The document provides an overview of production management for manufacturing organizations. It discusses key aspects of production including the organization structure, production planning process, responsibilities of production engineers, basic production flow, and shop floor management techniques like lean manufacturing. The goal is to equip students and professionals with fundamentals of production management not typically offered in academic programs.

1. The Essentials - Production
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2. Overview
 ‘The Essentials’ series from Business Sense is an initiative to empower the students(freshers) and
professionals in performing more efficiently and effectively in the organization
 This document is a part of the “Certified Manufacturing Professional” course offered by Business Sense
 This course is aimed at bridging the gap between the institutions and the industry by providing the
fundamentals of manufacturing management which are not offered by any of our
institutions/curriculum
 This course would immensely benefit students and professionals who are joining manufacturing
organizations
 For more details, please visit www.businessense.in
 At Business Sense, we help clients through consulting engagements focusing on improving their
Operations through Lean Manufacturing Implementation covering 5S, SMED, Kaizen and other tools.
 We also serve clients on Preparation of Detailed Project Reports, Market Assessments, and Supply
Chain Re-engineering.
 You can subscribe to our bi-weekly newsletter here.
 Follow us:
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3. Contents
 Section 1 – Introduction and Basic Processes
 Section 2 – Shop Floor Management
 Section 3 – MIS Reports and Analyses Points
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4. Introduction to Production Function
 Production is one of the most critical function in any manufacturing
organization. This function represents the set of activities through
which the product is made and delivered according to the client’s
requirements.
 Production function normally encompasses various departments/shops
based on the type of products and the operations involved (e.g. press
shop, machining, polishing, plating, assembly etc).
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5. Introduction to Production Function
 The components move from each shop/machine to the other, once the
required operations are completed. (Sometimes the product would be
stationary and all the operations would be carried out on the product.
E.g. Ship building).
 At each stage the component is added value (value addition) and
transforms to a finished product.
Value Addition at each stage
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6. Organization Structure
 This is a standard organization structure* for
Production Function
CEO
 Purchase Manager reports to the CEO of the
company
Production
 In a large organization, Production Manager Manager
might report to Factory Manager /
Manufacturing Head Production Production Production
Supervisor Supervisor Supervisor
 There can be a few Production Supervisors ( for
different lines / processes / shop floor)
reporting to the Production Manager
* A typical functional hierarchy is
 Each Production Supervisor would typically mentioned here. It may vary according
focus on a single / specific processes or line to each organization.
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7. Responsibilities of an Engineer in Production
Department
• Productivity - Ensuring a smooth production flow / dynamically monitoring the
P
production process through allocation of resources (Men/Machine/Materials) and
make necessary changes based on the requirements.
• Quality - Meeting the Quality requirements set by the customer and taking steps to
Q
exceed them. Measuring and analyzing the current quality levels and taking
necessary steps to improve and achieve the required quality levels
C • Cost – Minimizing cost (reducing reuse/defects, process
modifications/improvements)
• Delivery - Overall responsibility of delivering finished goods as per the customer’s
D
requirements – Ensuring 100% on-time delivery
S • Safety & Morale – Achieve 0% Accidents and Incidents(Near-miss). Improving
Morale of the personnel
M
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8. Process Flow - 1
 Production Plan created by the Production
Planning department / production manager is
sent to the production supervisors
 Production supervisors plan for the day’s
production based on the weekly / monthly
production plan
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9. Production Process - 2
 Order-wise requirements of all materials
(calculated from the Bill of Materials
(BOM)) would be obtained from the
stores using Materials Issue Requisition
(MIR) slip
 Once the materials are obtained they are
sent to the respective process/machines
for completion. The Supervisor also
creates a job card for each lot/item
which travels along with the product
throughout the entire processes.
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10. Production Process - 3
 Quality is measured at each stage so
as to reduce reworks and rejections
 At the end of the production process,
necessary quality checks are made
and the products are packed and
delivered to the customers.
Please note this is only the basic process. There may be delays /
stoppages in production due to quality issues, non-availability
of materials, absenteeism etc.
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11. Contents
 Section 1 – Introduction and Basic Processes
 Section 2 – Shop Floor Management
 Section 3 – MIS Reports and Analyses Points
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12. Daily Production Plan
 Monthly Production plan is broken down into Weekly and Daily
production plan for each shop/operation by the Production manager
and sent to the respective Production Supervisors
 Production Supervisor should plan for one day’s production in
advance. i.e. tomorrow’s production plan should be planned today by
the individual supervisors (before office closing hours)
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13. Daily Production Plan
 Once the Production supervisors obtain the daily production plan,
they should plan & allocate the resources ( men, machine and
materials) for the next day’s production
 Resources and work allocation should be carried out in the previous
day evening
 Once the employees enter the shop floor, they should be able to pick up
the materials and start working. ( If the production plan happens in the
morning, the company loses around 20 minutes before employees are
allocated some job and start working)
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14. Shop Floor Management
 Supervisor allocates the job to the right personnel and follows it so
that the production target for the day is achieved.
 In case of any changes in the plan, he/she consults with the
Production manager immediately and make necessary changes in the
shop floor
 He/she informs the employees and arranges materials accordingly
 At the end of the day, Production status is reported to the Production
Manager and the plan for the next day is done
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15. Shop Floor Management
Lean Manufacturing
A set of Management practices originated in Japan, useful in eliminating
non-value added activities and improving the productivity in a faster and
efficient manner !
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16. Lean Manufacturing
 A systematic approach to identifying and eliminating waste (non-
value-added activities) through continuous improvement by flowing
the product or service at the pull of the customer.
Doing more and more with less and less…
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17. Lean Manufacturing - Terms
Value Adding Non-Value Adding
Process: Process (Waste):
A process step that Process steps that take
transforms or shapes a time, resources, or
product or service which space, but do not add
is eventually sold to a value to the product or
customer. service.
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18. 7 wastes in Lean Manufacturing
Waiting
Over-
Transportation
Production
7
Wastes Over-
Defects
Processing
Motion Inventory
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19. Waste no: 1 - Waiting
Examples Characteristics
•Idle time in which no value •Person waiting for a machine
added activities take place •People watching machines run
• Person wait time •Machine or materials waiting
• Machine wait time for a person
• Material wait time •Lack of concern for equipment
breakdowns or downtime
•Long setup times
•Unbalanced operations
•Inconsistent work methods
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20. Waste no: 2 - Transportation
Examples Characteristics
•Any unnecessary material •Multiple storage locations
movement that does not support •Multiple movement of material
the lean manufacturing system •Poor facility layout
•Return of materials not used in
•Conveyors production
•Forklifts
•Transfer Carts
•Movement between shops
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21. Waste no: 3 – Over-Processing
Examples Characteristics
•Effort which adds no value to a •Process bottlenecks
product or service •Lack of clear customer
• Work that can be combined expectations
with other processes •Lack of customer input
• Enhancements that are concerning requirements
transparent to the customer •Redundant approvals
•Multiple Tests •Extra copies and excessive
•Parts Handling information
•Inspections •Inefficient policies and
procedures
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22. Waste no: 4 – Inventory
Examples Characteristics
•Any unnecessary supplies or •Extra space on receiving docks
materials that do not support the •Build up of material between
‘Just In Time Production processes
System’ •Long lead times for engineering
•Material on site (WIP) change
•Strategic Buys •Long Supply Channels
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23. Waste no: 5 – Motion
Examples Characteristics
•Any movement of people which •Looking for tools and parts
does not add value to the •Excessive reaching or bending
product •Material too far apart (walk
time)
•Poor plant layout
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24. Waste no: 6 – Defects
Examples Characteristics
•Repair of a product or service to •Extra floor space, tools and
fulfill customer requirements equipment
•Extra manpower to inspect,
•Warranty rework and repair
•Rework •Additional inventory
•Scrap •Questionable quality
•Lower profits due to scrap
•Incapable processes with
excessive variation
•Inadequate tools or equipment
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25. Waste no: 7 – Over-Production
Examples Characteristics
•Producing more than needed •Inventory stockpiles
• ‘Work ahead’ •Extra or oversized equipment
•Producing at a faster pace then •Unbalanced material flow and
needed confusion about priority
•Extra parts storage racks and
•Stock manpower
•Over build of capacity •Build ahead of demand
•Unbalanced production •Large lot sizes or batch
processing
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26. 5S
5S – a series of 5 words in Japanese language aimed at workplace organization
Distinguish between what is necessary and
(Seiri) – Sort
unnecessary items. Remove the unnecessary items
Enforce a place for everything and everything in its
Seiton – Set in Order
place
Clean up the workplace and look for ways to keep it
Seiso – Shine
clean
Seiketsu - Standardize Maintain and monitor adherence to the first 3’S
Follow the rules to keep the workplace 5S-right
Shitsuke – Sustain
“Hold the gain.“
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27. 5S
 Five steps to the culture of keeping
the work place clean, organized,
systematic and safe
 A foundation for all improvements
and lean journey
 Every employee is engaged and
empowered.
 Reveal the wastes and their causes in
the process not seen by observation.
 To put it simply “Work Place
Organization”
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28. End of Free Content
 Please visit our website www.businessense.in to access the full course – “Certified Manufacturing
Professional”
 Our website also contains list of ready-to-use templates and report formats containing Charts and
pivot tables.
 Templates and report formats are available for Purchase, Stores, Production, Quality, Maintenance and
HR functions
 These templates come in excel /word and can be downloaded and used right away
 At Business Sense, we help clients through consulting engagements focusing on improving
their Operations through Lean Manufacturing Implementation covering 5S, SMED, Kaizen and
other tools.
 We also serve clients on Preparation of Detailed Project Reports, Market Assessments, and
Supply Chain Re-engineering.
 You can subscribe to our bi-weekly newsletter here.
 Follow us:
Copyright of Hash Management Services LLP www.businessense.in