Production management involves planning, organizing, directing, and controlling production activities to ensure goods and services are produced according to specifications, in the required amounts and on schedule, at minimum cost. The objectives of production management are to produce quality products at the estimated manufacturing cost and minimum resource use, and to maximize resource utilization. Key functions include selection of products/designs, production processes, capacity, and planning and controlling production, quality, costs, and inventories. Plant layout and location factors must also be considered to optimize efficiency and productivity.

1. PRODUCTION MANAGEMENT

2. Meaning & Definition
 Production management means planning,
organizing, directing and controlling of
production activities.
 According to Elwood Spencer Buffa,
"Production management deals with decision-
making related to production processes so that
the resulting goods or service is produced
according to specification, in the amount and
by the schedule demanded and at minimum
cost."

3. Objectives
 To produce goods and services as per the
estimated manufacturing cost and minimum inputs
of resources.
 To produce right quality goods and services as per
the established standards and specifications.
 To produce goods and services as per the decided
time schedule.
 Minimize the use of resources to the optimum
level. These are 4 M's :- like Machinery, Materials,
Manpower and Money. These inputs are to be
used to full extent to result minimum cost, quality
and time.
 Maximize the utilization of manpower.
 Minimizing the total cost of production with
continuous elimination of non-value added

4. Functions
1. Selection of Product and Design
Care must be taken while selecting the product and design
because the survival and success of the company depend on
it.
2. Selection of Production Process
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.
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.
 Scheduling means to decide when to start and when to

5. Functions
5. Production Control
 Production management also includes production
control. The manager has to monitor and control the
production.
6. Quality and 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.
7. Inventory Control
 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.
8. Maintenance and Replacement of Machines
 Production management ensures proper maintenance

6. Plant Layout
 Plant Layout is the physical arrangement of
equipment and facilities within a Plant.
 Optimizing the Layout of a Plant can improve
productivity, safety and quality of Products.
 Un-necessary efforts of materials handling can
be avoided when the Plant Layout is
optimized.

7. Types of Plant Layout
 Product Layout
 Process Layout

8. Product Layout
 Product layouts are used to achieve a smooth and
rapid flow of large volumes of products or customers
through a system.
 A job is divided into a series of standardized tasks,
permitting specialization of both labor and equipment.
 The large volumes handled by these systems usually
make it economical to invest huge amount of money in
equipment and job design.
 Operations are arranged in the sequence required to
make the product. For instance, if a portion of a
manufacturing operation required the sequence of
cutting, polishing, and painting, the appropriate pieces
of equipment would be arranged in that sequence.

9. Product Layout

10. Product Layout
Advantage
 The flow of product will be smooth and logical in flow
lines.
 Simplified production planning and control systems are
possible.
 Reduced material handling cost due to mechanized
handling systems and straight flow.
 Manufacturing cycle is short due to uninterrupted flow of
materials.
Limitations
 A breakdown of one machine in a product line may
cause stoppages of machines in the downstream of the
line.
 Comparatively high investment in equipments is

11. Process Layout
 Used when the operations system must
handle a wide variety of products in
relatively small volumes.
 The layouts include departments or other
functional groupings in which similar kinds
of activities are performed.
 A manufacturing example of a process
layout is the machine shop, which has
separate departments for milling, grinding,
drilling, and so on.

12. Process Layout

13. Process Layout
Advantages:
 In process layout machines are better utilized and fewer
machines are required.
 Flexibility of equipment and personnel is possible in process
layout.
 The diversity of tasks and variety of job makes the job
challenging and interesting.
 Supervisors will become highly knowledgeable about the
functions under their department.
Limitations:
 Backtracking and long movements may occur in the handling of
materials thus, reducing material handling efficiency.
 Material handling cannot be mechanized which adds to cost.
 Lowered productivity due to number of set-ups.
 Throughput (time gap between in and out in the process) time is

14. Factors of Layout
 Maximum flexibility: A good layout will be one which
can be rapidly modified to meet changing
circumstances.
 Maximum co-ordination: Entry into, and disposal
from, any
department or functional area should be in such a
manner that it is must convenient to the issuing or
receiving departments.
 Maximum use of volume: In offices, racking can be
installed to minimize use of floor space.
 Maximum visibility: All the people and materials

15. Factors of Layout
 Maximum accessibility: All servicing and maintenance points
should be readily accessible. For example, equipment
should not be placed against a wall in such a manner that
necessary maintenance cannot easily be carried out.
 Minimum distance: All movements should be both necessary
and Direct
 Minimum handling: The best handling of material and
information is no handling, but where it is unavoidable it
should be reduced to a minimum by the use of whatever
devices are most appropriate.
 Minimum discomfort: poor lighting, excessive sunlight, heat,
noise, vibration and smells should be minimized and if
possible counteracted.
 Inherent safety
 Maximum security
 Efficient process flow

16. Plant Location
 Plant location meaning - the establishment of
an industry at a particular place.
 The fundamental object of location analysis is
to maximize the profits by minimizing the total
cost of production associated with the
production process.

17. Factors of Plant Location
 Proximity to market: Organization may choose to
locate facilities close to their market.
 Integration with other parts of the organisation
 Availability of labor and skills
 Availability of transport
 Availability of inputs.
 Availability of services: Gas, Electricity, Water,
Drainage, Disposal of waste, Communications
 Suitability of land and climate. The geology of the
area needs to be considered, together with the
climate conditions.

18. Factors of Plant Location
 Regional regulations: It is important to check at
an early stage that the proposed location does
not violate any local regulations.
 Space for expansions
 Safety requirements:
 Land cost
 Political, cultural and economics situation
 Special grants, regional taxes and
import/export barriers