PRODUCTION MANAGEMENT What is Production management n Production

PRODUCTION MANAGEMENT

What is Production management? n Production management is the process of effectively planning and regulating the operations of that part of an enterprise which is responsible for the actual transformation of materials into finished products.

5 P`s of Production Management n 1. PRODUCTS. n 2. PLANT. n 3. PROCESS. n 4. PROGRMS. n 5. PEOPLE. n When this five element integrated a successful production management takes place.

OBJECTIVE OF PRODUCTION MANAGEMENT n 1. RIGHT QUALITY. n 2. RIGHT QUANTITY. n 3. PREDETERMINED TIME. n 4. PRE-ESTABLISHED COST. n Other objectives are : n n 1. Machinery and Equipment. 2. Materials. 3. Manpower. 4. Supporting Service.

SCOPE & ACTIVITIES OF PM n There are two types of scope & activities of PM : n 1. Strategic level. n (a) Design & development of new product. n (b) Process design & Planning n (c) Facilities location & layout planning n (d) Design of material handling n (e) Capacity planning n 2. Operational level. n (a) Production Planning n (b) Production Planning n (c) Inventory Control n (d) Product maintenance & replacement n (e) Cost Control & Cost Reduction

PRODUCTION PLANNING & CONTROL (PPC) n PPC is the powerful tool available to the mgmt to achieve the stated objective. Production planning starts with the analysis of data like demand & delivery schedule etc & the basis of information available and resources like machine, material & men. n So, PPC is the process of directing & coordinating of firms resources towards attaining prefixed goal.

FUNCTIONS OF PPC n 1. Material Function n 2. Machine & Equipment n 3. Methods n 4. Routing n 5. Estimating n 6. Scheduling n 7. Dispatching n 8. Expediting n 9. Inspection n 10. Evaluation

TYPES OF PRODUCTION n 1. BATCH PRODUCTION n 2. MASS & FLOW PRODUCTION n 3. PROCESS PRODUCTION n 4. PROJECT PRODUCTION n 5. JOBBING PRODUCTION

BATCH PRODUCTION n Batch production is the manufacturing of limited number of product produced at regular intervals & stocked in warehouse as finished goods. n Eg. Chemical , paint & motor vehicles etc.

CHARACTARISTIC OF BATCH PRODUCTION n 1. Short Run. n 2. Skilled labours in specific trades n 3. Limited span of control n 4. General purpose machine and process type layout n 5. Manual material handling n 6. Manufacturing cycle time affected due to queues n 7. Large WIP n 8. Flexible production schedule n 9. Need to have PPC.

JOBBING PRODUCTION n Jobbing production is characterized by the manufacture of one or few number of a single product designed and manufactured strictly to customer’s specifications within the given period and within the price fixed prior to the contract. n Eg: general repair shop, tailoring shops.

CHARACTARITIC OF JOBBING PRODUCTION n 1. Small production runs. n 2. Discontinuous flow of materials. n 3. Not proportionate manufacture cycle time. n 4. Highly skilled labour. n 5. Highly competent knowledgeable supervision. n 6. Large WIP. n 7. Limited function of PPC.

PROJECT PRODUCTION n Project production is characterized by complex sets of activities that must be performed in a particular order within the estimated expenditure. n Eg: construction of Roads, Buildings etc.

CHARACTARITIC OF PROJECT PRODUCTION n 1. Definite beginning & definite end. n 2. Non uniform requirement of resources. n 3. Involvement of different agencies. n 4. Fixed position layout. n 5. High cost overrun. n 6. Scheduling & control.

MASS & FLOW PRODUCTION n Mass as well as flow production are characterized by the manufacturer of several number of a std product and stocked in the warehouses as finished goods awaiting sales. The goods under mass production are manufactured either at a single operation or a series of operation on one machine. n Eg: Assembly shop of automobiles, radios, electric fans.

CHARACTARITIC OF MASS & FLOW PRODUCTION n 1. Continuous flow of material. n 2. Special purpose m/c and product type layout. n 3. Mechanized material handling. n 4. Low skilled labour. n 5. Short manufacturing cycle time. n 6. Easy supervision. n 7. Limited WIP.

PROCESS PRODUCTION n Process production is characterized by the manufacture of single product produced and stocked in the warehouses awaiting sales. n Eg: Sugar, Steel, Paper, Cement plants.

CHARACTARITIC OF PROCESS PRODUCTION n 1. Special purpose m/c with built in control. n 2. Highly mechanized material building. n 3. Virtually zero manufacturing time. n 4. Low skilled labor. n 5. Highly qualified supervisors. n 6. Negligible WIP. n 7. Limited PPC.

WHAT IS PRODUCTIVITY ? n Productivity is the quantitative relation between what we produce and what we use as a source of produce them. So, Productivity is the arithmetic ratio of output to the amount of input. n PRODUCTIVITY = Output / Input. n Productivity refers to the efficiency of the production system.

PRODUCTIVITY MEASURES n 1. PARTIAL PRODUCTIVITY MEASURE (PPM) n n n PARTIAL PRODUCTIVITY= Total output / individual input. (a) Labor Productivity=Total o/p / Labor input (b) Capital Productivity = Total o/p / Material input (c) Material Productivity = Total o/p / Capital input (d) Energy Productivity = Total o/p / Energy input. n 2. TOTAL PRODUCTIVITY MEASURE (TPM) = Total tangible o/p / Total tangible i/p n Tangible o/p= Value of FG & Partial units produced, dividend from securities, interest, other incomes n Tangible i/p = Value of ( human , material, capital, other inputs) n

FACTORS EFFECTING PRODUCTIVITY n 1. PRODUCT. n 2. PLANT &EQUIPMENT. n 3. TECHNOLOGY. n 4. MATERIAL & ENERGY. n 5. HUMAN FACTOR. n 6. WORK METHOD. n 7. MANAGEMENT STYLE.

PRODUCTIVITY IMPROVEMENT TECHNIQUES n 1. TECHNOLOGY BASED n 2. EMPLOYEE BASED. ’ n 3. MATERIAL BASED. n 4. PROCESS BASED. n 5. PRODUCT BASED. n 6. MANAGEMENT BASED.