Meaning and concept of production management Production is the intentional act of producing something in an organized manner.

It is the process by which goods and services are produced. Production involves step by step conversion of one form of materials into another. It involves: Inputs: material, Labour, Equipment, Capital, Management Conversion Process Output: Goods and Services
Conversion Process Outputs


³Production management is the process of planning, organizing, directing and controlling the activities of the production function.´ Production Management also called as operational management, concerns with the conversion of inputs into outputs using physical resources so as to provide the desired utilities to the customer while meeting the other organizational objectives of effectiveness, efficiency and adaptability. Operation may be defined as the process of changing inputs into outputs therby adding value to some entity. The value is added to the entity by one or more of the following ways: 1) Alteration: Refers to change in form or state of inputs. 2) Transportation: Movement of entity from one place to another. 3) Storage: Keeping the entity in a protected environment. 4) Inspection: Process of verification of entity for its properties and hence taking decisions concerning their purchase, use, repair etc..

Production Management is the planning, implementation, and control of production processes to ensure smooth and efficient operation. . Techniques of production management are employed in service as well as in manufacturing industries. It is a responsibility similar in level and scope to other specialties such as marketing or human resource and financial management. In manufacturing operations, production management includes responsibility for product and process design, planning and control issues involving capacity and quality, and organization and supervision of the workforce. Production management¶s responsibilities are summarized by the ³five M¶s´: men, machines, methods, materials, and money.

Types of Production There are several different methods of handling the conversion or production process - Job, Batch, Mass and Flow and Process Production. 1) Jobbing Production Jobbing production is characterized by the manufacture of one or few numbers of single product designed and manufactured strictly to customer¶s specifications, within the given period and within the price fixed prior to the contract. With Job production, the complete task is handled by a single worker or group of workers. Jobs can be small-scale/low technology as well as complex/high technology. Low technology jobs: here the organization of production is extremely simply, with the required skills and equipment easily obtainable. This method enables customer's specific requirements to be included, often as the job progresses. Examples include: hairdressers; tailoring High technology jobs: high technology jobs involve much greater complexity - and therefore present greater management challenge. The important ingredient in high-technology job production is project management, or project control. Examples include: film production; large construction projects.

2) Batch Production Batch production is characterized by the manufacture of a limited number of product( but many such quantities of different products) produced at regular intervals and stocked in warehouses as finished goods awaiting sales. Examples include: process industries such as pharmaceuticals, paints, chemicals, switch gears, heavy motor vehicles etc. Batch production require that the work for any task is divided into parts or operations. Each operation is completed through the whole batch before the next operation is performed. By using the batch production method, it is possible to achieve specialisation of labour. Capital expenditure can also be kept lower although careful planning is required to ensure that production equipment is not idle. The main aims of the batch method are, therefore, to: - Concentrate skills (specialisation) - Achieve high equipment utilization 3) Mass and Flow Production Mass as well as Flow production are characterized by the manufacture of a several number of standard product produced and stocked in the warehouses as finished goods awaiting sales. The goods under mass production are manufactured either at a single operation or a series of operations on one machine. Examples include: manufacture of plastic goods, sintered products, hardware etc. The goods under flow production are manufactured by a series of operations on different machines, arranged as per sequence of operations. Examples include: manufacture and assembly shops of automobiles, refrigerators, radios, television sets etc.

4 ) Process Production Process production is characterized by the manufacture of a single product produced and stocked in warehouses awaiting sales. The flexibility of such plants is almost zero as only one type of product can be produced in such plants. Highly sophisticated machinery is used here. Examples include: Manufacture of sugar, cement, paper, coke etc.

Plant Layout Plant layout refers to the arrangement of physical facilities such as machines, equipment, tools, furniture etc. in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of raw material to the delivery of the final product. A well designed plant layout is one that can be beneficial in achieving the following objectives: · · · · · · · · · · · Proper and efficient utilization of available floor space Transportation of work from one point to another point without any delay Proper utilization of production capacity. Reduce material handling costs Utilize labour efficiently Reduce accidents Provide for volume and product flexibility Provide ease of supervision and control Provide for employee safety and health Allow easy maintenance of machines and plant. Improve productivity

Types of Plant Layout There are mainly four types of plant layout: (a) Product or line layout (b) Process or functional layout (c) Fixed position or location layout (d) Combined or group layout

PRODUCT OR LINE LAYOUT: In this type of layout the machines and equipments are arranged in one line depending upon the sequence of operations required for the product. It is also called as line layout. The material moves to another machine sequentially without any backtracking or deviation i.e the output of one machine becomes input of the next machine. It requires a very little material handling. It is used for mass production of standardized products.

Advantages of Product layout: · Low cost of material handling, due to straight and short route and absence of backtracking · · · · · · Smooth and continuous operations Continuous flow of work Lesser inventory and work in progress Optimum use of floor space Simple and effective inspection of work and simplified production control Lower manufacturing cost per unit

Disadvantages of Product layout: · · · · Higher initial capital investment in special purpose machine (SPM) High overhead charges Breakdown of one machine will disturb the production process. Lesser flexibility of physical resources.

PROCESS LAYOUT: In this type of layout the machines of a similar type are arranged together at one place. This type of layout is used for batch production. It is preferred when the product is not standardized and the quantity produced is very small.

Advantages of Process layout: · · Lower initial capital investment is required. There is high degree of machine utilization, as a machine is not blocked for a single product · · · · The overhead costs are relatively low Breakdown of one machine does not disturb the production process. Supervision can be more effective and specialized. Greater flexibility of resources.

Disadvantages of Process layout: · · · · Material handling costs are high due to backtracking More skilled labour is required resulting in higher cost. Work in progress inventory is high needing greater storage space More frequent inspection is needed which results in costly supervision

COMBINED LAYOUT: · · A combination of process & product layout is known as combined layout.

Manufacturing concerns where several products are produced in repeated numbers with no likelihood of continuous production, combined layout is followed

FIXED POSITION OR LOCATION LAYOUT: Fixed position layout involves the movement of manpower and machines to the product which remains stationary. The movement of men and machines is advisable as the cost of moving them would be lesser. This type of layout is preferred where the size of the job is bulky and heavy. Example of such type of layout is locomotives, ships, boilers, generators, wagon building, aircraft manufacturing, etc.

Advantages of Fixed position layout: · · The investment on layout is very small. The layout is flexible as change in job design and operation sequence can be easily incorporated. · Adjustments can be made to meet shortage of materials or absence of workers by changing the sequence of operations. Disadvantages of Fixed position layout: · · · As the production period being very long so the capital investment is very high. Very large space is required for storage of material and equipment near the product. As several operations are often carried out simultaneously so there is possibility of confusion and conflicts among different workgroups.