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PLANNING
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SCHEDULING
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PRODUCTION CONTROL:
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STRATEGY:

An elaborate and systematic


plan of action
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BUILD STRATERGY PROCESSFLOW


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Production management
cycle
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Capacity planning

Capacity planning is the process of determining the


production capacity needed by an organization to meet
changing demands for its products. capacity planning, "capacity"
is the maximum amount of work that an organization is capable
of completing in a given period of time

Capacity is calculated: (number of machines or workers) ×


(number of shifts) × (utilization) × (efficiency).
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Classes of capacity planning:

The broad classes of capacity planning are lead strategy, lag strategy, and
match strategy.
Lead strategy is adding capacity in anticipation of an increase in demand.
Lead strategy is an aggressive strategy with the goal of luring customers away
from the company's competitors. The possible disadvantage to this strategy is
that it often results in excess inventory, which is costly and often wasteful.
Lag strategy refers to adding capacity only after the organization is running at
full capacity or beyond due to increase in demand . This is a more
conservative strategy. It decreases the risk of waste, but it may result in the
loss of possible customers.
Match strategy is adding capacity in small amounts in response to changing
demand in the market. This is a more moderate strategy.
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 These decisions are of strategic importance


and have long-term significance for the
organization.

Examples

◦ the design for a new product’s production process


◦ where to locate a new factory
◦ whether to launch a new-product development plan
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PRODUCTION
OPERATION
MANAGEMENT
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OBJECTVE OF PRODUCTION MANAGEMENT

The objective of Production Management is to produce the


desired product or specified product by specified methods so
that the optimal utilization of available resources is met with.
Hence the production management is responsible to produce
the desired product, which has marketability at the cheapest
price by proper planning, the manpower, material and
processes.
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TYPES OF PRODUCTION SYSTEMS

Job Production
Batch Production
Continuous Production
oMass Production
oFlow Production
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Job Production:

In this system Products are manufactured to meet the requirements of


a specific order. The quality involved is small and the manufacturing
of the product will take place as per the Specifications given by the
customer.

Batch Production:
Batch Production is the manufacture of number of
identical products either to meet the specific order or to satisfy the
demand. When the Production of plant and equipment is terminated,
the plant and equipment can be used for producing similar products.
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Continuous Production:
Continuous Production system is the specialized manufacture
of identical products on which the machinery and equipment is fully engaged.
The continuous production is normally associated with large quantities and with
high rate of demand. Hence the advantage of automatic production is taken.
This system is classified as
 Mass Production:
Here same type of product is produced to meet the demand of
an assembly line or the market. This system needs good planning for
material, process,maintenance of machines and instruction to operators.
Purchases of materials in bulk quantities is advisable.
Flow Production:
The difference between Mass and Flow Production is the type
of product and its relation to the plant. In Mass Production identical products
are produced in large numbers. If the demand falls or ceases, the machinery
and equipment, after slight modification be used for manufacturing products
of similar nature. In flow production, the plant and equipment is designed for
a specified product.
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Finance
Sales HRM

OM
QA
Marketing

MIS Accounting
Engineering
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FUNCTIONS OF PRODUCTION MANAGEMENT


DEPARTMENT

The functions of Production Management depend upon the size of the firm.
In small firms the production Manager may have to look after production
planning and control along with Personnel,Marketing, Finance and Purchase
functions. In medium sized firms, there may be separate managers for
Personnel, marketing and Finance functions. But the production planning
and control and Purchase and stores may be under the control of Production
management department. In large sized firms the activities of Production
Management is confined to the management of production activities only
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There are no hard and fast rule or guidelines to specify the function of
Production Management,but in the academic interest we can mention Some
of the functions, which are looked after by theProduction Management
department. They are
Materials
Methods
Machines and Equipment
Estimating
Loading and Scheduling
Routing
Despatching
Expediting or Follow up
Inspection
 Evaluation
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SCOPE OF PRODUCTION AND OPERATION MANAGEMENT:


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STAGES OF PRODUCTION FUNCTION


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Industrial relations

Industrial relations is a multidisciplinary field that studies


the employment relationship.Industrial relations is increasingly being
called employment relations because of the importance of non-
industrial employment relationships. Many outsiders also equate
industrial relations tolabour relations and believe that industrial
relations only studies unionized employment situations, but this is an
oversimplification.

Personal Management
Personal management is about mapping a plan for your life that will
involve setting short-range and long-range goals and investigating
different ways to reach those goals. Education, training, and
experience all help make your goals become a reality. When an
individual or a team of individuals takes on this task of seeing to
programs and setting policies that impact everyone associated with the
company, they are engaged in the process of personnel management,
sometimes referred to as human resources (HR) management.
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The first training in emotional and social competence in


organizations was called human relations training. Most of these
efforts were not evaluated, and many were disappointing in their
lack of lasting impact. The objective of the program was to
encourage participants to utilize human relations principles in
their dealings with employees. More specifically, the program
designers sought to increase participantsí use of consideration
and initiating structure. Thus, the program targeted the
emotional competencies of self-awareness, empathy and
leadership.

Topics :
included leaders, leadership, and followership; initiating
structure and consideration; and
autocratic, democratic, and laissez-faire styles of management.
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References:

Ship design and construction – TAGGART


Ship production - RICHERD MOORE,HOWARD
Production and operation management-BUFFA-
WEILLY(1967)
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