Professional Documents
Culture Documents
We now understand that the subject or word “PRODUCTION” is not restricted to only
manufacturing activities as normally will be visualized. End products may be finished
components or consumer products, completed paper work or documentations, serviced
customers or serviced patients. In short it must be some kind of value added products so
that outputs are worth more than just the sum of individual inputs.
According to Peter Drucker “Production is not the application of
tools to materials but is the application of logic to work.”
Obviously we all may be falling in any one of the categories and involved in the
production function. Hence it is very vital and important to know all aspects of this
management science with proper depth and detail and empower us with the skills of
production management to emerge as a versatile and efficient manager.
This conversion are effected by physical resources (added with other resources such as
information)
Let us analyse three basic factors or elements associated with the subject of production
management in more detail.
Conversion Or
Transformation
(Business Systems)
Feedback
Virtues Desired
BUSINESS SYSTEMS
(Two Basic Functions)
Production Marketing
A production system must be designed in the context of overall corporate effectiveness, for even the
most efficient business system is virtually useless if there is no market for its output.
Ability to Adapt
• External environment factors
of competitors
• Supply & Demand
• Trade Unions
• Banks/financial institutions
• Government
Production System
POLICY
PLAN
PRODUCTION
FUNCTIONS
POLICY
The overall specification of production system must commence at policy stage by determining
company’s aims in market terms within the corporate strategy.
PLANNING
To achieve this objectives tool employed is production planning. The future can not be for seen,
It can only be gust mated and therefore for obtaining objectives effectively, economically and
efficiently the best course of action among the available alternatives is chosen and all the pros
and cons, strengths and weaknesses of available means are weighed and then the course of
action is determined this is termed as planning phase. A good planning will ensure systematic
procedure, improved methodology, control at appropriate and strategic location to achieve and
attain desired efficiency.
PRODUCTION FUNCTIONS
Once company has formulated the policy and plans the next logical step is to go for production.
Production Management subject deals in detail about various production functions, which we
will deal in detail in subsequent chapters.
Intermittent Continuous
This type is adopted when one or a few standard products are to be manufactured
on large scale. In this system demand for the product is continuous and ongoing. As
demand pattern is known well in advance all the resources can be planned very well.
Salient features of Mass Production are as hereunder:
• Planning for optimum utilization of resources can be ensured.
• A product wise layout and balance production line can be designed
• Semiskilled or even unskilled labour can be utilized; very small numbers of
skilled workers are required.
• High output rating automatic machines can be utilized.
• Maintenance or breakdown must be attended most efficiently and promptly
otherwise it may result into heavy loss of production
• There is lot of scope for introducing productive techniques to increase
productivity
• Product quality can be better controlled in this system
1.Planning.
3.Control 2.Operations
1. PLANNING:
Planning
Action Plan or
Plan for Operation
While designing the corporate planning control system it is indeed needed to chart out
both the long range and short time plans programme, procedure and policies using all the
insight, foresight and experience at disposal. It should take care of feelings, objectives,
risks, assumptions; it should be planned keeping in mind the kind of business (Like
seasonal or otherwise). It should utilize inputs of information from market and economy,
in short, utilize all information and input at your disposal.
2. OPERATIONS:
The second phase is operations. The production plan set the standard.
The actions are performed in tune with these pre-set details in this phase.
Scope of Production (Operation) Functions
Control
5. Prototype production done to evaluate the product design, prepare, catalogues etc.,
getting market feed back, experimenting and testing.
6. Pre-production: during this stage all the components of product as nearly as designed
are produced under as much as possible. Actual factory conditions using the tools,
equipments, raw materials, which ultimately are to be used on the production, line.
These samples are very critically tested with micro accuracies for type tests and
performances. Some of them are sent to customers for field trials and feedbacks and
criticisms.
7. Manufacturing: the product after all the above steps and after all the corrections are
frozen for design and other parameters and then put into full production,
Initially a predetermined build up of finished product is manufactured to ensure and
take care of contingence, rejection etc. This is a confidence building stage for all
concerned.
Marketing can simultaneously start of the initial orders
The goods then leave for the warehouse and become the responsibility of the sales
organization.
Even after all the above steps and pre-production stage all bugs are not ironed out and
it is advisable to plan for initially low level to have the damage control within
manageable limits.
PRODUCT & PROCESS DESIGN:
Designing is the most important & crucial stage of production system. Many
companies have a separate Design & Development department. Services of Industrial
Designers are being taken for the development of product & process designs. This is a
pre-requisite stage before initiating the production
Design indicates the determination of size, shape, standard and pattern of the products
to be produced. It also includes functional parameters and technical specifications.
DESIGN
PRODUCT DESIGN:
PRODUCT DESIGN
Total capital exposure and layout of facilities have direct relativity with the process
design. Thorough study and knowledge of latest technological developments in the
field is a prerequisite to process design.
In nutshell adoption of a particular process design is the most important and crucial
decision of the production management.
Plant:
The Physical means of production such as buildings, machineries, dies tools, jigs fixtures,
service machineries and/or workshop equipments erected and equipped at a given
location for the purpose of converting the raw materials to finished goods using men,
machineries and materials is called plant.
The economy of operations, effectiveness and efficiency of production is directly
attributed to the type of plant and its location. In other words the optimum utilization of
the available resources and capitol employed is in direct proportion with the right
decision of plant location and layout.
Location:
Location may be defined as a particular area/site/place selected for setting up of a
manufacturing/production unit or plant.
Biggest question that needs to be answered before one sets up the production plant is
where should our main operations be based?
Once the manufacturing plant is erected it is a long-term commitment on the capacity
created. Capacity not only in terms of the machinery and equipments but also in terms of
arrangements and development for the resources such as raw material suppliers, labour
force, market and distribution channels, conveyance and transport arrangements and
adjustments with the environments.
Once a decision is taken in favor of a particular location, then the organization has to live
for a long time with the prospects and problems of that location in regards to the raw
materials, labour, other resources and market etc.
Thus selection of site and location of the plant has to be done with considerable thought,
taking into account the various aspects leading to the end profitability of the enterprise.
The ideal location for the plant will be one where lowest cost and maximization of
profitability is possible.
To help in selection of the best and most ideal location for the plant number of factors
needs to be analysed. They can broadly be grouped into two areas, Primary and
Secondary factors.