Professional Documents
Culture Documents
Joanna Olekw-Szapka
Institute of Management Engineering Poznan University of Technology October 8th , 2009
Understand basic production management and its function Obtain knowledge of basic methodology in order to apply these in a working field and find a way to improve productivity and eliminate waste Understand higher level of production management Gain ability of forecasting demand, planning a production schedule and fulfilling capacity of production and reform of an organization
CONTENTS
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
Production management background Decision- making process of production Improvement of productivity Forecasting demand of production Design of goods and services Process strategy Material requirements planning and capacity requirements planning Inventory control Specialization and outsourcing Location and layout strategies Planning and scheduling production information systems Basic case studies and exercices
BOOKS
T. Hill, Production/Operations Management, Prentice Hall 1991 Heizer, J. Render, B. Operations Management, Prentice Hall 2005 S.N. Chapman, The fundamentals of production planning and control; Prentice Hall 2006 K.N. McKay, V.C.S. Wiers, Practical production control. A survival guide for planners and schedulers,, APICS, J.Ross Publishing 2004 And others from the field of production/operations management
PRODUCTION MANAGEMENT
30 h Lectures, Exercices and cases solved by yourself An oral exam December 10th, 2009
DEFINITION OBJECTIVES FUNCTIONS PRODUCT DESIGN, TYPES OF PRODUCTION SYSTEMS PLANNING AND CONTROL PRODUCTION MANAGEMENT ETC.
Planning and control of production of goods and services are essential for efficient and effective operations. It is definitely not enough (though necessary) for every worker to know his/her job. There has to be a planned, coordinated and monitored system of approach to the operations and productions of the organization. This is the reason for production management.
In short production management is the Art of Managing the Production. It basically concerns itself with the conversion of inputs into outputs. 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. The performance of management activities with regards to selecting, designing, operating, controlling and updating production system
(ii)
(iii)
Transformation process Method(s) of conversion. Support function to provide controls and feedback and to improve the process
Production management focuses on two significant functions: responsibilities and planning and control. The production managements responsibility sees to the following areas; men (labor), machines, methods, materials and money.
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.
Material: Material here includes both raw materials for production and the information needed in production. The production 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.
CRITERIA OF PERFORMANCE
3 aims of performance of the Production and Operations Management Systems: Effectiveness productive utilization of resources Customer satisfaction Efficiency
According to William K. Holstein[1], production planning and controlling functions can summarily put thus:
PRODUCTION CONTROL SUMMARY
PROCESSES INVENTORY INSPECTION COSTS
OBSERVATION
ANALYSIS
comparing progress analyzing demand estimating with the plan for stocks in process different uses and capabilities at different times
CORRECTIVE ACTION
expediting
Issuing production Initiating full and procurement inspection; orders adjusting processes reassessing specifications; improving processes and procedures
EVALUATION
estimating drawing up production capacities replacement and maintenance policies and inventory systems schedules
PRODUCTION FUNCTION
There have been several practices developed by many experts in the field of production management and aimed at ensuring efficient and effective production lean production, agile production etc.
PRODUCT DESIGN
Product design is a strategic decision as the image and profit earning capacity of a small firm depends largely on product design. Once the product to be produced is decided by the entrepreneur the next step is to prepare its design. The form designing includes decisions regarding its shape, size, color and appearance of the product. The functional design involves the working conditions of the product
PRODUCT DESIGN
Various factors are to be considered before designing product. These factors are listed below: (a) Standardization (b) Reliability (c) Maintainability (d) Servicing (e) Reproducibility (f) Sustainability (g) Product simplification (h) Quality Commensuration with cost (i) Product value (j) Consumer quality (k) Needs and tastes of consumers.
PRODUCT DESIGN
The product design should be dictated by the market demand. It is an important decision and therefore the entrepreneur should pay due effort, time, energy and attention in order to get the best results.
JOB PRODUCTION The job produced only once, The job produced at irregular intervals The jopb produced periodically at regular intervals. BATCH PRODUCTION A batch produced only once A batch produced at irregular intervals as per Customer or when the need arises A batch produced periodically at known intervals CONTINUOUS PRODUCTION. Mass production Flow production
B)
C)
Examples?
Effect of volume/variety Capacity of the plant Lead time Flexibility and efficiency
Production management can also be viewed from the planning and control perspective. The production manager must plan and control the process of production in a cost effective way at the same time meeting all quality specifications. Things that are being controlled in production management are the inventories and labor cost.
INVENTORY CONTROL
Inventories include the raw materials needed in production, component parts, finished goods, packing and packaging materials, and general supplies. Computer programs and software have been further developed to increase efficiency and effectiveness in inventory controlling.
This involves measuring the amount and type of work required to produce and design an efficient method for accomplishing the set production objective. The measurement here also includes time required to produce a particular production task.
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.
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.
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
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.