This document provides an overview of production management. It discusses key concepts like the definition of production, different production systems (job shop, batch, mass, continuous), objectives of production management, and the role of technology and innovation in production. The main types of production systems are described in terms of their characteristics, advantages, and limitations. The document emphasizes that the goal of production management is to produce quality goods and services at the right time, quantity, and cost.

1. PRODUCTION
MANAGEMENT
By
Shreenibasa Maharana

2. Topics ..
• INTRODUCTION
• CONCEPT OF PRODUCTION
• PRODUCTION SYSTEM
• CLASSIFICATION
• JOB SHOP PRODUCTION
• BATCH PRODUCTION
• MASS PRODUCTION
• CONTINUOUS PRODUCTION
• OBJECTIVES OF PRODUCTION MANAGEMENT
• DIFFRENCE BETWEEN PRODUCTION & PRODUCTIVITY
• ROLL OF TECHNOLOGY IN PRODUCTION.
• INNOVATION IN PRODUCTION

3. INTRODUCTION
• It is defined as planning , implementation and
control of industrial production process to ensure
smooth and efficient operation. Production
management techniques are used in both
manufacturing and service industries.
(Simply, production management is a process of
planning, organizing, directing and controlling
the activities of the production function.)

4. Production Management Operation Management
1. It’s concerned with
manufacturing
1. It is concerned with services
2. Out put is tangible 2. Output is intangible
3. Job use less labour and more
equipment
3. Job use more labour and
less equipment
4. There is no customer
participation
4. Frequent customer
participation

5. CONCEPT OF PRODUCTION
• Production is defined as “the step-by-step
conversion of one form of material into another
form through chemical or mechanical process to
create or enhance the utility of the product to the
user.”
• Thus production is a value addition process. At
each stage of processing, there will be value addition.
• Edwood Buffa defines production as ‘a process by
which goods and services are created’.

6. Example For Production
• Manufacturing custom-made products
Like- 1.Boilers with a specific capacity
2.Constructing flats
3. Structural fabrication works for selected
customers, etc.
• Manufacturing standardized products
Like- 1.Car
2.Bus
3.Motor cycle
4.Television, etc.

7. PRODUCTION SYSTEM
• It is that activity where by Resources, flowing within a
defined system, are combined & transformed in a
controlled manner to add value in accordance with the
policies communicated by management

9. Characteristics Of Production System
1. Production is an organized activity, so every
production system has an objective.
2. The system transforms the various Inputs to useful
Outputs.
3. It doesn’t operate in Isolation from the other
organization system.
4. There exists a feedback about the activities,
which is essential to control and improve system
performance.

10. CLASSIFICATION
• Production systems can be classified as:
1. Job Shop Production
2. Batch Production
3. Mass Production
4. Continuous Production

12. JOB SHOP PRODUCTION
• Job shop production are characterised by manufacturing of
one or few quantity of products designed and produced as
per the specification of customers within prefixed time and
cost.
• The distinguishing feature of this is low volume & high variety
of products.
• A job shop comprises of general purpose machines arranged
into different departments.
• Each job demands unique technological requirements,
demands processing on machines in a certain sequence.

13. Characteristics
1. High variety of products and low volume.
2. Use of general purpose machines and facilities.
3. Highly skilled operators who can take up each job as
a challenge because of uniqueness.
4. Large inventory of materials, tools, parts.
5. Detailed planning is essential for sequencing the
requirements of each product, capacities for each work
centre and order priorities.

14. ADVANTAGES
• Because of general purpose
machines and facilities
variety of products can be
produced.
• Operators will become more
skilled & competent, as each
job gives them learning
opportunities.
• Full potential of operators
can be utilised.
• Opportunity exists for
creative methods &
Innovative ideas.
LIMITATIONS
• Higher cost due to frequent
set up changes.
• Higher level of inventory at
all levels and hence higher
inventory cost.
• Production planning is
complicated.
• Larger space requirements.

15. BATCH PRODUCTION
• Batch production is defined “as a form of manufacturing
in which the job passes through the functional
departments in lots or batches and each lot may have
a different routing.”
• It is characterised by the manufacture of limited number
of products produced at regular intervals and stocked
awaiting sales.

16. CHARACTERISTICS
• There is shorter production runs.
• Plant and machinery are flexible.
• Manufacturing lead time & cost are lower as
compared to job shop production.

17. ADVANTAGES
• Better utilisation of plant
and machinery.
• Promotes functional
specialisation.
• Cost per unit is lower as
compared to job shop
production.
• Lower investment in plant
and machinery.
• Flexibility to accommodate
and process number of
products.
• Job satisfaction exists for
operators.
LIMITATIONS
• Material handling is
complex because of
irregular and longer flows.
• Production planning and
control is complex.
• Work in process inventory is
higher compared to
continuous production.
• Higher set up costs due to
frequent changes in set up.

18. MASS PRODUCTION
• ‘ Manufacture of discrete parts or assemblies using a
continuous process are called mass production ’.
• This production system is justified by very large volume
of production.
• The machines are arranged in a line or product layout.
Product and process standardisation exists and all
outputs follow the same path.

19. CHARACTERISTICS
1. Standardisation of product and process sequence.
2. Large volume of products.
3. Shorter cycle time of production.
4. Lower in process inventory.
5. Perfectly balanced production lines.
6. Production planning and control is easy.
7. Material handling can be completely automatic.

20. ADVANTAGES
1.Higher rate of production
with reduced cycle time.
2. Higher capacity utilisation
due to line balancing.
3. Less skilled operators are
required.
4. Low process inventory.
5. Manufacturing cost per
unit is low.
LIMITATIONS
1. Breakdown of one machine
will stop an entire production
line.
2. Line layout needs major
change with the changes in
the product design.
3. High investment in
production facilities.
4. The cycle time is
determined by the slowest
operation.

21. CONTINUOUS PRODUCTION
• Production facilities are arranged as per the sequence of
production operations from the first operations to the
finished product.
• The items are made to flow through the sequence of
operations through material handling devices such as
conveyors, transfer devices, etc.

22. CHARACTERISTICS
Dedicated plant and equipment with zero flexibility.
Material handling is fully automated.
Process follows a predetermined sequence of operations.
Component materials can’t be readily Identified with final
product.
Planning and scheduling is a routine action.

23. ADVANTAGES
1. Standardisation of product
and process sequence.
2. Higher rate of production with
reduced cycle time.
3. Higher capacity utilisation due
to line balancing.
4. Manpower is not required for
material handling as it is
completely automatic.
5. Person with limited skills can
be used on the production line.
6. Unit cost is lower due to high
volume of production.
LIMITATIONS
1. Process number of products
doesn’t exist.
2. Very high investment for
setting flow lines.
3. Product differentiation is
limited.

24. OBJECTIVES OF PRODUCTION
MANAGEMENT
• The objective of the production management is ‘to
produce goods services of right quality and quantity
at the right time and right manufacturing cost’.
• RIGHT QUALITY:
The quality of product is established based upon the
customers needs. The right quality is not necessarily best
quality. It is determined by the cost of the product and the
technical characteristics as suited to the specific
requirements.

25. • RIGHT QUANTITY
The manufacturing organization should produce the
products in right number. If they are produced in excess of
demand the capital will block up in the form of inventory
and if the quantity is produced in short of demand, leads
to shortage of products.
• RIGHT MANUFACTURING COST
Manufacturing costs are established before the product is
actually manufactured.
(All attempts should be made to produce the
products at pre-established cost, so as to
reduce the variation between actual and the
standard (pre-established) cost.)

26. DIFFRENCE BETWEEN
PRODUCTION & PRODUCTIVITY
• Production is number of goods made.
• Productivity is the number of goods produced divided
by employees
Example:
Business A produced 40 chairs with 5
employees
• Production: 40 chairs
• Productivity: 40chairs/5 employees= 8
Productivity
Units produced
Input used

27. Improvements in Production
• If we increases the output and reduces the input then we
can increase the production efficiency.
General ways of increase output are :
• 1. Process improvement
• 2. Regulate work flow
• 3. Use more modern equipments
• 4. Train and motivate employees
𝑶𝒖𝒕𝒑𝒖𝒕
𝑰𝒏𝒑𝒖𝒕
Efficienc
y

28. • General ways of decreases input are:
1. Improve quality
2. Minimize waste
3. Reduce the cost of labour
4. Reduce cost of supply

29. ROLL OF TECHNOLOGY IN
PRODUCTION.
• It is now quite difficult to imagine world without modern
invention.
• Technology makes way for fast & efficient operations in
manufacturing companies, as well as facilitates cost cutting
measures.
• Technology brought significant changes to traditional
production system that have been so beneficial to all industrial
players, including suppliers and customers.
• A pharmaceutical company, for example employees advanced
machinery in capsulising & wrapping medicine. Traditionally,
the making of medicine was manually done. How ever, to
prevent contamination & mitigate errors from human
intervention, pharmaceutical companies have employed robots
& computerized machines. It results in mass production of
medicine at faster speed & lower cost. So advanced
technology plays major roll in production. it will improve
production rate and also product quality.

30. INNOVATION IN PRODUCTION
• Innovation is important part of production to satisfy
consumer demand and is needed to be in a competition
with others.