The document provides an overview of production management, emphasizing its role in efficiently producing goods and services while maintaining quality and cost-effectiveness. It discusses key concepts such as work process flow, routing diagrams, work simplification, production costing, and occupational safety and health. Practical exercises are included to demonstrate production management principles through hands-on activities.

1. SESSION 5:
PRODUCTION
MANAGEMENT
Business and Work Improvement Course

2. Definitions of Production Management
An area of business that is concerned with
the production of good quality goods and
services, and involves the responsibility of
ensuring that business operations are
efficient and effective

3. Definitions of Production Management
the field of study that focuses on the
effective planning, scheduling, use,
and control of a manufacturing or
service organization

4. Definitions of Production Management
Production of goods and services,
the set of value-added activities that
transform inputs into outputs.

5. Definitions of Production Management
The production process consist of activities which ensure
that the product is made and delivered on time, at the right
quality, and at reduced cost to earn
INPUT
TRANSFORMATION
PROCESS OUTPUT

6. Objectives of Production Management
Right Quality
Right Quantity
Right Time
Right Manufacturing Cost

7. Simply
put…

8. Managing the 7Ms of Production
Money
Manpower
Materials
Machine
Method
Message
Moment

9. EXERCISE 1
LET’S PLAY
THE
ENVELOPE GAME

10. RULES OF THE GAME
Each group to manufacture mailing
envelops
Each group will have to buy materials
from the store. Capital to be given is
P300.00
Trainer facilitators will designate buyers

11. RULES OF THE GAME
Each group will negotiate with the buyers
on the terms and specifications of purchase
Negotiation time: 10 minutes
Discuss among yourselves on how to
produce the envelops based on the buyers
specifications
Discussion time: 10 minutes

12. You are given 30 minutes to produce the
required envelopes per buyer’s specifications
Another 10 minutes to deliver the envelopes to
the buyer
The whole game should be done in 1 hour.
RULES OF THE GAME

13. Cost of Raw Materials
Materials Costs
Bond paper P1.00/pc
Scissors/Cutter P15.00/pc
Ruler P5.00/pc
Paste/Glue P15.00/pc
Crayons P10.00/box
Pencil P5.00/pc
Rent for chair P20.00 each
Rent for table P20.00 each

14. EXERCISE 1
SECOND
ROUND

15. CRITICAL AREAS IN
PRODUCTION
MANAGEMENT

16. 1. Work Process Flow
Tracing the manufacturing or
production processes to pinpoint
actions that can be eliminated,
combined or rearranged to attain
efficiency and economy

17. 1. Work Process Flow
This is used when you want to:
Be familiar with the manufacturing process
Improve the manufacturing process
Sell improvements in manufacturing process
Identify production bottlenecks

18. 1. Work Process Flow
FLOW CHART SYMBOLS
Task or operations
Decision Points
Storage areas or queues
Flow of materials or
customers

19. Process Flow Diagram for Bread-
Making with Two Parallel Baking
Lines
Pack
Finished
goods
Mix
Mix Proof
Proof
Bake
Bake
Raw
materials
Work in
Process

20. Process Flow Diagram for Bread-
Making with Two-Mixers, Proofers
and Oven
Pack
Finished
goods
Mix
Mix Proof
Proof
Bake
Bake
Raw
materials
Work in
Process

21. Example of a
Flow Chart
KILN DRYING
CROSS CUTTING
RIPPING
BAND SAWING
SURFACE &
THICKNESS
PLANNING
FOUR SIDE
MOULDING
TRIM SAWING
MORTISING, BORING,
MOULDING, ROUTING
SANDING
TIMBER
YARD

22. 2. ROUTING DIAGRAM
Is a plant or work place layout
showing the exact location of
machines, work stations, service
facilities by tracing the paths as
they move through the area

23. Exercise: Improve the Situation
A A A
B B B
C
A
S
T
I
N
G
S
E
C
T
I
O
N
W
A
R
E
H
O
U
S
E
I N S P E C T I O N
I N S P E C T I O N

24. Improved Situation
A A A
B B B
I N S P E C T I O N I N S P E C T I O N
C
A
S
T
I
N
G
S
E
C
T
I
O
N
W
A
R
E
H
O
U
S
E

25. Packaging
Oven
Oven
Table
Table
Mol
der
Divi
der
Fermentation
Dough
Mixer
Dough
Mixer
Refrigerator
Cooling Area
Weighing Area
Incoming Raw Materials &
Staff Entrance
Store
Returns
WC
WC
EXISTING
BAKERY
LAYOUT
Staff Room
Exercise: Improve the Situation

26. Packaging
Oven
Oven
Table
Table
Mol
der
Divi
der
Fermentation
Dough
Mixer
Dough
Mixer
WC
Refrigerator
Staff Entrance
Cooling Area
Weighing Area
Incoming Raw Materials
WC
Store
Returns
Staff Room
IMPROVED
BAKERY
LAYOUT
Improved Situation

27. 3. WORK SIMPLIFICATION
Is the systematic use of
common sense to make
work easier, cheaper and
quicker

28. Going through work
simplification…
Select the job to be improved
Break down the job in detail
Question every detail
Develop the new method
Apply the new method

29. 4. PRODUCTION
COSTING
Different types of costs in your
shop operation:
Start-up costs
Direct costs
Operating costs

30. 5. TIME AND MOTION
STUDY
also called work
measurement. It is essential
for both planning and
control of operations

31. 6. OCCUPATIONAL SAFETY
AND HEALTH
Occupational safety and health
covers a number of concerns that
aim to promote the highest degree
of physical, mental and social well-
being of workers in all occupations

32. Safety and Health
This include:
Prevention of unhealthful conditions
Protection from risks
Maintenance of an occupational
environment adapted to the worker’s
physiological and psychological equipment

33. Safety and Health
Occupational Safety refers to the
physical or environmental
condition of work or employment,
which must comply with certain
standards

34. Safety and Health
Occupational Health refers to the
degree of adaptation between work
and worker. Work involves three (3)
interacting elements, which must be
suitable to one another: the worker,
the work process (including materials
and equipment) and the product

35. Safety and Health
Occupational Accident refers to an
unexpected and unplanned
occurrence, including acts of
violence arising out of or in
connection with work which results
in one or more workers incurring a
personal injury, disease or death

36. Safety and Health
Occupational Injury refers to any
personal injury, disease or death resulting
from an occupational accident
Occupational Disease refers to a disease
contracted as a result of an exposure over
a period of time to risk factors such as
chemicals

37. OSH and productivity and
income…
Health is the middle factor
between work and productivity
WORK HEALTH PRODUCTIVITY

38. People working
in a safe and
healthy workplace
are…
Productive Competitive
Efficient

39. Is free from unsafe
conditions
A safe and healthy
workplace

40. 3Ds of Unsafe Work Conditions
DIRTY DIFFICULT
DANGEROUS
SITUATIONS

41. Dirty
Some Signs/Indicators:
 Cluttered shop floor/ poor housekeeping
 Disorganized arrangement of materials/
equipment
 Piles of trash/ scrap materials
 Presence of leaks, dust, cobwebs
 Absence of proper disposal system
 Impression of disorderliness/ confusion

42.  Illumination
 Ventilation
 Thermal Condition
 Material Storage and Handling
 Work Position/ Posture
 Communication due to loud noise
 Sanitary Facilities
42
Difficult
Some Signs/Indicators:
 Narrow/ obstructed aisles or passageways
 Inadequate space

43. Dangerous
Some Signs/Indicators:  Emergency exits
 Fire extinguishers
 Machine guards
 Safety signages
 Personal protective equipment
 Qualified first aider
 First aid medicines/ equipment
 Health and safety program/
policies

44. THANK YOU!