PRODUCTION AUTOMATION (Lecture 2)

FUNDAMENTALS OF MANUFACTURING

PRODUCTION

In General, Production is the making of something new, either

 Tangible (Products) OR

 Intangible ( Services)

 Intangible ideas are also included under the Production heading

3 MODES OF PRODUCTION

1. Primary Industry

 The basic productive activities present in nature that are the source of wealth (Agricultural, Mining
and Fishing etc)

2. Secondary Industry

 If someone manufacture a product for the creation of wealth

 Production for the market

 Production in this sense mean making things which are tangible (i.e. Products) [Manufacturing,
construction, Public utility (products) generation]

3. Tertiary Industry

 The concept of utility was introduced in this type

 Utility, refers to the degree of satisfaction a human want

 With this concept the meaning of production was widened i.e. (Production is a creation of Utility)

Hence,

It further includes Services, such as Transportation, Sales and Trade etc. and other service activities

Dr. S. A. Shah Page 1

 PRODUCTION AUTOMATION (Lecture 2)

NOW WHAT PRODUCTION IS?? IN A NARROW SENSE

PRODUCTION

The transformation of raw materials into products by a series of energy applications, each of which
affects well defined changes in the physical or chemical characteristics of the materials

 This definition applies only to produce Tangible goods (products) such as, in manufacturing or
process industries

MORE PRECISELY

Manufacturing  Is the conversion of a design into a finished product

Production  Is the physical act of making the product

FINALLY: We conclude that

“Manufacturing is a series of inter related activities and operations involving the design, material
selection, planning, manufacturing production, quality assurance, management and marketing of the
products of the manufacturing industries”

 Hence includes both Tangible and Intangible things

CONCLUSION

MANUFACTURING  Is simply a series of Productive Activities (Planning, Designing,

Procurement, Production, Inventory, Marketing, Distribution, Sales, and
Management

Factory or Workshops

 A Place which executes manufacturing

Dr. S. A. Shah Page 2

 PRODUCTION AUTOMATION (Lecture 2)

PRINCIPLES OF MANUFACTURING

FLOWS OF MANUFACTURING

 There are three flows in manufacturing

 For efficient manufacturing activities, Unification/Integrations of these three flows is vital

1. Flow of Materials (Material Flow)

Conversion of raw materials into products i.e. (Technical Production)

2. Flow of Information (Information Flow)

Planning and control of production

3. Flow of Cost (Cost Flow)

Economical Production

1. Flow of Material (F.O.M)

 Production of Goods is basically utilization of resources of production (Manpower, Material,

Machine, Money, Information)

 Particularly the Raw Material (In the manufacturing of finished products)

 This input-output system is referred as a production process (Production Technology) or Technical

Production simply called as the Flow of Material (F.O.M)

RAW MATERIALS

 Are normally supplied by the outside supplier throughout the process

 General flow of the F.O.M is as under (see the next Page)

Dr. S. A. Shah Page 3

 PRODUCTION AUTOMATION (Lecture 2)

FLOW OF MATERIAL

FROM EXTERNAL SUPPLIER Raw Material

Processed & Assembles Stored in Ware houses

at Workshops (As Inventories)

Finished Products

Delivered to Consumers
as Commodities

2. Flow of Information (F.O.I)

 Instead of just producing products

 It is essential to grasp the market needs and reflect (Incorporate) those needs in the production
process

 This is the Management Function (Management Technology)

Manufacturing Technology  Conducts Planning and Control (This is called F.O.M)

3. Flow of Cost (F.O.C)

 Through the Production Process

Raw materials are converted into finished product with value added

 This Value Added Process

Is the (Flow of Value) or (Economical Production) or (F.O.C)

Dr. S. A. Shah Page 4

 PRODUCTION AUTOMATION (Lecture 2)

NOTE:

The F.O.I  Is the Driving Force

i.e. The F.O.I generates the F.O.C

 Proceeds according to the instructions issued from the F.O.I based upon the market needs

NOW: Production / Manufacturing can be defined as:

The process of producing economic goods, including tangible goods and intangible services, from
resources of production (Production Process / Technical Production), thus creating utility by increasing
the value added (Economical Production)

Dr. S. A. Shah Page 5