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PRODUCTION MANAGEMENT

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Presentation on theme: "PRODUCTION MANAGEMENT"— Presentation transcript:

1 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
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
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
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
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
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
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
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
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
Application of production planning Advantages of an effective production plan and scheduling: Reduces labour by eliminating wasted time and improving process flow Reducing inventory costs Optimizes equipment usage and maximizes capacity Utilizes human resources to full potential Improves on-time deliveries of products/services

11 PRODUCTION MANAGEMENT
Application of production planning Key factors of a production plan: Forecast market expectations Availability of equipment and human resources Standardized steps and time Risk factors

12 PRODUCTION MANAGEMENT
Application of production planning HOW DO PLAN WORKS: Material ordering Equipment procurement Bottlenecks Human resources acquisitions and training


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