Objectives of Production Management

The objective of the production management is ‘to produce goods

services of right quality and quantity at the right time and right
manufacturing cost’.
1. RIGHT QUALITY
The quality of product is established based upon the customers needs.
The right quality is not necessarily best quality. It is determined by the
cost of the product and the technical characteristics as suited to the
specific requirements.
2. RIGHT QUANTITY
The manufacturing organization should produce the products in right
number. If they are produced in excess of demand the capital will
block up in the form of inventory and if the quantity is produced in
short of demand, leads to shortage of products.
3.RIGHT TIME
•Timeliness of delivery is one of the important parameter
to judge the effectiveness of production department. So,
the production department has to make the optimal
utilization of input resources to achieve its objective.
4.RIGHT MANUFACTURING COST
•Manufacturing costs are established before the product
is actually manufactured. Hence, all attempts should be
made to produce the products at pre-established cost, so
as to reduce the variation between actual and the
standard (pre-established) cost.
 SCOPE OF PRODUCTION AND OPERATION MANAGEMENT

• Production and operations management concern with the conversion of inputs into
outputs, using physical resources, so as to provide the desired utilities to the customer
while meeting the other organizational objectives of effectiveness, efficiency and
adaptability. It distinguishes itself from other functions such as personnel, marketing,
finance, etc., by its primary concern for ‘conversion by using physical resources.’
Following are the activities which are listed under production and operations
management functions:
• Location of facilities
• Plant layouts and material handling
• Product design
• Process design
• Production and planning control
• Quality control
• Materials management
• Maintenance management.
• Location of facilities for operations is a long-term capacity
decision which involves a long term commitment about the
geographically static factors that affect a business organization. It
is an important strategic level decision-making for an organization.
It deals with the questions such as ‘where our main operations
should be based?’
• Plant layout refers to the physical arrangement of facilities. It is
the configuration of departments, work centers and equipment in
the conversion process. The overall objective of the plant layout is
to design a physical arrangement that meets the required output
quality and quantity most economically.
• According to James Moore, “Plant layout is a plan of an optimum
arrangement of facilities including personnel, operating
equipment, storage space, material handling equipment’s and all
other supporting services along with the design of best structure
to contain all these facilities”.
• ‘Material Handling’ refers to the ‘moving of materials from the
store room to the machine and from one machine to the next
during the process of manufacture’. It is also defined as the ‘art
and science of moving, packing and storing of products in any
form’. It is a specialized activity for a modern manufacturing
concern, with 50 to 75% of the cost of production.
• Product design deals with conversion of ideas into reality. Every
business organization have to design, develop and introduce new
products as a survival and growth strategy. Developing the new
products and launching them in the market is the biggest
challenge faced by the organizations.
• Process design is a macroscopic decision-making of an overall
process route for converting the raw material into finished goods.
These decisions encompass the selection of a process, choice of
technology, process flow analysis and layout of the facilities.
• Production planning and control can be defined as the process of
planning the production in advance, setting the exact route of each
item, fixing the starting and finishing dates for each item, to give
production orders to shops and to follow up the progress of
products according to orders.
• Planning is deciding in advance what to do, how to do it, when to
do it and who is to do it.
• Planning bridges the gap from where we are, to where we want to
go.
• Routing may be defined as the selection of path which each part of
the product will follow, which being transformed from raw material
to finished products. Scheduling determines the programmer for
the operations.
• Scheduling may be defined as ‘the fixation of time and date for
each operation’ as well as it determines the sequence of
operations to be followed.
• Dispatching is concerned with the starting the processes. It
gives necessary authority so as to start a particular work,
which has already been planned under ‘Routing’ and
‘Scheduling’.
• Quality Control (QC) may be defined as ‘a system that is used
to maintain a desired level of quality in a product or service’.
It is a systematic control of various factors that affect the
quality of the product.
• Quality control aims at prevention of defects at the source,
relies on effective feed back system and corrective action
procedure. Quality control can also be defined as ‘that
industrial management technique by means of which product
of uniform acceptable quality is manufactured’.
• It is the entire collection of activities which ensures that the
operation will produce the optimum quality products at
minimum cost.
• Materials management is that aspect of
management function which is primarily
concerned with the acquisition, control and
use of materials needed and flow of goods
and services connected with the production
process having some predetermined
objectives in view.
Functions of Production Management
• 1. Selection of Product and Design
• Production management first selects the right product for production.
• Then it selects the right design for the product. Care must be taken while selecting the
product and design because the survival and success of the company depend on it.
• The product must be selected only after detailed evaluation of all the other alternative
products.
• After selecting the right product, the right design must be selected.
• The design must be according to the customers' requirements.
• It must give the customers maximum value at the lowest cost. So, production
management must use techniques such as value engineering and value analysis.
• 2. Selection of Production Process
• Production management must select the right production process. They must decide
about the type of technology, machines, material handling system, etc
• 3. Selecting Right Production Capacity
• Production management must select the right production capacity to match the
demand for the product.
• This is because more or less capacity will create problems. The production manager
must plan the capacity for both short and long term's production. He must use break-
even analysis for capacity planning.
• 4. Production Planning
• Production management includes production planning. Here, the
production manager decides about the routing and scheduling.
• Routing means deciding the path of work and the sequence of
operations.
• The main objective of routing is to find out the best and most
economical sequence of operations to be followed in the
manufacturing process. Routing ensures a smooth flow of work.
• Scheduling means to decide when to start and when to complete a
particular production activity.
5. Production Control
• Production management also includes production control.
• The manager has to monitor and control the production. He has to find
out whether the actual production is done as per plans or not. He has
to compare actual production with the plans and finds out the
deviations. He then takes necessary steps to correct these deviations
6. Quality and Cost Control
• Production management also includes quality and cost
control. Quality and Cost Control are given a lot of
importance in today's competitive world.
• Customers all over the world want good-quality
products at cheapest prices. To satisfy this demand of
consumers, the production manager must continuously
improve the quality of his products.
• Along with this, he must also take essential steps to
reduce the cost of his products.
7.Inventory Control
• Production management also includes inventory control.
The production manager must monitor the level of
inventories. There must be neither over stocking nor
under stocking of inventories.
• If there is an overstocking, then the working capital will
be blocked, and the materials may be spoiled, wasted or
misused.
• If there is an under stocking, then production will not take
place as per schedule, and deliveries will be affected.
• 8. Maintenance and Replacement of Machines
• Production management ensures proper
maintenance and replacement of machines and
equipments.
• The production manager must have an efficient
system for continuous inspection (routine checks),
cleaning, oiling, maintenance and replacement of
machines, equipments, spare parts, etc. This
prevents breakdown of machines and avoids
production halts.
Benefits Derived Form Efficient Production Management

•
The efficient Production Management will give benefits to the various
sections of the society. They are:

• Consumer benefits from improved industrial productivity, increased

use value in the product. Products are available to him at right place,
at right price, at right time, in desired quantity and of desired quality.
• Investors: They get increased security for their investments, adequate
market returns, and creditability and good image in the society
• Employee : They get adequate wages, job security, improved working
conditions and increased personal and job satisfaction.
• Suppliers: They will get confidence in
management and their bills can be realized
with out any delay.
• Community: Community enjoys benefits from
economic and social stability.
• The Nation will achieve prospects and security
because of increased productivity and healthy
industrial atmosphere.