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Production and management


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Production and management

  1. 1. Management and Production
  2. 2. • 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 processes.
  3. 3. TYPES OF PROCESSES • Extractive • Analytic (one raw material – several finished products) • Synthetic (one finished product – several components) • Fabricating (machining)
  4. 4. 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?
  5. 5. CONTINUOUS / INTERMITTENT PROCESS • CONTINUOUS large scale operations repetitive operations no idle time e.g. steel and automobile • INTERMITTENT smaller operations different operations idle machine time
  6. 6. During Production • 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 production time. • Manage the supply chain.
  7. 7. TYPES OF PRODUCTION • JOB OR CUSTOM (small scale) • BATCH (medium) • MASS OR FLOW (large scale)
  8. 8. • JOB OR CUSTOM - single and customized product - greater skills and specialization required - exact specifications therefore, quality control important
  9. 9. • BATCH - diverse orders of fairly large quantities - intermittent process
  10. 10. • MASS OR FLOW - continuous process - standardized products - similar, repetitive sequence of operations - inventory risks - risk of fluctuating prices (stock)
  11. 11. TAYLOR’S PRINCIPLES OF SCIENTIFIC MANAGMENT 1. Develop each element of a man’s work 2. Train, teach and develop the worker 3. Cooperate to ensure compliance with the principles 4. Equal division of work and responsibility between the worker and management
  12. 12. Management
  13. 13. 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 minimum.
  14. 14. • 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 fair wages.
  15. 15. PRODUCTION CONTROL Production Planning and Control dept. integrates and coordinates the use of manpower, machines and materials for efficient output of goods to meet its sales requirements.
  16. 16. FUNCTIONS OF PRODUCTION DEPT. • Planning and Issuing Orders • Routing • Scheduling (Master and Production) • Despatching (performance) • Follow up and control
  17. 17. QUALITY CONTROL AND INSPECTION Quality of a product is a combination of attributes that distinguish it from other similar products. THREE PHASES: 1. Establishment of standards 2. Achievement of standards 3. Conformance to standards
  18. 18. 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
  19. 19. FUNCTIONS OF QUALITY CONTROL Inspection dept. should have authority. 1. Incentives for operations 2. Reworking of defective product 3. Formation of committees to review
  20. 20. METHODS OF INSPECTION • Centralized • Floor or Patrolling - 100% inspection - Sample inspection
  22. 22. FACTORS FOR CHOICE OF LOCATION • MANUFACTURING CONCERN • Raw materials • Labor • Power and fuel • Water • Transportation • Climate • Markets • Location of competitors
  23. 23. • Chance • Population and style • Room for expansion • Governmental regulations
  24. 24. • RURAL SITE • Advantages: • Cheap land • Room for expansion • Low taxes • Cheap labor • Disadvantages: • URBAN SITE • SUBURBAN SITE