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 finished products.
5 P`s of Production Management
 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 and Equipment.
 2. Materials.
 3. Manpower.
 4. Supporting Service.
SCOPE & ACTIVITIES OF PM
 There are two types of scope & activities of PM :
 1. Strategic level.
 (a) Design & development of new product.
 (b) Process design & Planning
 (c) Facilities location & layout planning
 (d) Design of material handling
 (e) Capacity planning

 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 the
mgmt to achieve the stated objective.
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.
FUNCTIONS OF 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 & FLOW PRODUCTION

 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 vehicles etc.

CHARACTARISTIC OF BATCH
PRODUCTION
 1. Short Run.
 2. Skilled labours in specific trades
 3. Limited span of control
 4. General purpose machine and process type layout
 5. Manual material handling
 6. Manufacturing cycle time affected due to queues
 7. Large WIP
 8. Flexible production schedule
 9. Need to have PPC.
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, tailoring shops.
CHARACTARITIC OF JOBBING PRODUCTION

 1. Small production runs.

 2. Discontinuous flow of materials.
 3. Not proportionate manufacture cycle time.
 4. Highly skilled labour.
 5. Highly competent knowledgeable supervision.
 6. Large WIP.
 7. Limited function of PPC.
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 & definite end.
 2. Non uniform requirement of resources.
 3. Involvement of different agencies.
 4. Fixed position layout.
 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 one machine.

 Eg: Assembly shop of automobiles, radios, electric

fans.
CHARACTARITIC OF MASS & FLOW
PRODUCTION

 1. Continuous flow of material.

 2. Special purpose m/c and product type layout.
 3. Mechanized material handling.
 4. Low skilled labour.
 5. Short manufacturing cycle time.
 6. Easy supervision.
 7. Limited WIP.
PROCESS PRODUCTION

 Process production is characterized by the

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

 Eg: Sugar, Steel, Paper, Cement plants.

CHARACTARITIC OF PROCESS
PRODUCTION
 1. Special purpose m/c with built in control.
 2. Highly mechanized material building.
 3. Virtually zero manufacturing time.
 4. Low skilled labor.
 5. Highly qualified supervisors.
 6. Negligible WIP.
 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
of input.
 PRODUCTIVITY = Output / Input.
 Productivity refers to the efficiency of the
production system.
PRODUCTIVITY MEASURES
 1. PARTIAL PRODUCTIVITY MEASURE (PPM)

 PARTIAL PRODUCTIVITY= Total output / individual input.

 (a) Labor Productivity=Total o/p / Labor input
 (b) Capital Productivity = Total o/p / Material input
 (c) Material Productivity = Total o/p / Capital input
 (d) Energy Productivity = Total o/p / Energy input.

 2. TOTAL PRODUCTIVITY MEASURE (TPM)

 = Total tangible o/p / Total tangible i/p
 Tangible o/p= Value of FG & Partial units produced, dividend
from securities, interest, other incomes
 Tangible i/p = Value of ( human , material, capital, other inputs)
FACTORS EFFECTING PRODUCTIVITY

 1. PRODUCT.
 2. PLANT &EQUIPMENT.
 3. TECHNOLOGY.
 4. MATERIAL & ENERGY.
 5. HUMAN FACTOR.
 6. WORK METHOD.
 7. MANAGEMENT STYLE.
PRODUCTIVITY IMPROVEMENT
TECHNIQUES

 1. TECHNOLOGY BASED
 2. EMPLOYEE BASED.’
 3. MATERIAL BASED.
 4. PROCESS BASED.
 5. PRODUCT BASED.
 6. MANAGEMENT BASED.