Tag: Project Management

  • The Project is explained in Features, Characteristics, and Objectives

    The Project is explained in Features, Characteristics, and Objectives

    A Project is an activity to make something unique. Of course, many office buildings are Built-in many respects, but each individual feature is unique in its own way. The Project is explained in Features, Characteristics, and Objectives. One person or organization involved in projects need to understand how to solve the complexity of problems through project management. In this article, we will define the word “project”, describe the key features of a project, and explain the way to separate a project from an activity.

    The Project has explained in some points Nature, Features, Characteristics, and Objectives.

    What is a Project? Meaning, Definition, and Nature.

    The project is a great opportunity for organizations and individuals to achieve their business and non-business objectives more efficiently through implementing change. Projects differ from other types of work (e.g. process, task, procedure). Meanwhile, in the broadest sense, a project is defined as a specific, finite activity that produces an observable and measurable result under certain preset requirements. Projects help us make desired changes in an organized manner and with reduced probability of failure.

    It is an attempt to implement the desired change in an environment in a controlled way. “A Project is a temporary, unique and progressive attempt or endeavor made to produce some kind of a tangible or intangible result (a unique product, service, benefit, competitive advantage, etc.). It usually includes a series of interrelated tasks that are planned for execution over a fixed period of time and within certain requirements and limitations such as cost, quality, performance, others.” By using projects we can plan and do our activities, For Example: build a garage, run a marketing campaign, develop a website, organize a party, go on vacation, graduate a university with honors, or whatever else we may wish to do.

    According to the PMBOK (Project Management Body of Knowledge), A project is defined as a “temporary endeavor with a beginning and an end and it must be used to create a unique product, service or result”. Further, it is progressively elaborated. What this definition of a project means is that projects are those activities that cannot go on indefinitely and must have a defined purpose. A project is an activity to meet the creation of a unique product or service and thus activities that are undertaken to accomplish routine activities cannot be considered projects.

    A project is defined as “A non-routine, non-repetitive one-off undertaking normally with—discrete time, financial and technical performance goals.” The definition is descriptive and, because of the endless variety of projects, most of the definitions are of this nature.

    A project can consider being any series of activities and tasks that:

    • Have a specific objective to be completed within certain specifications.
    • Have defined start and end dates.
    • Have funding limits (if applicable), and.
    • Consume resources (i.e. money, time, equipment).

    The Project is explained, Definition of a Project:

    The project starts from scratch with a definite mission, generates activities involving a variety of human and non-human resources, all directed towards the fulfillment of the mission and stops once the mission is fulfilled.

    According to the Project Management Institute, USA, “a project is a one-set, time-limited, goal-directed, major undertaking requiring the commitment of varied skills and resources”.

    It also describes a project as “a combination of human and non-human resources pooled together in a temporary organization to achieve a specific purpose”. The purpose and the set of activities which can achieve that purpose distinguish one project from another.

    “A project consists of a combination of organizational resources pulled together to create something that did not previously exist and that will provide a performance capability in the design and execution of organizational strategies.”
    “A project is a temporary process undertaken to create one or a few units of a unique output or product or service whose attributes are progressively delineated in the course of the project’s execution.”

    The Project is explained – Second point, Characteristics or Features of a Project:

    The characteristics or features of a project are as follows:

    • Objectives: A project has a fixed set of objectives. Once the objectives have been achieved, the project ceases to exist.
    • Life-cycle: A project has a life cycle reflected by growth, maturity, and decay. It has naturally a learning component.
    • Uniqueness: No two projects are exactly similar even if Die plants are exactly identical or are merely duplicated. The location, the infrastructure, the agencies, and the people make each project unique.
    • Change: A project sees many changes throughout its life while some of these changes may not have any major impact; they can be some changes which will change the entire character of course of the project.
    • Life Span: A project cannot continue endlessly. It has to come to an end. What represents the end would normally be spelled out in the set of objectives.
    • Single entity: A project is one entity and is normally entrusted to one responsibility center while the participants in the project are many.
    • Team-work: A project calls for team-work. The team again is constituted of members belonging to different disciplines, organizations, and even countries.
    • Made to order: A project is always made to the order of its customer. The customer stipulates various requirements and puts constraints within which the project must execute.
    • Unity in diversity: A project is a complex set of thousands of varieties. The varieties are in terms of technology, equipment, and materials, machinery and people, work culture and ethics. But they remain inter-related and unless this is so, they either do not belong to the project. Or will never allow the project to be completed.
    • Successive principle: What is going to happen during the life cycle of a project is not fully known at any stage. The details get finalized successively with the passage of time. More is known about a project when it enters the construction phase than what was known to say, during the detailed engineering phase.
    • Risk and uncertainty: Every project has risk and uncertainty associated with it. The degree of risk and uncertainty will depend on how a project has passed through its various life-cycle phases. An ill-defined project will have the extremely high degree of risk and uncertainly Risk and uncertainty are not part and parcel of only R and H projects there simply cannot be a project without any risk and uncertainty.
    • High level of sub-contracting: A high percentage of the work in a project is done through contractors. The more the complexity of the project, the more will be the extent of contracting. Normally around 80% of the work in a project is done through sub-contractors.

    Key of Characteristics:

    As follows from the given definition, any project can be characterized by these characteristics:

    Temporary:

    This key characteristic means that every project has a finite start and a finite end. The start is the time when the project is initiated and its concept is developed. The temporary nature of a project indicates that a project has a definite beginning and a definite end.

    The beginning is marked by the start of the project and the end is reached when the project’s objectives have been achieved or when the project is terminated for some other reason. ‘Temporary’ is also one of the characteristics distinguishing a project from normal operations. The end is reached when all objectives of the project have been met (or unmet if it’s obvious that the project cannot be completed – then it’s terminated).

    Unique Deliverable’s:

    Any project aims to produce some deliverable(s) which can be a product, service, or some another result. Every project is unique and different. This is another aspect that differentiates a project from normal operations. Deliverables should address a problem or need analyzing before project start. Repetitive elements may be present in project deliverables and activities, but there is always something different about those elements or the way in which they are combined.

    Once again, a building construction project can serve as a conceptual example. A specific structure may be designed by people who have designed other buildings, constructed by people who have built other buildings, and made from the same materials as other buildings. Yet, an individual building project brings those elements together in a unique way; A particular building of a specific design for an exact purpose using selected materials all combine to create a unique construction project.

    Progressive Elaboration:

    With the progress of a project, continuous investigation and improvement become available, and all this allows producing more accurate and comprehensive plans. This key characteristic means that the successive iterations of planning processes result in developing more effective solutions to progress and develop projects.

    Creating Output:

    Every project creates some type of product, service, or end result. These outputs are called deliverables and they are the reason projects exist and take place. Project output can be both tangible and intangible. An example of tangible project output is the building resulting from a construction project. Examples of intangible projects include new services or events.

    The Project is explained – and the Last Point, Objectives of a Project:

    The “Project” is a means to achieve a “goal”. By the completion of projects, the creative part (of the projected asset) comes to an end and, thereupon, the project-created tangible thing is used to achieve the goal. So, primarily, there is a goal aimed at by the project owner and, in order to achieve that goal, he initiates the “project”. Accordingly, before we deal with the project objectives, we would like to go through the possible objectives of the project owner.

    First Objectives, A popular expression runs:

    “Project grows out of needs or opportunities.” The project, in general, is undertaken when the need or opportunity is identified, a proposal is crystallized in form of a project, the proposal is then transformed into necessary activities to build-up the project, e.g. setting up a plant. Along with further analyses and appraisal of the project technical, financial etc. a firm decision is made about launching a project.

    At this point, the project objectives are set which becomes the ultimate philosophy for the project team. Any project decision is based upon the full evaluation of its impact upon the project objectives.

    The project, when finalized, has the following objectives:

    • It has a time-bound programme to start, execute, commission and delivery of the project;
    • It has cost-bound activities in terms of money spent or resources consumed so that total cost is within the total estimated project cost as agreed and authorized by the project owner and
    • It shall conform to the technical specifications set at the point of deciding upon the project. In others words, the delivery (of the project) shall have to be of the agreed quality.

    Second Objectives, Without Money-Making Mission:

    • There are situations where projects need to be implemented with social objectives. Primarily, these are undertaken by the government—non-industrial projects aimed towards the social benefits as, public health, irrigation, education etc. The government, being the owner of these projects, provides funds for such projects.
    • Projects are also undertaken on account of emergency and/or need of national importance e.g. defense and security. Even though such projects can be highly complex and costly phenomena as constructing an aircraft landing facility at high altitude—such projects are non-industrial and funded by the government.
    • There are projects within an industrial organization with the social objective, being necessary as per local legal regulations, e.g. Instituting facilities for health-care, education, sports etc. within a township built-up by a very large industrial organization. Influence of ‘politics’ also plays an important role in location, timing, and size of such projects.
    • There are instances where industrial organizations are aspiring to achieve and/or maintain a leading position in the trade/industry. In such a situation, the organization decides to spend some of its resources on Research and Development activities including research in finding out new products, new processes, development of existing products etc. to avail the cost benefit.

    The management of such an organization decides to go ahead for the Research and Development projects with a plan to install facilities to search for the probable product and/or process. Installation of such project includes the establishment of a laboratory with sophisticated equipment, the appointment of professionals and the supply of necessary consumables.

    In all such cases mentioned in (a) to (d) above the project is confined to budgeted costs and, obviously, no revenue/income is involved. There is a scope of deliberation on expenses involved, considering the resources available in the organization. There may be the limitation and/or deferment of the expenses under this type of project as per the decision of the management.

    The Project is explained in Features Characteristics and Objectives
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  • How to discuss the Characteristics of a Project?

    How to discuss the Characteristics of a Project?

    The project has been defined by Project Management Institute (USA) as “Any undertak­ing with a defined objective by which completion is identified. In practice, most projects depend on finite or limited resources by which objectives are to be accomplished.” —Project Management Body of Knowledge (PMBOK). How to discuss the Characteristics of a Project? A project is typically for a customer. The project is temporary in nature. It typically has a defined start and a defined end-point.

    The project will have a unique set of requirements that need to be delivered within the boundaries of this project. A project is defined as “A non-routine, non-repetitive one-off undertaking normally with discrete time, financial and technical performance goals.” The definition is descriptive and, because of the endless variety of projects, most of the definitions are of this nature.

    The Department of Project Management in the Business, How to discuss the Characteristics of a Project?

    Characteristics of a Project:

    Following Project characteristics include below:

    • The project has an owner, who, in the private sector, can be an individual or a company etc., in the public sector, a government undertaking or a joint sector organization, represent­ing a partnership between public and private sector.
    • The project has a set objective to achieve within a distinct time, cost and technical performance.
    • The project is planned, managed and controlled by an assigned team the project team planted within the owner’s organization to achieve the objectives as per specifications.
    • The project, in general, is an outcome in response to environments economies and opportunities. As an example, we find that considering the changing pattern of modern living the domestic appliances small e.g. grinders, mixers etc., and large, e.g. refrigerators, washing machines etc. are on ever-increasing demand. This generates responses to avail opportunity to produce such appliances.
    • The project is an undertaking involving future activities for completion of the project within estimates and, «s such, involves complex budgeting procedure with a mission.
    • Implementation of the project involves a coordination of works/supervisions by project team/manager.
    • The project involves activities to be carried out in the future. As such, it has some inherent risk and, in reality, the process of implementation may necessitate certain changes in the plan subject to limitations and concurrence of the project owner.
    • The project involves high-skilled forecasting with the sound basis for such forecasting.
    • Projects have a start and an end a characteristic of a life cycle. The organization of project changes as it passes through this cycle the activities starting from—conception stage, mounting up to the peak during implementation and, then, back to zero level on completion and delivery of the project.

    Some attributes that characterize projects

    Importance of a project:

    The most crucial attribute of a project is that it must be important enough in the eyes of senior management to justify setting up a special organizational unit outside the routine structure of the organization. If the rest of the organization senses, or even suspects, that it is not really that important, the project is generally doomed to fail. The symptoms of lack of importance are numerous and subtle: no mention of it by top management, assigning the project to someone of low stature or rank, adding the project to the responsibilities of someone who is already too overworked, failing to monitor its progress, failing to see to its resource needs, and so on.

    Performance of a project:

    A project is usually a one-time activity with a well-defi ned set of desired end results. (We discuss poorly defi ned, or “quasi-” projects a bit later.) It can be divided into subtasks that must be accomplished in order to achieve the project goals. The project is complex enough that the subtasks require careful coordination and control in terms of timing, precedence, cost, and performance. Often, the project itself must be coordinated with other projects being carried out by the same parent organization.

    Life Cycle with a Finite Due Date of a project:

    Like organic entities, projects have life cycles. From a slow beginning they progress to a buildup of size, then peak, begin a decline, and finally must be terminated by some due date. (Also like organic entities, they often resist termination.) Some projects end by being phased into the normal, ongoing operations of the parent organization. The life cycle is discussed, where an important exception to the usual description of the growth curve is mentioned. There are several different ways in which to view project life cycles. These will be discussed in more detail later.

    Interdependencies of a project:

    Projects often interact with other projects being carried out simultaneously by their parent organization. Typically, these interactions take the form of competition for scarce resources between projects, and much of Chapter 9 is devoted to dealing with these issues. While such interproject interactions are common, projects always interact with the parent organization’s standard, ongoing operations.

    Although the functional departments of an organization (marketing, fi nance, manufacturing, and the like) interact with one another in regular, patterned ways, the patterns of interaction between projects and these departments tend to be changeable. Marketing may be involved at the beginning and end of a project, but not in the middle. Manufacturing may have major involvement throughout. Finance is often involved at the beginning and accounting (the controller) at the end, as well as at periodic reporting times. The PM must keep all these interactions clear and maintain the appropriate interrelationships with all external groups.

    The uniqueness of a project:

    Though the desired end results may have been achieved elsewhere, they are at least unique to this organization. Moreover, every project has some elements that are unique. No two construction or R & D projects are precisely alike. Though it is clear that construction projects are usually more routine than R & D projects, some degree of customization is a characteristic of projects.

    In addition to the presence of risk, as noted earlier, this characteristic means that projects, by their nature, cannot be completely reduced to routine. The PM’s importance is emphasized because, as a devotee of management by exception, the PM will find there are a great many exceptions to manage by.

    Resources of a project:

    Projects have limited budgets, both for personal as well as other resources. Often the budget is implied rather than detailed, particularly concerning personnel, but it is strictly limited. The attempt to obtain additional resources (or any resources) leads to the next attribute—conflict.

    Conflict of a project:

    More than most managers, the PM lives in a world characterized by conflict. Projects compete with functional departments for resources and personnel. More serious, with the growing proliferation of projects, is the project-versus-project conflict for resources within multi-project organizations. The members of the project team are in almost constant conflict for the project’s resources and for leadership roles in solving project problems.

    The PM must be an expert in conflict resolution, but we will see later that there are helpful types of conflict. The PM must recognize the difference. The four parties-at-interest or “stakeholders” (client, parent organization, project team, and the public) in any project even define success and failure in different ways. The client wants changes, and the parent organization wants profi ts, which may be reduced if those changes are made. Individuals working on projects are often responsible for two bosses at the same time; these bosses may have different priorities and objectives. Project management is no place for the timid.

    Nonprojects and Quasi-Projects of a project:

    If the characteristics listed above define a project, it is appropriate to ask if there are non-projects. There are. The use of a manufacturing line to produce a flow of standard products is a non-project. The production of weekly employment reports, the preparation of school lunches, the delivery of mail, the flight of Delta-1288 from Dallas to Dulles, checking your e-mail, all are non-projects. While one might argue that each of these activities is, to some degree, unique, it is not their uniqueness that characterizes them.

    They are all routine. They are tasks that are performed over and over again. This is not true of projects. Each project is a one-time event. Even the construction of a section of interstate highway is a project. No two miles are alike and constructing them demands constant adaptation to the differences in terrain and substructure of the earth on which the roadbed is to be laid. Projects cannot be managed adequately by the managerial routines used for routine work.

    In addition to projects and non-projects, there are also quasi-projects: “Bill, would you look into this?” “Judy, we need to finish this by Friday’s meeting.” “Can you find out about this before we meet with the customer?” Most people would consider that they have just been assigned a project, depending on who “we” and “you’’ is supposed to include. Yet there may be no specific task identified, no specific budget given, and no specific deadline defined. Are they still project, and if so, can project management methods be used to manage them? Certainly!

    The performance, schedule, and budget have been implied rather than carefully delineated by the words “this,” “meet,” and “we” (meaning “you”) or “you” (which may mean a group or team). In such cases, it is best to try to quickly nail down the performance, schedule, and budget as precisely as possible, but without antagonizing the manager who assigned the project. You may need to ask for additional help or other resources if the work is needed soon—is it needed soon? How accurate/thorough/detailed does it need to be? And other such questions.

    One common quasi-project in the information systems area is where the project includes the discovery of the scope or requirements of the task itself (and possibly also the budget and deadline). How can you plan a project when you don’t know the performance requirements? In this case, the project is, in fact, determining the performance requirements (and possibly the budget and deadline also).

    If the entire set of work (including the discovery) has been assigned to you as a project, then the best approach is to set this determination as the first “milestone” in the project, at which point the resources, budget, deadline, capabilities, personnel, and any other matters will be reviewed to determine if they are sufficient to the new project requirements. Alternatively, the customer may be willing to pay for the project on a “cost-plus” basis and call a halt to the effort when the benefits no longer justify the cost.

    Characteristics of Project in Project Management

    Following are some of the important characteristics of the project.

    • The project is temporary with certain starting & ending date.
    • The opportunities and teams of the project are also for the temporary duration.
    • Projects are ended when the goals are accomplished or when the goals are not achieved.
    • Often projects continue for many years but still, their duration is finite.
    • Multiple resources are involved in the projects along with the close coordination.
    • Interdependent activities are involved in the project.
    • A unique product, service or result is developed at the end of the project. There is also some extent of customization in the project.
    • Complex activities are included the projects which need repetitive acts and are not simple.
    • There is also some sort of connection in the activities of the project. Some sequence or order is also required in the activities. The output of certain activity becomes the input of another activity.
    • There is the element of conflict in the project management. For resources & personnel, the management should compete with the functional departments.
    • Permanent conflict is associated with resources of the project and leadership roles which are important in solving the problems of the project.
    • Clients desire changes in every project and the parent organization desires to maximize its profits.
    • There is the possibility of two bosses in the project at the single time, each with different objectives and priorities.
    How to discuss the Characteristics of a Project
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  • What is Project in Project Management? Meaning and Definition

    What is Project in Project Management? Meaning and Definition

    A project is a temporary endeavor undertaken to create a unique product, service, or result. What is Project in Project Management? Meaning and Definition. The planned set of reciprocal works should execute within a certain period and some costs and other limitations. Also learn, What is Corporate Entrepreneurship? Meaning and Definition. Like most organizational efforts, the major goal of a project is to satisfy a customer’s needs. Beyond this fundamental similarity, the characteristics of a project help differentiate it from other endeavors of the organization.

    Now Project Management is explaining What is Project? Understand as well as Meaning and Definition.

    What is a project in project management? Simply put, a project is a series of tasks that need to complete in order to reach a specific outcome. A project can also be defined as a set of inputs and outputs required to achieve a particular goal. Projects can range from simple to complex and can manage by one person or a hundred. Explain by www.wrike.com.

    A project is defined as a “temporary endeavor with a beginning and an end and it must use to create a unique product, service or result”. Further, it progressively elaborates. What this definition of a project means is that projects are those activities that cannot go on indefinitely and must have a defined purpose.

    Meaning and Definition of the Project:

    The project is a great opportunity for organizations and individuals to achieve their business and non-business objectives more efficiently through implementing change. Projects help us make desired changes in an organized manner and with a reduced probability of failure.

    A Project is a temporary, unique, and progressive attempt or endeavor made to produce some kind of a tangible or intangible result (a unique product, service, benefit, competitive advantage, etc.). It usually includes a series of interrelated tasks that planned for execution over a fixed period of time and within certain requirements and limitations such as cost, quality, performance, others.

    The “project manager” is in charge of the planning and execution of a project. He makes sure that everything is following the client’s vision and quality standards. He will also hold accountable for the project’s success or failure.

    People have been “managing projects” for centuries. They went from using traditional tools such as pen and paper to the use of advanced technologies. Currently, project managers employ the use of project management tools to speed up and ease the entire work process.

    Features or Characteristics of a Project:

    The major characteristics of a project are as follows:

    • An established objective.
    • A defined lifespan with a beginning and an end.
    • Usually, the involvement of several departments and professionals.
    • Typically, doing something that has never been done before.
    • Specific time, cost, and performance requirements.
    First:

    Projects have a defined objective—whether it is constructing a 12-story apartment complex by January 1 or releasing version 2.0 of a specific software package as quickly as possible. This singular purpose is often lacking in daily organizational life in which workers perform repetitive operations each day.

    Second:

    Because there is a specified objective, projects have a defined endpoint, which is contrary to the ongoing duties and responsibilities of traditional jobs. In many cases, individuals move from one project to the next as opposed to staying in one job. After helping to install a security system, an IT engineer may assign to develop a database for a different client. Does this question better explain What is the Cost of Capital? Meaning and Definition.

    Third:

    Unlike much organizational work that segmented according to functional specialty; projects typically require the combined efforts of a variety of specialists. Instead of working in separate offices under separate managers, project participants, whether they be engineers, financial analysts, marketing professionals, or quality control specialists, work closely together under the guidance of a project manager to complete a project.

    Fourth:

    The fourth characteristic of a project is that it is non-routine and has some unique elements. This is not an either/or issue but a matter of degree. Obviously, accomplishing something that has never been done before, such as building a hybrid (electric/gas) automobile or landing two mechanical rovers on Mars, requires solving previously unsolved problems and breakthrough technology. On the other hand, even basic construction projects that involve established sets of routines and procedures require some degree of customization that makes them unique.

    Finally:

    Specific time, cost, and performance requirements bind projects. Projects are evaluated according to accomplishment, cost, and time spent. These triple constraints impose a higher degree of accountability than you typically find in most jobs. These three also highlight one of the primary functions of project management; which is balancing the trade-offs between time, cost, and performance while ultimately satisfying the customer. Business finance accounting Managing by simple accounting system of Bookkeeping, as well as understand What is Bookkeeping? Meaning and Definition.

    What a Project is Not Projects should not confuse with everyday work.

    A project is not routine, repetitive work! Ordinary daily work typically requires doing the same or similar work over and over, while a project is done only once; a new product or service exists when the project completed. Recognizing the difference is important because too often resources can use upon daily operations which may not contribute to longer-range organization strategies that require innovative new products.

    Program versus Project In practice the terms project and program cause confusion. They often used synonymously. A program a group of relates projects designed to accomplish a common goal over an extended period of time. Each project within a program has a project manager. The major differences lie in scale and time span. Program management is the process of managing a group of ongoing, interdependent, related projects in a coordinated way to achieve strategic objectives.

    For example:

    A pharmaceutical organization could have a program for curing cancer. The cancer program includes and coordinates all cancer projects that continue over an extended time horizon. Coordinating all cancer projects under the oversight of a cancer team provides benefits not available from managing them individually. This cancer team also oversees the selection and prioritizing of cancer projects that included in their special “Cancer” portfolio. Although each project retains its own goals and scope, the project manager and team also motivated by the higher program goal. Program goals are closely related to broad strategic organizational goals.

    What are the basic phases of a project and its purposes?

    The periods of a project make up the project life cycle. It is advantageous for the project chiefs to partition the project into stages for control and the following purposes. Every achievement at each stage then explain and follow for culmination. The fundamental periods of a project are reliant on the sort of project that is complete. For example, a product project may have the necessity, plan, assemble, test, execution stages while a project to manufacture a metro or a structure may have various names for each stage.

    Subsequently, the naming of the periods of a project relies upon the sort of expectations that looked for at each stage. With the end goal of definition, the stages might isolate into an underlying sanction, scope proclamation, plan, gauge, progress, acknowledgment, endorsement, and handover. This order as indicated by the PMBOK. In this way, the periods of a project firmly connected with that of the project cycle. The reason for each period of the project is a lot of expectations that settled upon before the project begins.

    For example:

    In a product project, the prerequisite stage needs to create the necessary records, the planning stage the plan report, and so forth. The construct stage in a project conveys the finished code while the test stage is about the finished testing for the expectations.

    Each period of the project relates to a specific achievement and the arrangement of expectations; that each stage requires to convey then follow for consistency and conclusion. The Project Life Cycle comprises of the starting, executing, controlling, and shutting cycles of the structure as depicted in the PMBOK. Every one of these cycles is important to guarantee that the project remains on target and finish by the determinations.

    What is Project in Project Management Meaning and Definition
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  • 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
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  • 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.
  • Explaining Product Development in Production Management!

    Explaining Product Development in Production Management!

    A successful product development requires a total-company effort. The concept of the Study – Explaining Product Development in Production Management: Standardization – advantages and disadvantages, Simplification, Specialization – advantages and disadvantages, Diversification – advantages and disadvantages, and Automation – advantages and disadvantages. The most successful innovating companies make a consistent commitment of resources to product development, design a new product strategy that is linked to their strategic planning process, and set up formal and sophisticated organizational arrangements for the managing product development process. Also learn, Explaining Product Development in Production Management!

    Understand and Learn, Explaining Product Development in Production Management!

    The product development process for finding and growing new products consist of eight major steps as explained below;

    • Idea generation
    • Idea screening
    • Concept development and testing
    • Marketing Strategy Development
    • Business analysis
    • Product Development
    • Test marketing
    • Commercialization

    We shall briefly describe these steps: 

    Following are:

    Idea Generation: 

    It is a systematic search for new product ideas. A company has to generate many ideas in order to find good ones. The search for new products should be systematic rather than haphazard. Top management should state what the products and markets to emphasize. It should state what the company wants from its new products, whether it is high cash flow, market share or some other objective. To obtain a flow of new-products ideas, the company can tap many sources. Major sources of product ideas include internal sources like customers, competitors, distributors, and suppliers. It has been found that more than 55 percent of all product ideas come from internal sources.

    Idea screening:

    The purpose of idea generation is to create a large number of ideas. The purpose of the succeeding stages is to reduce that number. The first reducing stage is idea screening. The purpose of screening is to spot good ideas and drop poor ones. Most companies require their executive to write up the new product ideas in a standard format that can be reviewed by a new product committee. The write up describes the product, the target market, the competition and makes some rough estimate of market size, product development time and costs, manufacturing costs and rate of return. The committee then evaluates the idea against a set of general criteria.

    Concept Development and testing:

    Customers do not buy product ideas, they buy the product concepts. The concept testing calls for testing new product concepts with a group of target consumers. After being exposed to the concept, consumers then may be asked to react to it by asking a few questions.

    Market strategy development:

    The next step is market strategy development, designing an initial marketing strategy for introducing the concept to the market. The market strategy statement consists of three parts:

    • The first part describes the target market; the planned product positioning, market share and profit goals for the first few years.
    • The second part of the marketing strategy statement outlines the product planned price, distribution, and marketing budget for the first year.
    • The third part of the marketing strategy statement describes the planned long-run sales, profit goals, and marketing mix strategy.
    Business Analysis:

    Once management has decided on its product concept and marketing strategy, it can evaluate the business attractiveness of the proposal. Business analysis involves a review of its sales, cost, and profit projections for a new product to find out whether they satisfy the company‘s objectives.

    Product development:

    If the product concept passes the business test, it moves into product development. Here, R&D or engineering develops the concept into a physical product. The R&D department will develop one or more physical versions of the product concept, R&D hopes to design a prototype that will satisfy and excite consumers and that can be produced quickly and at budgeted cost. When the prototype is ready it must be tested. Functional tests are then conducted to make sure that the product performs safely and effectively.

    Test Marketing:

    If the product passes functional and consumer tests, the next step is test marketing, the stage at which the product and marketing program are introduced into more realist marketing setting. This allows the marketer to find potential problems so that these could be addressed.

    Commercialization:

    Is introducing the new product to the market.

    Tools for Product Development: 

    The following are various product development techniques adopted by different organizations: 

    Standardization: 

    This means fixation of some appropriate size, shape, Quality, manufacturing process, weight, and other characteristics as standard to manufacture a product of desired variety and utility e.g. manufacture of television sets of standard size of the screen using standard components and technology; shaving blades are made of standard size and shape to suit every kind of razor. The concept of standardization is applicable to all factors of production namely men, materials, machines and finished goods. These standards can become the basis to evaluate the performance of various components of production in the manufacturing process. In the words of Behel, Smith, and Stackman:

    “A standard is essentially a criterion of measurement, quality, performance, the practice established by custom, consent or authority and used as a basis for comparison over a period of time. The setting of standards and the coordination of the industrial factors to comply with these standards and to maintain them during the periods for which they are effective is known as industrial standardization”.

    According to Dexter S Kimball of production control operation in the manufacturing, the sense is the reduction of any one line to fixed types, sizes, and characteristics.” Standardization becomes the basis of production control operations and works as a catalyst in directing and operating the working of a business enterprise. It identifies and compares various products, systems, and performances in an enterprise. It is the function of the department responsible for designing the product to provide the guidelines and infrastructure for standardization of the whole system keeping into consideration the designing stage towards standardization may be too expensive to be rectified.

    For an organization designing the product without considering the standardization, aspect is of no value of significance. Franklin F. Folts has described the concept of standardization as,” simplification of product lines and concentration on a restricted predetermined variety of output is one common application of the principles of standardization may be extended to all factors in the production process”. Standardization is an instrument to manufacture the maximum variety of products out of the minimum variety of components by means of a minimum variety of machines and tools. This decreases working capital requirements and a reduction in manufacturing costs.

    Standardization also implies that non-standard items are not to be manufactured except when consumers order them specially. Some standards are enacted by law viz. automobile windscreen which must be made of safety glass. Usually, there are institutions, societies, and governmental departments that regulate the standards. In a factory, it is best to have standardization committee drawing its members from sales, engineering, production purchasing, quality control, and inspection.  Sales department and engineering department have to work closely in effecting changes towards standardization because the older products that have been sold are affected by after-sales service needs. Within an organization, it is the engineering department who sets standards for the materials to be procured and specification of the end products and the mode of testing the products. 

    Advantages of standardization: 

    • Standardization in designing, purchasing of raw material, semi-finished and finished goods and of the manufacturing process tries to eliminate wastage and reduces the cost of production. Reduction in varieties of raw materials means reduced investments in stocks and less attention to stock control.
    • Standardize product components reduce tool cost, permits larger and more economical lot sizes of production, avoids losses for obsolescence and reduces capital requirements for work in process.
    • Production in larger quantities can be planned which results in fewer set-up costs.
    • By minimizing the operations in the production process it provides facility to introduce mechanization and use of more specialized tools and equipment.
    • Service and maintenance costs, as well as marketing expenses, are reduced.
    • Encourages the manufacturer to products of the new style, use, and performance with an object to generate more customers.
    • The value of the standardized product lying in stocks or in stocks or in transit can be easy for the purpose of advancing loans.

    Disadvantages of Standardization: 

    Product standardization leads to some disadvantages also. These are:

    • Too much standardization has an adverse effect on the efficiency and morale of the workers. They, in the long run, feel bored and fed-up in doing the same routine again. The spirit of challenge and initiative vanishes with the passage of time.
    • During the initial process of product Development where frequent improvements and changes may be necessary to bring the product and production process up to the mark, standardization may create obstacles in innovations.
    • For small-scale enterprises, standardization may not be advantageous.

    Simplification:

    In production, simplification can be done at two places namely (i) for product or) for work. Simplification in product development is used for products; In fact, simplification should be done before standardization.

    In the words of F. Clark and Carrie, “simplification in an enterprise connotes the elimination of excessive and undesirable or ‘marginal lines’ of product to hammer out waste and to attain economy connotes the elimination of excessive and undesirable or ‘marginal lines’ of product to hammer out waste and to attain economy coupled with the main object of improving quality and reducing costs and prices leading to increased sales.”

    W.R Spiegel and R.H Lansburg also define,” Simplification refers to the elimination of superfluous varieties, size dimensions etc.” Simplification can be advantageous to both producer and the consumer of a product. These can be listed as:

    To the producer: 
    • Eliminates surplus use of materials to provide economy in production cost.
    • More production increases the inventory size which avoids delays in supply.
    • Less obsolescence of materials and machinery.
    • Due to simplification in operation, the efficiency of the production process increase and this leads to more productive due to the scope of better training and learning facility with simplification operation.
    • Human efforts become more productive due to the scope of better training and learning facility with simplified operation.
    • After-sales service prospects are minimized.
    • Production planning and control operations become easy and simple.
    • Reduction in cost of production leads to more sales.
    To jobber-wholesalers and detailers:  
    • Increased turn over.
    • Sales effort on fewer items.
    • Reduction in storage space for.
    • Fewer overheads and handling expenditures.
    To the consumer: 

    Explain it to each one with Advantage and Disadvantage, the following are:

    Specialization: 

    Specialization implies expertise in some particular area or field. It is experienced that as the companies expand the range of their products, manufacturing system, involves more and operations for transforming inputs into output. This often results from an increase in operating cost and a decline in profits. The problem can be solved by identifying the products contributing to losses and then eliminate their production. This will lead to confine the production of profitable items only and consequently a reduction in the number of operation required in the process. The minimization of operation can lead to the use of expert knowledge, skill, and techniques in the production system, the nature and the type of product. The operation required manufacturing it and the nature of the market. Specialization implies the reduction in the variety of products manufacturing by the organization.

    Advantages of specialization are: 

    • Specialization and standardization lead to higher productivity.
    • In the case of output and reduction in per unit cost of production,
    • Savings in the purchase of raw material and improvement in the quality of the finished goods.

    Disadvantages of specialization are: 

    • Less flexibility in adjustment to changed situations.
    • Monotony and boredom may adversely affect the efficiency.

    Diversification:

    It implies the policy of producing different types of products by an enterprise. Thus it is reverse of simplification are associated with the nature of the industry e.g. in the case of capital goods industry simplification is more important as the customers give preference to economy, accuracy and performance of the product, whereas in a consumer goods industry diversification leads to produce a variety of goods in; terms of style, shape, color, design etc. The establishment facing tough competition is forced to diversify this activates to capture the market. In general, diversification can be adopted for the purpose of the market. In general, diversification can be adopted for the purpose of (a) utilization of idle/surplus resources, (b) stabilization of sales, (c) to cope with demand fluctuations and (d) for the survival of the organization.

    Due care and precautions should be taken in the formulation of diversification policy. Proper and extensive market analysis at different levels of the quality and quantity of the products should be done to determine the levels of profitability. This will help in selecting the most appropriate diversification strategy under the prevailing circumstances.

    Advantages of Diversifications are: 

    • Increase in sales due to the production of different kind of products. This also leads to an increase in the volume of business.
    • Needs of the wider section of the consumer are fulfilled.
    • Risk minimization’ in the case of quick and unpredictable demand variations.
    • Uniform and balanced production programme can be chalked out without any consideration of wastage by production by-products.
    • Elimination of wastage by producing by-products.

    Disadvantages of Diversifications are:  

    • Due to the increase in the number of operations, the production process becomes quite complicated and sometimes expensive.
    • Production Planning and control operation becomes complicated and time-consuming requiring extra Efforts.
    • The size and the variety of items in; the inventory increases with diversification introducing more problems.
    • The worker of different types of skill and expertise is required.

    Automation in Business Enterprises: 

    The concept of automation has brought another revolution in the industrial world. This has resulted in phenomenal growth in the industrial arena by providing a wide range of products with minimum cost and efforts.

    Automation implies the use of machines and equipment for performing physical and mental operations in a production operation in place of human beings. Automation can be visualized as an electronic brain with the capacity of taking routine and logical decisions connected with the control and planning functions of management. Routine decisions can be like scheduling, routing, dispatching and inspection of modifications of operations to see that the whole system operates according to the planned strategy.

    In the absence of any human intervention or activity, automation can be considered as a self-regulating and controlling system. Mechanization provides the self-regulating property and performing manual operations by means of mechanized operations.

    Thus automation can be defined as “A system of doing work where material handling, production process, and product design are integrated through mechanization of thoughts and to achieve a self-regulating system.

    In automation, the machines and equipment required to perform various operations process are sequents arranged in order of hierarchy of operations. Electronic devices are used to record, store and interpretation of information at various stages of production. Machines are used to operate other machines.

    Automation can be done at various levels of the manufacturing system in parts or as a whole. Some of the situations can be:

    • Handling of raw materials, semi-finished goods or finished goods. Instead of doing the work manually the operation can be done by means of trolleys, conveyor belts, overhead cranes, lifts etc. This eliminates chances of losses due to handling and saves valuable time.
    • Sophisticated, reliable and efficient machines and equipment can be used in the production process. This will ensure both the quality and quantity of the product desired.
    • Inspection and quality control operations can be done by means of mechanical devices. This eliminates the chances of human bias and error.

    Use of machines and equipment in automation ensures production of high-quality products at minimum cost. This also increases the confidence of consumers in the product and stabilizes the demand for the product. There is a general fear that automation leads to unemployment. But on the other hand operation of machines and equipment in the system need highly skilled and qualified manpower. So the technical skills of the system increase with the reduction in size. It goes without saying that automation ensures the high level of efficiency and capacity utilization.

    Advantages of automation are:

    • Better quality of goods and services,
    • Reduction in direct labor cost,
    • Effective control of operations,
    • Greater accuracy, more output, greater speed,
    • Minimization of waste,
    • Production planning and control is to be done in the beginning only,
    • Working conditions can be improved greatly since much of the work follows an orderly path,
    • The waste does not come into much contact with the equipment; also the design of the special purpose equipment is usually superior to that of general purpose equipment. This improves overall safety considerably,
    • Direct and indirect costs, Inventories, Set-up times and lead times are all reduced. Space and equipment utilization is improved,
    • Since the human inputs in the production are minimized, the quality is also improved. Human beings are more erratic than machines,
    • Throughput time is reduced and therefore service to the customers is enhanced.

    Disadvantages of automation are:

    • High capital investment,
    • High maintenance costs and requirement of the labor of high caliber,
    • Requires highly skilled manpower,
    • Can create unemployment,
    • Scheduling and routing operations are difficult and time-consuming,
    • Restriction in designing and construction of buildings,
    • Larger inventories,
    • Continuous power supply,
    • Automation equipment is highly inflexible i.e. if a new product is to be introduced the existing equipment may have to be salvaged entirely,
    • Any break down anywhere would lead to complete shut-down.
    Explaining Product Development in Production Management - ilearnlot
    Image Credit to @pixabay.
  • Explain to the Multiple-Regression Analysis!

    Explain to the Multiple-Regression Analysis!

    Understand and Learn, Explain to the Multiple-Regression Analysis! 

    In the multi-regression analysis, the regression equation is used where demand for the commodity is deemed to be the functions of many variables. Meaning of Multiple-Regression: Multiple regression is a statistical tool used to derive the value of a criterion from several other independent, or predictor, variables. It is the simultaneous combination of multiple factors to assess how and to what extent they affect a certain outcome. Also learn, Explain to the Multiple-Regression Analysis!

    The process of multi-regression analysis may be briefly described as:

    • The first step in multiple regression analysis is to specify the variables that are supposed to explain the variations in demand for the product under reference. The explanatory variables are generally chosen from the determinants of demand, viz. price of the product, the price of its substitute, consumer’s income and their tastes and preference. For estimating the demand for durable consumer goods (e.g. TV sets refrigerators, houses etc,), the explanatory variables which are considered are the availability of credit and rate of interest. For estimating the demand of capital goods (e.g. machinery, and equipment) the relevant variables are additional corporate investments, the rate of depreciation, cost of capital goods cost of other inputs (e.g., labor and raw materials) market rate of interest etc.
    • Once the explanatory or independent variable is specified, the second step is to collect time-series data on the independent variables.
    • After necessary data is collected, the next step is to specify the form of the equation which can appropriately describe the nature and extent of the relationship between the dependent and the independent variables.
    • The final step is to estimate the parameters in the chosen equations with the help of statistical techniques. The multivariate equation cannot be easily estimated manually. They have to be estimated with the help of computers.

    The reliability of the demand forecast depends to a large extent on the form of equation and degree of consistency of the explanatory variables in the estimated demand function. The greater the degree of consistency, the higher the reliability of the estimated demand and vice versa. Adequate precautions should, therefore, be taken in specifying the equation to be estimated.

    The multiple linear regression equation is as follows:

     ,

    where  is the predicted or expected value of the dependent variable, X1 through Xp are p distinct independent or predictor variables, b0 is the value of Y when all of the independent variables (X1 through Xp) are equal to zero, and b1 through bp is the estimated regression coefficients? Each regression coefficient represents the change in Y relative to a one unit change in the respective independent variable. In the multiple regression situation, b1, for example, is the change in Y relative to a one unit change in X1, holding all other independent variables constant (i.e., when the remaining independent variables are held at the same value or are fixed). Again, statistical tests can be performed to assess whether each regression coefficient is significantly different from zero.

    Selection of the Forecasting Model: We have discussed several statistical forecasting models for demand estimation in planning and control. As a manager, you now have the task of selecting the best model for your needs. Which one should you choose, and what criteria should you use to make the decision. The most important criteria are:

    • cost, and
    • accuracy

    Accuracy (forecast error), can be converted into the cost. Costs to be considered in the model selection are:

    • implementation costs,
    • systemic costs,
    • Forecast error costs.

    Of these three, forecast error costs are perhaps the most complex to evaluate. They depend upon the noise in the time series, the demand pattern, the length of the forecast period and the measure of the forecast error.  Several studies have evaluated and compared the performance of different models. In general, different models are best, depending on the demand pattern, noise levels and length of the forecast period. It is typical to have a choice of several good models for anyone demand pattern when the choice is based only on forecast error. 

    Combining Naïve Forecasting Models: In comprehensive studies, it has been found that average and weighted average methods of forecasting are different from other forecasting methods. From these studies, we can conclude that forecasting accuracy improves and that the variability of accuracy among different combinations decreases, a number of methods in the average increases. Combining forecast models holds considerable promise for operations. As Makridakis and Walker state “Combining  forecasts seem to be reasonably practical alternatives when, as is often the case a true model of the data-generating process or single best forecast method cannot or is not, for whatever reason, identified.”   

    Behavioral Dimensions of Forecasting: To understand some of the dimensions of forecasting, it is wise to consider human behaviors, because forecasts are not always made with statistical models. Individuals can and do forecasts by intuitively casting forth past data, and they often intervene in other ways in the statistical forecasting procedure as well. A manager may feel that item forecast generated by models must be checked for reasonableness by qualified operating decision makers. Forecasts generated by models should not be followed blindly; potential cost consequences must be considered. Decision makers can take into account qualitative data that are not in the model. Decision makers should use the forecasting model as an aid in decision making; they should not rely totally on the forecasting models for all decisions. Many, perhaps most, forecasts for production/operation management are individual intuitive forecasts.  

    Intuitive Forecasting as a Judgmental Process: Currently, little is known about the effectiveness of intuitive forecasting. We can, however, analyze some of the mental processes involved. A forecast may be regarded as the culmination of a process consisting of several stages, including information search and information processing. It results in human inferences about the future that are based on particular patterns of historical data presented to the forecaster. We can speculate about a number of environmental factors that may affect intuitive forecasting. 

    Meaningfulness: Forecasting requires considering a restricted set of information about historical demand. When we discuss job enrichment and job design we see that if repetitive tasks can be made meaningful to the person performing them, positive effects usually result. Imparting meaningfulness to the task of forecasting, then, may be expected to affect the reliability of intuitive forecasting task, the more accurate the intuitive forecast.

    Pattern Complexity: Pattern complexity, the shape of demand pattern, is in general, a critical variable in intuitive forecasting, just as it is in model forecasting. Some behavioral studies suggest that intuitive forecasts may perform better on a linear than on non-linear demand patterns. In addition, people apparently try to use the non-linear date in a linear manner.

    The degree of Noise: Given sufficient historical data, the forecasting problems are trivial for most cases without noise. Introducing random variations, however, often it brings about a condition called cue uncertainty. Very high noise levels obscure the basis for accurate forecasting, and often the result is lower forecast accuracy. 

    Individual Variability: Another finding in intuitive forecasting studies which is the wide variability of performance of the forecasters. When comparing forecasters with models, there are typically a few very good forecasters, but there are even more very poor forecasters. If planning and directing production and operation are based on poor intuitive forecasts, these variations in performance can be very expensive.

    Individual versus Model Performance: How do individuals compare to naïve forecasting models? In studies, exponential smoothening models, when fit to the historical demands given to intuitive forecasters significantly outperformed group average performance. Only a very few good intuitive forecasters outperformed the models.  The operation manager would be wise to consider models as an alternative to individuals. Models generally are more accurate, and if a large number of items must be forecast, the models are more economical.

    Forecasting, Planning, and Behavior An excellent literature review and evaluation compare many modeling and psychological dimensions of forecasting, planning and decision making. Many information processing limitations and biases involving human judgment apply to forecast and planning as well. Errors in forecasting procedures are caused by using redundant information, failing to seek possible disconfirming evidence, and being overconfident about judgments. In addition, numerous studies show that predictive judgment of humans is frequently less reliable than that of simple quantitative models.  

    Forecasting and the Indian Scenario: Some of the more creative and productive organizations in India are to be found among high technology organizations such as Atomic Energy Commission, Indian Space and Research Organization, Bharat Heavy Electrical and Defense Research and Development Organization (DRDO) The participation of private sector in the high technology area has been very limited. The high technology companies in India have been scanning for technology development in the world and trying to develop indigenous equivalent products. And for this, they do forecasting, particularly that of technology, in some measures.

    However, barring these few examples, by and large, other organizations have not been using forecasting in a scientific manner. The reasons could be many. One of the main reasons has been that they do not feel the need to survey the environment and forecast future business. The reason behind this has been the country’s erstwhile closure of foreign participation,   ensuring secure markets for domestic companies. India has been a seller’s market at least for past half a century. If you could produce something, it could always be sold in a product-starved country.

    The situation has changed since the turn of the century but old habits, beliefs, and psychology take time to change. The emphasis, therefore, had been on producing rather than on real proactive marketing. The environmental scan of business /industries stopped at that. Hence, forecasting had indeed been a neglected aspect of management. Now, with the gradual opening up of the economy, the economic scenario has changed due to the increasing participation of the multinational corporations in various areas of business/industry., including infrastructure. The Indian economy is increasingly getting the characteristics of a buyer’s market. The Indian businessman, therefore, has to be very alert about the mumblings in the gangways.

    Forecasting models, such as the causal models can now be used to forecast the effect of concession on the corporate tax, customs duty, excise and other areas. Opinion based methods such as Delphi techniques and consumer behavioral surveys have increasing relevance. Monopoly or oligopoly does not need forecasting. Indian industries and businesses are waking up to the fact that it is now a different game. They know that if they do not follow appropriate management basics such as forecasting they risk the danger of being marginalized for a long time to come.

    Explain to the Multiple-Regression Analysis - ilearnlot
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  • Essay on Project Management with Meaning and Definition

    Essay on Project Management with Meaning and Definition

    Project Management Essay: It is the practice of initiating, planning, executing, controlling, and closing a team’s work to achieve specific goals and to meet specific success criteria at specific times. A project is a temporary effort to bring a particularly beneficial change. This is to define a specific product, service, or result to meet unique goals, objectives, and objectives or the added value of the project is the opposite of the business as a general (or operation). Which is the product, Who does or repeated to produce services, permanent or semi-permanent functional activities? Also, in practice, the management of specific production approaches requires the development of specific technical skills and management strategies. Also learn Disk Management: Definition, Project Management Definition.

    What is the essay on Project Management? with their Meaning and Definition.

    What is a Project? A project is a temporary undertaking that exists to produce a defined result. Each project will agree and with its unique objectives, its own project planning, budget, time-limits, deliverables, and work. Also, in a project, people of different teams can include within an organization. Which are brought together to fulfill specific goals?

    Meaning of Project Management:

    Project management can define as the discipline of implementing, planning, executing, and managing specific processes and principles. That new initiatives or changes are being implemented within an organization. Project management is similar to normal activity for the management of the business. This is a continuous process, as it is to create new work packages to end with the consent or to achieve the goal.

    As well as, The primary challenge of project management is to achieve all project goals within the given obstacles. This information is usually describing in the project documentation. Which is designing at the beginning of the development process. Also, Primary hurdles are scope, time, quality, and budget are the secondary and more ambitious challenge, to optimize the allocation of necessary inputs and implement them to meet pre-defined objectives. The purpose of the project management is to create a complete project which is in line with the client’s objectives. Also, in many cases, the purpose of project management to address the purpose of customer management is to either size or improve the short form of the client.

    Essay on Project Management with Meaning and Definition Image
    Essay on Project Management with Meaning and Definition; Image from Pixabay.

    Definition of Project Management:

    Project Management is the craft of dealing with all the parts of a project from commencement to conclusion utilizing a logical and organized approach. The term project might be utilized to characterize any undertaking that is impermanent in nature and with a start or an end. The project must make something exceptional whether it is an item, administration, or result, and should be dynamically explained. As the definition suggests, only one out of every odd assignment can view as a project. It is beneficial to remember this definition when arranging projects and examining their part in the accomplishment of the association. With the above meaning of the project, one gets away from what a project is.

    Program Management characterizes as an office that concentrates the management of projects. This means the PMO or the Project Management Office is a vault of the apparent multitude of projects that execute in an association. Also, Program Management serves the CIO (Chief Information Officer) by furnishing the person in question with customary announcements in regards to the advancement of the apparent multitude of projects in the organization.

    Project Manager:

    The Project Manager’s job is to guarantee that the general destinations of the project accomplished with the cooperation of every individual part. The project administrator resembles the Prima Donna and their keenness relies upon how well the person in question can use the qualities of the individual individuals while limiting the effect of their shortcomings. Program chiefs take a similar view however at a lot more elevated level. Their activity is on the general main concern for the division or the organization; and, they drive the individual project supervisors. This is like that of a pyramid where the CIO or the program director sits on the peak; and, the project chief at the following level, the project leads further down, etc.

  • Concepts of Management

    Concepts of Management:

    The term management has been interpreted in several ways; some of which are given below:

    Management as an Activity:

    Management is an activity just like playing, studying, teaching etc. As an activity, management has been defined as the art of getting things done through the efforts of other people. Management is a group activity wherein managers do to achieve the objectives of the group.

    The activities of management are:

    • Interpersonal activities
    • Decisional activities
    • Informative activities

    Management as a Process:

    Management is considered a process because it involves a series of interrelated functions. It consists of getting the objectives of an organization and taking steps to achieve objectives. The management process includes planning, organizing, staffing, directing and controlling functions.

    Management as a process has the following implications:

    (i) Social Process: Management involves interactions among people. Goals can be achieved only when relations between people are productive. The human factor is the most important part of the management.

    (ii) Integrated Process: Management brings human, physical and financial resources together to put into the effort. Management also integrates human efforts so as to maintain harmony among them.

    (iii) Continuous Process: Management involves continuous identifying and solving problems. It is repeated every now and then till the goal is achieved.

    (iv) Interactive process: Managerial functions are contained within each other. For example, when a manager prepares plans, he is also laying down standards for control.

    Management as an Economic Resource:

    Like land, labor, and capital, management is an important factor of production. Management occupies the central place among productive factors as it combines and coordinates all other resources.

    Management as a Team:

    As a group of persons, management consists of all those who have the responsibility for guiding and coordinating the efforts of other persons. These persons are called as managers who operate at different levels of authority (top, middle, operating). Some of these managers have the ownership stake in their firms while others have become managers by virtue of their training and experience. Civil servants and defense personnel who manage public sector undertakings are also part of the management team. As group managers have become an elite class in society occupying positions with enormous power and prestige.

    Management as an Academic Discipline:

    Management has emerged as a specialized branch of knowledge. It comprises principles and practices for effective management of organizations. Management has become as a very popular field of study as is evident from the great rush for admission into institutes of
    management. Management offers a very rewarding and challenging career.

    Management as a Group:

    Management means the group of persons occupying managerial positions. It refers to all those individuals who perform managerial functions. All the managers, e.g., chief executive (managing director), departmental heads, supervisors and so on are collectively known as
    management.

    For example, when one remarks that the management of Reliance Industries Ltd. is good, he is referring to the persons who are managing the company. There are several types of managers which are listed as under.

    1. Family managers who have become managers by virtue of their being owners or relatives of the owners of a company.
    2. Professional managers who have been appointed on account of their degree or diploma in management.
    3. Civil Servants who manage public sector undertakings.

    Managers have become a very powerful and respected group in modern society. This is because the senior managers of companies take decisions that affect the lives of a large number of people. For example, if the managers of Reliance Industries Limited decide to expand production it will create the job for thousands of people. Managers also help to improve the social life of the public and the economic progress of the country. Senior managers also enjoy a high standard of living in society. They have, therefore, become an elite group in the society.

    Question & Answers:

    • Write Concepts of Management?
    • Write Basic Concepts of Management?
    • What is Concepts of Management?
    • What is Process in Management?

  • Project Management in New Product Development

    Project Management in New Product Development by Bruce T. Barkley

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