session 1

INTRODUCTION TO
PRODUCTION
MANAGEMENT


Topics covered under session 1



§ Introduction
§ Meaning
§ Nature of Production system
§ Production as a system
§


§ Production is the process by which, raw materials

and other inputs are converted into finished
goods.

information
Organization Transformation

Resources Services


§ Production is the process by which, raw materials

and other inputs are converted into finished
goods.
§ Synonym of production is manufacturing.
§ Manufacturing refers to the process of producing
only tangible goods.
§ Production refers to creation of tangible goods and
intangible services.



Production in manufacturing organization:



§ Production is an intentional act of producing

something in an organized manner. It is the
manufacture of a physical object through the use
of men, material and machine.


Production in Service organization:



§ Production, means discharge of some function which

has some utility.
§ Example: banks, transport companies.



§ Management can be defined as “ the art and

science, concerned with planning, directing and
controlling the work of human beings towards a
common aim, in accordance with agreed
policies”.
§ Management is the practice of determining what has
to be done and then to accomplish this goal in the
best way through other people.
 

 Definitions of Production Management

§ E.L. Brech defined Production Management is
the process of effective planning and regulating the
operations of that section of an enterprise which is
responsible for the actual transformation of
materials into finished products.”


§ Production Management deals with decision making

related to production process, so that the resulting
goods and services are produced in accordance
with the quantitative specifications and demand
schedule with minimum cost.
§
§
§ Production Management is a set of general
principles for production economies, facility
design, job design, schedule design, quality
control, inventory control, work study and cost and
budgetary control.
 

 Functions of Production Management

§ Design and development of production process
§ Production Planning and Control
§ Implementation of the plan and related activities to
produce the desired output.
§ Administration and co-ordination of the activities of
various components and the distribution followed
by an organization.