Production management involves planning, organizing, directing and controlling the production process in a factory. It emerged due to the development of factory systems and large corporations that required specialized managers. The production manager is responsible for production planning and control, quality and cost control, inventory control, and maintenance of machines. Production planning and control (PPC) functions include materials management, equipment planning, process planning, estimating, loading and scheduling, dispatching, expediting, inspection, and evaluation to ensure production meets plans. PPC utilizes resource allocation to serve customers.

1. Production Management
Unit 1
Submitted to :
Shah Mohd. Sir
By Raman
Neeraj
Millind

2. Meaning
Nature
Function
Responsibility of
Production Manager
Production Planning
And Control (PPC)
Here
We
Discuss

3. Meaning of Production Management:
Production Management refers to the application of management
principles to the production function in a factory. In other words,
production management involves application of planning,
organizing, directing and controlling the production process.
The application of management to the field of production has
been the result of at least three developments:
i) First is the development of factory system of production.
Until the emergence of the concept of manufacturing, there
was no such thing as management as we know it. It is true that
people operated business of one type or another, but for the
most part, these people were owners of business and did not
regard themselves as managers as well,

4. ii) Essentially stems from the first, namely, the
development of the large corporation with many
owners and the necessity to hire people to
operate the business,
(iii) Stems from the work of many of the
pioneers of scientific management who were
able to demonstrate the value, from a
performance and profit point of view, of some
of the techniques they were developing.

5. Nature of Production Management:
i) The production function represents a purely
technical relationship in physical quantities
between the inputs of factors and the output of the
products. It has no reference to money price. The
price factor is left out altogether.
(ii) The output is the result of a joint use of the facts
of production. It is obvious that the physical
productivity of one factor can be measured only in the
context of this factor being used in conjunction with
other factors.

6. (iii) The nature of the quantity of the various factors and
the manner in which they are combined will depend on
the state of technical knowledge. For instance, labour
productivity will depend on the quality of labour as
determined by their education and training. Similarly, the
productivity of machines will be determined by the
technical advances embodied in them.
(iv) In specifying the production function of a firm, we
have to take into account the variability of factors of
production and also whether they are divisible or
indivisible. These features of the factors of production
will determine their physical productivities and hence the
nature of the production functions.

7. Functions :-

8. 1. Selectionof Productand Design
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.
2. Selectionof ProductionProcess
Production management must select the right production process. They must decide about the type
of technology, machines, material handling system, etc
3. Selecting Right Production Capacity
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.

9. 4. Production Planning
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.
5. Production Control
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.

10. 6. Qualityand Cost Control
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. Along with
this, he must also take essential steps to reduce the cost of his products.
7. InventoryControl
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 overstocking, then the working capital will be blocked, and the materials
may be spoiled, wasted or misused.
If there is an understocking, then production will not take place as per schedule, and
deliveries will be affected.
8. Maintenance and Replacement of Machines
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.

11. Responsibility of Production manager
Production managers are responsible for the technical management, supervision and
control of industrial production processes.
•planning and organizing production schedules
•assessing project and resource requirements
•estimating, negotiating and agreeing budgets
and timescales with clients and managers
•ensuring that health and safety regulations are
met
•determining quality control standards
•overseeing production processes
•re-negotiating timescales or schedules as
necessary

12. •selecting, ordering and purchasing materials
•organizing the repair and routine maintenance
of production equipment
•liaising with buyers and marketing and sales
staff
•supervising the work of junior staff
•organizing relevant training sessions
In larger companies, there may be close links
between production management and general or
strategic management and marketing or finance
roles.

13. Production planning is the planning of production and
manufacturing modules in a company or industry. It
utilizes the resource allocation of activities of
employees, materials and production capacity, in order
to serve different customers.
Some of the important functions of production planning and
control are listed in following :
Production Planning and Control

14. 1. Materials Function:
Raw materials, finished parts and bought out components should be made available in
required quantities and at required time to ensure the correct start and end for each
operation resulting in uninterrupted production. The function includes the specification
of materials (quality & quantity) delivery dates, variety reduction (standardisation)
procurement and make or buy decisions.
2. Machines and Equipment:
This function is related with the detailed analysis of available production facilities,
equipment down time, maintenance policy procedure and schedules. Concerned with
economy of jigs and fixtures, equipment availability. Thus the duties include the analysis
of facilities and making their availability with minimum down time because of
breakdowns.
3. Methods:
This function is concerned with the analysis of alternatives and selection of the best
method with due consideration to constraints imposed. Developing specifications for
processes is an important aspect of PPC and determination of sequence of Operations.

15. (a) Fixation of path of travel giving due consideration
to layout.
(b) Breaking don of operations to define each
operation in detail.
(c) Deciding the set up time and process time for each
operation.
4. Process Planning (Routing):
It is concerned with selection of path or route which the raw should follow to get
transformed in to finished product.
The duties include:

16. 5. Estimating:
Once the overall method and sequence of operations is fixed and process sheet for each operation is
available, then the operations times are estimated. This function is carried out using extensive analysis of
operations along with methods and routing and standard times for operation are established using work
measurement techniques.
6. Loadingand Scheduling:
Scheduling is concerned with preparation of machine loads and fixation of Starting and completion dates for
each of the operations. Machines have to be loaded according to their capability of performing the given task
and according to their capacity.
7. Dispatching:
This is the execution phase of planning. It is the process of setting production activities in motion through
release of orders and instructions. It authorises the start of Production activities by releasing materials,
components, tools, fixtures and instruction sheets to the operator.
The activities involved are:
(a) To assign definite work to definite machines, work centres and men.
(b) To issue required materials from stores.
(c) To issue jigs, fixtures and make them available at correct point of use.
(d) Release necessary work orders, time tickets etc. to authorise timely start of operations.
(e) To record start and finish time of each job on each machine or by each man.

17. 8. Expediting:
This is the control tool that keeps a close observation on the progress of the work. It is a logical step after
dispatching which is called “follow-up” or “Progress”. It co-ordinates extensively to execute the production plan.
Progressing function can be divided in to three parts, i.e. follow up of materials, follow up of work in process and
follow up of assembly.
The dutiesinclude:
1. Identification of bottlenecks and delays and interruptions because of which the production schedule may be
disrupted.
2. To devise action plans (remedies) for correct the errors.
3 To see that production rate is in line with schedule.
9. Inspection:
It is a measure control tool. Though the aspects of quality control are the separate function, this is of very much
important to PPC both for the execution of the current plans and in scope for future planning. This forms the
basis for knowing the limitations with respects to methods, processes etc. which is very much useful for
evaluation phase.
10. Evaluation:
This stage though neglected is a crucial to the improvement of productive efficiency. A thorough analysis of all
the factors influencing the production planning and control helps to identify the weak spots and the corrective
action with respect to preplanning and planning will be effected by a feed back. The success of this step
depends on the communication, Data and information gathering and analysis.