62264656 industrial management

INDUSTRIALMANAGEMENT

Syllabus

• Unit-I Industrial inputs-1 Land: Industrial access, technology parks,SEZ etc, Role of government agencies in providing assistance, location related decision.

• 2 Raw material: General understanding about important properties and uses of ferrous and non-ferrous metals, plastics rubber, ceramics, timber and composites.

• 3.Energy: basic concept of power, Electricity-modes of generation, transmission and distribution, single Phase and three phase supply.

• 4.Machine: Introduction to basic machines for forming, removal and joining

Syllabus

Unit-II operations- Production concept of conversion, processes and value-chain ,types of production system and relevant layout, concept of production planning and control.

Unit- III supporting techniques: concept of quality, fundamental treatment of SQC,TQM and ISO9000, plant maintenance ;breakdown and preventive maintenance, Industrial safety, value Engineering.

INTRODUCTION OF INDUSTRIAL MANAGEMENT

HUMAN OCCUPATION

SERVICES BUSINESS PROFESSION

COMMERCE INDUSTRY

INDUSTRIES DIVIDED INTO FOUR PARTS

INDUSTRY

GENETIC IND. MANUFACTURING CONSTRUCTIVE EXTRACTIVE

MANUFACTURING INDUSTRY DIVIDED INTO FOUR PARTS

MANUFACTURING INDUSTRY

ASSEMBLY LINE SYNETHETIC PROCESSING UNIT ANALYTICAL IND.

CAR,SCOOTER,T.V.,ETCCEMENT INDUSTRIES

SUGAR AND TEXTILE INDUSTRIESOIL REFINERY INDUSTRIES

COMMERCE DIVIDED INTO SEVEN PARTS

COMMERCE

FINANCE BANKING

WAREHOUSE PACKING

TRANSPORT TRADE

ADVERTISING

TRADE DIVIDED INTO THREE PARTS

TRADETRADE

EXPORTEXPORT IMPORTIMPORT ENTREPOTENTREPOT

ENTREPOT MEANS EXCHANGE BETWEEN FOREIGN PRODUCER AND FOREIGN CONSUMER.

Industries

• INDUSTRIES ACC TOSIZE

HEAVY LIGHT

HEAVY INDUSTRY – BIG CAPITAL AND LONG PRODUCTION CYCLE.EG. IRON, STEEL,SHIP-BULDING,ALUMINUM INDUSTRY

LIGHT INDUSTRY- SMALLER INVESTMENT AND SHORT DURATION PRODUCTION CYCLE.

EG-BISCUIT INDUSTRY,MINERAL INDUSTRY ETC.

INDUSTRY

IN 17 FEB 1999,VAJPAI GOVERNMENT

WAS DECIDED NEW INVESMENT RATES

IN PLANT AND MACHINERY.

INDUSTRY

COTTAGE IND. SMALL SCALE IND. MEDIUM AND LARGE SCALE IND.

(1)UPTO 25 LACS(2)UPTO 1CRORE AND SELECTED 65 INDUSTRIES UPTO 5 CRORE

(3)MORE THAN 1 CRORE

INDUSTRIES

• PRIMARY INDUSTRY : Agro based

• SECONDARY INDUSTY : Manufacturing industries.

• TERRITORY INDUSTRY : Hotels, transports, finances, banking.

Evaluation of business:

• Primitive stage: Exchange system.

• Agrarian economy stage – Not produce for only self consumption.

• Handicraft system – (Artisans group). They produced according to the requirement of local people and worked on the basis of yearly payment. At that time transportation does not take place.

EVOLUTION OF BUSINESS

• Guild, Gilds and craft – Merchant, traders training provided to new workers. Head, master, apprentices and journey man.

• The domestic system / putting out system – producer and consumer enter between 18 to 19 century –

– Development of engineering. – Development of coal mining. – Revolution in iron making.– Revolution in transportation. – Use of steam power in textile. – Rise of chemical industries.

EVOLUTION OF BUSINESS

• Machine age, the factory system, atomic age, space age and electronic age: last 40 years:

– Mass production – Mechanization / automation. – Standardization /MIS/Expansion of internation at trade. – Aggregation – Increase in the size of industrial establishment

and industrial power. – Research and development. – Competition. – Growth of capitalism. – Trade cycle. – Social and political change.

– Money become supreme, living of std. high.

INTRODUCTION OF INDUSTRIAL MANAGEMENT

• Note: Rules and regulation applied on these units: (1) In any industry 10 labours worked with machine. (2) In any industry 20 labours work without machine. • Characteristic of business: (1) Sale, transfer or exchange for the satisfaction of

human needs. (2) Dealings in goods and services. (3) Recurrence of transactions. (4) Profit motive. (5) Element of risk.

CHARACTERISTIC OF BUSINESS

TRANSACTIONTRANSACTION

RECURRENCESRECURRENCES PROFITPROFIT

RISKRISK

SALESALE

INDUSTRYINDUSTRY

Difference between in the term of plant, firm and industry

• Plant also the workers who are engaged in the production of goods and supply of services we use the term mill or factory for a plant.

• Firm: It is used in a broader sense and means the concern which owns and manages the plant, and in addition, arrange for marketing of the products. It is not only the technical unit but includes the units of finance, management and enterprises too.

• For example: “XYZ” company Ltd owns three textile mills. One chemical works and 2 sugar factories. The collection of all these plants under one organization makes a firm.

• Industry: The collection of firms which either use the same raw material or manufacture the same product, even if they use different

raw materials such as a textile mills.

Difference between in the term of plant, firm and industry

• For example: “XYZ” aeroplane manufactures Co. Ltd a number of parts are now bring manufactured by firm which do not assemble the airplane and the number of firms making such part is so large that they have come to be known as a separate industry.

Business as a system:

The business system

Industry Commerce Business firm Personnel Finance Production Marketing

Goods and services

Society or environmental factor

Some factors which are effects the business:

• Land and natural environment.• Science and the arts • Government and law • Money • Credit and capital • Labors and human resources • Consume and the public • Religious beliefs • International relations • Other environmental factors

Feedback of Business system

Inputs

Outputs

Business

Society

Human ,Physical & Financial resources

Wages, Goods, ServiceTaxes

FEEDBACK

Management of business

Management Utilizes

Man, money, machine, method and material To provide

Good and services For

Customer Who provide

Sale revenue which provide funds for

Profit for owner and repeating operating cycle

OBJECTIVES OF BUSINESS

• ORGANIC:

PROFIT

GROWTH

PRESTIGE &RECONGITION

SURVIVAL

OBJECTIVES OF BUSINESS

• Economic – Profit, creation of customer innovation – growth, expand and change in the economy.

• Social – Supply desired quality of goods, providing employment, avoidance of profiteering and anti social practices.

• Human – Fair deal, development of human resources, inviting suggestion and participation job satisfaction.

• National – Ensuring social justice, development of small entrepreneurs, production according to national need, national self sufficiency and export development. Development of skilled personnel.

BUSINESS AND ITS ENVIRONMENT

GOV.

CUSTOMER

COMPETITOR

EDITOR

EMPLOYEE

SHARE-HOLDER

THE BUSINESS FIRM

How to success in modern business:

• Determination of objectives.

• Planning and setting up of a proper organization.

• Adequate finance.

• Proper location, layout and size.

• Facilities for research.

• Efficient and dynamic leadership

Qualities of a good businessman:

• Idealism. • Foresight • Initiative and capacity to take prompt decisions • Business morality• Firmness and courage • Aptitude for research and analysis • Personal qualities – tact's patience’s charming.

Business and economic system

• Capitalism – Own money + Own decision• Motive – Competition, profit, incentive loss of freedom,

unhygienic working condition, employment of children. • Socialism: Government involved• Motive – Co – operation. • Communism: The government owns the economic

resources and decides what is to be produced and how are these to be distributed.

• Object / Motive: Exploitation of the poor by the rich is to be stop.

• Mixed economy: Capitalism + communism

Terms used in industries

• Diversification: Means launching of a new and different product or services by the same unit with the help of new set of machines.

• Expansion: Investment in new land and building as well as plant.

• Modernization: Means any improvement in the existing industrial or service unit.

• Wages / Salary: Wages paid to employee basic pay + dearness allowance salary paid to employer.

• Basic pay + D.A + Medical + Overtime + Surrender leave + Overtime + Transport allowances + Any other allowances.

• Subsidy:

Terms

TERMS USED IN INDUSTRIES

• Workers : Means any person, other than the director, promoters, owners and partners.

• Exemptions: Excuse, free, let off.

• Implementation / interpretation – Clarification.

Taxes paid to the government like

• Taxes paid to the government like: • Sales tax • CST• VAT• Luxury Tax • Entertainment Tax • Electricity duty / Conversion charges • Income Tax• Mandy Cess etc.

Some institutes names which help the industries:

• DIC – district industrial center • Commercial or co-operative bank like IDBI• Small industries services institute • Entrepreneurship management institute • KVIC centre• SIC – State industrial center • RFC• RIICO – Rajasthan state industrial Development• & Investment Corporation Ltd.

Some institutes names which help the industries

• National small industries corporation ltd. • Bureau of India standard. • Directorate of marketing inspection• Field testing station • National test house • Vidhyut vitran nigam ltd• Inspector of factories (District) • Pollution control board (State)• Superintendent of central excise. • Commercial tax office.

CLASSIFICATION OF INDUSTRIAL GOODS

INDUSTRIAL GOODS

MATERIAL & PARTS Capital items Supplier and services

raw material manufacture

Farm products

Natural products

Components materials

Components parts

BUSINESS

COMMERICAL

JOINT SECTOR PUBLIC SECTORPRIVATE SECTOR

SOLE PROPRIETOR COLLECTIVE OWNERSHIP COMPANY CO- OPERATIVE

PATERNSHIP

COMPANY

CO-OPERATIVE SOCIETY

GENERAL

LTD

PRIVATE

PUBLIC

SOME ABOUT BUSSINESS

• According to Indian partnership act of 1932: No limits of partners companies Act 1956 – not more than 20 person for general and 10 person for banking

• Ltd partnership – European countries and U.S.A. England 1907.

• Private Co.: Minimum is 2 and less than 50, not allowed issues of shares and debentures in the public and restrictions the transfer of its shares.

• Public Co.: Minimum is 7, max. no limit allowed issues of shares and debenture and transfer of share allowed.

• Note: Joint Hindu Family Firm – Bengal and Assam, Hindu succession act of 1956 – wife will be partner of the firm after death of her husband.

• Gov. Co. : 51% of state government., central government.

SOME ABOUT BUSINESS

• Co-operative Organization: Min is 10, max – no limit –

• Consumer co. op. society • Producer co. op. society / industrial Co. Op. • Marketing co. op. society• Housing co. op. society• Co. Op. credit society • Co. op. farming society

Content of studies INDUSTRIAL MANAGEMENT

• Two professional lines to choose in Industrial Management, multicultural engineering -studies:

• a. Global Marketing and Management

• b. Supply Chain Management

Supply Chain Management

--- Supplier

PurchasingTransports

Customer --- Replenishment planning

Order FullfilmentTransports

Manufacturing

Demand Planning

Global Marketing and Management

CUSTOMER RELATIONSHIP MANAGEMENTCROSS CULTURAL PROJECT MANAGEMENT

INTERNATIONALBUSINESS ENVIRONMENT

Political, SocialEconomical, Technical

MARKETING & SALESProduct,Price

Placement,Promotion

Industrial Engineering and management

“IE is concerned with the design, improvement and installation of integrated system of man, materials and machines involved in production and distribution of products”.

It is an engineering approach to the detailed analysis of the use and cost of the resources of an organization.

Introduction of industrial management

• Industrial engineering: the branch of engineering that deals with the creation and management of systems that integrate people and materials and energy in productive ways.

• Industrial organization is a field of economics that studies the strategic behavior of firms, the structure of markets and their interactions. ...


• industrial management, term applied to highly organized modern methods of carrying on industrial, especially manufacturing, operations.

• Synonyms:• industrial engineering; industrial management• Hyponyms ("industrial management" is a kind

of...):applied science; engineering; engineering science; technology (the discipline dealing with the art or science of applying scientific knowledge to practical problems)


• Industrial management, in its most comprehensive meaning, refers to the systematic management of all aspects of the factory, and more specifically, to early studies of production efficiency known as scientific management

• The term came into use in the United States around the turn of the twentieth century, when the Industrial Revolution dramatically shifted methods of generating output from craftsmanship to mass production and

automation.

Introduction of Industrial Management

• The term "scientific" brought a patina of respectability to a field of study, which by its very nature contained some measure of dehumanization with regards to work methods.

• Frederick Taylor sought the "one best way to manage" by systematically recording the time to perform work elements that comprised a laborer's repetitive movements, while the Gilbreths developed "time and motion" studies.

• Henry Ford is credited with institutionalizing division of labor in factories with his development of the assembly line, an innovation that dramatically reduced the time it took to produce an automobile

Introduction of Industrial management

• In the early twenty-first century, the term "industrial management" became increasingly irrelevant as the nature and content of work shifted to computerization and other spheres of the economy the segment of management that seeks improvements in efficiency and productivity is known as service and operations management.

• Its most recent developments include integrated methods of management that contain elements of programmable technology, quality improvement, just-in-time delivery, lean production, and supply chain management.

Definition of industrial management

• Industrial management is concerned with the study of the methods and procedures of bringing a factory into existence, furnishing it with land, labour, plant and machines and capital, supported by managerial ability, producing quality goods at the lowest possible cost and yet earning adequate profits.

Examples

• the Ford Motor Company,

• Bethlehem Steel, and

• Western Electric.

• Elton Mayo conducting productivity studies at Western Electric in 1927-1932.

Need of industrial management

• To ensure maximum output with minimum cost of production.

• To ensure that activities of different individuals are coordinated to attain the common purpose in the factory.

• Goods are produced and delivered on the promised dates.

• Goods are manufactured in strict specification of customer’s orders.


• To prevent wastage and losses.

• Quality products.

• Utilization of full capacity of the factory.

• R &D.

• Innovation

• Industry is kept in perfect order.

• The required materials are obtained at the time of their requirement.


• Proper accounting, reporting and controlling the operations in the factory.

• To classify the function of a factory into various categories and entrust duties and responsibilities to all concerned so as to ensure specialization which increase the speed and accuracy of work.

Components of industry

• Manufacturing Departments

• Service Departments

• Assembly Departments

• Control Departments

Scope of industrial management

• Industry Planning

• Industry Organization

• Factory Management

• Materials Management

• Labor Administration

• Industry Control

Self Assessment Questions

• The factory is a place where……operation are carried on.

• According to Factories Act, factory is a premises where……workers are engaged if power is used.

• Industrial management is mainly concerned with…….

• The main objectives of industrial management is………..

Self Assessment Questions

• These are the …………….distinctive features of a factory.

• ………… component of the industry does a repair workshop.

• State the characteristic features of a modern industry.

• Explain the need for a sound industrial management.

Answers

• Production

• 10

• Formulating the policies of the factory

• Efficiency and economy in production

• Standardizations ,specialization and mechanization.

• Service department

The rise of Factories

• Before the Industrial Revolution people worked with hand tools, manufacturing articles in their own homes or in small shops. In the third quarter of the 18th cent. steam power was applied to machinery, and people and machines were brought together under one roof in factories, where the manufacturing process could be supervised. This was the beginning of shop management. In the next hundred years factories grew rapidly in size, in degree of mechanization, and in complexity of operation. The growth, however, was accompanied by much waste and inefficiency. In the United States many engineers, spurred by the increased competition of the post–Civil War era, began to seek ways of improving plant efficiency.

The Development of Industrial Management

Studies of Worker Performance• The first sustained effort in the direction of improved efficiency

was made by Frederick Winslow Taylor , Frederick Winslow, 1856–1915, American industrial engineer, b. Germantown, Pa., grad. Stevens Institute of Technology, 1883. He was called the father of scientific management.

• An assistant foreman in the Midvale Steel Company, who in the 1880s undertook a series of studies to determine whether workers used unnecessary motions and hence too much time in performing operations at a machine. Each operation required to turn out an article or part was analyzed and studied minutely, and superfluous motions were eliminated. Records were kept of the performance of workers and standards were adopted for each operation. The early studies resulted in a faster pace of work and the introduction of rest periods

Management of the Machine

• Industrial management also involves studying the performance of machines as well as people. Specialists are employed to keep machines in good working condition and to ensure the quality of their production. The flow of materials through the plant is supervised to ensure that neither workers nor machines are idle. Constant inspection is made to keep output up to standard.

• Charts are used for recording the accomplishment of both workers and machines and for comparing them with established standards. Careful accounts are kept of the cost of each operation. When a new article is to be manufactured it is given a design that will make it suitable for machine production, and each step in its manufacture is planned, including the machines and materials to be used.

Functional Sub-systems of Organizations

Functional subsystems

production

FinanceMarketing

Personnel

Subsystems

• Marketing function• Production function• Finance function• Personnel function• Question for discussion:

Discuss why a complete integration among all the

functional subsystems of the organization is

absolutely essential for their effective functioning

and an overall improvement of results?

Industrial engineering or production./operations management

• POM is the process which combines and transforms various resources used in the production/operations subsystem of the organization into value added products/services in a controlled manner as per the policies of the organization.

• Production/operations function: concerned with the transformation of a range of inputs into the required outputs (products/services) having requisite quality level

Subsystems

• Marketing function

• Production function

• Finance function

• Personnel function

• Question for discussion:

Discuss why a complete integration among all the

functional subsystems of the organization is

absolutely essential for their effective functioning

and an overall improvement of results?

Production management

• The set of interrelated management activities which are involved in manufacturing certain products is called as production management.

• If the same concept is extended to services management, then the corresponding set of management activities is called as operations management

• In general the concept of manufacturing products/providing services is called as production/operations management

Examples of productions/services

Productions (tangible)• Boilers• Constructing flats• Structural fabrication works• Cars, bus, radio, T.V.

Services (intangible)• Medical facilities/Clinical tests• Travel booking, arranging food for parties• Developing standard software, etc

Evolution of production/operations management

• Industrial revolution-18th century when Adam Smith developed the concept of division of labor

• Scientific Management of F.W. Taylor-in the early 20th century

• Human relations - from 1930 – 1960 by Elton Mayo, Abraham Maslow, Herzberg, McGregor

• Management science –(1947 – 1960), linier programming, digital computer, PERT, CPM, etc concepts,

• Quality revolution- (1970-1990), JIT, TQM, CIM (computer integrated manufacturing)

Decisions at different level of management to manage various subsystems

• Strategic decisions-by top level management- (defining goal, objectives, policies)

• Tactical decisions by middle management-(acquisition of resources, plant location, new products establishments, monitoring of budgets)

• Operational decisions by lower level management-(effective use of existing facilities/resources)

Concept of value addition

• Production/operation function adds value to the raw materials so that they become useful products for customers

• Take, for example, 100 square meter of brass sheet will have only its raw material value

• If the same brass sheet is converted in to say, 100 utensils, then the net worth of these 100 utensils would be far above the raw materials cost.

• The difference in these two values is known as value addition

Systems concept of production

Systems aspect of production/operations function

InputsLandLaborCapitalMaterial

OutputsGoodsServices

Conversion Process

Comparison:

Actual vs. desired

Monitor Output

Random Fluctuation

Adjustments needed?

Feedback

Source: Everett E. Adam Jr. and Ronald J. Ebert – Production and Operations Management

Techniques and procedures used in production/operation system

1 Forecasting

2 Location and layout techniques

3 Product design and analysis, work study

4 Production control techniques

(a) Aggregate planning

(b) Master production scheduling

(c) MRP

(d) Capacity planning

Functions of production and operations management

As production and operations management is a separate functional field of management, the main functions of production and operations manager are as follows:•Planning, Organizing, Controlling•Behaviors (know behaviors and interests of subordinates) •Modeling (use mathematical and quantitative techniques in decision making such as network analysis, liner programming, queuing theory, etc)

(reference: Regmi, LK… (2004). Production & operations man-mt., p. 3)

Types of production system

There are two types of production systems such as:

1. Intermittent production system (IPS)

2. Continuous production system (CPS)

IPS: primarily done for fulfilling the orders, not for stock.

Basic characteristics are:

Production facilities are flexible for variety of products, no

continuity in flow of material and resources, small

production quantity, unbalanced work load, high skilled

manpower, high process inventories, frequent changes in

planning & scheduling, high unit cost.

Job shop and batch production are related to this system.

Continuous production system (CPS)

•CPS is used for producing highly demanded products for stock, not for order.•Similar types of products are produced in large volume to meet sales forecast and market demand.•Materials, processes and technologies are standardized, fixed route and process should be followed.•Easy in planning, scheduling, controlling.•It is rigid because of standardization.•Example of Products are: biscuits, noodles, beers, televisions etc.

Two types of CPS are: Mass production system and Process production system.

Classification of the production system based on the type of flow

•Projects production (bridge construction, ship manufacturing, for example)

•Job shop (machine shop, furniture company, for example)

•Flow shop (auto assembly, for example)

•Continuous process (oil refining, power corporation for example)

Review Questions

1. Define production and operations management

2. Briefly discuss different products and services with suitable examples

3. Discuss the systems concept of production

4. Discuss different types of production systems with suitable example

5. Discuss IPOO model as a new system concept of production management

Industrial Inputs-Land

• What is an ideal location?

• An ideal location is one where the cost of the product is kept to minimum, with a large market share, the least risk and the maximum social gain. It is the place of maximum net advantage or which gives lowest unit cost of production and distribution. For achieving this objective, small-scale entrepreneur can make use of

locational analysis for this purpose.

Industrial Inputs-Land

• Location is very much linked to two competitive imperatives :

3.The need to produce close to the customer due to time-based competition, trade agreement, and shipping costs.

2.The need to locate near the appropriate labor pool to take advantage of low wage costs and/or high technical skills.

Land-Industrial Access

• The chief object of an industrial concern is to max profit through the minimum of cost of production.

• There are three theories:

1.Weber theory

2.Robinson theory

3.Predohl’s approach theory.

Weber theory

• According to weber theory two factors affect the decision.

Weber theory

• Primary factor : certain region or original regions.

• Secondary factor : cost of production which vary with different region.

• Acc to weber some others are also are primary factors like:

1.Agglomerative: eg: facilities of banking, credit,insurance,communication,etc.

Weber theory

2. Deglomerative factor: if sometimes rise in rent and rates etc then as a result some of units move there where rates are more economical.

3.Split location: An industry may be located at more than one place.

Criticism of weber theory

• He forget climate, historical factor,personal factor, level of taxation, state patronage etc.

• He assumes in the first place that centres of labour supply are fixed.

• He was also forget water, electricity and transport.

• Weber theory calculate transport facility

Cont…..

• depend upon weight and distance but transportation depend upon type of transport quality of goods and the rate of policy of the various agencies of transport.

• Mathematical co-efficient rather than costs and prices.

Robinson theory

• Factors : a place of consumption of the finished goods or commodity.

2. A place of origin of a raw materials.

Robinson theory

• Two type of Raw material:

1.Gross raw material or weight losing materials. Eg: coal

2.Pure raw material or non-weight losing material. Eg : cotton, wool.

Material index :

= weight of the localised material

Weight of the finished good

Predhol’s apporach theory

• Relocating the plant or shifting it from one place to another was only a variation of the law of substitution.

• Relocating of plant due to added advantage at the new location.

• Primary factors are raw material, market, fuel and power, transport and labour.

• Secondary factors are momentum of early

Cont….

• start.

• Facilities of transport, repair and maintenance, banking facilities.

• Industrial atmosphere.

• Special advantage of a place.

• Soil and climate.

• Personal factors

• Historical factor.

Cont….

• Political stability

• Special concessions and benefits-each state government has been trying to promote industrial development in relatively backward region by offering various concessions and incentives in the form of financial assistance like cheap land, tax, subsidy etc.

For examples:

• National and strategic consideration: balanced regional development of industry

• The industrial development and regulation act,1951.

• Industrial policy resolution of april,1956.

Textile- Rajasthan, Orissa, Assam and Punjab.

sugar and distilleries-AP, Chennai,mah

Examples

• Steel re-rolling mills in Assam, M.P,Kerla and North Bihar.

• Tyre and tube factories and electric lamp factories- Kerla.

• Note : light engineering industries the decision to sell steel at a uniform price at all rail-head.

Some formulas related to location decision

• Location Pattern:

= No. of workers employed in the industries

No. of workers employed in the industries all over the country

Cont….

• Dependence of a place upon a particular industries

= No. of workers employed in the industry in a particular place/ total no. of industrial workers in the place.

Launching enterprise

• Product analysis and market survey• Determining the size of the firm and plant • Location• Selection and organization of physical

facilities.• Financial planning • Building the organization structure • Government prohibit the setting up of

factories.

Launching enterprise

• MRTP and FERA ACT.

• Launching the enterprise- operation, production and advertising etc.

• Tax – Planning.

What is plant location?

• Plant location refers to the choice of region and the selection of a particular site for setting up a business or factory.But the choice is made only after considering cost and benefits of different alternative sites. It is a strategic decision that cannot be changed once taken. If at all changed only at considerable loss, the location should be selected as per its own requirements and circumstances.

LOCATIONAL ANALYSIS

(a) Demographic Analysis: It involves study of population in the area in terms of total population (in no.), age composition, per capita income, educational level, occupational structure etc.

(b) Trade Area Analysis: It is an analysis of the geographic area that provides continued clientele to the firm. He would also see the feasibility of accessing the

trade area from alternative sites.

LOCATIONAL ANALYSIS

(c) Competitive Analysis: It helps to judge the nature, location, size and quality of competition in a given trade area.

(d) Traffic analysis: To have a rough idea about the number of potential customers passing by the proposed site during the working hours of the shop, the traffic analysis aims at judging the alternative sites in terms of pedestrian and vehicular traffic passing a site.

LOCATIONAL ANALYSIS

e) Site economics: Alternative sites are evaluated in terms of establishment costs and operational costs under this. Costs of establishment is basically cost incurred for permanent physical facilities but operational costs are incurred for running business on day to day basis, they are also called as running costs.

Comparative Costs of Alternative Locations

Cost of establishments Site A (Rs) Site B (Rs)

Land and Buildings 350000 230000

equipments 60000 60000

Transport facilities 20000 30000

Cost of operations:

Materials, C& F 34000 24000

Taxes and insurance 10000 7500

labor 1,00,000 70,000

Water, power and fuel 10,000 8,000

Total 5,84,000 4,29,500

Issues in Land location

• Rural and urban area/ hills and plain area.

• Business climate

• Transport facility

• Communication facility

• Quality of labor

• Suppliers

• Proximity of customer

• Total costs

Issues in Land location

• Infrastructure

• Free trade zones

• Political Risk

• Government Barriers

• Environmental Regulation

• Competitive Advantage

• Water supply

• Tax policies and laws

SELECTION CRITERIA

a) Natural or climatic conditions.

b) Availability and nearness to the sources of raw material.

c) Transport costs-in obtaining raw material and also distribution or marketing finished products to the ultimate users.

SELECTION CRITERIA

d) Access to market: small businesses in retail or wholesale or services should be located within the vicinity of densely populated areas.

e) Availability of Infrastructural facilities such as developed industrial sheds or sites, link roads, nearness to railway stations, airports or sea ports, availability of electricity, water, public utilities, civil amenities and means of communication are important, especially for small scale

businesses.

SELECTION CRITERIA

f) Availability of skilled and non-skilled labor and technically qualified and trained managers.

g) Banking and financial institutions are located nearby.

h) Locations with links: to develop industrial areas or business centers result in savings and cost reductions in transport overheads, miscellaneous expenses

SELECTION CRITERIA

I )Strategic considerations of safety and security should be given due importance.

j) Government influences: Both positive and negative incentives to motivate an entrepreneur to choose a particular location are made available. Positive includes cheap overhead facilities like electricity, banking transport, tax relief, subsidies and liberalization. Negative incentives are in form of restrictions for setting up industries in urban areas for reasons of pollution

control and decentralization of industries.

SELECTION CRITERIA

k) Residence of small business entrepreneurs want to set up nearby their homelands.

Need for Plant Location

• When a new plant is to established

• Whenever the existing factory is not in a position to obtain renewal of lease.

• When an undesirable location is to be abandoned.

• When a new branch or branches are to be opened for increasing the volume of production or distribution or both.

Need for Plant Location

• In the case of established plants, the need for plant location arises when expansion, decentralization and decentralization and diversification is under- taken to meet the increased demand for its products.

• Shifting the market• Depletion of raw materials• Change in transportation facilities• New processes requiring a different are

observed in a factory.

PLANT LOCATION

• What is an ideal location?• An ideal location is one where the cost of the product is

kept to minimum, with a large market share, the least risk and the maximum social gain. It is the place of maximum net advantage or which gives lowest unit cost of production and distribution. For achieving this objective, small-scale entrepreneur can make use of locational analysis for this purpose.

Importance of Plant Location

• Factory to operate smoothy,efficiently and with the minimum cost.

• Stop wastage in every aspect technical, commercial and financial.

• Select a suitable site that may provide maximum advantages.

Steps in Plant Location

• Selection of the region or general area.

• Selection of the particular community.

• Selection of the exact plant site.

• For eg: four region- southern,northern,eastern or western then

Community- jaipur, ajmer, kishangarh,etc

exact plant site- urban, suburban and country site.

Factor Affecting Plant Location

Selection of Region

• Availability of raw materials

• Power and Fuel.

• Transport

• Market

• Meterological conditions and topography- climate factor and hilly and rocky region.

Selection of community

• Labor

• Supplementary and complementary industries.

• Banking

• Taxes

• Water

• Momentum of early start

• Personal factors

Selection of community

• Historical factors

• Political stability

• State assistance

Selection of plant site

• Price of land

• Type of soil

• Waste disposal

• Expansion potential

• Commercial services

• Communication

• Health of locality

• Statutory consideration

Selection of plant site

• Statutory considerations• Flood and drought experience• Right and title of the land• Good scenery• Attitude of local people• Technological Know-How• Religious and social Institutions• Availability of amenities.• Incentives offered by government.

Selection of most economic site

• Acc to “kimball” the most advantageous location is that at which the cost of gathering material and fabricating it plus the cost of distributing the finished product to the customer will be a minimum.

Selection of most economic site

Selection of actual site

• Fixed capital

• Cost of production and Distribution

1.Material cost

2.Labour cost

3.Overheads

Rate of return = total sales-total expenses

total investment 100

Recent trends in plant location

• To locate plants away from cities.

• The development of industrial estates

• Competition among states to develop industries.

• Trend towards decentralization

• Pollution control

• Location of industries leading to balanced regional development.

Recent trends in plant location

• Growth of multinational firms, thereby transcending the geographical areas of the country.

Categories of industrial estates

• Conventional or diversified industrial estates consisting of units manufacturing different types of unrelated products.

• Functional industrial estates dedicated to a particular discipline like ceramic, leather or electronics

• Ancillary estates feeding components and sub-assemblies to a large industrial undertaking.

Check your progress

1. The factor least important to consider when selecting a location for a new furniture store is

a. The weather of the community

b. The future of the community

c. The other businesses in the community

d. The age distribution of the population in the community

Check your progress

2. When selecting a site for a business it is important to :

a. Purchase the property when possible

b. Lease the property to avoid the problem of mortgage payments

c. Rent or buy the property, whichever must be done in order to obtain the specific site

d. Make comparisons between the rentals of neighboring stores and property for sale

Check your progress

3. After going through the above section, choose any five key words and explain

their meaning in your own words

a………………………………………………

b…………………………………………………

c………………………………………………….

d……………………………………………….

e…………………………………………………

Activity

• Talk to three entrepreneurs, one in manufacturing, one in trade and one in service business. Discuss with them to find out:

(a) The factors considered by them in the location decision.

(b) How have availability of transportation and labor affected their location decision?

• ………………………………………………………………………………………………………………………………………………………………………………………………………………..

Technology park

• A science park or science and technology park is an area with a collection of buildings dedicated to scientific research on a business footing. There are many approximate synonyms for "science park", including research park, technology park, technopolis and biomedical park.

Technology Park

• The appropriate term typically depends on the type of science and research in which the park's entities engage, but many of these developments are named according to which term gives the park the best profitability and naming advantages. Often, science parks are associated with or operated by institutions of higher education colleges and universities.

Differ from other park

• These parks differ from typical high-technology business districts in that science parks and the like are more organized, planned, and managed.

• They differ from science centres in being concerned with future developments in science and technology.

Differ from other park

• Typically businesses and organizations in the parks focus on product advancement and innovation as opposed to industrial parks that focus on manufacturing and business parks that focus on administration.

Facilities provided by Park

• Besides building area, these parks offer a number of shared resources, such as uninterruptible power supply, telecommunications hubs, reception and security, management offices, restaurants, bank offices, convention center, parking, internal transportation, entertainment and sports facilities, etc. In this way, the park offers considerable advantages to hosted companies, by reducing overhead costs with these facilities.

Benefits

• Science and technology parks are encouraged by local governments, in order to attract new companies to towns, and to expand their tax base and employment opportunities to citizens. Land and other taxes are usually waived off or reduced along a number of years, in order to attract new companies for the science and technological parks.

History of SEZ

• The world first known instance of SEZ have been found in an industrial park set up in Puerto Rico in 1947.

• In the 1960s, Ireland and Taiwan followed suit, but in the 1980s China made the SEZs gain global currency with its largest SEZ being the metropolis of Shenzhen.

• From 1965 onwards, India experimented with the concept of such units in the form of Export Processing Zones (EPZ). But a revolution came in 2000, when Murlisone Maran, then Commerce Minister, made a tour to the southern provinces of China. After returning from the visit, he incorporated the SEZs into the Exim Policy of India. Five year later, SEZ Act (2005) was also introduced and in 2006 SEZ Rules were formulated.

Introduction of SEZ

• A Special Economic Zone in short SEZ is a geographically bound zones where the economic laws in matters related to export and import are more broadminded and liberal as compared to rest parts of the country. SEZs are projected as duty free area for the purpose of trade, operations, duty and tariffs. SEZ units are self-contained and integrated having their own infrastructure and support services.

Introduction of SEZ

• Within SEZs, a units may be set-up for the manufacture of goods and other activities including processing, assembling, trading, repairing, reconditioning, making of gold/silver, platinum jewellery etc.

Introduction of SEZ

• As per law, SEZ units are deemed to be outside the customs territory of India. Goods and services coming into SEZs from the domestic tariff area or DTA are treated as exports from India and goods and services rendered from the SEZ to the DTA are treated as imports into India.

Benefits of SEZ

• A part from providing state-of-the-art infrastructure and access to a large well-trained and skilled work force, the SEZ also provides enterprises and developers with a favorable and attractive framework of incentives which include 100% income tax exemption for a period of five years and an additional 50% tax exemption for two years thereafter.

• Similarly, 100% FDI is also provided in the manufacturing sector. Exemption from industrial licensing requirements and no import license requirements is also given to the SEZ units.

Area under SEZ

• Export Processing Zones (EPZ), • Free Zones (FZ),• Industrial Estates (IE), • Free Trade Zones (FTZ), • Free Ports, • Urban Enterprise Zones and others. Usually

the goal of an SEZ structure is to increase foreign investment in the country.

Fourteen functional SEZ(some are here)

• Santa Cruz (Maharashtra), • Cochin (Kerala),• Kandla and Surat (Gujarat),• Chennai (Tamil Nadu), • Visakhapatnam (Andhra Pradesh), • Falta and Salt Lake (West Bengal), • Nodia (Uttar Pradesh), • Indore (Madhya Pradesh),• Jaipur (Rajasthan), etc.

First Step

• Attractive incentive and great investment opportunities have attractive many business tycoons to step into the SEZ all over the country. The first step was taken by the Mahindra World City at Chennai. The SEZ was promoted by Mahindra & Mahindra Ltd and later on by the Tamil Nadu Industrial Development Corporation. Mahindra & Mahindra Ltd holds 89% equity in the same. Later on, Reliance Industries also signed a pact with the Haryana government for setting up of the Rs. 25,000 crore multi products SEZ near Gurgaon in 2006.

Role of State Government in Establishment of SEZ Units

• State Governments play a very active role to play in the establishment of SEZ unit. Any proposal for setting up of SEZ unit in the Private / Joint / State Sector is routed through the concerned State government who in turn forwards the same to the Department of Commerce with its recommendations for consideration.

• Before recommending any proposals to the Ministry of Commerce & Industry (Department of Commerce), the States Government properly checks all the necessary inputs such as water, electricity, etc required for the establishment of SEZ units.

Role of State Government in Establishment of SEZ Units

• The State Government has to forward the proposal with its recommendation within 45 days from the date of receipt of such proposal to the Board of Approval. The applicant also has the option to submit the proposal directly to the Board of Approval. Representative of the State Government, who is a member of the Inter-Ministerial Committee on private SEZ, is also consulted while considering the proposal.

Special Economic Zones SEZ Controversy.

• Land, especially agricultural land is a very sensitive issue in India. There are millions of people whose livelihood depends on agricultural land. But the introduction of SEZ in India has resulted in the dispossession of agricultural land and has affected the livelihood of farmer at large. In against of this, farmers first protested to safeguard their interests through litigation and court cases challenging the establishment of SEZs. But later on, the resistance against SEZ in India became massive when political parties also joined the farmers.

Jamnagar incidence

• Jamnagar Incidence In November 2006, farmers from the Jamnagar District in Gujarat moved the High Court of Gujarat and later to the Supreme Court in order to challenge the setting-up of a 10,000-acre (approx. 4,000-ha) SEZ by Reliance Infrastructure. They claimed that the acquisition of large tracts of agricultural land in the villages of the district not only violated the Land Acquisition Act of 1894, but was also in breach of the public interest. This led the Government to “consider” putting a ceiling on the maximum land area that can be acquired for multi-product zones and decide to “go slow” in approving SEZs.

Nandigram Violence

• The Nandigram violence is another famous incidence related to SEZ controversy. Nandigram is a rural area in Purba Medinipur district of the Indian state of West Bengal. It is located about 70 km south-west of Kolkata, on the south bank of the Haldi River, opposite the industrial city of Haldia

Nandigram Violence

• In 2007 the West Bengal government decided to allow Salim Group to set up a chemical hub at Nandigram under the SEZ policy. Farmers of that village were against it. So, on the order of the Left Front government on 14 March, 2007, more than 3,000 heavily armed police stormed the Nandigram area. The main objective was to remove the protestors in order to expropriate 10,000 acres of land for a Special Economic Zone (SEZ) to be developed by the Indonesian-based Salim Group. During this incidence, police shot dead at least 14 villagers and wounded 70 more including children and women.

Advantages and disadvantages

• A SEZ unit which has been set up for carrying on manufacturing, trading or service activity has both advantages as well as disadvantages. SEZ advantages are quite far more as compared to its disadvantages which are almost negligible.

• Advantages

• Disadvantages

Advantages

• 15 year corporate tax holiday on export profit – 100% for initial 5 years, 50% for the next 5 years and up to 50% for the balance 5 years equivalent to profits ploughed back for investment.

• Allowed to carry forward losses. • No licence required for import made under SEZ units. • Duty free import or domestic procurement of goods for

setting up of the SEZ units. • Goods imported/procured locally are duty free and could

be utilized over the approval period of 5 years. • Exemption from customs duty on import of capital goods,

raw materials, consumables, spares, etc.

Advantages

• Exemption from Central Excise duty on the procurement of capital goods, raw materials, and consumable spares, etc. from the domestic market.

• Exemption from payment of Central Sales Tax on the sale or purchase of goods, provided that, the goods are meant for undertaking authorized operations.

• Exemption from payment of Service Tax. • The sale of goods or merchandise that is manufactured

outside the SEZ (i.e, in DTA) and which is purchased by the Unit (situated in the SEZ) is eligible for deduction and such sale would be deemed to be exports.

Advantage

• The SEZ unit is permitted to realize and repatriate to India the full export value of goods or software within a period of twelve months from the date of export.

• “Write-off” of unrealized export bills is permitted up to an annual limit of 5% of their average annual realization.

• No routine examination by Customs officials of export and import cargo.

• Setting up Off-shore Banking Units (OBU) allowed in SEZs.

Advantage

• OBU's allowed 100% income tax exemption on profit earned for three years and 50 % for next two years.

• Exemption from requirement of domicile in India for 12 months prior to appointment as Director.

• Since SEZ units are considered as ‘public utility services’, no strikes would be allowed in such companies without giving the employer 6 weeks prior notice in addition to the other conditions mentioned in the Industrial Disputes Act, 1947.

Advantage

• The Government has exempted SEZ Units from the payment of stamp duty and registration fees on the lease/license of plots.

• External Commercial Borrowings up to $ 500 million a year allowed without any maturity restrictions.

• Enhanced limit of Rs. 2.40 crores per annum allowed for managerial remuneration.

Disadvantages

• Revenue losses because of the various tax exemptions and incentives.

• Many traders are interested in SEZ, so that they can acquire at cheap rates and create a land bank for themselves.

• The number of units applying for setting up EOU's is not commensurate to the number of applications for setting up SEZ's leading to a belief that this project may not match up to expectations

Table-Board of Members - SEZ units

1. Secretary, Department of Commerce Chairman

2. Member, CBEC Member

3. Member, IT, CBDT Member

4. Joint Secretary (SEZ), Department of Commerce Member

5. Joint Secretary, DIPP Member

6. Joint Secretary, Ministry of Science and Technology Member

7. Joint Secretary, Ministry of Small Scale Industries and Agro and Rural Industries Member

8 . Joint Secretary, Ministry of Home Affairs


9. Joint Secretary, Ministry of Defence Member

10. Joint Secretary, Ministry of Environment and Forests

11. Joint Secretary, Ministry of Law and Justice Member

12. Joint Secretary, Ministry of Overseas Indian Affairs Member

13. Joint Secretary, Ministry of Urban Development


14. A nominee of the State Government concerned Member

15. Director General of Foreign Trade or his nominee Member

16. Development Commissioner concerned Member

17. A professor in the Indian Institute of Management or the Indian Institute of Foreign Trade Member

18. Director or Deputy Sectary, Ministry of Commerce and Industry, Department of Commerce Member Secretary

Special Economic Zones Terms And Conditions.

• The SEZ units shall abide by local laws, rules, regulations or laws in regard to area planning, sewerage disposal, pollution control and the like. They shall also comply with industrial and labor laws as may be locally applicable.

• Such SEZ shall make security arrangements to fulfill all the requirements of the laws, rules and procedures applicable to such SEZ.


• The SEZ should have a minimum area of 1000 hectares and at least 35 % of the area is to be earmarked for developing industrial area for setting up of processing units.

• Minimum area of 1000 hectares will not be applicable to product specific and port/airport based SEZs.


• Wherever the SEZs are landlocked, an Inland Container Depot (ICD) will be an integral part of SEZs. Detailed guidelines on setting up of SEZ in the Private/Joint/State Sector is given in Appendix 14-II.N of Handbook of Procedures Volume I.

Special benefits and incentives

• The need to enhance foreign investment and promote exports from the country, the Government of India has introduced various types of special incentives and benefits to SEZ units which are as follows-

Customs and Excise

• SEZ Units are free to import from the domestic sources without paying any duty on capital goods, raw materials, consumables, spare, packing materials, office equipment, DG sets, etc. for implementation of their project in the zone without any license or specific approval. Good which are imported duty free could be utilized over the approval period of 5 yrs.

Custom and Excise

• Sales to DTA (Domestic Tariff Area) by SEZ units is always regarded as import and is subject to all normal import duties, including Countervailing Duty, SAD, etc.

• SEZ Units are free from the periodic examination by Customs of export and import cargo.

Custom and Excise

• SEZ units may sub-contract a part of their production through units in DTA/SEZ/EOU/EPZ with the permission of the customs authorities. Sub-contracting may also be permitted for processing abroad with the permission of the board of approval.

Special benefits and incentives

• Income tax

• Foreign Direct Investments

• Off-Shore Banking Units (OBUs)

• Service Tax

• Company Act

• Labor Law etc.

Activity

• SEZ first time start in……..and in …….yr.

• Country failed in developed SEZ in his country………

• In the U.S, SEZ are referred to as ………..

• First time SEZ start in India in …………..

• Export processing zones converted into….

• First Zone in the country was set up in……

At……..and it was known as…………….

Activity

• Name types of SEZ’s:

• Second Zone was launched in…… at …… and it was known as ………….

• Area required for sector specific Zone…….

and reduced to……..for specified state and territories.

• Full form of STP

• Area required for-multi product zone

Activity

• Service sector

• Warehouse sector

• Jewellery sector

• Number of units in India?

Answer

• China, 1980• North Korea• Urban Enterprise Zone• 1.4.2006• SEZ• 1965, Kandla, Economic Processing Zone• Sector specific sez,multi-product sez,

port/airport based sez,free trade and warehousing zones

Answer

• 1972,santacruz and electronic export processing zone.

• 100 hectors, 50 hectors

• 1000 hectors reduced upto 200 hectors, 100 hectores,40 hectors and 10 hectors.

• Software technology park

• 811

Role of government agencies

• The basic purpose of government incentives and help is to encourage an industrialist to undertake new entrepreneurial activities for increasing the production of goods in the country.

• Incentives are motivational forces which improve productivity of industriallist.

Importance and Need of Government’s Role

• To develop their units in backward areas.• To encourage industrialist to undertake new

ventures.• To promote balanced regional development

and to ensure uniformity in the development process of all regions.

• To encourage first generation industrialist to work for industrial development of the country.


• To improve the competitive strength of industrialist to face competitive environment of the industry.

• To remove impediments and economic constraints in the way of entrepreneurial development.

• To create motivational force to improve productivity of entrepreneurs.


• To initiate expansion and modernization programme.

• To accelerate the process of industrialisation.

• To build infrastructural facilities for setting up units.

Government Assistance

• Technical assistance

• Assistance for obtaining new material

• Cash assistance

• Supply of plant and machinery on hire-purchase basis

• Marketing Assistance

• Assistance to small industrialist

• Rural industrial project Assistance

Government incentives

• Subsidy relating to investment

• Export/Import subsidies and Bounties

• Subsidy relating to R&D

• Subsidy relating to taxes

• Subsidy relating to resources

• Capital subsidy scheme for technology up gradation.

• Excise duty exemption

Government schemes for infrastructure

• Industrial estate programme

• Integrated infrastructural development scheme

• Small industry cluster

• Industrial growth centres scheme

• SEZ

• Industrial park

Other role of government

• Investment promotion and infrastructure development cell

• Technological development fund scheme

• Entrepreneur assistance unit

• Indian institute of entrepreneurship, Guwahati.


• Technical assistance : Small Industries Development Organization provides technical assistance and guidance to the intending industrialist.

• These institutes help in technology acquisition, adoption and up gradation.

• Institutes solves the technical problems and provide managerial consultancy service also.


• Raw material Assistance: procurement of scarce and controlled raw material by SIDO at the central level.

• National small industries corporation is also helping industrialist in import and supply or raw materials.


• Cash Scheme : cash assistance under self employment plan to rural youths, backward people and women entrepreneurs also.

• Supply of Machinery and Equipments: national small industries corporation or state level small industries corporation.


• Marketing Assistance : NSIC- (a) ensure fair margin to industrialist (b) markets products under common brand name and © provides publicity to SSI products.

• Assistance to small entrepreneurs : NSIC provide finance to industrialist and to train and equip the first generation entrepreneurs.


• Rural industrial project assistance :the SIDBI is implementing rural industries programme to solve the problems of rural unemployment and under-utilisation of physical resources and skills of the rural areas.

• Professional services provides by SIDBI

1.Identification and motivation of potential industrialist in the rural areas.


(b) Identifying potential investment opportunities for these industrialist

© facilitating skill up gradation.

(d) Assisting in securing finance from banks and other operation of machinery

(e) Helping industrialist in selection and operation of machinery

(f) Arranging market support


(g) Guiding industrialist till the commencement of commercial production.

Raw Material

materials and parts

Raw materials

• Components material: glass, iron and plastic.

• Components part: tyre, bulb and battery.

Capital products

• These are those industrial products that are used in the production of finished goods. It means they help in manufacturing process of any product . Capital means machinery ,plant etc. These are helpful in manufacturing a product.

• Equipments and installation are come under this capital products.

Business services and supply

• These are short lasting product or goods services that facilitates developing or managing the finish good.

• This industrial product help in manufacturing product and repairing product and they help as a tool with which the operations are carried on.

Business services

Industrial products

• These are those product which are used as input in producing other products.

• For example: raw material, engine and machine tools etc.

• The market for industrial products consist of manufacturer, transport agencies, banks ,insurance and etc.

Characteristic of industrial goods

• Number of buyers

• Channel level

• Geographic concentration

• Demand

• Role of technical concentration

• Reciprocal buying

Industrial chemistry

• The branch dealing with chemistry in relation to industry is called industrial chemistry or applied chemistry. It includes the study of manufacture of various, industrial products, such as glass, cement, heavy cement, heavy chemical, paper, dyes, drugs, textiles, leather, soap, cosmetics etc.

Bio Chemistry

• It comprises the study of the substance related to living organisms and life processes.

• Pharmaceutical chemistry: It deals with preparing preserving and dispensing of medicines.

Ferrous and Non-Ferrous

• Ferrous – The element which containing iron.

• Iron- Iron is the most abundant transition metal or second most abundant metal (next only to Al) in the earth crust.

• Steel – By removing impurities and adding suitable amount of carbon and metals like nickel, carbon. Magnesium. It is converted into steel.

Ferrous and Non-Ferrous

• Both iron and steel are most construction materials.

• Non-Ferrous : are those elements which does not contain iron. i.e. its status symbol element.

• Example : Gold and silver

Types of ferrous

Iron

Types of iron properties uses

Cast iron Important form Stoves, casting ,railways sleepers, pipes .toys etc

Wrought iron Taught and resistant to rusting

Anc hors,wires,bolts,nails agriculture implements, etd.

Iron is found under earth or we can say earth crust

steel

• Alloy steel is obtained when other metals are added to it and steels finds number of uses.

Stainless steel Resist corrosion Utensils ,cycles, automobiles, pens etc.

Nickle steel Resistant to corrosion, hard and elastic

Cable , aeroplane parts,automobiles etc

Chrome steel High tensile strenght Ball bear rings , cutting tools, crushing machine.

steel

Chrome steel High tensile strength

Invar Practically no. co-efficient of expansion

Watches, meter scale, pen etc.

Alnico Highly magnetic Permanent magnet

Examples

• UK copper coin are copper coated steel.

• Indian coins are made up of alloy of Al bronze.

• UK silver coin are made of Cu/Ni alloy.

Polymer

• Polymer are the backbone of modern civilization. In almost all walks of life polymer in the manufacture of plastic buckets, cups and saucers, children toys, packing bags, synthetic clothing material, furniture ,automobiles parts, tyres etc.

• Industrial scenario polymer are the backbone of four major chemical industries.

Polymer based chemical industries

• Plastic.

• Elastomer

• Fibers

• Paints

Classification of polymer

• Natural polymer

• Semi- synthetic polymer

• Synthetic polymer

1.Polypropene

2.Elastomer

3.Fibres

4.thermoplastic

Types of Polymer

• Natural polymer: which are found in nature like animals and plants .i.e. protein clothing, shelter and rubber.

• Semi-Synthetic : these are mostly derived from naturally occurring polymer by chemical modification. eg: thread, films, glasses, smokeless powder, explosive.

Types of polymer

• Synthetic : A large no. of man made polymer are extensively used in daily life as well as extensively used in daily life as well as in industry, fibers, plastics and rubber.

Types of polymer

Types of synethic polymer uses

elastomer Rubber

fibers Chairs, shades, tables, automobile bodies etc.

Types of Polymer

Types of polymer uses

Thermoplastic (elastomer+fiber) Toys, beads, buckets, telephone, t.v.case, polythene etc.

polypropene Carpet , fabric, ropes, stronger pipes, toys, bottles.

Types of Polymer

Types of polymer uses

polystyrene Insulator, co rapping, material ,baby feeding bottles, plastic toys, telephone,T.V. bodies, refrigator, radio.

Polyvinyl chloride Raincoat, handbags, shower curtains, water pipes etc.

polymethacrylate Lenses, light covers, light shades, sign boards, sky domes, aircraft, windows, dentures ,plastic jewellery, protective coating.

Types of Polymer

Types of polymer Uses

Urea formaldehyde regin Unbreakable cups and laminated sheets.

Glyptal Paints and lacquer

Ceramic

• Ceramics are widely used in industries for a range of purposes. Due to their high heat resistant properties and extreme durability, they can be used successfully in refractory, metallurgical, glassware, oil refinery and such other processes.

• Today industrial ceramic manufacture is a huge industry in itself and there are several multimillion dollar companies in the field, researching and producing industrial ceramics.

Industrial ceramic material

• The materials used in the production of industrial ceramics are different from those used in ceramic art forms. These materials need to be strong and durable and be able to withstand very high temperatures. The common materials used are oxides, carbides and nitrides of nonmetallic inorganic minerals.

Industrial ceramic materials have the following properties

• They should have a very low coefficient of thermal expansion so that they can withstand a high temperature. This low expansion also helps the ceramics to be manufactured without much error, or else there could be a dimension difference when the ceramic is cooling down after firing.

Industrial ceramic materials have the following properties

II. They should have high melting points so that they can sustain the high temperatures used in most industrial processes.

III. They should be insulating to electricity.

IV. They should be insulating to heat.

V. They should have a high wear resistance

Preparation of Industrial ceramic

• Industrial ceramics are made from nonmetallic mineral clays.

• The minerals are first taken in the right proportion to obtain all the required properties, and then they are crushed and ground into a very fine consistency. ceramic.

Preparation of Industrial Ceramics

• In order to remove impurities, purifying chemical solutions are added to the mixture.

• Any impurity is removed in the form of a precipitate. Then wax is added to minerals.

• Wax acts as a binder and it holds the clay together.

Preparation of Industrial Ceramics

• Plastics could also be added in case the ceramic requires to be more tenacious and durable. Plastic also improves the pliability of the ceramic

Processes

• Different processes are used to manufacture industrial ceramics. Some include: I. Slip castingII. Pressure castingIII. Injection MoldingIV. Extrusion

Processes

• When all the processes are accomplished, and the ceramic has got its shape, the materials are molded and heated for a second and final step. This final stage in the preparation of industrial ceramics is called 'densification'. In general the manufacture of industrial ceramics is complicated and involves numerous processes using very specific and expensive production equipment

Industrial Ceramic Products

• Ceramics are used in the industry for a wide variety of purposes that mostly involve insulation. The following are some areas where industrial ceramics are used:

I. In fuel industry, industrial ceramics are used to manufacture proppants that are required for hydraulic fracturing process of oil wells and natural gas reserves.

II. In electric appliances, industrial ceramics are used for glazing and insulation. Zirconium oxide is commonly used in manufacturing such industrial ceramics.


• III. In refractories, industrial ceramics are used to manufacture crucibles and various other objects that require a high heat resistance. For the same purpose, ceramics are also used in kilns, furnaces, glass manufacture and metallurgical operations.


• IV. Various electric fittings are made from aluminum oxide ceramics. Castings for fuse wires, holders of light bulbs, etc. are some of the areas where industrial ceramics are used.


V. Industrial ceramics are used to manufacture filter slices which are used to filter out waste gases in industrial operations.

VI. Zirconium ceramics are used to manufacture tips for circular knitting machines.

VII. Industrial ceramics are used in manufacture of ovens and thermal storages in industry.

Conclusion

• Industrial ceramics are an important part of the day-to-day operations in any manufacturing process that involves heat and electricity. Though these may not be beautiful to look at, they are indispensable and highly useful to the industrial world.

Timber

• The word timber has two meanings when related to wood. One is related to the concept of building material generally, which means processed wood, and the other refers to the wood of growing trees capable of being used for building objects.

Timber

• Timber is natural wood.

• Timber is bad conductor of heat because it is easily burn.

• It is different from sag wan because when we add water on it cannot be shrink.

Historical use of timber

• Humans have made use of wood since the first humanoids picked up pieces to use as clubs for hunting or defense.

• The use of wood for fire to provide warmth and a means of cooking food followed.

• Eventually technology was applied to work wood, and simple tools (diggers, throwing sticks, percussion sticks) and weapons (spears and clubs) were made.

Historical use of timber

• Not only has timber been used for building and furniture but it was critical in the exploration of the world, (carts, sleds and wooden ships).

• it was fundamental in the development of railways, (sleepers and bridges) and in the culture of societies, (musical instruments for example)..

Timber-Fences and Railway Sleeper

Historical use of timberNomadic humans used wood for constructing shelters when caves or rock overhangs were not available. They used branches and stems, over which they placed leaves, bark, more stems or animal skins to provide shelter. The use of timber (processed wood) to build houses was not possible until metal technology progressed to the point that larger pieces of wood could be cut and shaped relatively easily.

Timber –Bridge

Modern use of timberTimber permeates all parts of modern society but few make the association of such things as fine furniture, musical instruments, craftwood or kitchen cupboards with the harvesting of forests. In fact timber from plantations, (softwood and hardwood) and native forests of all ages and types make up the range of sources of the timber we use.

Modern use of timber

• Each forest type provides timber with unique properties that may be used because of values such as appearance, ease of working, hardness, strength, resistance to fungal and / or insect attack, ability to accept stains, ability to enhance the qualities of wine or simply its availability.


• Veneers

• Boards

• Laminated

• This product is particularly good for house construction in earthquake prone areas.

• Fine furniture

• Electric pole

• Solid and split timber house

Use of timber-stairs, bed set and dinning table set


• house framing,

• matches,

• toothpicks,

• craftwood,

• moldings,

• musical instruments,

• outdoor furniture, mop handles dowels to name just a few.


Floors and walls

Boardwalks

Household storage

Wooden boats

Laminated beans


Saunas :

Softwood timbers with natural preservative oils are preferred here

Power

• Electricity is the flow of electrical power or charge.

• It is a secondary energy source which means that we get it from the conversion of other sources of energy, like coal, natural gas, oil, nuclear power and other natural sources, which are called primary sources.

Power

• The energy sources we use to make electricity can be renewable or non-renewable, but electricity itself is neither renewable or non-renewable.

• Electricity is a basic part of nature and it is one of our most widely used forms of energy

Power

• Many cities and towns were built alongside waterfalls (a primary source of mechanical energy) that turned water wheels to perform work.

• Before electricity generation began over 100 years ago, houses were lit with kerosene lamps, food was cooled in iceboxes, and rooms were warmed by wood-burning or coal-burning stoves.

Power

• . Electricity is a controllable and convenient form of energy used in the applications of heat, light and power.

• A generator is a device that converts mechanical energy into electrical energy.

Energy use by industry

• Energy Use by Industry Sector as Portion of Total Industrial Use, 2002 Refining30%

• Metals9%• Paper10%• Food5%• All other19%,• Bulk chemical 27%

Energy used by industry

• Types of Energy Used by Manufacturers, 2002

• Coal & coke13%

• Other15%

• Other petrol19%

• Electricity16%

• Natural gas 37%

Major Energy sources for manufacturers in selected industries

• Less energy intense

• Machinery

• Computers

• Transport equipment

• Apparel

• Food

•

More energy intense • Mostly natural gas and electricity • Chemicals & refining – petroleum, natural gas • Glass – natural gas • Paper/forest products – renewables (biomass) • Aluminum – electricity • Iron & steel – coal, natural gas, electricity • Cement – coal

Use of energy

Types of energy

Non-Renewable Energy

• OIL

• NATURAL GAS

• COAL

• NUCLEAR

Getting the utility connection

• Power connection are generally of either LT(Low tension) or HT(High tension) type.

• If connected load is up to 75 HP, LT connection is provided.

• If connected load is up to 130 HP or higher only HT connection is provided.

Classification of consumers

• Domestic Supply :

Flow of supply - 1 phase= 240 volts (max)

230 volts (mim)

- 3 phase=415 Volts (max)

400 Volts (mim)

Classification of consumers

• Commercial Supply :

Flow of Supply- 1 phase= 220 volts

3 phase= 415 volts

• Small Industrial Power Supply: load not exceeding 20 Kw.

flow of supply- 1 Phase= 240 v

3 Phase= 415 V

Classification of Consumers

• Loads raging: 21kw to 100 kw.

Flow of supply-3 phase= 414 volts.

• Note : factory light is included in the tariff( industrial power supply) but supply to residential quarters is considered domestic supply.

Classification of Consumers

• Large Industrial and Steel Furnace Power Supply :

• Load exceeding 100kw.

• 3 phase= 132kw,60kw,33kw,11kw and 3.3kw.

• Load in Kw= Demand factor load factor

No. of hours in a month.

Factors

• Demand Factor = Simultaneous Maximum Demand of All Application / Total Connected Load.

• Load Factor = contract demand in Kw Load factor No. of hours in a month.

• Contract Demand: means the maximum KW/KVA for the supply of which board undertakes to provide facilities from time to time.

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