Nail forging Shop floor
10 Nail P Old m/c Nail forging Shop floor
11 Nail R New m/c nail forging Shop floor
12 D Assembly m/c Assembling Shop floor
13 P Assembly m/c Assembling Shop floor
14 Crimping m/c Crimping Shop floor
15
Old A/A &
Crimping m/c
Assembling & crimping
Shop floor
16
New A/A &
Crimping m/c
Assembling & crimping
Shop floor
In shop floor the other machines / equipments supporting to core production activities are Lathe m/c,
Drilling m/cs, Surface grinder, Bench grinders, Hand press, Tensile testing m/c, Hardness tester,
Shadow master, Weighing scales, Air compressors, Vibratory bowls (sorting bowls).
1 WORKS MANAGER :
 Responsible for Production/ Quality Assurance and Purchase Activities.
 Production Planning.
 Control of Manufacturing Process.
 Applications of Statistical Technique as appropriate.
 Taking Corrective and Preventive Actions.
 Dispossession of Non-conformities.
 To initiate actions to prevent the occurrence of any non-conformities relating to Product,
Process and Quality System,
 To initiate, recommend or provide solutions through designated channels.

 To verify implementation of solutions.
To control further processing / assembly or delivery of non-conforming product until the deficiency
or unsatisfactory condition has been corrected
2 DIVISIONAL MANAGER(MCS)
 Confirming Order with customers.
 Preparing and forwarding proforma to customers
 Preparing Challans and Invoices.
 Packing and Dispatch.
 Preparing Pending Order, Schedule of Dispatches monthly reports
 Preparing Sales Plan / Production Plan
 Intimation of sales when orders are completed.
3 MANAGER(PRODUCTION):
 Overall supervision for Production/ Inspection and Maintenance activities.
 Receiving, In-process and Final Inspection.
 Calibration of Measuring and Test equipments.
 Generalhousekeeping.
 Preparation of Daily Production Report.
 Preparation of Indent and Material Issue note.
 Train & Guide the operators in setting of machine.
4. SR. OFFICER - PRODUCTION & QA :
 Managing the production activities in shift.
 Allocate the operators on machine.
 Check the Quality of products in process.
 Arrangement of Raw Material, Tools & Spares.
 Train, Guide, & help the operators in setting & maintenance of machines.
 Organizing shifting of materials in allocated areas.
 Identify and record any problems relating to Product, Process, and Quality Systems.
12. SUPERVISOR(STORES):
 Issue & Receipt of materials

 Stamp GRN cum Inspection Report on backside of challans.
 Forward such challans to QA to obtain Inspection Reports.
 Maintenance of stores related documents.
 Stocktaking.
 Preparation of Gate passes.
PLANNING & QUALITY OBJECTIVES
Quality & Business Objectives are defined for each core process TAYO ROLLS LTD. so as
to ensure effective implementation of these processes. The objectives are consistent with Quality
Policy. Targets for Objectives are decided by, the Unit In-charge with HODs. Quantification of
objectives is recorded in Quality Objectives monitoring chart. These objectives are reviewed for
achievements & relevance in management review. Quality & Business objectives will lead to
Quality & Productivity Improvements and maintaining best levels of Quality & Productivity.
Unit In-charge keeps the records of achievement of quality & productivity objectives every
6 month. Data / trends related to quality objectives are updated on monthly basis, so as to ensure
effective implementation of decided action plans. Short term & Long term Business Plan has been
defined in accordance with Quality Plan. Business Plan is confidential document & is kept with
C.E.O., who ensures that Quality Objectives are set & reviewed so as to achieve Business Plan.
Necessary controls over the processes & monitoring method is defined in relevant process documents.
QUALITY POLICY
We at Tayo Rolls Ltd. believe that Total Quality ensures absolute Customer Satisfaction.
This is accomplished through Timely Deliveries of Perfect Product and Prompt Responses to
Customer’s Queries. We firmly believe in the “Quality Improvement.” We strive to achieve higher
level of efficiencies. Our experience will enable us to take necessary steps towards Continual
Improvements.
QUALITY PLAN :
Sr
no
STAGE OF
PRODUCT
REALISATION
VERIFICATIO
N
PARAMETER
ACCEPTANCE
CRITERIA
OTHER
REFERENCE
DOCUMENT

01
UNDERSTANDING
CUSTOMER
REQUIREMENTS
TECHNICAL &
COMMERCIAL
FEASIBILITY TO
FULFILL
REQUIREMENTS
REQUIREMENTS
UNDERSTOOD &
ARE FEASIBLE
CUSTOMER
ENQUIRIES
02 PURCHASING
PURCHASING
SPECIFICATIONS &
DELIVERY
SCHEDULE
SPECIFICATIONS
CLARIFIED TO
SUPPLIER
DELIVERY
SCHEDULE
INFORMED.
PURCHASE
SPECIFICATI
ONS /
SUPPLIER
CATALOGUE
S
03
RECEIVING
INSPECTION
MATERIA
L
PRODUCT
RECEIVED
MATERIAL
PRODUCT
ACCEPTABLE AS
PER
SPECIFICATIONS
INSPECTION
PLAN
04
MANUFACTURING PRODUCTS PRODUCTS
INSPECTION
PLAN
/ ASSEMBLY &
IN-PROCESS
MANUFACTURED
AS PER INTERNAL
ACCEPTABLE AS
PER
INSPECTION SPECIFICATIONS SPECIFICATIONS
05 FINAL INSPECTION
PRODUCT
DIMENSIONS /
FUNCTIONAL
ASPECTS
PRODUCT
ACCEPTABLE AS
PER CUSTOMER
REQUIREMENTS
INSPECTION
PLAN
06
PACKING &
DISPATCH
PRODUCT HAS
PASSED ALL
ABOVE STAGES &
IS ACCEPTABLE
TIMELY DELIVERY
DELIVERY
SCHEDULE
DOCUMENTCONTROL
Product Drawings :
 Works Manager is responsible to prepare in-house drawing based on technical data of Tayo

Rolls Ltd.
 Prepared & approved drawings and distributed the drawings for Manufacturing.
 Maintained the list of drawings developed in-house along with the issue status.
Tools and spares drawings :
Works Manager prepared in-house drawings / sketches for tools/ spares and maintained
the list of such drawings / sketches along with issue status.
RESOURCEMANAGEMENT
It ensures availability of necessary resources for proper implementation of Quality
Management System so as to meet customer requirements
HUMAN RESOURCE MANAGEMENT:
Competence of personnel performing work, which affects Product and Service Quality, is
ensured. Procedure for training defines method for identifying training needs & achieving competence
of all personnel performing activities affecting product quality. It is ensured that personnel
performing tasks are qualified. Necessary training including ‘on the job’ training shall be given to
satisfy these needs.
Training needs identified on the basis of competency requirements & those identified By
HODs.
Competency requirements for various activities / levels are identified.
The training needs of employees shall be assessed through the following considerations:
 Periodic interaction with the employee.
 Development in the technology.
 Development of new product or process or systems.
 Skills required to perform the activity.
 Quality improvement projects.
 Special job requirement, etc.
The section In-charge identifies the training needs of the employees may indicate the source for
providing the training.
Jointly decides the yearly Training Schedule. The identified training is arranged either from outside
faculty or with the help internal faculty in the company.
Effectiveness of the training imparted is evaluated. The evaluation is done for the training
course by HOD. The section in charge of respective department does the evaluation of training given to
employees of his section.

Works Manager reviews level of staff member's motivation / empowerment at least once
in a year. Records are maintained. Prod. Manager reviews level of motivation / empowerment in
workers every year. This is done mainly on the basis of Quality Objectives achievements & efforts for
the same by concerned personnel.
INFRASTRUCTURE MANAGEMENT:
Necessary work space is provided for each activity i.e. appropriate storage area of each
processing stage, sufficient space in shop floor for material handling / storage, sufficient office
space etc. Plant, facility & equipment plans are developed by cross functional teams, with an
objective to optimize material travel, handling, and value added use of floor space & facilitation of
synchronous material flow. Necessary supporting services are ensured such as
 Transportation for inward Raw Material & dispatch of finished goods.
 Material Handling systems
 Office equipment such as Computers, fax, telephones etc. Necessary
processing equipment & utilities are maintained.
Contingency plans have been developed for rivets manufacturing, so as to satisfy customer
requirements in event of emergency such as utility interruptions, labour shortages, key equipment
failures, & field returns.
WORK ENVIRONMENT MANAGEMENT
Good housekeeping & safe working environment is maintained throughout organization.
Necessary safety equipments such as fire extinguishers are provided. Product safety & personnel
safety is ensured during development and mfg. processes. These requirements is as addressed in
relevant operator instructions. First aid box is provided. Housekeeping will be in keeping with
quality standards. Cleanliness of premises shall be maintained with respect to product & mfg. process
requirements.
CONTINGENCY PLAN
Sr
no
Process /
Description of
Risk
Probability /
Cause
Contingency plan to
take care of risk
Remarks

1 Breakdowns Due to any
breakdown in the
m/c.
Plan to keep breakdown
spares & consumable tools
ready & to be easily
available
Breakdown
spare &
consumable
tools kept
ready.
2 Absence of
operator
Due to sickness
or any other
reason
Train each operator to run
most of the m/cs. so that
in absence of specific
operator other can operate
the m/c.
Also supervisor run m/c.
Each operator
run 2 to 3 m/cs.
supervisors
also run the
mcs
3 Shortage of
specific raw
material grade
1. Due to
transport
delays
2. Due to
processing.
Plan to order the reqd.
quantity of raw material in
bulk well in advance. Also
inform the processor the
schedule to process the
raw material well in
advance. Also develop new
raw material supplier &
processor to avoid any
problem.
Ordering raw
material in
bulk.
Giving
schedule for
processing the
raw material.
2 suppliers for
raw materials
4 Power
Interruptions
Due to several
electrical power
cuts &
breakdowns from
MSEB.
Add more machines.
Run extra m/cs,
whenever power is
available.
Develop vendor / sub-
contractor for the product
(outsourcing)
Running extra
shifts.
SGB & RDJ
are planning
to add more
m/cs.
5 Subcontractor
delays
Due to
processing.
Develop new sub-
contractors.
4 sub-
contractors
6 Field Returns Due to non–
conformance.
Analyze the problem, &
take corrective as well as
preventive actions
No field
returns since
APRIL-04
INTERNAL AUDIT
M.R. plans the Internal Audits for six months. Every Department is audited at least once in six months.
M.R. gives consideration to importance of the activity and the kind of non- conformities
found in previous audits, in that particular area, for deciding the duration of Internal Audits for that
area.
M.R. appoints a team of trained auditors for auditing task. List of trained Internal Auditors
is maintained. The scope of audit is explained to the auditors by M.R. of Tayo Rolls Ltd.

The design of the transformation process requires answers to several questions given
below:
1.What are the characteristics of the product or service being supplied or offered to the
customer?
2.What is the expected volume of the output?
3.What kinds of equipment or machinery are available?
4.Should the equipment or machinery be custom built?
5.What is the cost of equipment and machinery needed?
6.What types of labor skills are available, in what quantities and at what wage rates?
Regular employee: 600
contract
7.How much money can be spent on the manufacturing process?
8.Should the process be capital intensive or labor intensive?
9.Should the components or parts be made or purchased ?(Make or buy decision)
10.Which would be the best way to handle the materials?
Bibliography: Operations Management Text Book
: Tayo Rolls Manual
: Internet

Operations Research & Methodology project report

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