PRODUCTION MANAGEMENT

Chapter 10
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.
 1. RIGHT QUALITY.

2. RIGHT QUANTITY.
OBJECTIVE 3. PREDETERMINED TIME.
OF 4. PRE-ESTABLISHED COST.
PRODUCTI Other objectives are :
ON 1. Machinery and Equipment.
MANAGEM 2. Materials.
ENT 3. Manpower.

4. Supporting Service.
 • 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

SCOPE & 2. Operational level.

ACTIVITIES • (a) Production Planning

• (b) Material Planning
OF PM • (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.

 1. Short Run.

2. Skilled labours in specific trades

3. Limited span of control

CHARACTARIS 4. General purpose machine and process type layout

TIC OF BATCH 5. Manual material handling

PRODUCTION 6. Manufacturing cycle time affected due to queues

7. Large WIP

8. Flexible production schedule

9. Need to have PPC.

JOB SHOP
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 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.
 1. Special purpose m/c with built in control.

2. Highly mechanized material building.

CHARACTARI 3. Virtually zero manufacturing time.

TIC OF
PROCESS 4. Low skilled labor.
PRODUCTIO 5. Highly qualified supervisors.
N
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.