Production Process & Operation Management, Factors Effects on Production Process

1. BANGLADESH ARMY INTERNATIONAL UNIVERSITY of
SCIENCE and TECHNOLOGY
Cumilla Cantonment, Cumilla.
Department of Business Administration
Level
Course Code: OMT 3601
Course Title : Operation and Supply Chain Management
Rebaka Sultana.
Lecturer of Management
DBA, BAIUS
Term Paper Topic: Production Process &
Management
Submitted to;
Submission Date:
BANGLADESH ARMY INTERNATIONAL UNIVERSITY of
SCIENCE and TECHNOLOGY
Cumilla Cantonment, Cumilla.
Department of Business Administration
Level-3 Term-2
Course Code: OMT 3601
Course Title : Operation and Supply Chain Management
Mustak Ahammad
ID: 4104028
Section: A
Term Paper Topic: Production Process & Operation
Management, Factors Affects on Production Process.
Submitted
Submission Date: 22-01-2020
1
BANGLADESH ARMY INTERNATIONAL UNIVERSITY of
Course Title : Operation and Supply Chain Management
Mustak Ahammad
ID: 4104028
Affects on Production Process.
Submitted by:

2. 2
Abstract:
This paper is to clarify the meanings of different terms related to production and operation
process factors influence the level. Here I wanted to find out some data which are related
with production process like technology, financial, personal, utility, management, and
location. I wanted to find out how these factors affect on production process to increase
production level. This paper shows the qualitative analysis process of production and
operation management.
Literature Review:
One cannot demarcate the beginning and end point of Production and Operation Management
in an establishment. The reason is that it is interrelated with many other functional areas of
business viz. marketing, finance, industrial relations policies etc .Alternately, Production and
Operation Management is not independent of marketing, financial, and personnel
management due to which it is difficult to formulate some single appropriate definition of
Production and Operation Management. The following definitions try to explain main
characteristics of Production and Operation Management:
• In the words of Mr. E.L. Brech: “Production and Operation 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 finished products”. This definition
limits the scope of operation and production management to those activities of an enterprise
which is associated with the transformation process of inputs into outputs. The definition
does not include the human factors involved in production process. It lays stress on
materialistic features only.
• Production and Operation Management deals with decision making related to production
processes, so that the resulting goods and services are produced in accordance with the
quantitative specifications and demand schedule with minimum cost. According to this
definition design and control of the production system are two main functions of production
and operation management.
• Production and Operation Management is a set of general principles for production
economies, facility design, job design, schedule design, quality control, inventory control
work study and cost band budgeting control. This definition explains the main areas of an
enterprise where the principles of production and operation management can be applied. This
definition clearly points out that the production and operation management is not a set of
techniques,
It is evident from the above definitions that production planning and its control are the main
characteristics of production and operation management. In the case of poor planning and
control of production activities the organization may not be not be able to attain its objectives
and may result in loss of customer’s’ confidence and retardation in the progress of the
establishment.

3. 3
Operation Function:
The operation function of an organization is the part that produces the organization’s
products. The product may be physical goods or services. This function performs several
activities to ‘transform’ a set of inputs into a useful output using a conversion process. The
conversion process is the process of changing inputs of labor, materials, capital and
management into outputs of goods and services.
Production Process and types:
Production is a process of combining various material inputs and immaterial inputs (plans,
know-how) in order to make something for consumption (output). It is the act of creating an
output, a good or service which has value and contributes to the utility of individuals.
Mass production is the manufacture of large quantities of standardized products often using
assembly lines or automation technology. Mass production refers to the efficient production
of a large number of similar products. Mechanization is used to achieve high volume, detailed
organization of material flow, careful control of quality standards, and division of labor.
Craft production is the process of manufacturing by hand with or without the aid of tools. The
term Craft production refers to a manufacturing technique applied in the hobbies of
handicraft but was also the common method of manufacture in the pre-industrialized world,
such as in the production of pottery.
Lean production is an approach to management that focuses on cutting out waste, whilst
ensuring quality. This approach can be applied to all aspects of a business – from design,
through production to distribution. Lean production aims to cut costs by making the business
more efficient and responsive to market needs.
The eight main factors that affect productivity are:
Technical factors,
Production factors,
Organizational factor,
Personnel factors,
Finance factors,
Management factors,
Government factors, and
Location factors.
Now let's discuss briefly above listed important factors that affect productivity.

4. 4
Technical factors: Productivity largely depends on technology. Technical factors are the most
important ones. These include proper location, layout and size of the plant and machinery,
correct design of machines and equipment, research and development, automation and
computerization, etc. If the organization uses the latest technology, then its productiveness
will be high.
Production factors: Productivity is related to the production-factors. The production of all
departments should be properly planned, coordinated and controlled. The right quality of
raw-materials should be used for production. The production process should be simplified
and standardized. If everything is well it will increase the productiveness.
Organizational factor: Productivity is directly proportional to the organizational factors. A
simple type of organization should be used. Authority and Responsibility of every individual
and department should be defined properly. The line and staff relationships should also be
clearly defined. So, conflicts between line and staff should be avoided. There should be a
division of labor and specialization as far as possible. This will increase organization's
productiveness.
Personnel factors: Productivity of organization is directly related to personnel factors. The
right individual should be selected for suitable posts. After selection, they should be given
proper training and development. They should be given better working conditions and work-
environment. They should be properly motivated; financially, non-financially and with
positive incentives. Incentive wage policies should be introduced. Job security should also be
given. Opinion or suggestions of workers should be given importance. There should be
proper transfer, promotion and other personnel policies. All this will increase the
productiveness of the organization.
Finance factors: Productivity relies on the finance factors. Finance is the life-blood of modem
business. There should be a better control over both fixed capital and working capital. There
should be proper Financial Planning. Capital expenditure should be properly controlled. Both
over and under utilization of capital should be avoided. The management should see that they
get proper returns on the capital which is invested in the business. If the finance is managed
properly the productiveness of the organization will increase.
Management factors: Productivity of organization rests on the management factors. The
management of organization should be scientific, professional, future-oriented, sincere and
competent. Managers should possess imagination, judgement skills and willingness to take
risks. They should make optimum use of the available resources to get maximum output at
the lowest cost. They should use the recent techniques of production. They should develop
better relations with employees and trade unions. They should encourage the employees to
give suggestions. They should provide a good working environment, and should motivate
employees to increase their output. Efficient management is the most significant factor for
increasing productiveness and decreasing cost.

5. 5
Government factors: Productivity depends on government factors. The management should
have a proper knowledge about the government rules and regulations. They should also
maintain good relations with the government.
Location factors: Productivity also depends on location factors such as Law and order
situation, infrastructure facilities, nearness to market, nearness to sources of raw-materials,
skilled workforce, etc.
Methodology:
I used primary and secondary data methods were used to collect the requisite information.
My surveys aimed to determine what factors are influencing the level of production level. I
used some question to finds out the information for craft production which are primary data
and I used secondary data for lean and mass production process. I used to find out which
types of production process control those factors to change their production level. I also used
secondary data to find out some information. I used internet, and other term paper to find out
the factors which are related with production level.
Data Analysis:
Using Technology
We know that in craft production its production process is manufacturing by hand and very
much poor uses of technology, which are traditional technology. That’s why the using of
technology is not work in craft production to delivered high productivity level. The mass
production is mostly agreed with it, because it is a continuous production process, where use
technology to improve the level of productivity. And the lean production is also thinking that
the level of production will be increase by using latest technology.
0
1
2
3
4
5
6
7
8
Craft Production Mass Production Lean Production
Agree
Strongly agree
Disagree
Strongly disagree
neutral

6. 6
Improving Employee Motivation
In craft production process is focus on employee skill, because it provide high quality
product, that’s why the motivation of the employee is more important to improve
productivity. And the employee is motive by nonfinancial support. On the other hand the
mass production and lean production is totally different from craft. Where the employee skill
is low or training the employee, where the financial motivation is work on improving the
production level.
Quality of raw material is depend on product price
In craft production they produce high quality of product and the price is also high. So they
believe that the quality of row material is depending on product price. On the other hand the
mass and lean production is believed that it does not matter the quality of row material if you
cannot control the cost.
0
1
2
3
4
5
6
7
8
9
Craft production Mass Production Lean Production
Financial
Nonfinancial
0
1
2
3
4
5
6
Craft Production Mass Production Lean Production
Agree
strongly agree
Disagree
strongly disagree
Neutral

7. 7
Utilization Capital
Using of power, gas, water and other utility in production level. There is low level of utility
capital use in craft production. On the other hand in mass and lean production is depending
on utilization capital on production level.
Main point of production
Here we can see that in craft production they focus on customization and quality of the
product. Mass focus on cost reduction and customization, and mass focus on cost reduction
most.
0
2
4
6
8
10
Craft Production Mass Production Lean Production
Yes
No
0
2
4
6
8
10
12
14
Craft Production Mass Production Lean Production
Quality management
Cost reduction
Customization

8. 8
Opportunity to employee to give any suggestion to the organization
In this time we can see that craft and mass production process support with the employee to
give any suggestion to their organization, because they believe that, it will increase the
production better. But lean production has less support on this, because of their large number
of production demand.
Inventory management
Craft production is on order basis, that’s why they only manage their inventory of 1 week.
Other 2 production lean and mass produce large amount of product that’s why they have half
and 1 year inventory management system.
0
1
2
3
4
5
6
Craft Production Mass Production Lean Production
Agree
strongly agree
Disagree
strongly disagree
Neutral
0
2
4
6
8
10
12
14
Craft Production Mass Production Lean Production
For 1 week
For 1 month
Half year
1 year

9. 9
Justify employee work
In here we can see that craft production justify their employee by experience and knowledge
about the work. And lean and mass justify their worker by working activity and selected level
wise.
Conclusion:
From the study I find out that, there are various factors affect in production process. I find
out that in craft production process is not affect by latest technology; because of craft
production they used traditional technology. That’s why they did not support to increase
production level by using latest technology. But mass production and lean production is
believe that latest technology will increase the level of production, because they used to
continues production. The utility capital is not affect on craft production , on the other hand
mass and lean is effect by it because their using of power, gas, electronics, water, and others
manufacturing process. Craft production focus on individual customer satisfaction, that’s
why they use nonfinancial motivation factors to increase productivity. But lean and mass
used financial motivational factors to increase productivity.
Reference:
https://kalyan-city.blogspot.com/2013/03/factors-that-affect-productivity.html
https://en.wikipedia.org/wiki/Lean_manufacturing
https://en.wikipedia.org/wiki/Mass_production
https://en.wikipedia.org/wiki/Craft_production
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.researchgate.net/pro
file/Raghed_Esmaeel5/post/What_is_the_difference_between_mass_and_lean_manufacturin
g/attachment/59d623ef79197b80779823fa/AS%253A309851811450890%254014508858367
0
2
4
6
8
10
12
14
Craft Production Mass Production Lean Production
Experience
Working activity
Knologe about the work
Selected level wise

10. 10
61/download/mass%2Bproduction.pdf&ved=2ahUKEwiy9MWsk-
XlAhWB63MBHbe2CwwQFjABegQICxAG&usg=AOvVaw04xsSypqwyaSjxlg8OCWl5
https://www.machinemetrics.com/blog/8-wastes-of-lean-manufacturing
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.slideshare.net/mobil
e/smichelot/lean-production-vs-mass-production&ved=2ahUKEwiy9MWsk-
XlAhWB63MBHbe2CwwQFjAMegQIARAB&usg=AOvVaw1qq1abMJuoqBo8H0KwFh2s
The end