Production

Production Process steps

 Product Concept
 Research
 Product Design Development
 Research and development of the final design
 CAD (Computer aided design)
 CAM (Computer aided Manufacturing)
 Prototype Testing.
 Manufacturing,
 Assembly,
 Feedback and Testing,
 Product development,
 Final/Finished Product,
Planning
 “Production Planning is concerned with the
determination, acquisition and arrangement
of all facilities necessary for future
operations”

 “ Planning is the back bone of Production”

 “Generally Production Planning Plan for 3

Months Period”
Planning Key Factors :
 Make to Stock (MTS)
Raw material Way of Work/
Assembly Work Center
availability Recipe

 Material Requirement Planning (MRP)

 Sales Analysis,

 Market Trend/ Market Survey

 Make to Order
Engineering Variants to
to Order Order
 Consumption Base Planning(CBP)

 Cost of Manufacturing

 Product Costing
 By Product :

 Which is Un planned to Produce the Product is

called “by Product” it is Profit for the Company.

 Co Product:

 Which is Planned to Produce the Product and

Product Cost also Apportioned is called “Co-
Product”

 Scrap:
“Scrap is unplanned and Non Profitable and non
usable”
 Types of Industries
Process Service
Eng Industry
Industry Industry

 Process Industry:
“Not Able to Separate the Finished Product is called Process
Industry”
Ex: Oil Industry
 Engineering Industry:
“ Able to Separate the Finished Product is called Engineering or
Discrete Industry”
• Ex: Battery Manufacturing Industry
 Service Industry:
“ Able to Transfer or Deliver the Services to the Market is called
Service Industry”
Ex: IT Industries, Education Industries, Hospital Industries
Repetitive Manufacturing:
 It is Period Based Production, Production with certain
Quantities Per Period. It is Simplified Routing and Period
Based Cost Controlling

Discrete Manufacturing:

“It is Order Based Production, Production in individual

Production Orders, it is complex Routing and Order based
Cost Controlling”