PRODUCTION MANA

GEMENT

1.6
Production management is a process of planning, orga
nizing, directing and controlling the activities of the prod
uction function.
E.S. Buffa defines production management as follows:
‘Production management deals with decision-making re
lated to production processes so that the resulting goods
or services are produced according to specifications, in t
he amount and by the schedule demanded and out of mi
nimum cost’.
 Objectives of
Production
Management

1 Right Quality

2 Right Quantity

3 R i g h t Ti m e

4 Right Manufacturing
Cost
1. Right Quality: The quality of product is established b
ased upon the customers need.
2. Right Quantity: The manufacturing organisation shoul
d produce the products in right number.
3. Right Time: Timeliness of delivery is one of the import
ant parameter to judge the effectiveness of production d
epartment.
4. Right Manufacturing Cost: Manufacturing costs are e
stablished before the product is actually manufactured.
Operations System
An operation was defined in terms of the mission it serves for the
organisation, technology it employs and the human and managerial
processes it involves.
Operations in an organisation can be categorised into Manufacturing
Operations and Service Operations.
Manufacturing Operations is a conversion process that includes
manufacturing yields a tangible output: a product, whereas, a conversion
process that includes service yields an intangible output: a deed, a
performance, an effort.
Operations system converts inputs in order to provide outputs, which are
required by a customer. It converts physical resources into outputs, the
function of which is to satisfy customer wants.
 Everett E. Adam & Ronald J. Ebert
Defines as ‘An operating system is the part of an
organisation that produces the organistion’s physical goods and services’.

Ray Wild
D efines operations system as ‘a configuration of resources combined
for the provision of goods or services’.
 1.7.1
A Framework of Managing
Operations

Operation managers are concerned with planning, organising, and co

ntrolling the activities, which affect human behaviour through models.
Planning is the activity that establishes a course of
action and guide future decision-making.
Organizing is the activities that establish a structure of
tasks and authority.
Controlling is the activities that assure the actual
performance in accordance with planned performance.
1. Behaviour: Operations managers are concerned with
the activities, which affect human behaviour through
models.
2. Models: Models represents schematic representation
of the situation, which will be used as a tool for decision-
making.
Some of the models used:
Aggregate planning models for examining how best to
use existing capacity in short term, break-even analysis
to identify break-even volumes.
Linear programming and computer simulation for
capacity utilisation, decision tree analysis for long-term
capacity problem of facility expansion,simple median
model for determining best locations of facilities, etc.
Thank you
KRISHELE G. GOTEJER III BSA -A