Here are the key elements of cost: Direct Materials: Cost of raw materials that are directly used in manufacturing the product. Direct Labour: Wages paid to workers who are directly involved in production. Direct Expenses: Other expenses directly attributable to production such as consumables, utilities etc. Factory Overhead: Indirect costs of running the factory like rent, depreciation, maintenance etc. Selling & Distribution Overhead: Expenses related to selling, delivery and distribution of products. Administrative Overhead: Expenses related to managerial activities like salaries of managers, office expenses etc. Prime Cost = Direct Materials + Direct Labour Works Cost = Prime Cost + Direct Ex

1. (Dr. M K Manik)

2. Production management, also called
operations management, planning and control of industrial
processes to ensure that they move smoothly at the required
level.
Techniques of production management are employed in
service as well as in manufacturing industries.
What is Production management

3. Key Differences Between Manufacturing and Production
 The following are the major differences between manufacturing
and production:
 When the raw material is used as input to produce goods with the
use of machinery is known as a Manufacturing. The process of
transforming resources into finished products is known as
Production.
 Manufacturing consists of the generation of all those goods that
are suitable for use or it can be sold out. Conversely, production
involves the creation of the utility.
 In manufacturing, the use of machinery is a must whereas
production can be done with or without the use of machinery.
 All types of manufacturing activities are used in production, but
production may not necessarily be known as manufacturing.
 In manufacturing, the output generated will be tangible in nature,
i.e. goods only, but in the case of production it produces both
tangible and intangible outputs, i.e. goods as well as services.
 Men-machine setup should be there for manufacturing of goods,
which is not in the case of production, the only man is sufficient
for producing output.

4. Basis for
comparison
Production Productivity
Meaning Meaning Production is a
function of an
organization which is
associated with the
conversion of range of
inputs into desired output
Productivity is a
measure of how
efficiently resources are
combined and utilized in
the firm, for achieving
the desired outcome.
What it is Process Measure
Represent No. Of Unit Actually
produce
Ratio of Output to Input
Expression Absolute term Relative term
Determination Value of Output Efficiency of value of
Production
COMPARISON of PRODUCTION and PRODUCTIVITY

5. Types of Production
Job-Shop Production: A production process, in which few
products are created according to the demand of the
customer, in the stipulated time and cost. In job-shop
production, product volume is low, and variety is high.
Batch Production: Batch production is one wherein
product passes through various stages over a series of
functional departments, and a number of batches are
produced.
Mass Production: It is a manufacturing technique in which
discrete parts are produced with the help of continuous
process.
Continuous Production: The process of production in
which the production facilities are sequenced as per the
production operations chronologically.

7. 2. Generally Calculation of Banding moment to be done

10. Batch production processes as shown
Batch production is a technique used in
manufacturing, in which the object is created stage
by stage over a series of workstations, and
different batches of products are made.

11. Advantages of Batch production
The advantages of batch production
its cheaper to produce a whole batch instead of single,
machines can be used more effectively.
 It's lower cost,
Fewer workers because going to use machines.
Batch Production are applied for:
Baked goods.
Clothing.
Computer chips.
Computer software.
Die- or mold-making.
Electrical goods.
Flat-pack furniture.
Jet engine production

12. Assembly line production
An assembly line is a manufacturing in which parts
(usually interchangeable parts) are added as the semi-
finished assembly moves from workstation.
Moving the parts to the assembly work and moving the
semi-finished assembly from work station to work station.
A finished product can be assembled faster and with less
labor than by having workers carry parts to a stationary
piece for assembly.
Assembly lines are common methods of assembling
complex items such as
 automobiles and other transportation equipment,
household appliances and electronic goods

13. Assembly line production as shown

14. Continuous production Process
Continuous production is a flow production method used to
manufacture, produce, or process materials without interruption.
Advantages of flow production.
Flow production is capital intensive. This means it uses a
high proportion of machinery in relation to workers, as is
the case on an assembly line.
The advantage of this is that a high number of products
can roll off assembly lines at very low cost.
Examples are
 petrochemical,
cement,
steel,
sugar and
 fertilizer industries

15. Continuous production process

17. Product Life Cycle
Product Life Cycle. A new product progresses through a
sequence of stages from
Introduction
to growth,
To maturity,
Decline.
This sequence is known as the product life cycle and is
associated with changes in the marketing situation, thus
impacting the marketing strategy .
A Product life cycle is divided into four stages –
Introduction (a seed is planted),
Growth (root takes place and leaves come out),
Maturity (adulthood takes place),
 And Decline (plant begins to shrink and finally die).
“Life of a product is less than a year in today's times.

18. What do you mean by Selling of
goods/Services
Selling of goods/Services is an exchange of goods or
services for money. Selling is making an agreement
with the customer.
The 7 Steps of the Sales Process
1. Product Knowledge. This step is fairly straight
forward,
2. Prospecting. just as the word implies, is about
searching for new customers.
3. The Approach.
4. The Needs Assessment.
5. The Presentation.
6. The Close.
7. Follow-up.

19. What do you do in sales?
Sales representatives sell retail products, goods and
services to customers
 Sales representatives work with customers to find what
they want, create solutions and ensure a fair sales process
Sales representatives will work to find new sales leads,
through business directories, client referrals, etc
How to Promote sales
Advertising and promoting sales agent
Demonstrator and product promotion
Insurance sales agent
Real estate broker and sales agent
Retail sales worker
Sales engineer
Securities, commodities and financial services sales agent

20. Sales forecasting
Sales forecasting is the process of estimating future sales
Accurate sales forecasts help companies to make
business decisions
They calculate short-term and long-term goal of company
performance
Companies can base their forecasts on past sales data
 Industry can do wide comparisons, and economic trends
Methods of Sales forecasting
 Every manufacturer makes an estimation of the sales for
future
 It gives focus to the activities of a business enterprise
The absence of sales forecast, a business has to work at
random.

22. Statistical Sales fore cast

23. What is Economic Indicator?
An economic indicator is a piece of economic data,
Usually of macroeconomic scale, that is used by
analysts to interpret current or future investment
possibilities
It is used to judge the overall health of an economy.
Factors on which Economic Indicator depends?
GDP ( Gross domestic product )
PMI (Purchasing Manager Index)
CPI ( Consumer Pricing index)
GDP represents the monetary value of all goods and services produced within a
nation's geographic borders over a specified period of time

24. Purchasing Managers
 Index The Purchasing Managers' Index (PMI) is
an indicator of economic health for manufacturing and
service sectors
The purpose of the PMI is to provide information about
current business conditions to company decision makers,
analysts and purchasing managers.
Consumer price index
A measure of changes in the purchasing-power of a
currency and the rate of inflation.
The consumer price index expresses the current prices
of a basket of goods and services in terms of the prices
during the same period in a previous year,
To show effect of inflation on purchasing power.

25. These Will Be The Top 15 Richest
Countries In 2050
2 China - $25.33 trillion. The richest
country in the world in 2050 is
predicted to be China
3 United States - $22.27 trillion
4 India - $8.17 trillion
5 Japan - $6.43 trillion
6 Germany - $3.71 trillion
7 United Kingdom - $3.58 trillion
8 Brazil - $2.96 trillion
9 Mexico - $2.81 trillion
Below are the top 10
most developed
states in India 2018.
Tamil Nadu.
Kerala.
Maharashtra.
Karnataka.
Andhra Pradesh.
Rajasthan.
Uttar Pradesh.
Haryana.

26. Which is the poor state in India
Chhattisgarh,
 Manipur,
 Odisha
, Madhya Pradesh,
 Jharkhand,
Bihar
And Assam
figure among the poorest states where over 40 per cent of people are below poverty
line, according to the C Rangarajan panel
What do you mean by GDP
A. The GDP or gross domestic product of a country provides a
measure of the monetary value of the goods and services that
country produces in a specific year.
B. This is an important statistic that indicates whether an economy
is growing or contracting.

28. Delphi Method
It the one of the longtime fore casting Method
In this method forecast is Qualitative
1. Project coordinator, Project Manager (The man who is
neutral)
2. Selects the experts
3. Define the Problem
4. 1st round if Questions
5. 2nd round questions
6. 3rd round questions
7. Repeat until consensus(decision is not made)
 Market Research (Used for short/long range forecast)
 Sales force forecast(Used for short range forecast
 Judgmental Technique(Opinion from customer,
Retailer, Wholesalers)

29. Forecast Topic: Moving Average Methods
One of the easiest, most common type of forecasting techniques is
that of the moving average
Moving average methods come in handy if several consecutive
periods of data is available
In this forecasting method next period’s sales are only predicted
Often based on the past few months of sales the prediction is dine
for coming month’s sales
 However, moving average methods can have serious forecasting
errors if applied carelessly.

31. Problem-1 Demand for an item is observed for 15 months and data are given below
Calculate i) 3 months and ii) 4 months moving average. and what is the forecast for the month
of 16. for each case.

34. Limitations of Moving Average Methods
Moving averages are considered a “smoothing” forecast
technique
 Because you’re taking an average over time
You are softening (or smoothing out) the effects of
irregular occurrences within the data
 As a result, the effects of seasonality, business cycles,
and other random events can dramatically increase
forecast error
Take a look at a full year’s worth of data, and compare a
3-period moving average and a 5-period moving average:

35. Month Actual 3-Mo. Forecast Deviation
Absolute
Deviation
January 135 127 (8) 8
February 134 135 1 1
March 125 128 3 3
Rectification on moving average Method

36. Moving Averages: Recap
When using moving averages for forecasting, remember:
Moving averages can be simple or weighted
The number of periods you use for your average, and any
weights you assign to each are strictly arbitrary
Moving averages smooth out irregular patterns in time
series data; the larger the number of periods used for each
data point, the greater the smoothing effect
Because of smoothing, forecasting next month’s sales
based on the most recent few month’s sales can result in
large deviations because of seasonality, cyclical, and
irregular patterns in the data
The smoothing capabilities of a moving average method
can be useful in decomposing a time series for more
advanced forecasting met

37. Thank youTo
all

38. A list of 7 important factors to be aware of when
designing a product.
AESTHETICS.
ERGONOMICS.
MATERIALS.
MANUFACTURE.
MODULARITY. ...
SUSTAINABILITY.
PROTECTION.
PACKAGING & ASSEMBLY.

39. The following chart shows the various elements of cost and
how they are classified.
Direct or Indirect Materials. The materials directly contributed to a
product and those easily identifiable in the finished product are called
direct materials.
Direct Labor.
Overhead
The four main components of costs are:
(a) Prime Cost,
(b) Works Cost,
 (c) Office Cost and
 (d) Total Cost. It consists of costs of direct material, direct labour
and direct expense specifically attributable to the job. This is also
known as flat, direct or basic cost.

40. Cost Analysis Chart

41. The total cost of a product includes the following five
elements:
Direct Material: Direct materials refers to the cost of the
materials which becomes a major part of the finished
product.
Direct Labour:
Direct Expenses:
Factory Overhead:
Selling and Distribution and Administrative Overheads:

42. Cost Analysis Rough Method

46. Break-even point
In simple words, the break-even point can be defined as a
point where total costs (expenses) and total sales (revenue)
are equal.

47. The break-even point (BEP) in economics, business—
and specifically cost accounting—is the point at
which total cost and total revenue are equal,

48. Incremental cost
An incremental cost is the increase in total
cost resulting from an increase in production or
other activity
For instance, if a company's total costs increase
from $320,000 to $360,000 as the result of increasing
its machine hours from 8,000 to 10,000
The incremental cost of the 2,000 machine hours is
$40,000.

49. Q. What is MAKE-OR-BUY DECISIONS? The make-or-
buy decision is the act of making a strategic choice between
producing an item internally (in-house)
Or buying it externally (from an outside supplier).
The buy side of the decision also is referred to as
outsourcing.
What are the factors that influence buying decisions and
what is their impact
When it comes to the psychological factors there are 4
important things affecting the consumer buying behavior
Perception(awarness),
Motivation,
Learning,
Beliefs and attitudes. Social factors include
reference groups, family, and social status. These factors too
affect the buying behaviour of the consumer.

50. Q.(2015) What are the elements of Cost?
Q. Give a comparison in tabular
form among the different
types of production system on
the following points
• Layout consideration
• Machine selection
• Flexibility
• Man power requirements
Production planning and
control
• Material handling Fields of
application
Q. With a graphical representation
explain the various stages of product
life cycle
• What is Break-Even Analysis? For a
particular product the following
information is given
• Selling price per unit Rs: 10
• Variable cost per unit Rs: 6
• Fixed Cost : Rs 1,00,000
• Deu to inflation variable cost
increased by 10% while fixed cost
increase by 5% If the BE quantity is
remain constant by what percentage
should the sale price to be raised

51. Based on planning and control
Based on Manpower
Large
Medium
Low

53. What is the roll of production Manager in production
Management?

54. Q.(Write the organization Production of
Management?

55. Q. Write the concept of product design and development
Thought this definition tends to over simplify, product design is actually
a broad concept which encompasses
A systematic generation and development of ideas that eventually
leads
To the creation of new products.
 Design experts work on concepts and ideas
 Eventually turning them into tangible products and inventions.
Five phases of new product or service development
Idea generation. You don't have to solely rely on your own creativity
for ideas for new products or services
Research and development. R&D has two components
Testing. Once you've developed a prototype of the product or service,
it's time to test it with customers
Analysis
Rollout

56. Q.(2015)What are the elements of Cost?
Q. Give a comparison in tabular
form among the different
types of production system on
the following points
• Layout consideration
• Machine selection
• Flexibility
• Man power requirements
Production planning and
control
• Material handling Fields of
application
Q. With a graphical representation
explain the various stages of product
life cycle
• What is Break-Even Analysis? For a
particular product the following
information is given
• Selling price per unit Rs: 10
• Variable cost per unit Rs: 6
• Fixed Cost : Rs 1,00,000
• Deu to inflation variable cost
increased by 10% while fixed cost
increase by 5% If the BE quantity is
remain constant by what percentage
should the sale price to be raised