MEC 6121 #1 Introduction to Production Management

The University of Zambia
School of Engineering
Department of Mechanical Engineering
PRODUCTION MANAGEMENT I
(MEC 6121)
Terence Malama (PhD, MEng, BEng, ASME)
LECTURE SLIDES #1
INTRODUCTION TO
PRODUCTION MANAGEMENT

Today’s presentation…
Manufacturing
Management
Manufacturing
versus
Production
Business
Management
Operations
Management
Definition
Production and
Operations
Management
Production
Activities of
Enterprises
The Tasks of
POM
Production
System
Production
Organization
Enterprise
System
Classification of
Production
Systems
08-Dec-16 2MEC 6121 - PM by Dr. T. Malama

What is a business?
 An organization or economic system where goods and
services are exchanged for one another or for money.
 Every business requires some form of investment and
enough customers to whom its output can be sold on a
consistent basis in order to make a profit.
Businesses can be
privately owned,
not-for-profit or
state-owned.
So, key purposes of a business are:
1. PROFIT
2. SERVE COMMUNITY
i. OWNERS
(SHAREHOLDERS)
ii. EMPLOYEES
iii. CUSTOMERS
iv. GOVT

Business Management
 Finance => money side of business
 Manufacturing and/or services
 Purchasing,
 transportation,
and physical distribution
LOGISTICS
 Human Resources Management
Recruitment,
Employee benefits
 Technology and IT
 Administrative Systems
 Defn: BM is the art of running a business
Elements

Business Management … cont. 1
 Relationship between a business
and community is symbiotic.
 Employees
 Customers
 Resources
 Etc.

Manufacturing Management
 Planning a manufacturing organizational structure
 Develop strategy and goals
 Assign people to structure
 Manpower planning and performance
 Wages
 Labor
 Manufacturing processes
 Process design
 Planning manufacturing/production systems
 Defn: Manufacturing is the art of making tangible things.
 Defn: MM is the art of running a manufacturing system.
Aspects

Manufacturing Management … cont. 2
 Materials management
 Planning of production and materials
 Evaluation
 Materials handling and warehousing
 Basic handling principles
 Equipment and systems for handling
 Planning the warehouse

Manufacturing Management … cont. 3
 Quality management
 Quality Control
 Vendor quality
 Customer feedback information
 Facilities management
 Location
 Plant capacity, layout, equipment installation
 Automation

Manufacturing vs Production
 Production is a broader term that spans both
Manufacturing and Services functions
 Production is the application of Resources,
People and Machinery, to Convert Inputs into
Finished Goods and Services
Production
Manufacturing
Services
• Resources
• People
• Machinery
Inputs Finished Goods
and Services

Management of the
production process
The creation of goods
and services by turning
inputs into outputs,
which are products
and services
Production and Operations Management
Production
Operations
Management

Operations Management - Definition
 Operations management is defined as the design,
operation, and improvement of the systems that
create and deliver the firm’s primary products and
services
 The core of Operations Management is the
management of production systems i.e.,
production planning and control

Production Activities of Enterprises
1. Decision activities;
2. Technology activities;
3. Supply activities;
4. Manufacturing activities;
5. Sales activities; and
6. Financial activities
Production
activities

Production Organization
 An enterprise can hardly achieve its full purpose without
correctly organizing its production activities since they are
mutually inter-dependent and tightly connected.

The Tasks of POM
-> Organizing the production activities (reasonably well),
-> making good use of the resources (efficiently)
for the following purposes:
 Complete the product production
 Achieve the business objective
 Reduce cost, improve quality, and reduce production time (cycle)
 Promote production system’s flexibility

Production System
System overview
 An enterprise is a large system
 A production system is a subsystem of
the whole enterprise system, and its
main function is producing products
 A production system uses operations
resources to transforms inputs into
some desired outputs.
ENTERPRISE
ProductionSystem
Resources

Enterprise System

Inputs
 External
– Legal, Economic, Social, Technological
 Market
– Competition, Customer Desires, Product
Information
 Primary Resources
– Materials, Personnel, Capital, Utilities
 Inputs are in 3 categories:

Conversion Subsystem
Physical (Manufacturing)
Locational Services (Transportation)
Exchange Services (Retailing)
Storage Services (Warehousing)
Other Private Services (Insurance)
Government Services (Central)

Outputs
 Direct
– Products
– Services
 Indirect
– Taxes
– Employee Impact
– Environmental Impact
– Technological Developments
 Inputs are in 2 categories:

POM System

Operations Decision Making

Strategic Decisions
These decisions are of strategic importance and
have long-term significance for the organization
(Long Range Decisions).
Examples include deciding:
 the design for a new product’s production
process
 where to locate a new factory
 whether to launch a new-product
development project

Operating Decisions
These decisions are necessary if the ongoing
production of goods and services is to satisfy
market demands and provide profits (Medium
Range Decisions).
 how much finished-goods inventory to carry
 the amount of overtime to use next week
 number of employees
 shits or hours

Control Decisions
These decisions concern the day-to-day
activities of workers, quality of products and
services, production and overhead costs, and
machine maintenance (Short Range Decisions).
 scheduling of products
 frequency of preventive maintenance
 new quality control acceptance criteria

Elements of Production Systems
I. Structure Elements: the framework of production system
 Technology, e.g. Process Technology and combination of
Equipment
 Facility, e.g. scale and layout of Facilities
 Capacity, e.g. The capacity and flexibility of production
 Integration，e.g. inner-integration，outer-integration
II. Non-structure elements: elements that support and control
system’ function
 Personnel organization
 Production planning
 Production control
 Production inventory
 Quality management

Classification of Production System
I. Classified based on production process continuity:
– Continuous flow production system
– Discrete production system
III. Classified based on industry:
– manufacturing industry
– service industry
II. Classified based on customization:
– make to stock
– produce to order

Production Planning Hierarchy

Production Planning: Units of Measure

09-Dec-16 29
-2-
Production Planning and Control
MEC 6121 - PM by Dr. T. Malama
NEXT MEETING …

THANK YOU!

MEC 6121 #1 Introduction to Production Management

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to MEC 6121 #1 Introduction to Production Management

Similar to MEC 6121 #1 Introduction to Production Management (20)

Recently uploaded

Recently uploaded (20)

MEC 6121 #1 Introduction to Production Management