PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT

Production + Management Production

=
Production Management • Creation of material goods – furniture??

• Management of transformation process of • Creation of utility

inputs into output
• Marketing management, personnel • Creation of utility, which has value
management, financial management,
materials management
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PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT

Production Production
• Creation of utility • The process by which goods and services
• Change in form – manufacturing are created
• Change in place – transportation
• Change in time – storage • The process of transforming the inputs like
men, materials, capital into outputs like
finished products and services in proper
• Tangible quantity and quality
• Intangible – services

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 PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT
Production Production
• Transformation • Transformation
• Disintegration • Service
• One ingredient as input and several • No change in the object, but changes
outputs in the parameters
• Rolling steel bars from cast ingots • transportation, repairs
• Integration or assembly
• Several components as inputs and one
product as output
• Automobiles, computer
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PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT

Production
• Factors of production
• Nature – Land and other natural
• Objectives of a production process:
resources
• Labour – Human efforts
• Optimum use of resources
• Capital – Factory building, machinery,
tools, raw materials, etc.
• Desired quantity and quality • Enterprise – Activity that organizes other
factors of production into an operating
unit
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 PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT
Productivity Productivity
• Peter Drucker – that balance between all • Relationship between the result and the
factors of production that will give the means employed – output vs. input
greatest output for the smallest effort
O Production
• Reduction in the wastage of resources P= =
I Resources Employed
• A comparison between the quantity of goods
and services produced (output) and the • Performance Index (PI):
quantity of resources used to produce these
output expressed in standard minutes
goods and services (output) PI = × 100
actual minutes worked
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PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT

Productivity
• Productivity in India – low wages, unit costs • There are two factories manufacturing two
are high types of plugs. The standard time per piece
is 1.5 minutes. The output of the two
• It is found that the standard time to factories is 480 and 320 respectively per
assemble a bench grinder is 2 minutes per shift of 8 hours.
unit. If an operator assemble 275 grinders a) What is the productivity of each factory
during the day, what is the operator’s PI? per shift of 8 hours?
• Ans: 1.146 b) What is the production of each per week
(6 days) on the basis of double shift?
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 PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT
Factors affecting Productivity Factors affecting Productivity
• Operating process • Working methods
• Speed, feed, temperature, rate of flow, • Movement of the operator, time, effort
density of solution • Type and size of the machines
• Narrow cloth put on too wide a loom
• Product variety and standardization
• batch size and number of batches – • Marketing policy
special-purpose high-production • Product variety – short-runs, idle time,
machines vs. slower general purpose set-up costs, workers skill
machines
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PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT

Factors affecting Productivity Factors affecting Productivity
• Supply of materials, tools and equipment • Attitudes
• Idle time • Taking time off work without good cause
• Failing to start work immediately after
• Maintenance clocking in
• Breakdowns • Deliberately working slowly
• Careless workmanship
• Safety • Scrap and/or re-work – wasted time
• Accidents – lost time and materials
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 PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT
Purpose to increase Productivity Purpose to increase Productivity
• For Management • For workers
• To produce good earnings • Higher wages
• To clear debts or loans acquired from • Better working conditions
different sources • Higher standard of living
• To be stable • Job security and satisfaction
• To sell more • For customers
• To stand better in market • Reduced price
• Better quality
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PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT

Productivity measures Productivity

• A drill operator marked the centres of three
• Productivity of labour holes on an iron casting and then drilled the
three holes on each piece one by one
• Productivity of machines
producing 100 pieces in 4 hours. What is
• Productivity of land the productivity of the operator?

• Productivity of materials
• Even if production increases, sometimes
• Overall productivity productivity may decrease

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 PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT
• Production System – techniques and e) Scheduling and control
procedures: • Line balancing
1. Forecasting • Line of balance
2. Location and Layout techniques • Single machine scheduling
3. Product design and analysis, work study • Flow shop scheduling
4. Production control techniques • Job shop scheduling
a) Aggregate planning 4. Maintenance management
b) Master production schedule 5. Feed back and control techniques
c) Material Requirements Planning (MRP) a) Quality control
d) Capacity planning b) Inventory control
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PRODUCTION MANAGEMENT – PPC FUNCTIONS

PRODUCTION MANAGEMENT
Forecasting
• Production Planning and Control (PPC) – Prior Planning Order writing
the main characteristics of production Product design
Planning phase Process planning
management and routing
Material control
Tool control
• Functions: Active Planning Loading
1. Planning phase Scheduling
Action phase Dispatching
2. Action phase
Progress reporting Data collection
3. Control phase Control phase Data Interpretation
Corrective action Expediting
Re-planning
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 PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT
PPC – functions PPC – functions
1. Planning phase 2. Action phase
• Exercise of intelligent anticipation to • Guidelines for implementing plans into
establish how an objective can be practice
achieved in restrictive circumstances
• Optimal schedule and sequence of 3. Control phase
operations, economic batch quantity, • Controlling the production system through
machine assignment, despatching feedback mechanism
priorities
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PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT

PPC – functions PPC – functions
1. Planning phase – prior planning 1. Planning phase – prior planning
• Product development and design • Forecasting
• Developing a new product with all • Estimation of future work – type,
features and designing it quantity and quality
• Design for function, for manufacturing, • Order writing
for selling • Preparation of work authorization
• Information regarding specifications, • Giving orders to one or more persons
BOM, drawing, etc. to undertake a particular job
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 PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT
PPC – functions PPC – functions
1. Planning phase – prior planning 1. Planning phase – prior planning
• Aggregate planning • Master Production Schedule (MPS)
• Macro level • Product wise planning
• Converting resource requirements of
several products into common units • Material Requirements Planning (MRP)
• Inputs – forecasts, factory capacity, • Quantity and timing for the acquisition
inventory levels, size of work force of dependent items to meet MPS

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PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT

PPC – functions PPC – functions
1. Planning phase – active planning 1. Planning phase – active planning
• Process planning and routing • Material control – Requirements of
• A Complete determination of various raw materials/components
technological process steps and their • Tool control – Requirements of various
sequence tools – process specifications (surface
• Method of manufacturing, tools and finish, length of job, depth of cut
equipments, etc. etc.),material specifications (hardness,
shape and size etc.), equipment
• Routing – flow of materials and
specifications (speed, feed, depth of cut
components
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etc.)
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 PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT
PPC – functions PPC – functions
1. Planning phase – active planning 3. Control phase – progress reporting
• Loading – assignment of jobs to • Data collection
machines – balancing • Material rejection, process variations,
• Scheduling – time phase of loading equipment failures, tool life, operation
idleness
2. Action phase – dispatching • Data interpretation
• Worker is ordered to start the work • Analysis to identify critical areas for
• Job order, store issue order, tool order, corrective action
inspection order, move order etc.
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PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT

PPC – functions PPC – functions
3. Control phase – corrective action 3. Control phase – corrective action
• Creates provisions for unexpected events • Expediting – if any deviations are there
• Machine breakdown, labour absenteeism, and plan cannot be changed, take action
too much rejection due to poor material to get back to plan
quality etc. – causes deviations • Re-planning – if expediting fails to bring
• Schedule flexibility, schedule the deviated plan to its right path
modifications, capacity modifications, • When a portion of order size is
make or buy decisions cancelled

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