This document discusses various aspects of production management including: - Types of production processes such as extractive, analytic, synthetic, and fabricating. - Factors to consider when designing a production process such as equipment usage, material and work flow, and quality testing. - Differences between continuous/intermittent, job/custom, batch, and mass production approaches. - Principles of scientific management including developing worker skills and standardizing tasks. - Methods for analyzing work such as time and motion studies to improve efficiency. - Functions of production planning like scheduling, dispatching, and quality control inspections.

1. Management and
Production

2. • Production is the system of changing
the form of any substance or raw
material to make it useful for
consumption either by the ultimate
consumer or industrial users.
• Manufacturing and Extractive
processes.

3. TYPES OF PROCESSES
• Extractive
• Analytic (one raw material – several
finished products)
• Synthetic (one finished product –
several components)
• Fabricating (machining)

4. Production Process Design
• How will the production process be subdivided?
• What will be purchased and what will be built?
• What equipment will be used and how will it be used?
• What suppliers and subcontractors will be used?
• How will production be organized?
• Who will do what?
• How will material flow?
• How will work flow?
• What is the duration and cost of each operation?
• How will the production process be arranged physically?
• How will the product be tested during and after production?
• How will the finished product be shipped?

5. CONTINUOUS / INTERMITTENT
PROCESS
• CONTINUOUS
large scale operations
repetitive operations
no idle time
e.g. steel and automobile
• INTERMITTENT
smaller operations
different operations
idle machine time

6. During Production
• Control the production process through
statistical analysis and process control.
• Improve quality and process consistency.
• Take corrective action when needed.
• Identify and implement methods to
reduce cost, invested capital or
production time.
• Manage the supply chain.

7. TYPES OF PRODUCTION
• JOB OR CUSTOM (small scale)
• BATCH (medium)
• MASS OR FLOW (large scale)

8. • JOB OR CUSTOM
- single and customized product
- greater skills and specialization
required
- exact specifications therefore, quality
control important

9. • BATCH
- diverse orders of fairly large quantities
- intermittent process

10. • MASS OR FLOW
- continuous process
- standardized products
- similar, repetitive sequence of operations
- inventory risks
- risk of fluctuating prices (stock)

11. TAYLOR’S PRINCIPLES OF
SCIENTIFIC MANAGMENT
1. Develop each element of a man’s work
2. Train, teach and develop the worker
3. Cooperate to ensure compliance with the
principles
4. Equal division of work and responsibility
between the worker and management

12. Management

13. TIME AND MOTION STUDY
• MOTION STUDY
Studying the elements of work and their
relations, analyzing them to eliminate
any repetitive and unnecessary tasks
and reducing the essential tasks to the
minimum.

14. • TIME STUDY
Analysis and determination of time
taken to perform a particular task by
improving and standardizing operations
and adopting effective and efficient
production techniques. Helps establish
fair wages.

15. PRODUCTION CONTROL
Production Planning and Control dept.
integrates and coordinates the use of
manpower, machines and materials for
efficient output of goods to meet its
sales requirements.

16. FUNCTIONS OF PRODUCTION
DEPT.
• Planning and Issuing Orders
• Routing
• Scheduling (Master and Production)
• Despatching (performance)
• Follow up and control

17. QUALITY CONTROL AND
INSPECTION
Quality of a product is a combination of
attributes that distinguish it from other
similar products.
THREE PHASES:
1. Establishment of standards
2. Achievement of standards
3. Conformance to standards

18. PURPOSE OF QUALITY CONTROL
• Quality product to satisfy demand at a
cost that will still yield profits at the
going market price
• Sufficient quantity produced
• Retain standards set by quality control

19. FUNCTIONS OF QUALITY
CONTROL
Inspection dept. should have authority.
1. Incentives for operations
2. Reworking of defective product
3. Formation of committees to review

20. METHODS OF INSPECTION
• Centralized
• Floor or Patrolling
- 100% inspection
- Sample inspection

21. BUSINESS LOCATION AND
LAYOUT
FACTORS INFLUENCING
CHOICE OF LOCATION
PLANT LAYOUT

22. FACTORS FOR CHOICE OF
LOCATION
• MANUFACTURING CONCERN
• Raw materials
• Labor
• Power and fuel
• Water
• Transportation
• Climate
• Markets
• Location of competitors

23. • Chance
• Population and style
• Room for expansion
• Governmental regulations

24. • RURAL SITE
• Advantages:
• Cheap land
• Room for expansion
• Low taxes
• Cheap labor
• Disadvantages:
• URBAN SITE
• SUBURBAN SITE