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Production management PRODUCTION MANAGEMENT DEFINITION  Means planning, organizing, directing and controlling of production activities  Deals with converting.

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Presentation on theme: "Production management PRODUCTION MANAGEMENT DEFINITION  Means planning, organizing, directing and controlling of production activities  Deals with converting."— Presentation transcript:

1 Production management PRODUCTION MANAGEMENT DEFINITION  Means planning, organizing, directing and controlling of production activities  Deals with converting raw materials into finished goods/products  Brings together 6Ms (men, money, machines, materials, methods and markets) to satisfy the wants of people  Main objective= produce goods at right quality, quantity, time and at minimum cost

2 Production management PRODUCTION MANAGEMENT IMPORTANCE  Accomplishment of firm’s objective  Reputation, goodwill and image  Helps to introduce new products  Supports other functional areas  Helps to face competition  Minimises cost of production  Expansion of firm

3 Production management PRODUCTION MANAGEMENT MASS PRODUCTION  Method of producing goods in large quantities at low cost per unit  Does not means low quality  Standardized by means of precision-manufactured, interchangeable parts  Allows a manufacturer to produce more per worker-hour and to lower the labour cost of the end product (which allows products to be sold at lower price)

4 Production management PRODUCTION MANAGEMENT MASS PRODUCTION  Try to achieve volume, elaborate organization of materials, careful supervision of quality standards and minute division of labour  Mass production= mass consumption  Mass production causes trend in using international division of labour (exports of raw materials from overseas)  OUTSOURCING- having parts made or whole products assembled in developing nations

5 Production management PRODUCTION MANAGEMENT MASS PRODUCTION  Mass production began during the Industrial Revolution with the innovation of assembly line, a conveyor that moved the product from one workman to another  Assembly lines brought a great decrease in time to a finished product  But, mass production led to increased incidence of repetitive stress syndrome (due to repetitive work process), less skills and less manufacturing jobs

6 Production management PRODUCTION MANAGEMENT BATCH PRODUCTION  Instead of manufacturing items singly or by continuous production, items are manufactured in groups/batches  A specific process for each item takes place at the same time on a batch of items and that group does not move onto the next stage of production until the whole batch is done  Sometimes, this type of production is necessary when a manufacturer is producing similar things, but with variants

7 Production management PRODUCTION MANAGEMENT SINGLE/ONE-OFF PRODUCTION  A single product is designed and made to a client’s specification  This is when only one product is made at a particular time  This can be a prototype, a one-off product or a hand-made object  Labour and material costs are high and a high level of design and manufacturing skills are needed

8 Production management PRODUCTION MANAGEMENT Application of production planning  The function of a manufacturing enterprise is to be responsible for efficient planning, scheduling and coordination of all production activities  Planning= forecasting demand  Scheduling= plan is translated into schedule of production process  Coordinating= actual product output is compared with scheduled product output

9 Production management PRODUCTION MANAGEMENT Application of production planning  By definition, production planning models include decisions on production and inventory quantities  There might be resource acquisition and allocation decision (such as adding to work force and training of current staff)  Production planning is usually done at an aggregate level for both products and resources  Distinct but similar products are combined in order to reduce complexity

10 Production management PRODUCTION MANAGEMENT Application of production planning  Advantages of an effective production plan and scheduling: 1)Reduces labour by eliminating wasted time and improving process flow 2)Reducing inventory costs 3)Optimizes equipment usage and maximizes capacity 4)Utilizes human resources to full potential 5)Improves on-time deliveries of products/services

11 Production management PRODUCTION MANAGEMENT Application of production planning  Key factors of a production plan: 1)Forecast market expectations 2)Availability of equipment and human resources 3)Standardized steps and time 4)Risk factors

12 Production management PRODUCTION MANAGEMENT Application of production planning  HOW DO PLAN WORKS: 1)Material ordering 2)Equipment procurement 3)Bottlenecks 4)Human resources acquisitions and training


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