Manufacturing Management

Lecturer: Pravit Pornbhipatkul

Represented by
Wilasinee Seesongkram
 1. Value chain of
petrochemical business
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8. Organization 2. Overview of
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management tools 0 Manufacturing management
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3. Strategy and medium-term

7. Knowledge planning
management 0
Contents 0
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4. Product portfolio
6. Production management
0 0
management
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5. Supply chain 5
management

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1. Value chain of petrochemical business
Raw material Crude oil & Natural gas

Separation

Intermediate (Raw mat. to produce polymer)

Polymerization

Plastic compound

Final Product Finished product

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 2. Overview of Manufacturing
management
• Typical project execution
o Marketing and business development
 Researching market and feasibility of project
o Technology and project engineering
 Designing and construct the plant

• Porter’s generic value chain model

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 3. Strategy and medium-term
planning
“Critical part of the firm's corporate and business strategies, comprising a set of
well-coordinated objectives and action programs aimed at securing a long-term,
sustainable advantage over competitors.”

• Competitive dimension
o Cost
o Quality
o Delivering
o Flexible with
 Demand
 New product introducing
o Support

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 4. Product portfolio
management
Product portfolio management refers to the practice of managing allocating
resources, identifying areas of improvement, and keeping the entire products
aligned with the organization’s broader strategy.

• New product innovation

o Resource commitment and strategic portfolio discussion
• Portfolio analysis
o The BCG matrix
• State-gate as the tool
o Big to small

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 5. Supply chain management
Supply chain Complex sequence of activities including material and information
flow involved in producing and distribution product

• Product planning
o Current product and new product
 Phase in or out
• Demand forecast
o Using sale data to forecast future demand and trend
• Inventory management
o Raw material, work in process, finished goods

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 6. Production management
Management of an organization’s production systems, which converts inputs into the desired
product and services and to produce goods services of right quality and quantity at the right time and
right manufacturing cost.

• Operation Control
• Plant Management e.g. safety enforcement
• Process Engineering activities e.g. Process performance analysis
• Control room operation activities e.g. Data lagging, start up,
shut down
• Field operation activities e.g. sample taking
• Maintenance Control
• Basically about optimize maintenance control: control the
productive process of machine subject to external
uncontrollable deterioration.

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 6. Production management
• Quality Control
o Quality of INPUTS, PARTIALLY COMPLETED PRODUCTS,
OUTPUTS

• Cost Control
o Variable cost : vary with production volume
 ex. RW cost, Chemical Cost, Utilities cost
o Fixed Cost : not vary with production volume
 ex. labor cost, renting cost, maintenance cost, administration
cost, deprecation cost
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7. Knowledge management
Actions Results

Decide
Solutions Answers
Predict
Knowledge Insight
Analyze
Information Understanding
Organize
Raw Data
Collect

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8. Organization management tools
• ISO standard
• The International Organization for Standardization is an independent,
non-governmental organization
• Over twenty thousand of ISO standards have been set covering
everything from manufactured products and technology to food safety,
agriculture and healthcare.

• Total quality control (TQC)

• To practice quality control is to develop, design, produce and service a
quality product

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8. Organization management tools
• Total Productive Management (TPM)
o a system of maintaining and improving the integrity of
production and quality systems.

• Six sigma
o To be perfect process with 3.4 defects per million
o 99.999966 percent of perfection

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 Thanks!
Any questions?

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