Laljibhai Chaturbhai Institute of Technology. Bhandu Affiliated to Gujarat Technological University, Ahmadabad Sub: Engineering Economics & Management B. E. Semester III Year Laljibhai Chaturbhai Institute of Technology –Bhandu Ta: Visnagar, Dist: Mehsana. (N.G.) Pin: Ph:

Production Management Production management is the process, which combines and transforms various resources used in the production/operations subsystem of the organization into value added product/services in a controlled manner as per the policies of the organization. 2

Objectives 1. Right quality 2. Right quantity 3. Right time 4. Right manufacturing cost 3

4 It refers to the choice of region and selection of a particular site for setting up a business or a factory. But the choice is made only after considering cost and benefits of different alternative sites. Plant location must be selected properly by entrepreneurs while planning to set up their business units. While taking such a decision, they must consider some important factors. Plant Location

Factors affecting Plant Location Law and order situation Availability of infrastructure facilities Good industrial relations Availability of skilled workforce Social infrastructure Nearness to market Investor friendly attitude Nearness to supporting industries Must meet safety requirements Miscellaneous factors 5

Plant Layout: 6 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.

Product (Assembly Line) Layout 7 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 Product (Assembly Line) Layout

Process Layout or Functional Layout Used when the operations system must handle a wide variety of products in relatively small volumes (i.e., flexibility is necessary) Designed to facilitate processing items or providing services that present a variety of processing requirements. 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. 8

Fixed-Position- Location Layouts In fixed-position layouts, the materials or major components remain in a fixed position, and workers, materials, and equipment are moved as needed. Fixed-position layout is used when product is very bulky, heavy or fragile

Factors affecting Plan layout:- Climate Nature of the product Volume of production Nature of machines Nature of material Type of machine Human factor and working conditions Characteristics of the building Nature of plant location Types of methods of production

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