Production management

Production management

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  Production Management :Nature, Scope & Importance Faculty (BADM)
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  Previous Years’ Questions •What do you mean by production function?(2012 VS) • What do you mean by Production? Explain the different production systems.(2012 ET) • What is Production Management? Explain the importance of Production Management. (2011 ET) • Explain the continuous production system and batch production system. (2010 S) • Define ‘Production Management’. Clearly explain the Scope of Production Management (2009 ET) • What do you mean by ‘Production Process’? (2006 VS)
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  Production Management • Productionis the act of producing something useful. It implies the creation of goods and services to satisfy human wants. • It refers to the application of management principles to the production function in a factory. • Production management is the planning, acquisition, use and control of the physical resources employed in the provision of goods and services. • It involves planning, organizing, directing and controlling the manufacturing activities to produce useful goods and services in order to satisfy customer wants and generate profits for the firm.
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  Production Management • Accordingto Barry Shore, “It is the management of any operational system which transforms inputs into outputs.” • In the words of Roger Schroeder, “Operations management is the study of decision making in the operation function.”
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  Characteristics of Production Management •Creative Function • Creates Utility • Core of Any Business • Wide Scope • Goal of Business • Related with Factory Management • Ancillary Function • Advisory Function • Also applies to ‘service’ • Decisions • Functional Area • Pervasive Function • Analytical Process • People Emphasis • Based on Specialization • Mechanization • New Technologies
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  Production Process Production Processis a process in which raw material is transformed into a useful product which is needed by people and organisations.
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  Scope or Functionand Responsibilities of Production Management • Design of the Product • Design of the Production System • Selection of Location • Plant Buildings • Layout of Plant • Installation of Machinery • Capacity Planning • Production Planning • Production Control • Quality Control
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  Scope or Functionand Responsibilities of Production Management • Method Analysis • Inventory Control • Work Measurement • Maintenance and Replacement • Cost Reduction and Control • Scheduling, Dispatching and Progressing • Storekeeping • Purchasing Materials • Handling of Materials • Building Good Work Environment • Research & Development
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  Transformation Process Means of Production: RawMaterial, Tools, Capital, Human Resource Creation of Utility/Value Creation by Transformation Production: Product/Service required by People Feedback
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  Types of ProductionProcess 1. Extractive Production Process- here material is extracted from natural resources (earth, water, forest), e.g. Crude Oil, Gas, Fish, etc. 2. Construction Production Process – (Building, road, Bridge) (Immovable assets) 3. Service Production Process – Bank, Restaurant, Transportation
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  4. Production Processin Manufacturing - engaged in production of goods by converting raw material into products – its classification is as follows • On the basis of size Production Process Small Scale Production process or (Job) production process produces as per the needs of customer Large scale or mass production – large no. of units are manufactured, but it requires huge investment
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  • On thebasis of nature of Production – Analytical Production Process & Engaged in analysing some basic material in order to separate different products associated or mixed in it. • Crude Oil analyzed into Petrol, Diesel, Kerosene, Lubricants etc. – Synthetical Production Process & mixing two or more materials with a view to manufacture a new products. • Example – Cosmetics, Soaps, Shampoo, Medicine Etc. – Processing Production Process- Engaged in processing of raw materials or producer goods through a series of manufacturing process in order to produce some new product. – Conditioning Production Process - where the basic form of raw material changes, e.g. molding of iron – Assembly Production Process - Assembling of various related parts or components in order to make a useful product. • Example – Cars, TV sets, Computer Sets
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  based on ProductionSystem – Job or Unit Production Process: each unit is created as per directions of customer. Production is on the basis of individual needs, There is no standardization in production of product. – Continuous Production Process(Flow Shop): large scale production, use of machine.