5. Nature of Production
A process of creating goods and services
to satisfy human needs. A process of
producing, creating, or manufacturing
something. It is said that production
occurs when input changes to output.
6. Production
System
The production system of an organization is that part, which produces
products of an organization. It is that activity whereby resources, flowing
within a defined system, are combined and transformed in a controlled
manner to add value in accordance with the policies communicated by
management. A simplified production system is shown above . The
production system has the following characteristics :
● Production is an organized activity, so every
production system has an objective.
● The system transforms the various inputs to useful
outputs.
● It does not operate in isolation from the other
organization system.
● There exists a feedback about the activities, which
is essential to control and improve system
performance.
7. — E.L Brech
“Productions Management is the process
of effective planning and regulating the
operations of that section of an enterprise
which is responsible for the actual
transformation of materials into the
finished products.”
8. Scope of
Production
Management
1. Design of Product : If the top management
decides which product is to be developed ,
the design of the product is decided by the
production manager. Production design
deals with form and functions. The form
design deals with product’s shape and
appearance whereas the functional design
deals with its working and utility.
3. Production Planning and Control: Once
Production system is designed and
started/activated, the production manager
is concerned with the planning of
production. The establishment of
sequence of operations of each individual
item part or assembly or lays down the
schedule of its completion.
4. Selection of Location: Plant location should
be decided with respect to minimization of
production and distribution cost. The
location decision must include- cost of land,
rental value, transportation cost, labor cost,
cost of water and power. The factors can
be process units, process outputs, process
requirements, government policies,
availability of site, personal preference etc.
2. Design of Production system : Production
system is the framework within which the
conversion of inputs into output occurs.
There are three basic kinds of production
system: process production, job production
and intermittent production.
9. 5. Layout of Plant: The plant layout represents
an arrangement of machines and facilities.
An efficient layout is the one that allows
materials to move through the necessary
operations rapidly and in the most direct
way possible. It tries to shorten the longest
routes followed as well as maintain the
inflow of in-process items. The type of
layout depends mainly upon the type of
production system adopted by the
production department.
7. Research and Development: Research
means critical investigation in order to
acquire critical information which can be
applied to solve practical problems, thus,
know as applied research. Development
is done using this applied research. It
involves design and manufacture of new
products and then testing of these
products utility as per customer’s needs
and demands.
6. Selection of Plant and Equipment: The
choice of plant and equipment depends
upon: (a) what is and can be made
available? (b) What is cost wise possible,
meaning economically possible? The
quality output, life of machine and
adaptability of the facilities are also
important considerations.
11. “Operations Management is the business
function responsible for managing the
process of creation of goods and services.
It involves planning, organizing,
coordinating, and controling all the
resources needed to produce a company’s
goods and services.”
13. Continuous production is a type
of production system in which
materials being processed are
continuously in motion.
Continuous production, like mass
production, is a flow production
method.
Continuos
Production
Mass production is the
manufacturing of large
quantities of standardized
products, often using
assembly lines or automation
technology.
Mass
Production
Job shops are typically small
manufacturing systems that
handle job production, that is,
custom or semi-custom
manufacturing processes such
as small to medium-size
customer orders or batch jobs.
Job Shop
Production
Batch production is a method
whereby a group of identical
products are produced
simultaneously (rather than
one at a time).
Batch
Production
Classsification Of Production System
16. Meanin
g
A production process is the method of using
economic input or resources, like labor,
capital equipment or land, to provide goods
and services to consumers. The production
process typically covers how to efficiently and
productively manufacture products for sale to
reach customers quickly without sacrificing
the quality of the product. There are many
different types of production processes
businesses can follow, according to their
manufacture goals, production numbers and
technology tools or software systems.
19. Meanin
g
Manufacturing Operations is the holistic,
ongoing process of providing complete
visibility into manufacturing processes and
production performance; the purpose being
to locate, analyze and consolidate data on
inefficient areas of production and enact
action from a single source.
21. Meanin
g
Service operations consists of working
with professional service teams,
customer success teams, customer
support teams and customer experience
teams. Like most operations roles,
service operations aims to support and
amplify a team's capacity in addition to
helping them scale.
22. Process of Service Operations
Incident
Management
Through this process your team detects, logs, records, and resolves issues as quickly as
possible to avoid downtime and to minimize impacts on users and the business. Incident
management ensures that levels of service quality are upheld and maintained.
Event Management
Just as the name suggests it is about managing events throughout their life cycle, which
includes detecting events, monitoring a state of change, and sequencing and categorizing
events to determine the best course of action.
Access
Management
Access management involves granting rights to authorized users and preventing access
from non-users. This process also requires team members to maintain and oversee that
the policies surrounding security and information management are implemented and
executed correctly.
Problem
Management
The last service operations process manages all problems in the lifecycle and tries to
prevent recurring incidents. The main goal of problem management is to establish a stable
IT infrastructure and improve its applications and services.
24. What is Plant
Location ?
An ideal location is one where
the cost of the product is kept to
minimum, with a large market
share, the least risk and the
maximum social gain. It is the
place of maximum net
advantage or which gives lowest
unit cost of production and
distribution. For achieving this
objective, small-scale
entrepreneur can make use of
What an ideal
Location ?
25. Demographic Analysis
It involves study of population in
the area in terms of total
population (in no.), age
composition, per capita income,
educational level, occupational
structure etc.
Traffic Analysis
To have a rough idea about the number of
potential customers passing by the
proposed site during the working hours of
the shop, the traffic analysis aims at judging
the alternative sites in terms of pedestrian
and vehicular traffic passing a site.
Trade Area Analysis
It is an analysis of the
geographic area that provides
continued clientele to the firm.
He would also see the
feasibility of accessing the trade
area from alternative sites.
Site Economics
Alternative sites are evaluated in terms of
establishment costs and operational costs under this.
Costs of establishment is basically cost incurred for
permanent physical facilities but operational costs are
incurred for running business on day to day basis, they
are also called as running costs.
Location
Analysis
27. Meanin
g
Plant Layout means the arrangement of
equipment, material, etc facilities and
services of the plant within the selected work
area to achieve productivity as high as
possible. Plant layout starts with building
design and goes up to the movement of work
table and material handling system.
28. Types of Plant Layout
A combination layout
combines the
advantages of both
process layout and
product layout. These
days pure process and
product layouts are
rare. It is possible
where the item is made
in different types and
size.
Combinatio
n Layout
Fixed
Position
Layout
In Process, Layout
keep similar machines
& similar operations in
one place . In other
words, machines are
arranged according to
their function. This is
genrally employed for
industries engaged in
job order production
and non repetitive kind
of manufacturing
activities.
Process
Layout
Product Layout is also
known as Line layout.
Various operations on
raw materials are
performed in sequence
and machines are
placed accordingly the
production. This type of
layout is preferable for
continous production,
that is, involving a
continous flow of in
process materials
towards the finished
product stage.
Production
Layout
In other types of
layouts, the product
moves past the
stationary production
equipment, but in a
fixed position layout,
the product is kept
stationary, and
equipment moves
around it. It is
applicable in ship
building, aircraft,
manufacturer, etc.
30. Meanin
g
Materials management, or material
management, is an essential function in
construction, manufacturing and other critical
industries, where a disruption in material flow
or quality can result in a loss not only in
profits, but also in customer confidence. As
part of a successful supply chain strategy,
skillful material management plays a key role
in the success of any project where tangible
components are required.
31. Functions of Material Management
Materials Planning
Storage and store administration
Transportation & materials
handeling
Inventory Control
Procurement of Materials
Receiving & warehousing of materials