1. A B U S I N E S S S E N S E P U B L I C A T I O N
W W W . B U S I N E S S E N S E . I N
The Essentials - Production

2. Overview
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 ‘The Essentials’ series from Business Sense is an initiative to empower the professionals and students
in performing more efficiently and effectively in the organization
 This publication is aimed at bridging the gap between the institutions and the industry by providing
the fundamentals of manufacturing management which are not offered by any of our
institutions/curriculum
 This course would immensely benefit professionals and students who are joining manufacturing
organizations
 At Business Sense, we help medium scale manufacturing units improve their operational efficiency
through consulting engagements focusing on improving their Operations through Lean
Manufacturing Implementation covering 5S, SMED, Kaizen and other tools
 We promise to double the productivity in less than 33 days of our effort
 In addition, our web application would help the senior management in monitoring the important
business updates every day and provide them analytics and enable them better decision making.
Useful if your organization do not have an ERP
 For more details, please visit www.businessense.in
 You can subscribe to our bi-weekly newsletter here.
 Follow us:

3. Contents
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 Section 1 – Introduction and Basic Processes
 Section 2 – Shop Floor Management
 Section 3 – MIS Reports and Analyses Points

4. Introduction to Production Function
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 Production is one of the most critical function in any manufacturing
organization. This function represents the set of activities through
which the product is made and delivered according to the client‟s
requirements.
 Production function normally encompasses various departments/shops
based on the type of products and the operations involved (e.g. press
shop, machining, polishing, plating, assembly etc).

5. Introduction to Production Function
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 The components move from each shop/machine to the other, once the
required operations are completed. (Sometimes the product would be
stationary and all the operations would be carried out on the product.
E.g. Ship building).
 At each stage the component is added value (value addition) and
transforms to a finished product.
Value Addition at each stage

6. Organization Structure
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 This is a standard organization structure* for
Production Function
 Purchase Manager reports to the CEO of the
company
 In a large organization, Production Manager
might report to Factory Manager /
Manufacturing Head
 There can be a few Production Supervisors ( for
different lines / processes / shop floor)
reporting to the Production Manager
 Each Production Supervisor would typically
focus on a single / specific processes or line
CEO
Production
Manager
Production
Supervisor
Production
Supervisor
Production
Supervisor
* A typical functional hierarchy is
mentioned here. It may vary according
to each organization.

7. Responsibilities of an Engineer in Production
Department
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• Productivity - Ensuring a smooth production flow / dynamically monitoring the
production process through allocation of resources (Men/Machine/Materials) and
make necessary changes based on the requirements.
• Quality - Meeting the Quality requirements set by the customer and taking steps to
exceed them. Measuring and analyzing the current quality levels and taking
necessary steps to improve and achieve the required quality levels
• Cost – Minimizing cost (reducing reuse/defects, process
modifications/improvements)
• Delivery - Overall responsibility of delivering finished goods as per the customer‟s
requirements – Ensuring 100% on-time delivery
• Safety & Morale – Achieve 0% Accidents and Incidents(Near-miss). Improving
Morale of the personnel
P
M
S
D
C
Q

8. Process Flow - 1
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 Production Plan created by the Production
Planning department / production manager is
sent to the production supervisors
 Production supervisors plan for the day‟s
production based on the weekly / monthly
production plan

9. Production Process - 2
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 Order-wise requirements of all materials
(calculated from the Bill of Materials
(BOM)) would be obtained from the
stores using Materials Issue Requisition
(MIR) slip
 Once the materials are obtained they are
sent to the respective process/machines
for completion. The Supervisor also
creates a job card for each lot/item
which travels along with the product
throughout the entire processes.

10. Production Process - 3
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 Quality is measured at each stage so
as to reduce reworks and rejections
 At the end of the production process,
necessary quality checks are made
and the products are packed and
delivered to the customers.
Please note this is only the basic process. There may be delays /
stoppages in production due to quality issues, non-availability
of materials, absenteeism etc.

11. Contents
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 Section 1 – Introduction and Basic Processes
 Section 2 – Shop Floor Management
 Section 3 – MIS Reports and Analyses Points

12. Daily Production Plan
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 Monthly Production plan is broken down into Weekly and Daily
production plan for each shop/operation by the Production manager
and sent to the respective Production Supervisors
 Production Supervisor should plan for one day‟s production in
advance. i.e. tomorrow‟s production plan should be planned today by
the individual supervisors (before office closing hours)

13. Daily Production Plan
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 Once the Production supervisors obtain the daily production plan,
they should plan & allocate the resources ( men, machine and
materials) for the next day‟s production
 Resources and work allocation should be carried out in the previous
day evening
 Once the employees enter the shop floor, they should be able to pick up
the materials and start working. ( If the production plan happens in the
morning, the company loses around 20 minutes before employees are
allocated some job and start working)

14. Shop Floor Management
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 Supervisor allocates the job to the right personnel and follows it so
that the production target for the day is achieved.
 In case of any changes in the plan, he/she consults with the
Production manager immediately and make necessary changes in the
shop floor
 He/she informs the employees and arranges materials accordingly
 At the end of the day, Production status is reported to the Production
Manager and the plan for the next day is done

15. Shop Floor Management
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Lean Manufacturing
A set of Management practices originated in Japan, useful in eliminating
non-value added activities and improving the productivity in a faster and
efficient manner !

16. Lean Manufacturing
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 A systematic approach to identifying and eliminating waste (non-
value-added activities) through continuous improvement by flowing
the product or service at the pull of the customer.
Doing more and more with less and less…

17. Lean Manufacturing - Terms
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Value Adding
Process:
A process step that
transforms or shapes a
product or service which
is eventually sold to a
customer.
Non-Value Adding
Process (Waste):
Process steps that take
time, resources, or
space, but do not add
value to the product or
service.

18. 7 wastes in Lean Manufacturing
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Waiting
Transportation
Over-
Processing
InventoryMotion
Defects
Over-
Production
7
Wastes

19. Waste no: 1 - Waiting
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Examples
•Idle time in which no value
added activities take place
• Person wait time
• Machine wait time
• Material wait time
Characteristics
•Person waiting for a machine
•People watching machines run
•Machine or materials waiting
for a person
•Lack of concern for equipment
breakdowns or downtime
•Long setup times
•Unbalanced operations
•Inconsistent work methods

20. Waste no: 2 - Transportation
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Examples
•Any unnecessary material
movement that does not support
the lean manufacturing system
•Conveyors
•Forklifts
•Transfer Carts
•Movement between shops
Characteristics
•Multiple storage locations
•Multiple movement of material
•Poor facility layout
•Return of materials not used in
production

21. Waste no: 3 – Over-Processing
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Examples
•Effort which adds no value to a
product or service
• Work that can be combined
with other processes
• Enhancements that are
transparent to the customer
•Multiple Tests
•Parts Handling
•Inspections
Characteristics
•Process bottlenecks
•Lack of clear customer
expectations
•Lack of customer input
concerning requirements
•Redundant approvals
•Extra copies and excessive
information
•Inefficient policies and
procedures

22. Waste no: 4 – Inventory
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Examples
•Any unnecessary supplies or
materials that do not support the
„Just In Time Production
System‟
•Material on site (WIP)
•Strategic Buys
Characteristics
•Extra space on receiving docks
•Build up of material between
processes
•Long lead times for engineering
change
•Long Supply Channels

23. Waste no: 5 – Motion
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Examples
•Any movement of people which
does not add value to the
product
Characteristics
•Looking for tools and parts
•Excessive reaching or bending
•Material too far apart (walk
time)
•Poor plant layout

24. Waste no: 6 – Defects
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Examples
•Repair of a product or service to
fulfill customer requirements
•Warranty
•Rework
•Scrap
Characteristics
•Extra floor space, tools and
equipment
•Extra manpower to inspect,
rework and repair
•Additional inventory
•Questionable quality
•Lower profits due to scrap
•Incapable processes with
excessive variation
•Inadequate tools or equipment

25. Waste no: 7 – Over-Production
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Examples
•Producing more than needed
• „Work ahead‟
•Producing at a faster pace then
needed
•Stock
•Over build of capacity
•Unbalanced production
Characteristics
•Inventory stockpiles
•Extra or oversized equipment
•Unbalanced material flow and
confusion about priority
•Extra parts storage racks and
manpower
•Build ahead of demand
•Large lot sizes or batch
processing

26. 5S
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(Seiri) – Sort
Distinguish between what is necessary and
unnecessary items. Remove the unnecessary items
Seiton – Set in Order
Enforce a place for everything and everything in its
place
Seiso – Shine
Clean up the workplace and look for ways to keep it
clean
Seiketsu - Standardize Maintain and monitor adherence to the first 3‟S
Shitsuke – Sustain
Follow the rules to keep the workplace 5S-right
“Hold the gain.“
5S – a series of 5 words in Japanese language aimed at workplace organization

27. 5S
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 Five steps to the culture of keeping
the work place clean, organized,
systematic and safe
 A foundation for all improvements
and lean journey
 Every employee is engaged and
empowered.
 Reveal the wastes and their causes in
the process not seen by observation.
 To put it simply “Work Place
Organization”

28. End of Free Content
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 Please visit our website www.businessense.in to access the full content through an interactive E-
Learning course
 Our website also contains list of ready-to-use templates and report formats with Charts and pivot
tables.
 Templates and report formats are available for Purchase, Stores, Production, Quality, Maintenance and
HR functions
 These templates come in excel /word and can be downloaded and used right away
 At Business Sense, we help medium scale manufacturing units improve their operational efficiency
 Our app would help them in monitoring the important business updates every day and provide them
analytics and enable them better decision making
 We also work with our clients on consulting engagements focusing on improving their Operations
through Lean Manufacturing Implementation covering 5S, SMED, Kaizen and other tools
 We promise to double the productivity in less than 33 days of our effort
 You can subscribe to our bi-weekly newsletter here.
 Follow us: