Production management involves planning, organizing, and controlling activities related to converting raw materials into finished goods. It includes functions like product selection, process planning, facility location, capacity planning, production planning and control, inventory control, quality control, and maintenance. The key aspects of production management are selecting the right production process, maintaining optimal inventory levels, and efficiently planning production activities to meet demand while minimizing costs.

1. By ROHIL

2.  Production:-Production is the method of turning
raw materials or inputs into finished goods or
products in manufacturing process.
 Production Management is the process of
managing all the activities related to the
development of products or services. It includes
planning, executing and directing operations to
convert raw materials into finished goods or
services.
 Production management is the application of
management principles ( planning, organizing,
directing and controlling) into production.

3. 1. Product selection and Design.
2. Process selection and planning.
3. Facilities location.
4. Process layout and material handling.
5. Capacity planning.
6. Production planning.
7. Production control.
8. Inventory control.
9. Quality control.
10. Maintenance and replacement.
11. Cost reduction and control.

4. Product selection:-Choosing the right products, keeping the mission and
overall objectives of the organization in mind are the key to success.
Process selection and planning:-
The ways organizations choose to produce or provide their goods and
services.
It involves choice of technology, type of processing and so on.
Facility Location is the right location for the manufacturing facility, it will
have sufficient access to the customers, workers, transportation, etc.
Process layout and material handling:-Plant layout deals with the
arrangements of machines and plant facilities. The machines should so
arrange that the flow of production remains smooth. There should not be
overlapping, duplication or interruption in the production flow.
Capacity planning :-. capacity planning is the process of determining the
production capacity needed by an organisation to meet changing demands for
its products.

5. Inventory control:- Inventory control deals with the control over raw
materials, work-in-progress, finished products, stores, supplies, tools, and so
are included in production management. The raw materials, supplies, etc.
should purchase at the right time, of the right quality, in the right quantity,
from the right source, and at the right price.
Quality control involves testing units and determining if they are within the
specifications for the final product.
Maintenance and replacement:- Maintenance is an effort directed towards
the proper up keep and repair of machine, equipment and other plant
facilities.
Cost reduction and control:- Cost reduction is about lowering the cost per
unit by implementing new production methods

6.  Material management:- Material management is defined as the approach
for planning, organizing and controlling all activities related to the flow of
material in the organization.
 Materials are classified in two categories:-
 Direct materials (raw material directly used in production).
 Indirect materials(all other material).

7. A. Raw material
B. Equipment/machinery/tools and their spare
parts
C. IT assets ( computer, laptop, printer,
scanner, barcode, reader)
D. Personnel protective equipment(PPE) e.g.
safety shoes, helmet, safety belts, gloves,
goggles etc.

8.  Right quality
 Right quantity
 Right price
 Right time
 Right source

9. i. To select the right quality
ii. To meet the production requirement
iii. Purchasing at reasonable price
iv. Selection of supplier
v. Limit the wastage
vi. Product enhancement
vii. Standardization process

10.  Material requirement planning
 Purchasing
 Transport
 Stores

11. o Which type of material is required.
o When it is required.
o Quantity required.
o Carefully planned materials requirement to
avoid any disruption in the production.
o Define minimum level of requirement that
should present all the time.
o Just in time (JIT), acquire the material as and
when needed to reduce storage cost.

12.  Purchasing
 Purchase of material required with
 Right quality
 Right quantity
 Right price
 Right time
 Right source
 Finding the trusted seller or vendor is a
difficult task.
 Maintain close contact with approved
suppliers.

13.  Transport
1. Shipping of purchased material from supplier to a
company’s warehouse of or the location where it is
required to be used.
2. Carefully handle the material during transportation
to avoid damage and loss of them.
 Storage
1. Store design
2. Placing of shipped items at their designated places
3. Carefully handle the materials while unloading
4. Maintain record of stored items with their shelf life

14. i. Material handling is a activity that involves
movement of material or products within
organization from one place to another
place or flow of materials or products to
vehicles or from vehicles.
ii. Material handling is a art and science of
moving, packing, and storing of material in
appropriate and suitable location.

15. i. Movement from store room to shipping
yard.
ii. Material can be raw material, semi finished,
finished goods, packing material, waste,
maintenance and repair supplies etc.
iii. It contributed 20-30% of the cost of the
product.
iv. Material handling ensure increased safety
from permanent and temporary disability.
Avoiding workplace accidents.

16.  Material should be moved as little as possible
 Reduction in time by using shortest routers and
mechanical material handling
 The material movement should be in lots rather
than in individual units
 Design of material handling equipment should be
such that it can increase the effectiveness
 Periodically repairing, maintenance and checking
of existing material handling equipment

18.  Efficient and safe movement of material to
the desired place.
 Timely movement of the material when
needed.
 Supply of material at the desired rate.
 Storing of materials utilizing minimum space.

19.  Production problem
 Human element involved
 Capabilities of the handling equipment available
 Production Problem:
A. Volume of Production to be maintained
B. Layout of plant & building facilities
C. Class of materials to be handled
 Human Factors
a) Capabilities of manpower
b) Safety of Personnel

20.  Flexibility
 Adaptability
 Load capacity
 Space requirement
 Speed
 Supervision required
 Ease of maintainance
 Power
 Cost
 Envioronment

21.  Conveyers
 Cranes, Elevators and hoists
 Industrial trucks
 Auxiliary equipments

22. Gravity or powered devices. Used for moving
loads from one point to point over fixed paths.

23.  These are overhead devices used for moving
varying loads intermittently between points
within an area.

24.  May be electric, gasoline, gas powered, deisel

25.  Transportation refers to the movement of
product from one location to another as it
makes its way from the beginning of supply
chain to the customer.
 Transportation is an important supply chain
driver because products are rarely produced
and consumed in the same location.

26. 1) Railway
2) Road transport
3) Air transport
4) water carrier
5) Pipeline

27. 1. Capable of carrying a wide variety of products, much
more so that other modes.
2. Very small number of carriers; likely only one will be
able to serve any one customer location.
3. Rail is long haul, large volume system
4. Speedy
5. safety
Disadvantages :-
 Cost and maintenance
 Inconvenience
 Expensive than road transport
 Mechanical failure or industrial an disrupt services
 Adding costs and affecting delivery schedules

28.  Advantage:-
 Door to door transport
 Suitable for short distance
 Less expensive
 Disadvantages:-
1. Long distances overland can take more time
2. Traffic delays and breakdown
3. Risk of goods being damaged
4. Toll charges are high in some countries
5. Different road and traffic regulation

29. Advantages :-
1. Speed and frequency
2. Less packing required
3. High levels of security for sensitive items
4. Wide range of goods.
 Disadvantages:-
1. Air Transport can involve higher costs than
other options, and is not suitable for all goods.
2. Fuel and currency surcharges will be added to
freight costs.
3. Pay taxes at each airport you use
Flights are subject to delay or cancellation
4. Further transportation may be needed.

30.  Advantages :-
1. Shipping containers can also be used for
further transportation by road or rail.
2. Ship can carry large volumes at low costs.
 Disadvantages:-
A. Limited to certain geographic areas.
B. Routes and timetables are usually inflexible.
C. Tracking your goods progress is difficult.
D. To pay port duties and taxes
E. Further transportation overland.

31.  Advantages:-
1. They are ideally suited to transport the liquid
and gases.
2. It involves very low energy consumption.
3. It needs very little maintenance.
4. Pipelines are safe, accident free and
environmental friendly.
 Disadvantages:-
1. It is not flexible.
2. Its capacity cannot be changed.
3. It is difficult to make security arrangements for
pipelines.
4. Maintenance difficult.

32. Inventory :-
 Inventory is a list for goods and materials or
those goods and material themselves, held
available in stock by a business.
 Inventory means goods you are handling for the
purpose of selling for profits.
 What kinds of inventory company has:
1. Raw materials
2. Stock( to handle surge in demands)
3. Finished goods
4. Unfinished goods ( goods in process)
5. Spares (parts of equipment)
6. Merchandise (company buy goods for resale)

33.  Inventory management is defined as the process
of ordering, storing, consuming and selling
company’s inventory.
 Inventory management is the core element of
supply chain management because it helps to
track the inventory from raw materials to
production, production to warehouse, and from
warehouse to point of sale.
 Inventory management helps to identify what to
order, when to order, how much to order and
where to store the order.
 Inventory management ensures continuity of
supplies during shortages.

34. 1. Posting right products in the right place at
the right time.
2. Effectively balance the inventory coming-in
and going out
3. Better address customer demands.
4. It improves cash flow
5. It helps to save money while over stocking
the less demands products.
6. Effective inventory management avoids risk
of spoilage, damage.

35.  Inventory control is defined as the process of
maintain company’s stock at optimum level
to meet customer demands with minimum
inventory costs.
 Inventory control helps in continuity of
supplies during shortages
 Inventory control maintain balance between
out of stock and over stock.

36. i. Maintain company’s stock to meet customer
demands.
ii. To minimize inventory cost ( ordering cost, carry
cost, shortage cost)
iii. To ensure continuity of production and
distribution.
Importance of inventory control :-
i. It helps to achieve customer satisfaction.
ii. It helps to segregate best selling items and poor
selling items. Increase stock of best selling items,
decrease the stock of poor selling items.
iii. It ensure cash flow.
iv. It ensure better warehouse space utilization.
v. It helps better human resource utilization

37.  Inventory control means strike a balance between
out of stock and over stock.
 Out of stock :-
• Financial loss :- Production stop due
unavailability of raw material, increase fixed cost
due to non using of human resource.
• Non financial lost :- Reputational loss, not
meeting customer expectations or demands, loss
of customer.
 Over stock
• Financial lost :- carrying cost increased, No cash
flow, no space to stock other items, cost of
product expiration etc.

38. 1. ABC analysis
2. Fast Slow Non Moving (FSN)
3. High medium low cost (HML)
4. Vital essential desirable (VED)

39.  ABC analysis is an inventory control technique used for
categorization or classification of inventory based on the
inventory’s value, sales volume, demand, profitability.
 Inventory is classified into three classes class- A, class-B,
class-C.
 Class-A :- Most important items, having high 70%
financial value, 10% in numbers. Tighter control and high
accuracy of records is required to handle class-A items.
 Company’s financial depends on class-A items.
 Class-B :- Items in class-B having 20% value, and 20% in
numbers. Moderate control is required to handle such
items.
 Class-C :- Least important items, having 10% financial
value 70% in numbers. Less attention is required to handle
such items.

40. Based on the frequency of usage or turnover.
1. Fast moving :- High turnover or high
frequency of usage. Continuous control and
regular monitoring is required.
2. Slow moving :- Items having low turnover or
frequency of usage. Periodic monitoring
required.
3. Non-Moving :- dead stock, total loss. Need
disposal to create space for new inventory.

41. Based on the cost per unit
A. High cost ;- High cost items are grouped in
this category. Continuous control and
regular monitoring is required.
B. Medium cost :- Items having medium cost
are grouped in this category. Periodic
monitoring is required.
C. Low cost:- Items having medium cost are
grouped in this category. Items having low
cost need less attention.

42. Based on the critically of requirement for
production
 Vital :- No production except this item.
Continuous or frequent control and regular
monitoring is required.
 Essential :- Important but not critical. Less
important that vital. Periodic monitoring is
required.
 Desirable:- It is good if this material is
available but if not available no effect on
production. Need less attention.