What is Production management?

◼ Production management is the process of

effectively planning and regulating the
operations of that part of an enterprise which
is responsible for the actual transformation of
materials into finishedproducts.
5 P`s of ProductionManagement
◼ 1. PRODUCTS.
◼ 2. PLANT.
◼ 3. PROCESS.
◼ 4. PROGRMS.
◼ 5. PEOPLE.

◼ When this five element integrated a

successful production management takes
place.
OBJECTIVE OF PRODUCTION
MANAGEMENT
◼ 1.RIGHT QUALITY.
◼ 2.RIGHT QUANTITY.
◼ 3.PREDETERMINED TIME.
◼ 4.PRE-ESTABLISHED COST.

◼ Other objectives are:

◼ 1. Machinery andEquipment.
◼ 2.Materials.
◼ 3.Manpower.
◼ 4. SupportingService.
SCOPE & ACTIVITIESOF PM
◼ There are two types of scope & activities of PM:
◼ 1.Strategic level.
◼ (a) Design & development of newproduct.
◼ (b) Process design &Planning
◼ (c) Facilities location & layoutplanning
◼ (d) Design of materialhandling
◼ (e) Capacityplanning

◼ 2.Operational level.
◼ (a)Production Planning
◼ (b)Production Planning
◼ (c)Inventory Control
◼ (d) Product maintenance &replacement
◼ (e)Cost Control &Cost Reduction
PRODUCTION PLANNING & CONTROL
(PPC)
◼ PPC is the powerful tool available to
themgmt to achieve the statedobjective.
Production planning starts with the analysis of
data like demand & delivery schedule etc &
the basis of information available and
resources like machine, material & men.

◼ So, PPC is the process of directing &

coordinating of firms resources towards
attaining prefixed goal.
FUNCTIONSOF PPC
◼ 1.Material Function
◼ 2. Machine &Equipment
◼ 3. Methods
◼ 4.Routing
◼ 5.Estimating
◼ 6.Scheduling
◼ 7.Dispatching
◼ 8.Expediting
◼ 9.Inspection
◼ 10.Evaluation
TYPES OF PRODUCTION
◼ 1. BATCH PRODUCTION

◼ 2. MASS & FLOWPRODUCTION

◼ 3. PROCESS PRODUCTION

◼ 4. PROJECT PRODUCTION

◼ 5. JOBBING PRODUCTION
BATCH PRODUCTION

◼ Batch production is the manufacturing of

limited number of product produced at regular
intervals & stocked in warehouse as finished
goods.

◼ Eg. Chemical , paint & motor vehiclesetc.

CHARACTARISTIC OF BATCH
PRODUCTION
◼ 1. Short Run.
◼ 2. Skilled labours in specifictrades
◼ 3. Limited span ofcontrol
◼ 4. General purpose machine and process typelayout
◼ 5. Manual materialhandling
◼ 6. Manufacturing cycle time affected due toqueues
◼ 7. Large WIP
◼ 8. Flexible productionschedule
◼ 9. Need to havePPC.
JOBBING PRODUCTION
◼ Jobbing production is characterized by the
manufacture of one or few number of a single
product designed and manufactured strictly to
customer’s specifications within the given
period and within the price fixed prior to the
contract.
◼ Eg: general repair shop, tailoringshops.
CHARACTARITIC OF JOBBING PRODUCTION

◼ 1. Small productionruns.
◼ 2. Discontinuous flow ofmaterials.
◼ 3. Not proportionate manufacture cycletime.
◼ 4. Highly skilledlabour.
◼ 5. Highly competent knowledgeablesupervision.
◼ 6. LargeWIP.
◼ 7. Limited function ofPPC.
PROJECT PRODUCTION

◼ Project production is characterized by

complex sets of activities that must be
performed in a particular order within the
estimated expenditure.

◼ Eg: construction of Roads, Buildings etc.

CHARACTARITIC OF PROJECT
PRODUCTION
◼ 1. Definite beginning & definiteend.
◼ 2. Non uniform requirement ofresources.
◼ 3. Involvement of differentagencies.
◼ 4. Fixed positionlayout.
◼ 5. High cost overrun.
◼ 6. Scheduling & control.
MASS & FLOW PRODUCTION

◼ Mass as well as flow production are characterized by

the manufacturer of several number of a std product
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 operation on onemachine.

◼ Eg: Assembly shop of automobiles, radios, electric

fans.
CHARACTARITIC OF MASS & FLOW
PRODUCTION

◼ 1. Continuous flow ofmaterial.

◼ 2. Special purpose m/c and product typelayout.
◼ 3. Mechanized materialhandling.
◼ 4. Low skilledlabour.
◼ 5. Short manufacturing cycletime.
◼ 6. Easysupervision.
◼ 7. LimitedWIP.
PROCESS PRODUCTION

◼ Process production is characterized by the

manufacture of single product produced and
stocked in the warehouses awaiting sales.

◼ Eg: Sugar, Steel, Paper, Cementplants.

CHARACTARITIC OF PROCESS
PRODUCTION
◼ 1. Special purpose m/c with built incontrol.
◼ 2. Highly mechanized materialbuilding.
◼ 3. Virtually zero manufacturingtime.
◼ 4. Low skilledlabor.
◼ 5. Highly qualifiedsupervisors.
◼ 6. NegligibleWIP.
◼ 7.Limited PPC.
WHAT IS PRODUCTIVITY ?

◼ Productivity is the quantitative relation

between what we produce and what we use
as a source of produce them. So, Productivity
is the arithmetic ratio of output to the amount
ofinput.
◼ PRODUCTIVITY = Output /Input.
◼ Productivity refers to the efficiency of
productionsystem.
PRODUCTIVITY MEASURES
◼ 1. PARTIAL PRODUCTIVITY MEASURE(PPM)

◼ PARTIAL PRODUCTIVITY= Total output / individualinput.

◼ (a) Labor Productivity=Total o/p / Laborinput
◼ (b) Capital Productivity = Total o/p / Materialinput
◼ (c) Material Productivity = Total o/p / Capitalinput
◼ (d) Energy Productivity = Total o/p / Energyinput.

◼ 2. TOTAL PRODUCTIVITY MEASURE(TPM)

◼ =Totaltangibleo/p/Totaltangiblei/p
◼ Tangible o/p= Valueof FG & Partial units produced,dividend
from securities, interest, otherincomes
◼ Tangible i/p = Value of ( human , material, capital, otherinputs)
FACTORS EFFECTING PRODUCTIVITY

◼ 1.PRODUCT.
◼ 2. PLANT &EQUIPMENT.
◼ 3.TECHNOLOGY.
◼ 4. MATERIAL &ENERGY.
◼ 5. HUMANFACTOR.
◼ 6. WORKMETHOD.
◼ 7. MANAGEMENTSTYLE.
PRODUCTIVITY IMPROVEMENT
TECHNIQUES

◼ 1.TECHNOLOGY BASED
◼ 2.EMPLOYEE BASED.’
◼ 3.MATERIAL BASED.
◼ 4. PROCESSBASED.
◼ 5. PRODUCTBASED.
◼ 6. MANAGEMENTBASED.