The document outlines the key functions of production management, including product selection, production planning, scheduling, and quality control. It details various production systems such as unit production, batch production, mass production, and continuous production, highlighting their features and applications. Additionally, it discusses the importance of inventory control, maintenance, and the roles and responsibilities of the production planning and control (PPC) manager.

1. Prepared by Ms. Shery Asthana
Asst. Prof. (Greater Noida Institute of Management)
Production Management

2. Functions of Production Management
Functions of
Production
Management
Quality and Cost
Control
Production
Control
Inventory
Control
Maintenance
and
Replacement of
Machines
Production
Planning
Selection of
Right
Production
capacity
Selection of
Production
Process
Selection of
Product and Design

3. Production management first selects the right product for production. Then it
selects the right design for the product. Care must be taken while selecting the
product and design because the survival and success of the company depend on it.
The product must be selected only after detailed evaluation of all the other
alternative products. After selecting the right product, the right design must be
selected. The design must be according to the customers' requirements. It must
give the customers maximum value at the lowest cost. So, production management
must use techniques such as value engineering and value analysis.
Production management must select the right production process. They must
decide about the type of technology, machines, material handling system, etc.
Production management must select the right production capacity to match the
demand for the product. This is because more or less capacity will create problems.
The production manager must plan the capacity for both short and long term's
production. He must use break-even analysis for capacity planning.
1. Selection of Product and Design
2. Selection of Production Process
3. Selecting Right Production Capacity

4. Production management includes production planning. Here, the production
manager decides about the routing and scheduling.
Routing means deciding the path of work and the sequence of operations. The
main objective of routing is to find out the best and most economical sequence of
operations to be followed in the manufacturing process. Routing ensures a smooth
flow of work.
Scheduling means to decide when to start and when to complete a particular
production activity.
Production management also includes production control. The manager has to
monitor and control the production. He has to find out whether the actual
production is done as per plans or not. He has to compare actual production with
the plans and finds out the deviations. He then takes necessary steps to correct
these deviations.
Production management also includes quality and cost control. Quality and Cost
Control are given a lot of importance in today's competitive world. Customers all
over the world want good-quality products at cheapest prices. To satisfy this
demand of consumers, the production manager must continuously improve the
quality of his products
(4) Production Planning
(6) Quality and Cost Control
(5) Production Control

5. Production management also includes inventory control. The production manager
must monitor the level of inventories. There must be neither over stocking nor
under stocking of inventories.
If there is an over stocking, then the working capital will be blocked, and the
materials may be spoiled, wasted or misused.
If there is an under stocking, then production will not take place as per schedule,
and deliveries will be affected.
Production management ensures proper maintenance and replacement of
machines and equipments.
The production manager must have an efficient system for continuous inspection
(routine checks), cleaning, oiling, maintenance and replacement of machines,
equipments, spare parts, etc.
This prevents breakdown of machines and avoids production halts
(7) Inventory Control
(8) Maintenance and Replacement of Machines

6. Types of Production System

7. This type of production is most commonly observed when you produce one single unit of a
product. It is one of the most common types of products used because it is generally used by
small businesses like restaurants, individual products providers or individual services
providers.
Features of Unit production or Job Production
(a) Depends a lot on skill, (b) Dependency is more on manual work than mechanical work,
(c ) Customer service and customer management plays and important role.
It is one of the types of production most commonly used in consumer durables, FMCG or
other such industries where there are large variety of products with variable demands. Batch
production takes place in batches. The manufacturer already knows the number of units
he needs to a manufacturer and they are manufactured in one batch.
Features of Batch production
(a ) Production is done in batches
(b) The total number of units required is decided before the batch production starts
(c ) Once a batch production starts, stopping it midway may cost a huge amount to the company.
(d) Demand plays a major role in a batch production. Example – seasonality of products.
1) Unit or Job type of production
2) Batch type of Production

8. Mass production is also known as flow production or assembly line production. It is
one of the most common types of products used in the automobile industry and is
also used in industries where continuous production is required.
An Assembly line or mass production plant typically focus on specialization. There
are multiple workstations installed and the assembly line goes through all the
workstations turn by turn. The work is done in a specialized manner and each
workstation is responsible for one single type of work.
Features of Mass Production
(a) Mass production is generally used to dole out huge volumes of the product
(b) It is used only if the product is standardized
(c ) Demand does not play a major role in a Mass production. However, production
capacity determines the success of a mass production.
(d) Mass production requires huge initial investment and the working capital demand
is huge too.
3) Mass Production or Flow production

9. There is a lot of confusion between mass production and continuous production. It
can be differentiated by a single element. The amount of mechanical work
involved. In Mass production, both machines and humans work in tandem.
However, in continuous production, most of the work is done by machines rather
than humans. In continuous production, the production is continuous,24×7 hours,
all days in a year.
Features of Continuous production
(a) Majority of the work is done by machines rather than humans
(b) Work is continuous in nature. Once production starts, it cannot be stopped
otherwise it will cause huge loss.
(c ) A very controlled environment is required for continuous production.
4) Continuous production or Process production

10. • Manage production control activities to reduce outages and incidents.
• Manage product planning and scheduling for on time delivery.
• Recommend process improvements for high quality, cost effectiveness and excellent
customer services.
• Evaluate system performance and recommend improvements.
• Supervise team members in their assigned job duties.
• Organise job trainings to employees to achieve production objectives.
• Ensure that team follows security and safety policies.
• Review the job order with customers and production team to determine pricings and
schedules.
• Monitor execution of the job orders and adjust job schedule to meet the deadlines.
• Communicate the status of job orders to customers on regular basis.
• Attend daily meetings to prioritize and plan production activities to maintain on time
delivery.
• Determine equipments, material and staff needs to meet production schedule.
• Perform inventory management for timely delivery and for minimizing transportation
charges.
Roles and Responsibility of PPC Manager