Production Management
PM is planning, implementation, and control of industrial production processes to ensure smooth and efficient operation. PM technique are used in both manufacturing and service industries.
Production management responsibilities include the traditional “five M’s”.
❑ Men
❑ Machine
❑ Method
❑ Material, and
❑ Money
Production management concern with manufacturing industry.
Performance criteria of PM
Three aims of performance of Production Management:
✔
Effectiveness: Effectiveness means handling (Production) with competence.
✔ Customer satisfaction: refers to doing right things that is seven rights: There are: right operation ,right quality, right quantity, right supplier, right time, right place and right price.
✔ Efficiency: Efficiency focus on the input-output ratio.
Efficiency is doing the right thing.
Objectives of Production Management
The objectives of the production management is stated as:
“To produce goods or services of right quality and quantity at the predetermined time and pre-established cost”
So the objective of production management are related:
• Right quality
• Right quantity
• Predetermined time
• Pre-established cost (Manufacturing cost)
Intermediate objectives
Machinery and equipment
• Materials
• Manpower
• Supporting services
Functions of Production Department
Convert available capital into physical resources(for production)
Convert physical resources into saleable goods and services
Scope of Production Management
1. New product identification and design 2. Process design and planning
3. Facilities location and layout planning 4. Design of material handling system 5. Capacity planning
Production Management Framework
Functions of Production Management
The components or functions of production management are as follows:
1. Selection of Product and Design, 2. Selection of Production Process, 3. Selecting Right Production Capacity 4. Production Planning,
5. Production Control,
6. Quality and Cost Control, 7. Inventory Control, and
8. Maintenance and Replacement of Machines
1. Selection of Product and Design
Production management first selects the right product for production. Then it selects the right design for the product.
Care must be taken while selecting the product and design
because the survival and success of the company depend on it.
The product must be selected only after detailed evaluation of all the other alternative products. After selecting the right
product, the right design must be selected. The design must be according to the customers' requirements. It must give the
customers maximum value at the lowest cost. So, production
management must use techniques such as value engineering and
value analysis.
2. Selection of Production Process
Production management must select the right production process. They must decide about the type of technology, machines, material handling system, etc.
3. Selecting Right Production Capacity
Production management must select the right production capacity to
match the demand for the product. This is because more or less capacity
will create problems. The production manager must plan the capacity for
both short and long term's production. He must use break-even analysis
for capacity planning.
5. Production Planning
Production management includes production planning. Here, the production manager decides about the routing and scheduling.
Routing means deciding the path of work and the sequence of operations. The main objective of routing is to find out the best and most economical sequence of operations to be followed in the manufacturing process. Routing ensures a smooth flow of work.
Scheduling means to decide when to start and when to complete a particular production activity.
5. Production Control
Production management also includes production control. The manager has to monitor and control the production. He has to find out whether the actual
production is done as per plans or not. He has to compare actual production with the plans and finds out the deviations. He then takes necessary steps to correct these deviations.
6. Quality and Cost Control
Production management also includes quality and cost control. Quality and Cost Control are given a lot of importance in today's competitive world. Customers all over the world want good quality products at cheapest prices. To satisfy this demand of consumers, the production manager must continuously improve the
quality of his products. Along with this, he must also take essential steps to reduce the cost of his products.
7. Inventory Control
Production management also includes inventory control. The production manager must monitor the level of inventories. There must be neither over stocking nor under stocking of inventories.
If there is an overstocking, then the working capital will be blocked, and the materials may be spoiled, wasted or misused.
If there is an understocking, then production will not take place as per
schedule, and deliveries will be affected.
8. Maintenance and Replacement of Machines
Production management ensures proper maintenance and replacement of
machines and equipment. The production manager must have an efficient system for continuous inspection (routine checks), cleaning, oiling, maintenance and replacement of machines, equipment, spare parts.
Modern Production Methods
Job Production
Boutique Production
Batch Production
Mass Production
Continuous Production
Flow production or process production
Job Production
Job Production is used when a product is produced with the labor of one or few workers and is scarcely used for bulk and large scale production. It is mainly used for one-off products or prototypes, as it is inefficient; however, quality is greatly
enhanced with job production compared to other methods.
Individual wedding cakes and made-to-measure suits are examples of job production. New small firms often use job production before they get a chance or have the means to
expand. Job Production is highly motivating for workers because it gives the workers an opportunity to produce the whole
product and take pride in it.
Boutique Manufacturing
Contrary to jobbing production, the method Boutique Manufacturing is suitable for the production of very small to small batches, i.e. orders of a few units up to several dozens of similar or equal goods. The workflow organization of a Boutique Manufacturing entity can be a mixture of both jobbing and batch production but involves higher standardization than job production. Boutique Manufacturing is often organized with single workplaces or production cells carrying out a number of subsequent production steps until completion of certain components or even the whole product; large assembly lines are generally not used. The
flexibility and variety of products able to be produced in the entity
therefore are much higher than with the more standardized method of
batch production.
Batch Production
Batch production is the method used to produce or process any product in groups or batches where the products in the batch go through the whole production
process together. An example would be when a bakery produces each different type of bread separately and each object (in this case, bread) is not produced continuously. Batch production is used in many different ways and is most suited to when there is a need for a quality/quantity balance. This technique is
probably the most commonly used method for organizing manufacture and promotes specialist labor, as very often batch production involves a small number of persons. Batch production occurs when many similar items are
produced together. Each batch goes through one stage of the production process before moving onto next stage.
Advantages of Batch production:
✔ This method is useful for a factory that make seasonal item or products for which it is difficult to forecast demand.
✔ This method can reduce initial investment because a single production line can be used to produce several products.
• Disadvantages of Batch production:
✔ Machine has to stop after certain interval causing work-stops.
✔ Due to repetitive works, the workers get demotivated causing quality/production low.
Mass Production
Mass production is known as repetitive production, is used to producers who need to create more standardized products in larger quantity.
Advantages:
✔ Low per-unit cost
✔ Ease of manufacture and control
✔ Speed Disadvantages:
✔ High cost of equipment
✔ Under utilization of human capabilities
✔ Lack of responsibility to individual customer request.
Example: Automobiles, televisions, personal computer, most common
consumer goods.
Continuous production
Continuous production process are used for very high volume commodity products that are very standardized. The system is highly automated and is typically in operation continuously 24 hours a day.
Example : Steel, paper, paints, chemicals, and foodstuffs are produce by continuous production.
• Advantages:
✔ Higher efficiency
✔ Ease of control
✔ massive capacity
• Disadvantages:
✔ Large investment in plant and equipment
✔ Limited variety of item can be process
✔ Inability to adapt to volume changes.
Flow Production
Flow production (Process Production) is also a very common method of production. Flow production is when the product is built up through many segregated stages; the product is built upon at each stage and then passed
directly to the next stage where it is built upon again. The production method is financially the most efficient and effective because there is less of a need for skilled workers.
Problem areas of production
The problem areas of production are –
• Location of plants.
• Layout of plants and work areas.
• Scheduling and allocation of resources.
• Equipment selection, maintenance & replacement.
• Inventory policies.
• Process design & control.
• Work methods.
• Quality and quantity control.
