Complete understanding of production process in an industry.

1. PRODUCTION
Presented By
A. Wadut Al Mamun

2. Tangible
Intangible
PRODUCT

3. ELEMENTS OF PRODUCTION
• (1) Land (including all natural resources)
• (2) Labor (including all human resources)
• (3) Capital (including all man-made resources)
• (4) Enterprise (which brings all the previous resources
together for production).

4. MARKET ENVIRONMENT
MICRO
ENVIRONMENT
• Major internal factors in an
organisation that affect its
performance is known as
micro-environment.
• Example: Competitor,
customer, supplier and
general public.
MACRO
ENVIRONMENT
• Major external factors in an
organisation that affect its
performance is known as
macro-environment.
• Example: Political,
economical, demographic
and social conditions.

5. 1.PRACTICES
A standard set of process or rule or procedure or method used in a
particular field or profession
2. SYSTEMATIC
Any process marked by methodical plan or procedure
and repeatability
3.PROCESS
 A sequence of procedure that consumes resources to convert input
into out put.
 These O/P serve as I/P for the next stage until required goal is
achieved

6. PROCEDURE
 A fixed step by step action is known as procedure

7. 1. STAGE
A subsection of a project that are performed together and scheduled
output is expected.
2.RESOURCE
A economic or productive factor that requires to accomplish an activity.
3.OUTPUT
An amount of work, energy or goods, produced by a machine or man or
company in a given time

8. INVESTMENT
FIXED INCOME
BONDS
FIXED DEPOSITS
PREFERENCE SHARES
 VARIABLE INCOME
OWNER’S EQUITY
PROPERTY OWNERSHIP

9. GOAL
• An observable and
measurable end
result having one or
more objectives to be
achieved within a more or
less fixed timeframe.
END RESULT
• A final outcome of
a process. The end result of
an investment basically amo
unts to how
much money was made or
lost as a direct result of
deciding on that
particular course of action.

10. SERVICES
• Services are mostly intangible.
• Eg: consultancy, education, insurance, expertise, medical treatment,
or transportation
COMPETITOR
Any person or entity which is a rival against another
Competition also requires companies to become more efficient
in order to reduce costs

11. SIMPLE PRODUCTION CHART

12. Production System
• Mass Production approach by Ford
Automobile
Makes Outputs available in Large Quantities at
Lower Unit Costs than Individually- Crafted Items
• Lean Production system by Toyota
Automobile
Make output with a continuous and zero defect
process by utilizing optimal resources in time

13. Henry Ford’s Mass Production System
 In 1910 Henry Ford laid the foundation of first highly organized
assembly line system of automobile manufacturing.
 He organized all the elements of a manufacturing system-- people,
machines, tooling, and products-- and arranged them in a continuous
system called conveyer system for manufacturing the Model-T
automobile.
 Ford was so incredibly successful he quickly became one of the
world's richest men and put the world on wheels.
 Ford Motor Company produced “A-Bomber an Hour” during WWII
for USAF using the same concept.

14. Mass Production
MODEL “T” – Machine that Changed the
World
 Initially, took 14 hours to Assemble Model T
- Mass Production reduced Time to 1 Hour
and 33 Minutes
 Model T’s Price dropped from $1,000 in
1908 to $360 in 1916
 1914: Ford produced 308,162 cars, more than all
299 other auto manufacturers combined
 1927: Automobile Produced every 24 seconds

15. Toyota lean production
 1956 – Taiichi Ohno went to US to study Ford’s
Manufacturing Facilities
 Found Mass Production Principles not Applicable:
 Scale of Japanese Markets
 Desire for Product Variety
 Unable to Afford Resources and Inventories
Toyoda

16. Toyota Lean Production system
• Japanese economy was in shambles and Toyota could not
afford Mass Production of vehicles due to smaller market
size.
• Toyota begin to design a whole new concept of Production
System which is now also known as Just-in-Time system.
• Taichii Ohno and Shigeo Shingo, are known as the brain
behind Toyota Production System or Lean Production
System or Just-in-Time System approach

17. Mass Production Vs Lean Production
*Mass production is producing goods in
large quantities at low cost per unit.
*This system is also known as Push System
or Just-in-Case System.
*Mass production requires mass
consumption.
*With precision equipment, large numbers
of identical parts could be produced at low
cost and with a small work force.
• Lean Production producing goods
as per requirement
• This system is also known as Pull
system or Just In Time
• Lean Production required lean
consumption zero waste
• Meet the demand with optimal
utilization of recourses and zero
waste

18. RAMKUMAR WADUT