Tag: Production

  • Why we Comparison of Different Production Systems?

    Why we Comparison of Different Production Systems?

    Comparison of Different Production Systems; The system relies on a number of important factors like policies of the organization, Types of Production Systems, size of production, etc. However, production methods, organization, activities, and operations differ from company to company. The production system can classify in the following ways: 1) Continuous or Flow Production, and 2) Intermittent Production System.

    Here are explain; How to Comparison of Different Production Systems?

    As we have discussed various systems and sub-systems in detail in the above lines, we can now make a comparative study of them as follows;

    Comparison of Different Production Systems Chat
    Comparison of Different Production Systems Chat

    Manufacturing Cost:

    Cost of production per unit is the lowest in-process production while it is highest in job production because large scale continuous production is carried out under process production. Per unit, the cost is maximum in Job production and minimum in-process production. The four methods of production in increasing order of costs can arrange as process, mass, batch, and job. Unit cost in mass production is higher than the process production while it is lower than the batch production or job production.

    Size and Capital Investment:

    As stated earlier, the scale of operation is small in job production, medium in batch production, large in mass production and very large in-process production. Hence the size of capital investment differs from system to system. Process production calls for higher investment while mass production requires a lesser amount of capital investment. It is lower in case of job production and comparatively higher in batch production. Extra explain each of them;

    1. Capital Investment: The requirement of capital varies according to the nature of the product and the input needs. The systems in ascending order of capital investment can be arranged as a job, batch, mass, and process.
    2. Size of Plant: In job and batch system the same equipment/machine can perform a number of operations to manufacture different type of items. So the size of the plant is likely to smaller than those for mass and process system where the whole production process is to strictly arrange in a predetermined sequence of operations.

    Flexibility in Production:

    In case of a change in demand for the product, the production facilities may adjust very shortly without increasing much expenses under the system of job or batch production. But both the sub-systems of continuous production system i.e., mass production or process production employ single-purpose machine in their manufacturing processes. Job and batch systems can easily adjust to changes in the requirement of the consumer with incurring any heavy expenditure.

    But in the case of mass and process systems we can produce one single product and with the change in demand of products the systems cannot adjust easily. Thus job-batch system using general-purpose machines is more flexible than a mass-process system using single-purpose machines. They cannot adjust their production facilities so quickly and easily as is possible in job or batch production where general-purpose machines are using.

    Required Technical Ability:

    Both job and batch production requires high skilled technical foreman and other executives. Highly skills labor is required in job and batch production to operate and carry out specializes work on machines. In the case of mass and process systems, semi-skilled persons can also operate the machines.

    But due to the large scale of production, more managerial skill is requiring in continuous systems. Under mass production for process production systems, managerial ability plays an important role because it requires the higher ability for planning and coordinating several functions in mass and process production than in the case of job and batch production.

    Organizational Structure:

    A mostly functional organization is adopting in case of job and batch production systems. In job and batch production generally functional organizational approach is adopting whereas divisional organization pattern is using in mass and process systems.

    There is decentralization concept in organization of job and batch whereas centralization is prominent in mass and process systems. On the other hand, the divisional organization is preferred in mass and product process production systems due to the greater emphasis for centralization.

    Job Security:

    Job and batch systems of production do not provide. Any type of job security to workers due to their intermittent character. During odd times, workers particularly upskilling workers are thrown out of a job. On the contrary, mass and process production systems provide greater job security to workers. Because production operations are carrying out continuously in anticipation of stable and continuous demand of the product.

    Job and batch systems produce items only when orders are receiving. During slack periods when there is no or very little demand workers are likely to sack. Job security is the probability that an individual will keep his/her job; a job with a high level of job security is such that a person with the job would have a small chance of losing it. Thus, there is less job security in Job-batch production systems. In mass and process system, items are manufacturing for stock and so production is continuous. Due to this, there is more job security for workers.

    Industrial Application:

    The application of different systems is suitable in different industries depending upon the nature of work. The mechanism of job production applies in products of construction and manufacturing industries like buildings, bridges, special purpose machines, etc.

    Batch production is mostly using in mechanical engineering and consumer-goods industries like cotton, jute, machine tools, shoe-making, etc. Mass production is found in automobiles, sugar refining, refrigerators, electrical goods, etc. Process production is most appropriate in chemical, petroleum, milk processing industries, etc.

    Why we Comparison of Different Production Systems - Toothbrush
    Why we Comparison of Different Production Systems? Toothbrush #Pixabay

    Thus, a comparative view of the different systems of production reveals. That no one system is suitable for all types of industries. And, therefore, each system is different in itself and must be studied with reference to the nature of the industry.

  • Types of Production Systems; Continuous System and Intermittent System

    Types of Production Systems; Continuous System and Intermittent System

    Types of Production Systems; A production manager will have to choose the most appropriate method for his enterprise. The final decision regarding any particular method of production is very much affecting by the nature of the products and the quantity to produce. The types of Production Systems are grouped under two categories viz., Intermittent production system, and Continuous production system.

    Here are explain Types of Production Systems; Continuous System and Intermittent System with their advantage and disadvantage.

    There are two main types of production systems: 1) Continuous System and 2) Intermittent System.

    Types of Production Systems Chart - Continuous and Intermittent
    Types of Production Systems Chart – Continuous and Intermittent

    Continuous System or Flow System:

    According to Buffa,

    “Continuous flow production situations are those where the facilities are standardized as to routings and flow since inputs are standardized. Therefore a standard set of processes and sequences of the process can adopt.”

    Thus continuous or flow production refers to the manufacturing of large quantities of a single or at most a very few varieties of products with a standard set of processes and sequences. The mass production is carried on continuously for stock in anticipation of demand.

    Types of Production Systems Continuous System and Intermittent System
    Types of Production Systems; Continuous System and Intermittent System, #Pixabay.

    Characteristics of Continuous System:

    The following characteristics below are;

    • The volume of output is generally large (mass production) and goods are produced in anticipation of demand.
    • The product design and the sequence of the operations are standardized i.e. identical products are produced.
    • Special purpose automatic machines are used to perform standardized operations.
    • Machine capacities are balanced so that materials are fed at one end of the process and the finished product is received at the other end.
    • Fixed path materials handling equipment is used due to the predetermined sequence of operations.
    • Product layout designed according to a separate line for each product is considered.

    Advantages of Continuous System:

    The following advantages below are;

    • The main advantage of the continuous system is that work-in-progress inventory is minimum.
    • The quality of output is kept uniform because each stage develops skill through repetition of work.
    • Any delay at any stage is automatically detected.
    • Handling of materials is reduced due to the set pattern of the production line. Mostly the materials are handled through conveyor belts, roller conveyors, pipelines, overhead cranes, etc.
    • Control over materials, cost, and output are simplified.
    • The work can be done by semi-skilled workers because of their specialization.

    The disadvantages of Continuous System:

    The continuous system, however, is very rigid and if there is a fault in one operation the entire process is disturbed. Due to continuous flow, it becomes necessary to avoid piling up of work or any blockage on the line. Unless the fault is cleared immediately, it will force the preceding as well as the subsequent stages to be stopped. Moreover, it is essential to maintain stand by equipment to meet any breakdowns resulting in production stoppages. Thus investments in machines are fairly high.

    Types of Continuous System:

    Continuous production is of the following types;

    Mass Production:

    This production refers to the manufacturing of standardized parts or components on a large scale. Mass production system offers economies of scale as the volume of output is large. Quality of products tends to be uniform and high due to standardization and mechanization. In a properly designed and equipped process, individual expertise plays a less prominent role.

    Process Production:

    Production is carried on continuously through a uniform and standardized sequence of operations. Highly sophisticated and automatic machines are used. Process production is employed in the bulk processing of certain materials. The typical processing Industries are fertilizers plants, petrochemical plants, and milk dairies which have highly automated systems and sophisticated controls.

    They are not labor-intensive and the worker is just an operator to monitor the system and take corrective steps if called for. On the basis of the nature of the production process, flow production may classify into Analytical and Synthetic Production.

    • Analytical Process: In the Analytical Process of production, the raw material is broken into different products e.g. crude oil is analyzed into gas, Naptha, petrol, etc. Similarly, coal is processed to obtain coke, coal gas, coal tar, etc.
    • Synthetic Process: Synthetic Process of production involves the mixing of two or more materials to manufacture a product, for instance, lauric acid, myristic acid, stearic acid are synthesized to manufacture soap.
    Assembly Lines:

    Assembly line a type of flow production which is developed in the automobile industry in the USA. A manufacturing unit prefers to develop and employ an assembly line because it helps to improve the efficiency of production. In an assembly line, each machine must directly receive material from the previous machine and pass it directly to the next machine.

    Machine and equipment should be arranged in such a manner that every operator has free and safe access to each machine. Space should be provided for free movement of forklifts, trucks, etc. which deliver materials and collect finished products.

    Intermittent System:

    According to Buffa,

    “Intermittent situations are those where the facilities must be flexible enough to handle a variety of products and sizes or where the basic nature of the activity imposes a change of important characteristics of the input (e.g. change. in the product design). In instances such as these, no single sequence pattern of operations is appropriate, so the relative location of the operation must be a compromise that is best for all inputs considered together.”

    In the industries following the intermittent production system, some components may be made for inventory but they are combined differently for different customers. The finished product is heterogenous but within a range of standardized options assembled by the producers. Since production is partly for stock and partly for consumer demand, there are problems to be met in scheduling, forecasting, control, and coordination.

    Characteristics of Intermittent System:

    The following characteristics below are;

    • The flow of production is intermittent, not continuous.
    • The volume of production is generally small.
    • A wide variety of products are produced.
    • General purpose, machines, and equipment are used so as to be adaptable to a wide variety of operations.
    • No single sequence of operations is used and periodical adjustments are made to suit different jobs or batches.
    • Process layout is most suited.

    The intermittent system is much more complex than continuous production because every product has to be treated differently under the constraint of limited resources.

    The intermittent system can be-effective in situations which satisfy the following conditions:

    • The production centers should be located in such a manner so that they can handle a wide range of inputs.
    • Transportation facilities between production centers should be flexible enough to accommodate a variety of routes for different inputs.
    • It should be provided with the necessary storage facility.

    Types of Intermittent System:

    Intermittent Production May be of two types;

    Job Production:

    Job or unit production involves the manufacturing of a single complete unit with the use of a group of operators and process as per the customer’s order. This is a “special order” type of production. Each job or product is different from the other and no repetition is involved. The product is usually costly and non-standardised.

    Customers do not make a demand for exactly the same product on a continuing basis and therefore production becomes intermittent. Each product is a class by itself and constitutes a separate job for the production process. Shipbuilding, electric power plant, dam construction, etc. are common examples of job production.

    Characteristics of Job Production:
    • The product manufactured is custom-made or non-standardised.
    • The volume of output is generally small.
    • Variable path materials handling equipment are used.
    • A wide range of general-purpose machines like grinders, drilling, press, shaper, etc. is used.
    Advantages of Job Production:

    It is flexible and can adapt easily to changes in product design. A fault in one operation does not result in complete stoppage of the process. Besides, it is cost-effective and time-effective since the nature of the operations in a group is similar. There is reduced material handling since machines are close in a cell. The waiting period between operations is also reduced. This also results in a reduced work-in-progress inventory.

    The disadvantages of Job Production:

    Job shop manufacturing is the most complex system of production e.g. in building a ship thousands of individual parts must be fabricated and assembled. A complex schedule of activities is required to ensure the smooth flow of work without any bottlenecks. Raw materials and work-in-progress inventories are high due to uneven and irregular flow of work. Workloads are unbalanced, speed of work is slow and unit costs are high.

    Batch Production:

    Batch production pertains to repetitive production. It refers to the production of goods, the quantity of which is known in advance. It is that form of production where identical products are produced in batches on the basis of demand of customers’ or of expected demand for products.

    This method is generally similar to job production except for the quantity of production. Instead of making one single product as in case of job production, a batch or group of products are produced at one time. It should be remembered here that one batch of products may not resemble with the next batch.

    It is defined as,

    “The manufacture of a product in small or large batches or lots at intervals by a series of operations, each operation being carried out on the whole batch before any subsequent operation is performed.”

    The batch production is a mixture of mass production and job production. Under it machines turn out different products at intervals, each product being produced for a comparatively short time using mass-production methods. Both job production and batch production are similar in nature, except that in batch production the quantity of product manufactured is comparatively large.

    Advantages of Batch Production:

    The batch production method possesses the following advantages;

    • The work is of a repetitive nature.
    • There is a functional layout of various manufacturing processes.
    • One operation is carried out on the whole batch and then is passed on to the next operation and so on.
    • The same type of machines is arranged at one place.
    • It is generally chosen where trade is seasonal or there is a need to produce a great variety of goods.
    The disadvantages of Batch Production:

    Work-in-progress inventory is high and large storage space is required. Due to frequent changes in product design, no standard sequence of operation can be used. Machine set-ups and tooling arrangements have to be changed frequently. The main problem in batch production is the idle time between one operation and the other. The work has to wait until a particular operation is carried out on the whole batch.

  • Production System Introduction Meaning Definition and Elements

    Production System Introduction Meaning Definition and Elements

    What does mean Production System? Introduction; A system is a logical arrangement of components designed to achieve particular objectives according to a plan. A system may have many components and variation in one component is likely to affect the other components of the system e.g. change in the rate of production will affect inventory, overtime hours, etc. A production system is a computer program typically used to provide some form of artificial intelligence. Which consists primarily of a set of rules about behavior but it also includes the mechanism necessary to follow those rules as the system responds to states of the world.

    Here are explain Production System; Introduction, Meaning, Definition, and Elements.

    The production system is the framework within which the production activities of an organization are carrying out. At one end of the system are inputs and at the other end output. Input and output are linking by certain processes or operations or activities imparting value to the inputs. These processes, operations, or activities may call production systems. Also, The nature of the production system may differ from company to company or from plant to plant in the same firm.

    Meaning of Production System:

    The production system is an industrial system that supports manufacturing and logistics. They also involve flows of raw materials, equipment, and event information, as there’s usually paperwork involved. Also, The limits on a production system include its capacity and the quality of the finished product. You may need to know What is the Production Management?

    Meaning of Production:

    Production can explain as an act of either manufacturing or mining or growing of goods (commodities) generally in bulk for trade. Production is a method employing for making or providing essential goods and services for consumers.

    It is a process that puts intangible inputs like ideas, creativity, research, knowledge, wisdom, etc. in use or action. Also, It is a way that transforms (convert) tangible inputs like raw materials, semi-finished goods, and unassembled goods into finished goods or commodities.

    Meaning of System:

    The system is an arrangement or assembly of inter-dependent processes (activities) that are based on some logic and function. Also, It operates as a whole and is designing (build) intending to achieve (fulfill) some objective or do some work. Huge systems are often a collection (assembly) of smaller sub-systems.

    Definition of Production System:

    They may define as,

    “The methods, procedure or arrangement which includes all functions required to accumulate (gather) the inputs, process or reprocess the inputs, and deliver the marketable output (goods).”

    According to Webster,

    “System is a regularly interacting inter-dependent group of items forming a unified whole.”

    The production system utilizes materials, funds, infrastructure, and labor to produce the required output in the form of goods. Also, Do you know what is the History of Production Management?

    Production System Introduction Meaning Definition and Elements
    Production System; Introduction, Meaning, Definition, and Elements. Asia Pottery circle clay #Pixabay.

    Elements of Production System:

    The following elements are below;

    • Inputs: Inputs are the physical and human resources utilized in the production process. Also, They consist of raw materials, parts, capital equipment, human efforts, etc.
    • Conversion Process: It refers to a series of operations that are performing on materials and parts. Operations may be either manual or mechanical or chemical. Also, Operations convert inputs into output. The conversion process also includes supporting activities, which help the process of conversion. The supporting activities include; production planning and control, purchase of raw materials, receipt, storage and issue of materials, an inspection of parts and work-in-progress, testing of products, quality control, warehousing of finished products, etc.
    • Outputs: Outputs are the products or completed parts resulting from the conversion process. The output generates revenue.
    • Storage: Storage takes place after the receipt of inputs, between one operation and the other, and after the output.
    • Transportation: Inputs are transporting from one operation to another in the production process.
    • Information: It provides system control through measurement, comparison, feedback, and corrective action.

    Hence, we can say that the production system is a union or combination of its three main components viz., Inputs, Conversion Process, and Output. In short, everything which is done to produce goods and services or to achieve the production objective is called a production system.

  • Do you want to know What is the History of Production Management?

    Do you want to know What is the History of Production Management?

    Production Management has become an empirical applied science. History of Production Management; If we assess the past, covering a period of 200 years after Adam Smith, it can observe that total production capacity, as well as productivity, have expanded considerably. Undoubtedly, during this period, we have responded to the expansion of markets and large scale business units by using the concepts of division of labor and progressive mechanization in order to achieve economies of large scale production.

    Here are explain the Brief History of Production Management!

    Production Management; Introduction, Meaning, Function, and Scope. A production is an intentional act of producing something in an organized manner. It is the fabrication of a physical object through the use of men, material and some function which has some utility e.g. repair of an automobile, legal advice to a client, banks, hotels, transport companies, etc.

    The history of production management can study as under:

    Individual Efficiency:

    Fredric W. Taylor studied the simple output-to-time relationship for manual labor such as brick-laying. This formed the precursor of the present day “time- study”.

    Around the same time, Frank Gilberth and his learned wife Lillian Gilberth examined the motions of the limbs of the workers (such as the hands, legs, eyes, etc.) in performing the jobs, and tried to standardize these motions into certain categories and utilize the classification to arrive at standards for time required to perform a given job.

    This was the precursor to the present day “motion study”. Although to this day Gilberth’s classification of movements is using extensively, there have been various modifications and newer classifications.

    Collective Efficiency:

    So far the focus was on controlling the work-output of the manual laborer or the machine operator. The primary objective of production management was that of efficiency-efficiency of the individual operator.

    The aspects of collective efficiency came into being later, express through the efforts of scientists such as Gantt who shift the attention to scheduling of the operations (Even now, we use the Gantt Charts in operations scheduling).

    The considerations of efficiency in the use of materials followed later. It was almost 1930 before a basic inventory model was presented by F. W. Harris.

    Quality Control:

    After the progress of the application of scientific principles to the manufacturing aspects, thought progressed to control over the quality of the finished material itself. So far, the focus was on the quantitative aspects; now it shifted to the quality aspects. ‘Quality’, which is an important customer service objective, came to be recognized for scientific analysis.

    The analysis of productive systems, therefore, now also included the ‘effectiveness’ in addition to efficiency. In 1931, Walter Shewart came up with his theory regarding Control Charts for quality or what is known as ‘process control’. These charts suggested a simple graphical methodology to monitor the quality characteristics of the output and to control it by exercising control over the process.

    In 1935, H.F., Dodge, and H.G. Romig came up with the application of statistical principles to the acceptance and/or rejection of the consignments supplied by the suppliers to exercise control over the quality. This field, which has developed over the years, is now known as ‘acceptance sampling’.

    Production Management Introduction Meaning and Function
    Production Management; Introduction, Meaning, and Function. #Pixabay.

    Effectiveness as a Function of Internal Climate:

    In addition to effectiveness for the customer, the concept of effectiveness as a function of internal climate dawned on management scientists through the Hawthorne experiments which actually had the purpose of increasing the efficiency of the individual worker.

    These experiments show that worker efficiency went up when the intensity of illumination was gradually increased, and even when the intensity of illumination was gradually decreasing, the worker efficiency still kept rising.

    This puzzle could explain only through the angle of human psychology; the very fact that somebody cared, mattered much to the workers who gave increased output. Till now; it was Taylor’s theory of Elementalization of the task and thus the specialization in one task which found much use in Henry Ford’s Assembly Line.

    The advent of Operations Research Techniques:

    The application of scientific techniques in management really received a big boost during the World War II period when the field of Operations Research came into being.

    During this war, the Allied Force took the help of statisticians, scientists, engineers, etc. to analyze and answer, questions such as: What is the optimum way of mining the harbors of the areas occupied by the Japanese? What should be the optimum size of the fleet of the supply ships, taking into account the costs of loss due to enemy attack and the costs of employing the defense fleet?

    Such research about the military operations was termed as Operations Research. After World War II, this field was further investigated and developed by academic institutions; and today, it has become one of the very important fields of management theory.

    Various techniques such as Linear Programming, Mathematical Programming, Game Theory, Queuing Theory, etc. developed by people such as George Dantzig. A. Charnes, W. W. Cooper, etc. have become indispensable tools for management decision-making today.

    The Computer Era:

    After the breakthrough made by Operations Research, another marvel came into being the Computer. Around 1955, IBM developed the digital computer and made it available later on a large-scale basis.

    This made possible the complex and repeated computations involved in various Operations Research and other Management Science techniques. And, definitely added to the spread of the use of Management Science concepts and techniques in all fields of the decision- making.

    Case Study is explained Dell Swot Analysis
    Case Study is explained Dell Swot Analysis, #Pixabay.

    The Production and Operations Management Scenario Today.

    More importantly, the long experience of industrial life, the growth of technology and the rapidly growing availability of its benefits. Have all been changing the value systems all over the world. The concepts of ‘quality of life’, whether expressed explicitly or otherwise, have gained solid ground. The demand for ‘service’ or the ‘state’ utility is fast catching up with the demand for ‘form’ utility.

    Services are becoming as important, if not more, as the availability of physical products. The demand for ‘variety’ in products and services is on the increase. The concepts of ‘customer’ and ‘customer orientation’ are very vital today, as also the definition of the word ‘customer’ itself. The producing workers themselves are a part of the ‘customers’. There is great pressure everywhere to enhance the quality of life in general.

    If in the developed countries there is an increased demand for ‘flexi-time’ (flexible times of working). In India, we have already witnessed the shortening of the traditional six-day week to a five-day week in even traditional organizations such as the Central Government and State Governments. (Of course, the total time of working has remained the same.) In addition to all this, there is the increasing complexity of the space-age economies. The socio-techno-economic scene and the problem of depleting resources.

    Such a complex scenario needs freedom from compartmentalized thinking and integrated consideration of the various factors. That impinges on the production and operations management system. It needs to introduce fresh variables, e.g. that of safety in the external and internal environment and an added emphasis on maintenance. These are the challenges of the production and operations management discipline.

    Do you want to know What is the History of Production Management
    Do you want to know What is the History of Production Management? Coal Production, #Pixabay.

    Production Administration:

    Production is a succession of work elements applied to natural materials with the purpose of transforming these into desired goods and services for the satisfaction of human wants. Thus modem production phenomenon is an evolution and production administration deals with planning and control of various operations and components associated with the production process. However, there are a number of definitions given by different experts of Production administration according to their own experiences.

    The concept can explain by the following definitions:

    According to Frederick W. Taylor, father of scientific management,

    “Functional management consists of division of management work in such a way that every person below the rank of the assistant superintendent has as few responsibilities as possible. If possible the work of each man should be confined to perform a single leading function.”

    The various departments of Production Administration can list as production engineering, production planning, and production control.

  • Top 12 Scope of Production Management; Explain Each!

    Top 12 Scope of Production Management; Explain Each!

    The scope of production management is indeed vast. Commencing with the selection of location, production management covers such activities as the acquisition of land, constructing the building, procuring and installing machinery, purchasing and storing raw materials and converting them into saleable products. Production management is mainly associated with factory management crept with the development of the factory system.

    Here are the Top 12 Scope of Production Management; Explain Each.

    Before the evolution of the factory system, manufacturing activities were carried on by a single person that posed no or very insignificant problem of production and therefore the question of production management did not arise. But with the inception of the factory system, the situation changed and so many problems of production were begun to creep up and necessity arose to tackle with the problems of quality control, layout facilities, meeting the schedules and organization of production activities.

    Thus the scope of production management began to develop. In the early stage, the stress was on controlling the labor costs because labor cost was the major element of the total cost of production. With the continuing development of the factory system, the trend towards mechanization and automation developed and it resulted in the increased costs of indirect labor higher than the direct labor costs.

    So concerns found it difficult to run the business in these circumstances and evolved many controlling devices to regulate the cost of production. They had developed devices like designing and packing of products, indirect labor cost control, production & inventory control, and quality control. Since the level of production has increased tremendously, so many other production problems have added to its scope.

    In the present era of intense competition, the scope of production management is very wide. The production department in an enterprise is not only concerned with the full exploitation of production facilities but also the human factor that indirectly affects the production, utilization of latest techniques of production and the production of quality goods to the satisfaction of customers of the product.

    The various activities that form the scope of production function can study in the following broad areas;

    Capacity Planning:

    This deals with the procurement of productive resources. Capacity refers to a level of output of the conversion process over a period of time. Full capacity indicates the maximum level of output. Capacity is planned for short-term as well as for the long term.

    Process industries pose challenging problems in capacity planning, requiring in the long run, expansion, and contraction of major facilities in the conversion process. Some tools that help us in capacity planning are marginal costing (Break Even Analysis), learning curves, linear programming, and decision trees.

    Production Planning:

    The decisions in production planning include preparation of short-term production schedules, plan for maintaining the records of raw materials, finished and semi-finished stock, specifying how the production resources of the concern are to employ over some future time in response to the predicted demand for products and services.

    Production planning takes a given product or line of products and organizes in advance the manpower, materials, machines, and money required for a predetermined output in a given period of time. Thus, production planning is a management technique which attempts to gain the best utilization of a firm’s manufacturing facilities. It is gained by the integration and coordination of the manpower, machines, materials and plant services employed in the manufacturing cycle.

    Production control:

    After planning, the next managerial production function is to control the production according to the production plans because production plans can’t activate unless they are properly guiding and controlling. For this purpose, the production manager has to regulate work assignment, review work process, check and remove discrepancies, if any, in the actual and planned performances.

    According to Soriegel and Lansburgh;

    “Production control is the process of planning production in advance of operations; establishing the exact route of each individual item, part or assembly; setting, starting and finishing dates for each important item, assembly, and the finished products; and releasing the necessary orders as well as initiating the required follow-up to affect the smooth functioning of the enterprise.”

    Thus production control involves the following stages :

    • Planning: Setting targets of production.
    • Routing: To decide the route or flow-of production activity.
    • Dispatching: To issue materials and authorizations for the use of machines and plant services.
    • Follow-up: It compares the actual production with the targeted production. Deviations are found out and corrected and reasons are investigated.

    Inventory Control:

    Inventory control deals with the control over raw- materials, work-in-progress, finished products, stores, supplies, tools, and so are included in production management. The raw materials, supplies, etc. should purchase at the right time, of the right quality, in the right quantity, from the right source, and at the right price.

    This five ‘R’s consideration enables scientific purchases. Store-keeping is also an important aspect of inventory control. The raw materials, work-in-progress, finished goods, supplies, tools, etc. should store efficiently. The different levels of inventory should manage properly and the issue of materials to departments should make promptly and effectively. Proper records should also keep for various items of inventory control.

    The production manager has to look after the inventory control activities at three levels;

    • Control of inventories such as raw materials, purchased parts, finished goods, and supplies through the inventory control technique.
    • The control of the flow of materials into the plants through the technique of judicious purchasing, and.
    • Control of work-in-progress through production control.

    Quality control:

    The other important decision taken by the production manager concerns quality control. Product quality refers to the composite product characteristics of engineering and manufacturing that determines the degree to which the product in use will meet the expectations of the customers. Quality control can ensure the techniques of inspection and statistical quality control.

    Maintenance and Replacement:

    In this, we cover preventive methods to avoid machine break-downs, maintenance, policies regarding the repair and replacement decisions. Maintenance manpower is to schedule and repair jobs are to a sequence. There are some preventive replacements also. Machine condition is to constantly monitor. Effective maintenance is a crucial problem for India which can help better capacity utilization and make operations systems productive enough.

    Cost Reduction and Control:

    Cost reduction ultimately improves productivity. The industry becomes competitive. Essentially cost reduction and cost elimination are productivity techniques. Value engineering, budgetary control, standard costing, cost control of labor and materials, etc. help to keep costs optimal. All Production decisions are subject to control measures, after receiving proper feedback.

    The control function is exercised over the quantity to produce, the quality expected, the time needed, inventory consumed & carried and costs incurred. Control system is designed after a Due cost-benefit analysis. Controls should selective. A self-controlling cybernetic system though preferable is not possible in all complex industries.

    Environmental changes ultimately affect all the systems of the organization. A dynamic environment makes it compulsory to adopt the production system to the changes in technology and other factors of the environment. Product mix, the composition of products, the introduction of new products, changing the layout system is some of the representative decisions which respond to environmental feedback.

    Product Selection and Design:

    The product mix makes the production system either efficient or inefficient. Choosing the right products, keeping the mission and overall objectives of the organization in mind are the key to success. Design of the product, which gives it enough functional and aesthetic value, is of paramount importance. It is the design of the product which makes the organization competitive or noncompetitive. Value engineering does help to retain enough features while eliminating unnecessary ones.

    Activities Relating to Production System Designing:

    Decision-related to the production system design is one of the most important activities of production management. This activity is related to production engineering and includes problems regarding the design of tools and jigs, the design, development and installation of equipment and the selection of the optimum size of the firm. All these areas require the technical expertise on the part of the production manager and his staff.

    Facilities Location:

    The selection of an optimum plant location very much depends upon the decision taken regarding production engineering. A wrong decision may prove disastrous. The location should as far as possible cut down the production and distribution cost. There are diverse factors to consider for selecting the location of a plant.

    Method Study:

    The next decision regarding production system design concerns the use of those techniques which are concerned with the work environment and work measurement. Standard methods should devise for performing repetitive functions efficiently. Unnecessary movements should eliminate and suitable positioning of the workers for different processes should develop. Such methods should devise with the help of time study and motion study. The workers should train accordingly.

    Top 12 Scope of Production Management Explain Each
    Top 12 Scope of Production Management; Explain Each. #Pixabay.

    Facilities Layout and Materials Handling:

    Plant layout deals with the arrangements of machines and plant facilities. The machines should so arrange that the flow of production remains smooth. There should not be overlapping, duplication or interruption in the production flow. Product layout, where machines are arranging in a sequence requiring for the processing of a particular product, and process layout, where machines performing the similar processes are grouping together are two popular methods of the layout.

    The departments are laid out in such a way that the cost of material handling is reducing. There should be a proper choice of materials handling the equipment. These days, computer software is available for planning the process layout (e.g. CRAFT, CORELAP, etc.). Group Technology (G.T.), Cellular Manufacturing Systems (CMS) and Flexible Manufacturing Systems (FMS) have made our concepts of layout planning undergo a tremendous change.

    Apart from these factors, the production system designer should pay full attention to two other important problems, viz. (1) the human factor, i.e., the impact of production systems on the workers operating it and (2) research and development activities. These two problems have a vital impact on production system designing.

  • Production Management; Introduction, Meaning, and Function

    Production Management; Introduction, Meaning, and Function

    Production management (POM) is the management of an organization’s production systems, which converts inputs into the desired product and services. As they define; “It is the process of effective planning and regulating the operations of that section of an enterprise which is responsible for the actual transformation of materials into finished products.”

    Discuss each one of Production Management; Introduction, Meaning, and Function.

    They are a process of planning, organizing, directing, and controlling the activities of the production function in an organization to achieve the goals of an organization. A production system takes given inputs which include raw material, people, machines, tools, building, technology, cash, information, and other resources whereas the outputs include the product and services.

    Introduction to Production management:

    They are a branch of management that is related to the production function. Production may refer to as the process concerned with the conversion inputs (raw materials, machinery, information, manpower, and other factors of production) into output (semi-finished and finished goods and services) with the help of certain processes (planning, scheduling, and controlling, etc.) while management is the process of exploitation of these factors of production to achieve the desired results.

    Thus, they are the management which by scientific planning and regulation sets into motion the part of an enterprise to which it has been entrusted the task of actual transformation of inputs into output. They also deal with decision-making regarding the quality, quantity, cost, etc., of production.

    It applies management principles to production. They are part of business management. They also call it “Production Function.” It is slowly being replaced by operations management.

    Meaning of Production Management (POM):

    They refer to the application of management principles to the production function in a factory. In other words, POM involves the application of planning, organizing, directing, and controlling the production process.

    The application of management to the field of production has been the result of at least three developments:

    1. First is the development of the factory system of production. Until the emergence of the concept of manufacturing, there was no such thing as management as we know it. People indeed operated the business of one type or another, but for the most part, these people were owners of the business and did not regard themselves as managers as well,
    2. Essentially stems from the first, namely, the development of the large corporation with many owners and the necessity to hire people to operate the business,
    3. Stems from the work of many of the pioneers of scientific management who were able to demonstrate the value, from a performance and profit point of view, of some of the techniques they were developing.

    Definition of Production Management:

    It is observed that one cannot demarcate the beginning and endpoints of POM in an establishment. The reason is that it is interrelated with many other functional areas of business, viz., marketing, finance, industrial relation policies, etc. Alternately, Production Management is not independent of marketing, financial, and personnel management due to which it is very difficult to formulate some single appropriate definition of Production Management.

    A few definitions of production management are being reproduced hereunder to understand the meaning of the term clearly;

    “Production management then becomes 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.”

    The definition seems to be quite incomplete. As it ignores the human factors involved in a production process and lays stress only on the materialistic features.

    Elwood S. Buffa has defined the term in a broader sense as;

    “Production management deals with decision making related to the production process so that the resulting goods or services are produced according to specifications in amounts and by the schedules demanded, and at a minimum cost.”

    Thus, POM concern with the decision-making regarding the production of goods and services at a minimum cost according to the demands of the customers through the management process of planning, organizing and controlling. To attain these objectives, effective planning and control of production activities are very essential. Otherwise, the customers shall remain unsatisfied, and ultimately certain activities may have to be closed.

    Tasks of Production:

    POM, thus, is assigned with the following tasks;

    • Specifying and accumulating the input resources, i.e., management, men, information, materials, machine, and capital.
    • Designing and installing the assembly or conversion process to transform the inputs into output, and.
    • Coordinating and operating the production process. So, the desired goods and services may produce efficiently and at a minimum cost.
    Production Management Introduction Meaning and Function
    Production Management; Introduction, Meaning, and Function. #Pixabay.

    Functions of Production Management:

    The definitions discussed above clearly shows that the concept of production management is related mainly to the organizations engaged in the production of goods and services. Earlier these organizations were mostly in the form of one-man shops having insignificant problems of managing the productions.

    But with development and expansion of production organizations in the shape of factories more complicated problems like location and layout, inventory control, quality control, routing and scheduling of the production process, etc. came into existence which required more detailed analysis and study of the whole phenomenon. This resulted in the development of POM in the area of factory management.

    In the beginning, the main function of production management was to control labor costs. Which at that time constituted the major proportion of costs associated with production. But with the development of the factory system towards mechanization and automation. The indirect labor costs increased tremendously in comparison to direct labor costs, e.g., designing and packing of the products, production and inventory control, plant layout and location, transportation of raw materials and finished products, etc. The planning and control of all these activities required more expertise and special techniques.

    What to do production functions?

    In modern times POM has to perform a variety of functions, namely:

    • Design and development of the production process.
    • Production planning and control.
    • Implementation of the plan and related activities to produce the desired output, and.
    • Administration and coordination of the activities of various components and departments responsible for producing the necessary goods and services.

    However, the responsibility of determining the output characteristics and the distribution strategy followed by an organization. Including pricing and selling policies are normally outside the scope of POM.

  • The Strategies of Capabilities in Production Management!

    The Strategies of Capabilities in Production Management!

    Explain and Learn, The Strategies of Capabilities in Production Management!

    What is Capacity Planning? The production system design planning considers input requirements, conversion process, and output. The concept of the study – The Strategies of Capabilities in Production Management. Capacity Planning defines, Strategic Capacity Planning, and Explaining of Capacity strategies. After considering the forecast and long-term planning organization should undertake capacity planning. Also learn, The Strategies of Capabilities in Production Management!

    Capacity is defined as the ability to achieve, store or produce. For an organization, capacity would be the ability of a given system to produce output within the specific time period. In operations, management capacity is referred as an amount of the input resources available to produce relative output over the period of time.

    It is a process of governing the production capacity obligatory by a manufacturing unit to meet out their varying demand for their products. It facilitates the organization to achieve their production level during the time of demand. It is the level of input that is obtainable to make the needed product in a particular period of time. It helps the management to take better management decision for optimum utilization of the resource.

    In general, terms capacity is referred to as maximum production capacity, which can be attained within a normal working schedule. Capacity planning is essential to be determining optimum utilization of resource and plays an important role decision-making process, for example, the extension of existing operations, modification to product lines, starting new products, etc.

    Understand the Strategic Capacity Planning: A technique used to identify and measure the overall capacity of production is referred to as strategic capacity planning. Strategic capacity planning is utilized for the capital-intensive resource like the plant, machinery, labor, etc.

    Strategic capacity planning is essential as it helps the organization in meeting the future requirements of the organization. Planning ensures that operating cost is maintained at a minimum possible level without affecting the quality. It ensures the organization remain competitive and can achieve the long-term growth plan.

    Strategies of Capabilities:

    The Capacity strategies can explain into two types:

    • The short-term response, and.
    • Long-term response. 
    Short-term strategies:

    In short-term periods of up to one year, fundamental capacity is fixed. Major facilities are seldom opened or closed on a regular monthly or yearly basis. Many short-term adjustments for increasing or decreasing capacity are possible, however. Which adjustment to make depend on whether the conversion process is labor or capital intensive and whether the product is one that can be stored in inventory.

    Capital intensive processes rely heavily on physical facilities, plant, and equipment. Short-term capacity can be modified by operating these facilities more or less intensively than normal. The cost of setting up, changing over and maintaining facilities, procuring raw materials and managing inventory, and scheduling can all be modified by such capacity changes. In labor-intensive processes, the short term capacity can be changed by laying off or hiring people or having employees overtime or be idle. These alternatives expensive, though since hiring costs, severance pay, or premium wages may have to be paid, the scarce human skills may be lost permanently.

    Strategies for changing capacity also depend upon long the product can be stored in inventory. For products that are perishable (raw food) or subject to radical style changes, storing in inventory may not feasible. This is also true for many service organizations offering such products as insurance protection, emergency operations (fire, police etc,) and taxi and barber services. Instead of storing outputs in inventory, inputs can be expanded or shrunk temporarily in anticipation of demand.

    Long-term Responses:

    Capacity expansion strategies- capacity expansion adds capacity, within the industry, to further the objectives of the firm to improve the competitive position of the organization. It focuses on the growth of the Organization by enabling it to increase the flow of its products in the industry. Capacity expansion is a very significant decision; the strategic issue is how to add capacity while avoiding industry overcapacity. Overbuilding of capacity has plagued many industries e.g. paper, aluminum and many chemical businesses. The accountants’ or financial procedure for deciding on capacity expansion is straightforward.

    However, two types of expectations are crucial:

    • Those about future demand, and.
    • Those about competitors behavior.

    With known future demand, organizations will compete to get the capacity on stream to supply that demand, and perhaps preempt such action from others.

    Horizontal and vertical integration:  Horizontal and vertical integration add capacity, within the industry, to further the objectives of the firm to improve the competitive position of the organization.

    Horizontal Integration: Horizontal integration is the growth of a company at the same stage of the value chain. Horizontal integration consists of procuring (related companies, products or processes) the company could start the related business within the firm, which would be an example of internal concentric diversification.

    Vertical Integration: Vertical integration is the combination of economic processes within the confines of a single organization. It reflects the decision the decision of the firm to utilize internal transaction rather than the market transaction to accomplish its economic purpose. It is expressed by the acquisition of a company either further down the supply chain, or further up the supply chain, or both.

    Backward Integration: In case of backward integration, it is critical that the volumes of purchases of the organization are large enough to support an in-house supplying unit, If the volume of throughputs is sufficient to set up capacities with economies of scale, an organization will reap benefits in production, sales purchasing, and other areas.  

    Takeover or Acquisitions: Takeover or acquisition is a popular strategic alternative to accelerate growth. Major companies which have been taken over the post-liberalization period include Shaw Wallace, Ashok Leyland, Dunlop, etc. Acquisition can either be for value creation or value capture.

    The Strategies of Capabilities in Production Management - learnlot
    Image Credit to #pixabay.

     

  • Explaining of Product Design Tools in Production Management

    Explaining of Product Design Tools in Production Management

    Several tools and techniques are available for the efficient design and development of products. The Concept of study – Explaining of Product Design Tools in Production Management with Techniques for Improving Product Design Process. These tools address all the stages of design and development. Some of the tools that are available for product designers to understand customer’s needs and translate them into meaningful design and manufacturing specifications, as well as some guidelines for incorporating the manufacturing requirements at the design stage.

    Understand and Learn, Explaining of Product Design Tools in Production Management.

    Understanding Customer Needs: The first step of the product design and development process is to know what exactly the product is going to be. Organizations need various methods by which they can obtain information regarding the needs of the customers.

    This can be by:

    Market Research:

    In market research, the target group identifies, and appropriate sampling is done within the target group. Using structured data collection methods, such as questionnaire surveys and interviews, information solicit from the sample. The information subjects to statistical and other analytical reasoning before arriving at customers’ preferences and needs.

    We talk about Production and market systems, laser marking systems running around 30 years. They produce materials such as METALS, PLASTIC, FOILS AND PAINTS, ORGANIC MATERIALS, and other application. LASIT is a company of one hundred people who develop laser marking technologies with passion and dedication. They are big enough to make the difference, but also small enough to take care of every single customer. The Study and Design team ensures traceability, production chain control, brand visibility, and industrial process automation.

    Competitive Analysis:

    Understanding what the existing offerings are now and how the gaps and problems identified could be eliminated can sometimes offer valuable inputs to the designer. One method of competitor analysis is to “reverse engineer” the product. The competitors’ product is dismantled down to individual components level and some detailed studies are conducted on them. These may sometimes reveal the probable processes utilized in their manufactures such as the choice of materials and their specifications and the relationship between these parameters and performance. Reverse engineering is one crude method of a larger issue of benchmarking.

    In the case of benchmarking, competitive product offerings are chosen for detailed analysis. Specific parameters are chosen for the benchmarking exercise. For example, cost, features, performance, ease of maintenance, ease of manufacture, assembly, and distribution are some of the issues on which comparative study may be possible. Once these parameters are identified, data collection and analysis will reveal the positioning of ones’ products vis-à-vis the competitor’s offerings. Another method for competitive analysis is to develop perceptual maps. Perceptual maps are the graphical representation of various competitors offering and that of ones’ own proposed product and/or service.

    Quality Function Deployment:

    The goal of good product design is to bring out products that satisfy customer’s needs better than those of the competitions. However, the attributes of competitor satisfaction are often qualitative. On the other hand, the product design process results in a bundle of quantitative attributes about the product. The challenge, therefore for a designer is to ensure that the transformation from qualitative attributes to quantitative ones is smooth and complete.

    Quality function deployment is a Japanese tool that helps organizations achieve this transition systematically and progressively Quality Function Deployment achieves these transition .in four stages. The first stage links customer needs to the design attributes required. In the second stage, the design attributes form the basis for actions that the firm needs to take to achieve these attributes. The actions identified at this stage are the basis for third staging arriving at the specific decisions to be implemented. In the fourth stage, the implementation decisions drive the process plan to deploy.

    Value Engineering:

    Value Engineering refers to a set of activities undertaken to investigate the design of components in a designing process strictly from a cost-value perspective. Typically, the design professionals brainstorm various options in conjunction with procurement, personnel, suppliers, and production personnel, concerning the value-cost dimensions of the product being designed.

    Usually, several questions are addressed, which include the following:

    • Can we eliminate certain features from design?
    • Are there instances of over design of certain components increase the cost?
    • Are there certain features of the design that cost more than they are worth?
    • Is it possible to replace the proposed method of manufacture with less costly ones?
    • Is it possible to outsource some of the components?
    • Can we eliminate some parts and replace them with standard parts?
    • Are there opportunities for cost-cutting by developing import substitution methods?

    Design for manufacturability:

    Design for manufacturability (DFM) is a structural approach to ensure that manufacturing requirements and preferences consider fairly early in the design process without the need for extensive coordination between the two. DFM guidelines address three sets of generic requirements:

    Reducing the variety:

    They below;

    • Minimize the number of parts.
    • Minimize subassemblies.
    • Avoid separate fasteners.
    • Use standard parts when possible.
    • Design parts for multi-use.
    • Develop the modular design, and.
    • Use repeatable and understood processes.

    Reducing cost:

    They are;

    • Analyze failures, and.
    • Assess value rigorously.

    Considering operational convenience:

    They follow are;

    • Simplify operations.
    • Eliminate adjustments.
    • Avoid tools.
    • Design for minimum handling, top-down assembly, and efficient and adequate testing.

    Tools for mass customization:

    Mass customization provides a structural set of ideas and tools to provide high levels of customization without increasing the complexity of planning and control operations.

    The various tools and techniques of mass customization are;

    • Employ a variety of reduction techniques.
    • Promote the modular design, The advantage of the modular design is that with fewer subassemblies (or modules) it will be possible to create a very large number of final products.
    • Make use of the concept of a product platform. A product platform is a collection of assets that share by a set of products. These assets can be components, including parts, designs, fixtures, and tools or manufacturing processes for manufacturing or assembly.

    Techniques for Improving Product Design Process:

    Many companies who know for their creativity and innovation in product design fail to get new products into the markets. The problems associated with converting ideas into finished products maybe because of poor manufacturing practices and poor design. Design decisions affect sales strategies, the efficiency of manufacturing, production cost, the speed of maintenance, etc.

    A complete restructuring of the decision-making process and the participants in the decision process is essential for the improvement in the design process. Over the wall concept of design i.e., a series of walls between various functional areas must be broken down and replaced with new co-operative interaction amongst the people from various functional areas.

    The improvement of the design process can achieve through:

    1. Multifunctional Design Teams:

    The team approach to product design has proved to be more beneficial worldwide. The participants of the design team include persons from marketing, manufacturing, and engineering, and purchase functions for the effective design process. The critical success factor between success and failure of new product launches is the involvement and interaction of creates – make and market functions from the beginning of the design product.

    2. Marking Design Decisions Concurrently Instead of Sequential Decisions:

    Concurrent design decisions reduce the time and cost of designs decision. Decisions are overlapping rather than sequential concurrent design is an approach to design that teams. The concurrent design process believes in “Cost plus” prices as contrasted by cost minus pricing in concurrent design.

    3. Design for Manufacturing and Assembly (DFMA):

    It is a process of designing a product so that it can be manufactured with ease and economically. It also calls design for production. Designing for production is a concept by which a designer thinks about how the product will make as the product designing so that potential production problems caused by design and can resolve early in the design process. This concept believes in simplifying design and standardizing parts and processes used.

    The basic principles of DFMA are:

    1. Minimize the number of parts.
    2. Use common components and parts.
    3. Use standard components and tools.
    4. Simplify assembly.
    5. Use modularity to obtain variety.
    6. Make product specifications and tolerances reasonable.
    7. Ensign products to be robust.

    4. Design Review:

    Before finalizing a design, formal procedures for analyzing possible failures and rigorously assessing the value of every part and components should be followed. The techniques such as Failure Mode Effect and Criticality Analysis FMEGAX Value Engineering (VE) and Fault Tree Analysis (FTA). FMECA is a systematic approach to analyzing the causes and effects of product failures. It anticipates failures and prevents them from occurring.

    Value analysis is a design methodology developed by Lawrence Miles in the late 1940s that focuses on the function of the product, rather than on its structure or form and tries to maximize the economic value of a product or component relative to its cost. Fault Tree Analysis (FTA) emphasizes the interrelationship among failures. It lists failures and their causes in a tree format.

    5. Design for Environment:

    Design for Environment (DOE) involves designing products from recycled materials, using materials or components, which can be recycled. It promotes the concept of green products clean energy and environment-friendly products.

    6. Quality Function Deployment (QFD):

    Making design decisions concurrently rather than sequentially requires superior co-ordination amongst all the participants involved in designing, producing, procuring, and marketing. QFD is a powerful tool that translates the voice of the customer into the design requirements and specifications of a product. It uses inter-functional teams from design, marketing, and manufacturing.

    QFD process begins with studying and listening to customers to determine the characteristics of a superior product. Through marketing research, the consumer’s product needs and preferences define and broken down into categories called “Customer Requirements” and the weight based on their relative importance to the customer.

    Customer requirements information forms the basis for a matrix called the house of quality. By building the house of the quality matrix, the cross-functional QFD teams can use customer feedback to make engineering, marketing, and design decisions.

    The matrix helps to translate customer requirements into concrete operating or engineering goals. QFD is a communication and planning tool that promotes a better/understanding of customer demands, promotes a better understanding of design interactions, involves manufacturing in the design process, and provides documentation of the design process.

    Explaining of Product Design Tools in Production Management - ilearnlot
    Explaining of Product Design Tools in Production Management, Image Credit to Pixabay.

  • What is the Definition of Production Management?

    What is the Definition of Production Management?

    Production Management; means planning, organizing, directing and controlling of production activities. Also, in other words, P.M. involves an application of planning, organizing, directing and controlling the production process. P.M. deals with converting raw materials into finished goods or products. It brings together the 6M’s i.e. men, money, machines, materials, methods, and markets to satisfy the wants of the people. Also learn, the Financial Management, What is Definition of Production Management?

    Learn, Explain, Definition of Production Management.

    Production and operation management is the science-combination of techniques and systems. That guarantees the production of goods and services of the right quality, in the right quantities and at the right time with the minimum cost within the shortest possible time. The essential features of a production and operation function are to bring together people, machines, and materials to provide goods and services for satisfying customer needs.

    Production management also deals with decision-making regarding the quality, quantity, cost, etc., of production. It applies management principles to production. Production management’s a part of business management. It is also called “Production Function.” Production management is slowly being replaced by operations management. The main objective of production management is to produce goods and services of the right quality, right quantity, at the right time and at minimum cost. It is also trying to improve efficiency. An efficient organization can face competition effectively. P.M. ensures full or optimum utilization of available production capacity.

    Meaning of Production Management:

    Production is the creation of goods and services. It is concerned with transforming the inputs in the form of raw materials, labor, machines, men and money into output i.e. goods and services with the help of certain production processes.

    The production function is the most important function in an organization around. Which other activities of an enterprise (viz., marketing, financing, purchasing, and personnel, etc.) revolve. It is pertinent to note that production function should manage in an efficient and effective manner for the achievement of the organizational goals.

    In a departmental type of organization, production management is concerned with carrying out the production function. Production management becomes the process of effectively planning and regulating the operations of that part of an enterprise. Which is responsible for the actual transformation of raw materials into finished products. Also, Production managing department more helps in the Business.

    Simply stated, production management is concerned with decision making relating to processes for producing goods and services in accordance with the pre­determined specifications and standards by incurring minimum costs.

    The result of at least three developments:

    1. First is the development of the factory system of production. Until the creation of the concept of manufacturing, there was no such thing as management, as we know. It is true that people operated one type or another business, but for the most part, these people were business owners and did not consider themselves as managers.
    2. Essentially stems from the first, namely, the development of the large corporation with many owners and the necessity to hire people to operate the business.
    3. Stems from the work of many of the pioneers of scientific management. Who was able to demonstrate the value, from a performance and profit point of view, of some of the techniques they were developing.

    Definition of Production Management:

    It is observed that one cannot demarcate the beginning and end points of Production Management in an establishment. The reason is that it is interrelated with many other functional areas of business, viz., marketing, finance, industrial relation policies, etc.

    Alternately, Production and Operation Management is not independent of marketing, financial, and personnel management due to which it is difficult to formulate some single appropriate definition of Production and Operation Management.

    The following definitions, also explain main characteristics:

    By the words of Mr, E.L. Brech:

    “Production Management is the process of effective planning and regulating the operations of that section of an enterprise. Which is responsible for the actual transformation of materials into finished products.”

    This definition limits the scope of production management to those activities of an enterprise which are associated with the transformation process of inputs into outputs. & the definition does not include the human factors involved in a production process. It lays stress on materialistic features only.

    Production Management deals with decision-making related to the production process. So, the resulting goods and services are producing in accordance with the quantitative specifications and demand schedule with minimum cost.

    Main functions of production management:

    According to this definition design and control of the production system are two main functions of production management.

    Production Management is a set of general principles for production economies, facility design, job design, schedule design, quality control, inventory control, work study and cost, and budgetary control. This definition explains the main areas of an enterprise where the principles of production management can apply. This definition clearly points out that production management is not a set of techniques.

    It is evident from the above definitions that production planning and its control are the main characteristics of production management. In the case of poor planning and control of production activities, the organization may not be able to attain. Its objectives and may result in loss of customer’s confidence and retardation in the progress of the establishment.

    The main activities of production management can list as:

    1. Specification and procurement of input resources namely management, material, and land, labor, equipment, and capital.
    2. Product design and development to determine the production process for transforming. The input factors into the output of goods and services.
    3. Supervision and control of the transformation process for the efficient production of goods and services.

    What is Definition of Production Management - ilearnlot
    What is the Definition of Production Management? #Pixabay.