Aim - Customer satisfaction at optimum cost. PRODUCTION MANAGMENT

What is Production Management?  Production management means planning, organising, directing and controlling of production activities.

 Production management deals with converting raw materials into finished goods or products. It brings together the 6M's i.e. men, money, machines, materials, methods and markets to satisfy the wants of the people.

OBJECTIVE OF PRODUCTION MANAGEMENT 1. RIGHT QUALITY. 2. RIGHT QUANTITY. 3. PREDETERMINED TIME. 4. PRE-ESTABLISHED COST. Other objectives are : 1. Machinery and Equipment. 2. Materials. 3. Manpower. 4. Supporting Service.

5 P`s of Production Management 1. PRODUCTS. 2. PLANT. 3. PROCESS. 4. PROGRMS. 5. PEOPLE.  When this five element integrated a successful production management takes place.

FUNCTIONS OF PRODUCTION MANAGMENT  Material Function  Machine & Equipment  Methods  Routing  Estimating  Scheduling  Dispatching  Expediting  Inspection  Evaluation

P RODUCTION P LANNING & C ONTROL (PPC)  PPC is the powerful tool available to the mgmt. to achieve the stated objective. Production planning starts with the analysis of data like demand & delivery schedule etc. & the basis of information available and resources like machine, material & men.  So, PPC is the process of directing & coordinating of firms resources towards attaining prefixed goal.

 Plant location is a strategic decision of the management.  The selection of site is very important for starting the industry. PLANT LOCATION

7 factors to consider in Determining location 1. Available Labor : availability, skill, training facilities. 2.Transportation: rail, road, air travel, Pipelines ect…. 3.Markets: locate near your customers to minimize transport cost.

4.Power Supply and Water: manufacturers require large amounts of power and water. 5.Raw Materials: In order to reduce transport costs, factories located close to the stuff they make there products with. 6.Site: Must be large amounts of land. 7.Government: government taxes, and grants available.

Plant Layout  P lant layout is the physical arrangement of industrial facilities. It involves the allocation of space & the arrangement of equipment in such a manner that overall operating costs are minimized. DD DD GG GG GG MM MM MM AA AA L LL LL LL L

Objectives of a good Layout Provide enough production capacity. Reduces handling costs. Reduces congestion. Reduces hazards to personnel. Utilizes labour efficiently. Increase employee morale. Reduce accidents. Improve productivity. Provide for volume and product facility. Provide ease for supervision. Facilitate co-ordination communication. Provide safety and health. Allow ease of maintenance. Allow high machine/equipment utilization.

Factors affecting plant layout 1.Nature of product- e.g. some products need air-conditioned plants. 2.Size of output-  For bulk-product/line layout  For small-functional layout 3.Nature of manufacturing system-  For intermittent-functional layout  For continuous-product/line layout 4.Localization of plant- e.g. there will be different transportation arrangement if site is located near railway line. 5.Machines or equipment- e.g. heavy machines need stationary layout 6.Climatic conditions, need of light, temperature also affect design of layout.

Types of layout  Process layout or functional or job shop layout.  Product layout or line processing layout.  Fixed position layout or static layout.  Cellular manufacturing layout or Group Technology layout.  Combination layout or Hybrid layout.

Process layout  L ayout that can handle varied processing requirements.  Here all machines performing similar type of operations are grouped together at one location in the process layout. Thus here facilities are grouped together acc. To their functions. E.g. all drilling machines are located at one place known as drilling section.

Process Layout or Functional Layout Inward good stores Planers AutomaticsGrinders Packing and Shipping Milling machines Central inspection Area Heat treatment shop Raw Material holding stores Drilling shopAssembly Finished goods storage Electro plating shop Training Shop (Lathes) Painting shop

Advantages Handle a variety of processing requirements Not vulnerable to equipment failures General-purpose equipment is less costly and is easier and less costly to maintain Possible to use individual incentive systems Scope for expansion as the capacity can be easily increased. Greater flexibility. Disadvantages Difficulty in the movement of material. Requires more space. Difficult in production control. More production time as work in progress has to travel from place to place. Accumulation of work in progress at different places.

 T he product layout involves the arrangement of machines in one line, depending upon the sequence of operations. Material are fed into the first machine and finished products come out of the last machine.  In between, partly finished goods travel automatically, from machine to machine, the output of one machine becoming the input for the next. Product Layout (Straight Line)

‘Product’ Plant Layout

Advantages  Economy in manufacturing time.  Better production control.  Require less floor area per unit of production.  Work-in-progress is reduced and so on investment.  Early detection of mistakes.  Greater incentive to a group of workers to raise their level of performance. Disadvantages  Product layout is known for its inflexibility.  This is an expensive layout.  Difficulty in supervision.  Expansion is also difficult.  Breakdown can disrupt the whole system.

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