What is Production management?
Production management is the process of
effectively planning and regulating the
operations of that part of an enterprise which
is responsible for the actual transformation of
materials into finished products.
5 P`s of Production Management
When this five element integrated a
successful production management takes
OBJECTIVE OF PRODUCTION
1. RIGHT QUALITY.
2. RIGHT QUANTITY.
3. PREDETERMINED TIME.
4. PRE-ESTABLISHED COST.
Other objectives are :
1. Machinery and Equipment.
4. Supporting Service.
SCOPE & ACTIVITIES OF PM
There are two types of scope & activities of PM :
1. Strategic level.
(a) Design & development of new product.
(b) Process design & Planning
(c) Facilities location & layout planning
(d) Design of material handling
(e) Capacity planning
2. Operational level.
(a) Production Planning
(b) Production Planning
(c) Inventory Control
(d) Product maintenance & replacement
(e) Cost Control & Cost Reduction
PRODUCTION PLANNING & CONTROL
PPC is the powerful tool available to the
mgmt to achieve the stated objective.
Production planning starts with the analysis of
data like demand & delivery schedule etc &
the basis of information available and
resources like machine, material & men.
So, PPC is the process of directing &
coordinating of firms resources towards
attaining prefixed goal.
TYPES OF PRODUCTION
1. BATCH PRODUCTION
2. MASS & FLOW PRODUCTION
3. PROCESS PRODUCTION
4. PROJECT PRODUCTION
5. JOBBING PRODUCTION
Batch production is the manufacturing of
limited number of product produced at regular
intervals & stocked in warehouse as finished
Eg. Chemical , paint & motor vehicles etc.
CHARACTARISTIC OF BATCH
1. Short Run.
2. Skilled labours in specific trades
3. Limited span of control
4. General purpose machine and process type layout
5. Manual material handling
6. Manufacturing cycle time affected due to queues
7. Large WIP
8. Flexible production schedule
9. Need to have PPC.
Jobbing production is characterized by the
manufacture of one or few number of a single
product designed and manufactured strictly to
customer’s specifications within the given
period and within the price fixed prior to the
Eg: general repair shop, tailoring shops.
CHARACTARITIC OF JOBBING PRODUCTION
1. Small production runs.
2. Discontinuous flow of materials.
3. Not proportionate manufacture cycle time.
4. Highly skilled labour.
5. Highly competent knowledgeable supervision.
6. Large WIP.
7. Limited function of PPC.
Project production is characterized by
complex sets of activities that must be
performed in a particular order within the
Eg: construction of Roads, Buildings etc.
CHARACTARITIC OF PROJECT
1. Definite beginning & definite end.
2. Non uniform requirement of resources.
3. Involvement of different agencies.
4. Fixed position layout.
5. High cost overrun.
6. Scheduling & control.
MASS & FLOW PRODUCTION
Mass as well as flow production are characterized by
the manufacturer of several number of a std product
and stocked in the warehouses as finished goods
awaiting sales. The goods under mass production are
manufactured either at a single operation or a series
of operation on one machine.
Eg: Assembly shop of automobiles, radios, electric
CHARACTARITIC OF MASS & FLOW
1. Continuous flow of material.
2. Special purpose m/c and product type layout.
3. Mechanized material handling.
4. Low skilled labour.
5. Short manufacturing cycle time.
6. Easy supervision.
7. Limited WIP.
Process production is characterized by the
manufacture of single product produced and
stocked in the warehouses awaiting sales.
Eg: Sugar, Steel, Paper, Cement plants.
CHARACTARITIC OF PROCESS
1. Special purpose m/c with built in control.
2. Highly mechanized material building.
3. Virtually zero manufacturing time.
4. Low skilled labor.
5. Highly qualified supervisors.
6. Negligible WIP.
7. Limited PPC.
WHAT IS PRODUCTIVITY ?
Productivity is the quantitative relation
between what we produce and what we use
as a source of produce them. So, Productivity
is the arithmetic ratio of output to the amount
PRODUCTIVITY = Output / Input.
Productivity refers to the efficiency of the
1. PARTIAL PRODUCTIVITY MEASURE (PPM)
PARTIAL PRODUCTIVITY= Total output / individual input.
(a) Labor Productivity=Total o/p / Labor input
(b) Capital Productivity = Total o/p / Material input
(c) Material Productivity = Total o/p / Capital input
(d) Energy Productivity = Total o/p / Energy input.
2. TOTAL PRODUCTIVITY MEASURE (TPM)
= Total tangible o/p / Total tangible i/p
Tangible o/p= Value of FG & Partial units produced, dividend
from securities, interest, other incomes
Tangible i/p = Value of ( human , material, capital, other inputs)