Planning: Predetermining a course of action for accomplishing organizational objectives Organizing: Arranging the relationships among work units for accomplishment of objectives and the granting of responsibility Staffing: Selecting and training people Directing: Creating an atmosphere that will assist and motivate people to achieve desired end results. Controlling: establishing, measuring and evaluating performance of activities toward planned objectives.
• Production is the system of changing
the form of any substance or raw
material to make it useful for
consumption either by the ultimate
consumer or industrial users.
• Manufacturing and Extractive
TYPES OF PROCESSES
• Analytic (one raw material – several
• Synthetic (one finished product –
• Fabricating (machining)
Production Process Design
• How will the production process be subdivided?
• What will be purchased and what will be built?
• What equipment will be used and how will it be used?
• What suppliers and subcontractors will be used?
• How will production be organized?
• Who will do what?
• How will material flow?
• How will work flow?
• What is the duration and cost of each operation?
• How will the production process be arranged physically?
• How will the product be tested during and after production?
• How will the finished product be shipped?
CONTINUOUS / INTERMITTENT
large scale operations
no idle time
e.g. steel and automobile
idle machine time
• Control the production process through
statistical analysis and process control.
• Improve quality and process consistency.
• Take corrective action when needed.
• Identify and implement methods to
reduce cost, invested capital or
• Manage the supply chain.
TYPES OF PRODUCTION
• JOB OR CUSTOM (small scale)
• BATCH (medium)
• MASS OR FLOW (large scale)
• JOB OR CUSTOM
- single and customized product
- greater skills and specialization
- exact specifications therefore, quality
- diverse orders of fairly large quantities
- intermittent process
• MASS OR FLOW
- continuous process
- standardized products
- similar, repetitive sequence of operations
- inventory risks
- risk of fluctuating prices (stock)
TAYLOR’S PRINCIPLES OF
1. Develop each element of a man’s work
2. Train, teach and develop the worker
3. Cooperate to ensure compliance with the
4. Equal division of work and responsibility
between the worker and management
TIME AND MOTION STUDY
• MOTION STUDY
Studying the elements of work and their
relations, analyzing them to eliminate
any repetitive and unnecessary tasks
and reducing the essential tasks to the
• TIME STUDY
Analysis and determination of time
taken to perform a particular task by
improving and standardizing operations
and adopting effective and efficient
production techniques. Helps establish
Production Planning and Control dept.
integrates and coordinates the use of
manpower, machines and materials for
efficient output of goods to meet its
FUNCTIONS OF PRODUCTION
• Planning and Issuing Orders
• Scheduling (Master and Production)
• Despatching (performance)
• Follow up and control
QUALITY CONTROL AND
Quality of a product is a combination of
attributes that distinguish it from other
1. Establishment of standards
2. Achievement of standards
3. Conformance to standards
PURPOSE OF QUALITY CONTROL
• Quality product to satisfy demand at a
cost that will still yield profits at the
going market price
• Sufficient quantity produced
• Retain standards set by quality control
FUNCTIONS OF QUALITY
Inspection dept. should have authority.
1. Incentives for operations
2. Reworking of defective product
3. Formation of committees to review
METHODS OF INSPECTION
• Floor or Patrolling
- 100% inspection
- Sample inspection
BUSINESS LOCATION AND
CHOICE OF LOCATION
FACTORS FOR CHOICE OF
• MANUFACTURING CONCERN
• Raw materials
• Power and fuel
• Location of competitors
• Population and style
• Room for expansion
• Governmental regulations
• RURAL SITE
• Cheap land
• Room for expansion
• Low taxes
• Cheap labor
• URBAN SITE
• SUBURBAN SITE