PRODUCTION

MANAGEMENT
WHAT IS PRODUCTION ?

 A process by which goods & services are created

 Production is a step By step conversion of one form of material
into another form – chemically, mechanically.
 Form utility is either created or enhanced(eg wood  chair,
chilly powder curry)
SOME IMPORTANT CONCEPT

 Manufacturing = Production
 Manufacturing mgmt = Production mgmt
 Production Mgmt +services = operation mgmt
OBJECTIVE OF PRODUCTION
MANAGEMENT
 Intermediate objective
 Ultimate Objective
 To provide quality goods and  Optimum utilization of
services various inputs
 To give customer more  Machinery & eqpt

confidence by providing  Materials

quality products at right  Manpower
price at right time  Manufacturing services
WHAT IS PRODUCTION
MANAGEMENT

 Production is basically defined as conversion

of inputs into output through transformation
process.
 Input include man,machinery,money,
material, methods[5 m’s] & Output is final
goods.
PRODUCTION MANAGEMENT –
OPERATIONS MANAGEMENT

Transformation process
INPUTS
People · Method(s) of OUTPUTS
Energy conversion.
materials Goods
information services
fixed assets
 DEFINITIONS - PRODUCTION
MANAGEMENT
(i) In short production management is the Art of Managing the
Production. It basically concerns itself with the conversion of
inputs into outputs.
(ii) Production management can be also defined as “The job of
coordinating and controlling all the activities required in
making a product”.This concept is not restricted to only
industrial or manufacturing sectors; it is also applicable to service
industries.
(iii) The performance of management activities with regards to
selecting, designing, operating, controlling and updating
production system
PRODUCTION MANAGEMENT –
OPERATIONS MANAGEMENT
 Production management and operations management are
treated as being synonymous.

Operations management is the conversion of inputs into

outputs, using physical resources, so as to provide the
desired utility/utilities of form, place, possession or state
or a combination there – of to the customer while
meeting the other organizational objectives of
effectiveness, efficiency and adaptability.
PRODUCTION MANAGEMENT
FOCUSES ON…
 Production management focuses on two significant
functions: responsibilities and planning and control.
The production management’s responsibility sees to the
following areas; men (labor), machines, methods,
materials and money.
THE PRODUCTION MANAGEMENT’S
RESPONSIBILITY
 Men: this refers to the labor force. This responsibility is often
referred to as people management. This is to build a workforce
that can easily adapt to new equipment and schedules in
production.
 Machines and Method: This involves choosing the machine
and technology used in production of goods and services. The
production manager must also choose the methods in using these
machines to achieve efficiency. He/She must decide on the
technology that best suits the operation.
THE PRODUCTION MANAGEMENT’S
RESPONSIBILITY
 Material: Material here includes both raw materials
for production and the information needed in
production. The production manager must manage the
flow processes; that is, the smoothness of resource and
data movement.
 Money: This deals with the financial matters involved
in the day to day running of production. The
production manager manages the inventory and
production level and quantity with the returns on
investment, on focus.
FUNCTIONS ;

PLANNING

CONTROL
LING ORGANISING
ROUTING

Routing procedure involves following different activities.

(1) An analysis of the article to determine what to make and what to
buy.
(2) To determine the quality and type of material
(3) Determining the manufacturing operations and their sequence.
(4) A determination of lot sizes
(5) Determination of scrap factors
(6) An analysis of cost of the article
(7) Organization of production control forms.
SCHEDULING
The pattern of scheduling differs from one job to another
which is explained as below:
Production schedule
Master schedule
Manufacturing schedule
Scheduling of job order manufacturing
LOADING
Loading determines who will do the work as routing
determines where and scheduling determines when it
shall be done.
Gantt Charts are most commonly used in small industries
in order to determine the existing load and also to
foresee how fast a job can be done.
DISPATCHING
Dispatching involves issue of production orders for starting the
operations.
Necessary authority and conformation is given for:
1. Movement of materials to different workstations.
2. Movement of tools and fixtures necessary for each operation.
3. Beginning of work on each operation.
4. Recording of time and cost involved in each operation.
5. Movement of work from one operation to another in accordance
with the route sheet.
6. Inspecting or supervision of work
PRODUCTION CONTROL
Production control is the process of:
 planning production in advance of operations,
 establishing the extract route of each individual item
part or assembly,
 setting, starting and finishing for each important item,
assembly or the finishing production and
 releasing the necessary orders as well as initiating the
necessary follow-up to have the smooth function of the
enterprise.
FOLLOW UP
 Every production programme involves determination
of the progress of work, removing bottlenecks in the
flow of work and ensuring that the productive
operations are taking place in accordance with the
plans.
 All problems or deviations are nvestigated and
remedial measurer are undertaken to ensure the
completion of work by the planned date.
INSPECTION
 This is mainly to ensure the quality of goods. It can be
required as effective agency of production control.
CORRECTIVE MEASURES
Corrective action may involve any of those activities of:
 adjusting the route,
 rescheduling of work changing the workloads,
 repairs and maintenance of machinery or equipment,
 control over inventories of the cause of deviation is the poor
performance of the employees.
 Certain personnel decisions like training, transfer, demotion etc.
may have to be taken.
THANK YOU
VERY MUCH
BY: ARSHIYA PATAN
ALI ASGAR