2. 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.
3. 5 P`s of Production
Management
• 1. PRODUCTS.
• 2. PLANT.
• 3. PROCESS.
• 4. PROGRMS.
• 5. PEOPLE.
• When this five element integrated a successful
production management takes place.
4. OBJECTIVE OF PRODUCTION
MANAGEMENT
• 1. RIGHT QUALITY.
• 2. RIGHT QUANTITY.
• 3. PREDETERMINED TIME.
• 4. PRE-ESTABLISHED COST.
• Other objectives are :
• 1. Machinery and Equipment.
• 2. Materials.
• 3. Manpower.
• 4. Supporting Service.
5. 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
6. PRODUCTION PLANNING &
CONTROL (PPC)
• 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.
8. TYPES OF PRODUCTION
• 1. BATCH PRODUCTION
• 2. MASS & FLOW PRODUCTION
• 3. PROCESS PRODUCTION
• 4. PROJECT PRODUCTION
• 5. JOBBING PRODUCTION
9. BATCH PRODUCTION
• Batch production is the manufacturing of limited
number of product produced at regular intervals &
stocked in warehouse as finished goods.
• Eg. Chemical , paint & motor vehicles etc.
10. CHARACTARISTIC OF BATCH
PRODUCTION
• 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.
11. JOBBING PRODUCTION
• 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
contract.
• Eg: general repair shop, tailoring shops.
12. 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.
13. PROJECT PRODUCTION
• Project production is characterized by complex sets of
activities that must be performed in a particular order
within the estimated expenditure.
• Eg: construction of Roads, Buildings etc.
14. CHARACTARITIC OF PROJECT
PRODUCTION
• 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.
15. 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 fans.
16. CHARACTARITIC OF MASS &
FLOW PRODUCTION
• 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.
17. PROCESS PRODUCTION
• Process production is characterized by the manufacture
of single product produced and stocked in the
warehouses awaiting sales.
• Eg: Sugar, Steel, Paper, Cement plants.
18. CHARACTARITIC OF PROCESS
PRODUCTION
• 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.
19. 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 of input.
• PRODUCTIVITY = Output / Input.
• Productivity refers to the efficiency of the production
system.
20. PRODUCTIVITY MEASURES
• 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)
