EQUIPMENT AND MATERIALS MANAGEMENT
Chapter 1: MATERIAL HANDLING
Introduction and Meaning
Material handling (MH) encompasses the movement, protection, storage, and control of materials and products throughout the process of manufacturing, distribution, consumption, and disposal. It is a critical component of logistics and supply chain management, contributing significantly to cost reduction and efficiency. Effective material handling ensures that materials are available at the right time, in the right place, in the right quantity, and at the lowest possible cost.
Objectives of Material Handling
The primary objectives of a well-designed material handling system include:
1. Lowering Costs: Reducing direct labor costs, indirect costs related to material movement, and overall inventory holding costs.
2. Reducing Damage: Minimizing product damage and loss during transportation and storage.
3. Improving Workflow: Ensuring a smooth, uninterrupted flow of materials through the production process.
4. Increasing Capacity: Optimizing the use of existing facilities, particularly floor space and vertical storage space.
5. Improving Safety: Reducing the risk of accidents and injuries to personnel.
6. Better Control: Facilitating better inventory management and tracking.
Principles of Material Handling
There are numerous established principles for designing and improving material handling systems, often summarized in categories like planning, standardization, work, ergonomics, unit load, space utilization, and system integration. Key principles include:
· Planning Principle: All material handling activity should be the result of a deliberate plan that defines the required moves, methods, and equipment.
· System Principle: Integrate as many handling activities as possible into a coordinated system, covering receiving, storage, production, inspection, packaging, and shipping.
· Unit Load Principle: Handle materials in the largest unit load practical (e.g., pallets, containers) to minimize the number of trips required.
· Space Utilization Principle: Make optimum use of the building cube (both floor space and vertical space).
· Simplification Principle: Reduce, combine, or eliminate unnecessary movement and/or equipment.
· Ergonomics Principle: Recognize human capabilities and limitations, designing tasks and equipment that are safe and efficient for the operators.
Selection of Material Handling Equipment
The selection of appropriate material handling equipment (MHE) is crucial for system efficiency. It depends on several factors, including the type of material (size, weight, condition), the path and distance of travel, the required volume/throughput, the available budget, and integration with existing processes.
Major categories of MHE include:
1. Transport Equipment: Used to move materials from one location to another (e.g., forklifts, industrial trucks, automated guided vehicles (AGVs), conveyors).
2. Positioning Equipment: Used to hold or orient material at a specific location for processing or assembly (e.g., manipulators, hoists, turntables).
3. Unit Load Formation Equipment: Used to build or disassemble unit loads (e.g., pallets, containers, stretch wrappers).
4. Storage Equipment: Used for holding materials (e.g., racks, shelving, carousels, automated storage/retrieval systems (AS/RS)).
Evaluation of Material Handling System
The performance of an MH system is evaluated based on metrics such as:
· Material Handling Cost per Unit: Total handling costs divided by the number of units moved.
· Ratio of Non-Productive Time: The percentage of time spent moving materials versus processing them. A lower ratio is better.
· Space Utilization: Storage capacity achieved per unit area or volume.
· Equipment Utilization: Actual operating hours divided by available hours.
· Safety Record: Accident frequency and severity rates related to handling operations.
Guidelines For Effective Utilization of Material Handling Equipment
To maximize the return on investment in MHE:
1. Maintain Equipment: Implement a robust preventive maintenance schedule to ensure maximum uptime.
2. Operator Training: Ensure all operators are fully trained in the safe and efficient use of the specific equipment.
3. Match Equipment to Load: Never use equipment for loads exceeding its design capacity or for materials it is not suited to handle.
4. Minimize Empty Travel: Design routes and schedules to reduce the frequency and distance of empty return trips.
5. Standardize: Limit the variety of MHE to simplify maintenance, training, and spare parts inventory.
Relationship between Operational Layout and Material Handling Equipment
The layout of a facility (operational layout) and the choice of MHE are interdependent.
· Fixed Layout (Process Layout): If machinery is grouped by function (e.g., all lathes together), handling often relies on flexible equipment like forklifts and industrial trucks, requiring wider aisles and dynamic routing.
· Product Layout (Assembly Line): If machinery is arranged sequentially to match the product flow, handling often relies on fixed equipment like conveyors, requiring precise spacing and integration with machinery.
· Cellular Layout: MHE might be minimized within the cell (e.g., gravity feed), but movement between cells often uses unit load carriers.
A poor layout will drastically increase handling costs, regardless of the equipment used. The best strategy is to design the layout to minimize the need for material handling in the first place.
Chapter 2: MATERIALS MANAGEMENT
a) Introduction and Meaning
Materials Management (MM) is the centralized organizational function responsible for the planning, acquisition, storage, movement, and control of materials from the initial raw material stage through to the shipment of finished goods. Its goal is to provide the required service at the least cost.
b) Functions of Material Management
Key functions include:
1. Material Planning and Control: Determining the quantity and timing of material needs.
2. Purchasing: The procurement of raw materials, components, and services.
3. Inventory Control: Managing stock levels to balance costs and service.
4. Logistics and Distribution: Managing the physical flow and transportation of materials.
5. Standardization and Simplification: Reducing the variety of materials used.
6. Value Analysis/Engineering: Systematic cost reduction.
7. Store Keeping and Material Handling: Physical custody and movement.
c) Material Planning and Control (Techniques of Material Planning)
Material Planning determines what, how much, and when materials are needed.
Techniques of Material Planning:
· MRP (Material Requirements Planning): A system that calculates the required components, subassemblies, and materials needed to manufacture a product by a specific date, based on the Master Production Schedule (MPS) and Bills of Material (BOM).
· ERP (Enterprise Resource Planning): An integrated software system that manages and integrates all core business processes, including materials, human resources, finance, and manufacturing.
· Forecasting: Using historical data, market research, or statistical methods to predict future material demand.
d) Purchasing
Purchasing involves the acquisition of goods and services needed for organizational operations.
Practical Purchasing Skills - Theory, Practice, and Techniques:
· Theory: Understanding market dynamics, demand forecasting, and legal aspects of procurement.
· Practice: Executing the procurement cycle (requisition, quotation, negotiation, order placement, follow-up).
· Techniques: Competitive bidding, sealed tenders, negotiation tactics, and e-procurement platforms.
Strategic Procurement Skills:
· Moving beyond transactional purchasing to align procurement activities with the company's long-term business goals. This involves total cost of ownership (TCO) analysis rather than just unit price.
Supplier Relationships: The Total Management Process:
· Developing, maintaining, and improving relationships with key suppliers. This ranges from adversarial (multiple sources, low price focus) to collaborative/partnership (single sourcing, focus on mutual development, quality, and long-term value). The goal is to integrate the supply chain for mutual benefit.
e) Logistic Management
Logistics Management is the part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption.
Logistic Analyst:
· A professional who uses analytical tools to optimize logistics operations (transportation, warehousing, inventory). They analyze data to identify bottlenecks, cost-saving opportunities, and service improvements.
Store Management:
· The function concerned with the physical control and custody of materials. It includes receiving, inspection, proper storage (location, climate control), issuing, and accounting for all items in the store.
Advanced Materials Storage Management - Policy and Process:
· Involves using technology (e.g., barcoding, RFID, automated systems) and defined policies (e.g., FIFO, LIFO, FEFO) to manage high-value or critical materials efficiently. Key policies focus on security, accessibility, inventory accuracy, and space optimization.
Identifying and Implementing Business Process Improvements (BPI):
· Continuously reviewing and enhancing logistics processes using methodologies like Lean or Six Sigma to eliminate waste, reduce lead times, and improve service reliability.
f) Inventory Control
Inventory control manages the stock of materials to ensure the right items are available at the right time, while minimizing the cost of holding inventory.
Integrated Inventory Management:
· Treating inventory not as a standalone function but as part of a larger system, integrating it with purchasing, production, and distribution planning to maintain optimal flow across the supply chain.
Managing Risk:
· Holding buffer stock against unexpected events (demand spikes, supply disruption). Techniques include safety stock calculation, supplier diversification, and demand sensing.
How to Reduce Inventory Levels - Some Practical Solutions:
· Improve Forecasting: Use better data and advanced techniques to predict demand more accurately.
· Reduce Lead Times: Work with suppliers and internal teams to cut down the time between ordering and receiving materials.
· Implement JIT/Lean Practices: Only order/produce what is needed, when it is needed.
· Standardize Materials: Reduce the need to stock multiple varieties of similar items.
g) Standardization, Codification and Variety Reduction
· Standardization: The process of establishing specifications, quality, and performance requirements for materials, products, practices, or processes. It ensures consistency and interchangeability.
· Codification: Assigning a unique numeric or alphanumeric code to every item in the inventory. This simplifies identification, facilitates computerization, and prevents duplication.
· Variety Reduction: Decreasing the number of different components, materials, or sizes used in production while maintaining functional requirements. This simplifies design, purchasing, inventory, and production.
h) Value Analysis (VA)
Value Analysis is an organized, systematic approach directed at analyzing the function of a product or service with the purpose of achieving the required function at the lowest overall cost consistent with performance, reliability, and quality requirements. The steps are: Information gathering, Functional analysis (defining the "verb-noun" function), Creative generation of alternatives, Evaluation, and Recommendation.
i) Ergonomics
The science of fitting the job to the person. In materials management, ergonomics focuses on designing material handling tasks, equipment interfaces, and storage layouts to maximize operator efficiency and safety while minimizing fatigue and discomfort. This includes proper lift height, equipment control design, and workstation setup.
j) Just In Time (JIT)
JIT is a philosophy of production where materials, components, and goods are produced or purchased only when they are needed, in the exact amounts needed, thereby minimizing inventory and eliminating waste.
Seven Wastes (Muda) & Benefits of JIT:
JIT aims to eliminate the seven types of waste (Muda) that inflate costs and production time:
1. Transportation: Unnecessary movement of materials.
2. Inventory: Excess stock of raw materials, WIP, or finished goods.
3. Motion: Unnecessary movement by people.
4. Waiting: Time spent waiting for materials, equipment, or information.
5. Overproduction: Producing more than is immediately required.
6. Over-processing: Doing more work on a product than required by the customer.
7. Defects: Effort involved in inspecting and fixing errors.
Benefits of JIT: Reduced inventory holding costs, shorter lead times, improved quality (as problems are exposed quickly), less space utilization, and higher production flexibility.
Chapter 3: WORK STUDY & QUALITY CONTROL
WORK STUDY
Work study is a management technique that involves two primary areas: Method Study (for improving the way work is done) and Work Measurement (for determining the time required to do the work).
a) Advantages of Work Study
1. Increased Productivity: By finding the most efficient method and standardizing the time required.
2. Improved Efficiency: Optimizing resource utilization (labor, machines, materials).
3. Reduced Manufacturing Costs: Eliminating non-value-added activities (waste).
4. Better Working Conditions: Implementing ergonomic and safer work methods.
5. Improved Labor Relations: Establishing fair and objective performance standards.
6. Basis for Planning and Control: Providing reliable time standards for scheduling, budgeting, and performance management.
b) Method Study
Method study (or motion study) is the systematic recording and critical examination of existing and proposed ways of doing work, as a means of developing and applying easier and more effective methods and reducing costs.
Procedure (The 8 Steps): Select, Record, Examine, Develop, Evaluate, Define, Install, Maintain (SREDEDIM). Recording techniques heavily rely on charts and diagrams using standard symbols.
c) Motion Study
Motion study is a detailed analysis of body movements used in performing a task, with the aim of eliminating unnecessary or inefficient motions. It often involves the use of Therbligs, which are 18 basic elements of movement or mental activity used in nearly all manual operations (e.g., Reach, Grasp, Search, Hold, Transport Loaded).
d) Work Measurement
Work measurement is the application of techniques designed to establish the time for a qualified worker to carry out a specified job at a defined level of performance.
e) Time Study
Time study is the most common technique of work measurement. It involves:
1. Selecting the task and worker to be observed.
2. Recording the task's elements and their duration using a stopwatch.
3. Rating the worker's performance (speed/effort) compared to a defined standard.
4. Applying Allowances (for fatigue, personal needs, and unavoidable delays) to the normal time to calculate the Standard Time.
QUALITY CONTROL
a) Introduction
Quality Control (QC) is a process through which a business seeks to ensure that product quality is maintained or improved. It involves checking and testing the product, process, or service against predefined standards.
b) Fundamental Factors Affecting Quality
1. Management Policies: Commitment to quality from the top.
2. Machinery and Equipment: Capability and precision of tools used.
3. Materials: Quality and consistency of raw inputs.
4. Manpower (People): Skills, training, and attitude of employees.
5. Methods: The processes and procedures used to produce the product.
6. Measurement: The tools and techniques used to assess quality. (Often called the 6 Ms).
c) Need for Controlling Quality
Controlling quality is necessary to:
· Meet customer specifications and expectations, leading to customer satisfaction.
· Reduce internal costs associated with rework, scrap, and warranty claims.
· Maintain a positive brand image and reputation.
· Ensure compliance with regulatory standards.
· Improve efficiency by identifying and fixing root causes of defects.
d) Types of Inspection
· 100% Inspection: Every single item is checked. Used for critical components or low-volume, high-value items.
· Sampling Inspection: Only a representative sample of a batch is checked. Used for large batches where 100% inspection is costly or destructive.
e) Types of Quality Control
· Process Control: Monitoring the production process itself to prevent defects from occurring.
· Product Control: Inspecting the finished product to filter out defects before shipment.
· Statistical Quality Control (SQC): Using statistical methods (like control charts) to monitor and manage quality during production.
f) Steps in Quality Control
1. Determine Standards: Define the quality characteristics and acceptable limits.
2. Measure Performance: Inspect the product or process to determine its current quality level.
3. Compare: Compare the measured performance to the established standards.
4. Corrective Action: Take necessary action to adjust the process if the performance deviates from the standard.
g) Tools for Quality Control
These are graphical and statistical techniques used to analyze processes and solve quality problems (often called the Magnificent Seven Tools):
1. Check Sheet: Simple forms to collect data reliably.
2. Pareto Chart: Bar graph that shows which factor is the most significant, following the 80/20 rule (80% of problems come from 20% of causes).
3. Cause-and-Effect Diagram (Fishbone/Ishikawa): Used to brainstorm and visually display all possible causes for a specific problem.
4. Histogram: Bar graph showing the frequency distribution of a variable.
5. Scatter Diagram: Shows the relationship between two variables.
6. Control Chart: Graph used to study how a process changes over time and distinguish between common (random) and special (assignable) causes of variation.
7. Flow Chart: Diagram of the steps in a process.
Chapter 4: MAINTENANCE MANAGEMENT
Maintenance Management is the organization of a company's resources to maintain equipment or systems in an operative condition or to restore them to an operative condition.
a) Objectives of Maintenance
1. Maximize Equipment Uptime: Ensuring machines and equipment are available to meet production schedules.
2. Minimize Maintenance Costs: Achieving maintenance goals at the lowest total cost (including cost of downtime).
3. Ensure Safety: Maintaining equipment to prevent hazards and ensure a safe working environment.
4. Protect Assets: Extending the useful life of plant and machinery.
5. Preserve Product Quality: Ensuring equipment operates within the necessary precision tolerances.
b) Types of Maintenance
Breakdown (Corrective) Maintenance:
· Maintenance performed after equipment has failed. It is reactive, often unplanned, and typically the most expensive form due to associated downtime, potential safety risks, and expedited parts costs.
Preventive Maintenance (PM):
· Maintenance performed based on a fixed schedule (e.g., time-based, usage-based) to reduce the likelihood of equipment failure. Examples include changing oil every 1,000 hours or lubricating components weekly.
Predictive Maintenance (PdM):
· Maintenance performed based on the actual condition of the equipment. Condition monitoring tools (e.g., vibration analysis, thermal imaging, oil analysis) are used to detect early signs of failure, allowing maintenance to be scheduled precisely before failure occurs.
c) Maintenance Planning & Scheduling
Planning involves determining what resources (manpower, tools, parts) are needed for a maintenance task and how the job should be executed (procedures, safety protocols).
Scheduling involves determining when the planned maintenance work will be performed, coordinating it with production schedules to minimize disruption. Effective scheduling ensures all necessary resources are available at the right time.
d) Repair, Upkeep and Maintenance
· Maintenance: A broad term covering all activities (PM, PdM, Corrective) aimed at keeping equipment in a specified operating condition.
· Upkeep: Routine, minor tasks necessary to preserve the equipment's condition (e.g., cleaning, lubrication, tightening bolts). Often falls under PM.
· Repair: The specific action taken to restore a failed or degraded piece of equipment back to its operational state (a core activity of Corrective Maintenance).
e) Best Maintenance Practices
1. Reliability-Centered Maintenance (RCM): Focuses maintenance efforts on components that are most critical to system reliability and safety.
2. Total Productive Maintenance (TPM): A philosophy that engages all employees (production, maintenance, management) in maximizing equipment effectiveness.
3. Root Cause Analysis (RCA): Systematically identifying the true cause of a failure to prevent recurrence, rather than just treating the symptom.
4. Standardized Work Orders: Using a consistent process for documenting, executing, and closing out all maintenance tasks.
f) Computer Aided Maintenance (CMMS/EAM)
Computerized Maintenance Management Systems (CMMS) or Enterprise Asset Management (EAM) software is used to manage maintenance operations. CMMS/EAM systems help with:
· Generating and tracking work orders.
· Managing spare parts inventory.
· Scheduling preventive maintenance tasks.
· Analyzing maintenance history and costs.
· Storing equipment documentation and technical manuals.
Chapter 5: WASTE MANAGEMENT, PACKAGING AND DISTRIBUTION MANAGEMENT
WASTE MANAGEMENT
a) Introduction and Meaning
Waste management refers to the activities and actions required to manage waste from its inception to its final disposal. This includes the collection, transport, treatment, and disposal of waste materials. It is essential for minimizing resource use and environmental impact.
b) Reasons for Generation and Accumulation - Obsolete and Surplus
Materials become waste due to:
· Obsolete Materials: Items that are no longer needed due to changes in technology, product design, or manufacturing processes (e.g., old computer chips, tools for discontinued products).
· Surplus Materials: Items held in excess of current or future needs due to over-ordering, poor forecasting, or changes in production volume.
· Scrap: By-products or residues from the manufacturing process (e.g., metal shavings, plastic off-cuts).
· Defects/Rework: Products that do not meet quality standards.
c) Taxonomy of Waste
Waste can be classified based on its source (industrial, municipal), physical state (solid, liquid, gaseous), characteristics (hazardous, non-hazardous), or by type (paper, plastic, metal, organic).
d) Waste and Productivity
Waste directly reduces productivity because it represents resources (material, labor, time, energy) consumed without adding value to the final product. Eliminating waste (a core principle of Lean management) is the most effective way to improve productivity.
e) Functional Classification of Waste
1. Production Waste: Scrap, defective units, rejected components.
2. Process Waste: Excessive energy consumption, water use, or pollution generated during manufacturing.
3. Inventory Waste: Waste due to holding excessive stock (theft, obsolescence, damage).
4. Administrative Waste: Unnecessary paperwork, inefficient procedures, or poor communication.
f) Control of Waste
The most effective strategy for waste control follows the Waste Management Hierarchy:
1. Reduce: Preventing waste generation at the source (e.g., using less material, improving processes).
2. Reuse: Using materials or products again for the same or a different purpose.
3. Recycle: Processing waste materials to create new products.
4. Recover: Energy recovery from waste.
5. Dispose: Final disposal (landfilling or incineration without energy recovery).
g) Recycling of Waste
The process of converting waste materials into new materials and objects. This conserves raw materials, reduces energy consumption compared to virgin production, and lowers the volume of waste sent to landfills.
h) Disposal of Waste
The final stage of waste management for materials that cannot be reduced, reused, or recycled. Methods include:
· Landfilling: Burying waste in designed and regulated sites.
· Incineration: Controlled burning of waste, which can reduce volume and sometimes generate energy.
· Composting: Biological decomposition of organic waste.
i) Treatment of Waste in Cost Accounts
Waste materials are treated differently in financial accounting:
· Scrap (Recoverable): The sales value of scrap material is typically credited to the production cost or treated as 'other income'.
· Defective Units: Costs associated with inspection, rework, and correction are absorbed by the cost of the good output, or written off as a loss if the defect rate is high.
PACKAGING AND DISTRIBUTION MANAGEMENT
a) Packaging
Packaging involves the design, evaluation, and production of packages. Its functions are:
1. Containment and Protection: Protecting the product from damage during transit and storage.
2. Safety and Security: Preventing tampering or loss.
3. Convenience: Facilitating handling, stacking, and display (e.g., unit loads).
4. Information and Marketing: Communicating product details, instructions, and brand message.
b) Transport
Transport management focuses on the movement of goods between locations. Key considerations include:
· Mode Selection: Choosing the best transport mode (road, rail, air, sea, pipeline) based on cost, speed, distance, and product characteristics.
· Carrier Management: Negotiating rates, tracking shipments, and ensuring service quality.
· Route Optimization: Using technology to find the most efficient travel paths.
c) Physical Distribution
Physical Distribution Management (PDM) involves all activities related to the flow of finished products from the end of the manufacturing process to the customer. It integrates:
1. Customer service requirements.
2. Transportation.
3. Inventory control (finished goods).
4. Warehousing and storage.
5. Order processing.
6. Packaging and material handling.
d) Information and Technology Integration in Materials Management
Modern materials management relies heavily on integrated technology:
· WMS (Warehouse Management Systems): Software to control and manage inventory movement and storage operations within a warehouse.
· TMS (Transportation Management Systems): Software to plan, execute, and optimize the physical movement of goods.
· RFID and Barcoding: Automated data capture technologies for real-time tracking of materials and assets.
· ERP Systems: Providing a single database for integrating all functional areas (purchasing, inventory, production, finance), enabling better decision-making and flow visibility across the supply chain.
Important Questions for Full Subject:
Chapter 1: MATERIAL HANDLING
1. Definitions and Objectives: Define Material Handling (MH) and list the five primary objectives of an efficient MH system in a manufacturing facility.
2. MH Principles: Explain the 'Unit Load Principle' and the 'System Principle' in the context of material handling. How does adherence to these principles reduce operational costs?
3. Selection Criteria: What factors should a manager consider when selecting new material handling equipment (MHE) for a warehouse? Provide examples of two distinct equipment types and explain why they would be chosen over the other.
4. Evaluation Metrics: List and describe three key metrics used to evaluate the performance and efficiency of an existing material handling system.
5. Layout Relationship: Discuss the interrelationship between the operational layout (e.g., Product Layout vs. Process Layout) and the selection of material handling equipment. Use specific examples of equipment suited for each layout type.
6. Utilization Guidelines: Outline three practical guidelines for the effective and safe utilization of expensive material handling equipment.
Chapter 2: MATERIALS MANAGEMENT
1. Core Functions: Explain the scope and core functions of Materials Management (MM). How does centralized MM benefit a large organization?
2. Material Planning: Describe the difference between Material Requirements Planning (MRP) and Enterprise Resource Planning (ERP). Why is accurate forecasting essential for material planning?
3. Strategic Purchasing: Distinguish between tactical/transactional purchasing and strategic procurement. What does 'Total Cost of Ownership (TCO)' entail in a strategic procurement scenario?
4. Supplier Management: Compare and contrast an adversarial (competitive) supplier relationship with a collaborative (partnership) supplier relationship. Which approach is generally preferred for critical components, and why?
5. Inventory Control: Explain the concept of safety stock and why it is necessary even with good demand forecasting. Describe three practical solutions an organization can implement to reduce its overall inventory levels.
6. Codification and Standardization: Define Codification and Standardization. Explain how variety reduction contributes to lower inventory costs and simpler purchasing.
7. Value Analysis: Outline the systematic steps involved in conducting a Value Analysis (VA) exercise. If the primary function of a bolt is "to hold," give an example of an alternative idea generated during the creative phase of VA.
8. Just In Time (JIT): What is the fundamental goal of the Just-In-Time (JIT) philosophy? List and briefly explain four of the 'Seven Wastes (Muda)' that JIT aims to eliminate.
9. Logistics: Define Logistics Management. Describe the primary responsibilities of a Logistics Analyst in optimizing a distribution network.
10. Ergonomics: Why is the application of ergonomic principles important in warehouse and storage management?
Chapter 3: WORK STUDY AND QUALITY CONTROL
Part A: Work Study
1. Work Study Advantages: State four major advantages that a company can gain by implementing a comprehensive Work Study program.
2. Method Study Process: Explain the primary purpose of Method Study. Outline the main steps of the Method Study procedure (SREDEDIM).
3. Motion Study & Therbligs: Explain what Motion Study seeks to achieve. Define and provide examples of two fundamental "Therbligs" used in analyzing manual operations.
4. Time Study Calculation: Explain the process of determining the Standard Time for a task, clearly defining the role of 'Performance Rating' and 'Allowances' in the calculation.
Part B: Quality Control
1. Quality Factors: Discuss the '6 Ms' (Fundamental Factors) that significantly affect the quality of a manufactured product.
2. Need for QC: Explain the economic and customer-related reasons that necessitate the continuous control of quality in any business.
3. Inspection Types: Compare and contrast 100% inspection versus Sampling Inspection, and suggest when each method would be most appropriate.
4. Quality Control Steps: List and briefly explain the four essential steps in the Quality Control process.
5. The Seven Tools: Describe the utility and application of the following two Quality Control tools:
o Pareto Chart:
o Cause-and-Effect Diagram (Fishbone Diagram):
Chapter 4: MAINTENANCE MANAGEMENT
1. Maintenance Objectives: What are the three primary objectives of effective Maintenance Management? How do these objectives align with overall production goals?
2. Maintenance Types Comparison: Compare and contrast Breakdown Maintenance and Preventive Maintenance in terms of cost, planning, and impact on production uptime.
3. Predictive Maintenance (PdM): Explain the core concept of Predictive Maintenance (PdM). Provide examples of the condition monitoring techniques used in PdM (e.g., vibration analysis).
4. Planning vs. Scheduling: Clearly distinguish between Maintenance Planning and Maintenance Scheduling. Why must these two functions be coordinated?
5. Best Practices: Explain the philosophy and key elements of Total Productive Maintenance (TPM).
6. CMMS: Describe the role and benefits of a Computerized Maintenance Management System (CMMS) in a modern facility.
Chapter 5: WASTE MANAGEMENT, PACKAGING AND DISTRIBUTION MANAGEMENT
Part A: Waste Management
1. Waste Generation: Explain the difference between 'obsolete' and 'surplus' materials, and how each contributes to accumulation and waste.
2. Waste Hierarchy: Draw and explain the Waste Management Hierarchy. Why is 'Reduction' considered the most important level?
3. Waste and Productivity: Discuss how different functional classifications of waste (e.g., Production Waste, Administrative Waste) negatively impact overall organizational productivity.
4. Cost Accounting: How is the value realized from the sale of recoverable scrap materials typically treated in cost accounts?
Part B: Packaging and Distribution Management
1. Packaging Functions: List and explain the three main functions of effective industrial packaging, beyond mere containment.
2. Physical Distribution: Define Physical Distribution Management (PDM). List the three major components integrated under PDM.
3. Transport Mode Selection: What criteria should a logistics manager use to determine the optimal mode of transport (e.g., rail vs. air) for a product shipment?
4. Technology Integration: Explain how the integration of Information Technology (such as ERP and WMS) enhances visibility and efficiency within Materials Management and Distribution.
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