Presented by
N.Muthuraja
What is Production
management?
• Production management is the process of effectively
planning and regulating the operations of that part of an
enterprise which is responsible for the actual
transformation of materials into finished products.
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.
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.
SCOPE & ACTIVITIES OF
PM
• There are two types of scope & activities of PM :
• 1. Strategic level.
• (a) Design & development of new product.
• (b) Process design & Planning
• (c) Facilities location & layout planning
• (d) Design of material handling
• (e) Capacity planning
• 2. Operational level.
• (a) Production Planning
• (b) Production Planning
• (c) Inventory Control
• (d) Product maintenance & replacement
• (e) Cost Control & Cost Reduction
PRODUCTION PLANNING &
CONTROL (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.
FUNCTIONS OF PPC
• 1. Material Function
• 2. Machine & Equipment
• 3. Methods
• 4. Routing
• 5. Estimating
• 6. Scheduling
• 7. Dispatching
• 8. Expediting
• 9. Inspection
• 10.Evaluation
TYPES OF PRODUCTION
• 1. BATCH PRODUCTION
• 2. MASS & FLOW PRODUCTION
• 3. PROCESS PRODUCTION
• 4. PROJECT PRODUCTION
• 5. JOBBING PRODUCTION
BATCH PRODUCTION
• Batch production is the manufacturing of limited
number of product produced at regular intervals &
stocked in warehouse as finished goods.
• Eg. Chemical , paint & motor vehicles etc.
CHARACTARISTIC OF BATCH
PRODUCTION
• 1. Short Run.
• 2. Skilled labours in specific trades
• 3. Limited span of control
• 4. General purpose machine and process type
layout
• 5. Manual material handling
• 6. Manufacturing cycle time affected due to
queues
• 7. Large WIP
• 8. Flexible production schedule
• 9. Need to have PPC.
JOBBING PRODUCTION
• Jobbing production is characterized by the manufacture
of one or few number of a single product designed and
manufactured strictly to customer’s specifications within
the given period and within the price fixed prior to the
contract.
• Eg: general repair shop, tailoring shops.
CHARACTARITIC OF JOBBING
PRODUCTION
• 1. Small production runs.
• 2. Discontinuous flow of materials.
• 3. Not proportionate manufacture cycle
time.
• 4. Highly skilled labour.
• 5. Highly competent knowledgeable
supervision.
• 6. Large WIP.
• 7. Limited function of PPC.
PROJECT PRODUCTION
• Project production is characterized by complex sets of
activities that must be performed in a particular order
within the estimated expenditure.
• Eg: construction of Roads, Buildings etc.
CHARACTARITIC OF PROJECT
PRODUCTION
• 1. Definite beginning & definite end.
• 2. Non uniform requirement of resources.
• 3. Involvement of different agencies.
• 4. Fixed position layout.
• 5. High cost overrun.
• 6. Scheduling & control.
MASS & FLOW PRODUCTION
• Mass as well as flow production are
characterized by the manufacturer of several
number of a std product and stocked in the
warehouses as finished goods awaiting sales.
The goods under mass production are
manufactured either at a single operation or a
series of operation on one machine.
• Eg: Assembly shop of automobiles, radios,
electric fans.
CHARACTARITIC OF MASS &
FLOW PRODUCTION
• 1. Continuous flow of material.
• 2. Special purpose m/c and product type
layout.
• 3. Mechanized material handling.
• 4. Low skilled labour.
• 5. Short manufacturing cycle time.
• 6. Easy supervision.
• 7. Limited WIP.
PROCESS PRODUCTION
• Process production is characterized by the manufacture
of single product produced and stocked in the
warehouses awaiting sales.
• Eg: Sugar, Steel, Paper, Cement plants.
CHARACTARITIC OF PROCESS
PRODUCTION
• 1. Special purpose m/c with built in control.
• 2. Highly mechanized material building.
• 3. Virtually zero manufacturing time.
• 4. Low skilled labor.
• 5. Highly qualified supervisors.
• 6. Negligible WIP.
• 7. Limited PPC.
WHAT IS PRODUCTIVITY ?
• Productivity is the quantitative relation between what
we produce and what we use as a source of produce
them. So, Productivity is the arithmetic ratio of output
to the amount of input.
• PRODUCTIVITY = Output / Input.
• Productivity refers to the efficiency of the production
system.
PRODUCTIVITY MEASURES
• 1. PARTIAL PRODUCTIVITY MEASURE (PPM)
• PARTIAL PRODUCTIVITY= Total output / individual input.
• (a) Labor Productivity=Total o/p / Labor input
• (b) Capital Productivity = Total o/p / Material input
• (c) Material Productivity = Total o/p / Capital input
• (d) Energy Productivity = Total o/p / Energy input.
• 2. TOTAL PRODUCTIVITY MEASURE (TPM)
• = Total tangible o/p / Total tangible i/p
• Tangible o/p= Value of FG & Partial units produced, dividend from
securities, interest, other incomes
• Tangible i/p = Value of ( human , material, capital, other inputs)
FACTORS EFFECTING
PRODUCTIVITY
• 1. PRODUCT.
• 2. PLANT &EQUIPMENT.
• 3. TECHNOLOGY.
• 4. MATERIAL & ENERGY.
• 5. HUMAN FACTOR.
• 6. WORK METHOD.
• 7. MANAGEMENT STYLE.
PRODUCTIVITY IMPROVEMENT
TECHNIQUES
• 1. TECHNOLOGY BASED
• 2. EMPLOYEE BASED.’
• 3. MATERIAL BASED.
• 4. PROCESS BASED.
• 5. PRODUCT BASED.
• 6. MANAGEMENT BASED.

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Muthuraja.ppt

  • 2. What is Production management? • Production management is the process of effectively planning and regulating the operations of that part of an enterprise which is responsible for the actual transformation of materials into finished products.
  • 3. 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.
  • 4. 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. SCOPE & ACTIVITIES OF PM • There are two types of scope & activities of PM : • 1. Strategic level. • (a) Design & development of new product. • (b) Process design & Planning • (c) Facilities location & layout planning • (d) Design of material handling • (e) Capacity planning • 2. Operational level. • (a) Production Planning • (b) Production Planning • (c) Inventory Control • (d) Product maintenance & replacement • (e) Cost Control & Cost Reduction
  • 6. PRODUCTION PLANNING & CONTROL (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.
  • 7. FUNCTIONS OF PPC • 1. Material Function • 2. Machine & Equipment • 3. Methods • 4. Routing • 5. Estimating • 6. Scheduling • 7. Dispatching • 8. Expediting • 9. Inspection • 10.Evaluation
  • 8. TYPES OF PRODUCTION • 1. BATCH PRODUCTION • 2. MASS & FLOW PRODUCTION • 3. PROCESS PRODUCTION • 4. PROJECT PRODUCTION • 5. JOBBING PRODUCTION
  • 9. BATCH PRODUCTION • Batch production is the manufacturing of limited number of product produced at regular intervals & stocked in warehouse as finished goods. • Eg. Chemical , paint & motor vehicles etc.
  • 10. CHARACTARISTIC OF BATCH PRODUCTION • 1. Short Run. • 2. Skilled labours in specific trades • 3. Limited span of control • 4. General purpose machine and process type layout • 5. Manual material handling • 6. Manufacturing cycle time affected due to queues • 7. Large WIP • 8. Flexible production schedule • 9. Need to have PPC.
  • 11. JOBBING PRODUCTION • Jobbing production is characterized by the manufacture of one or few number of a single product designed and manufactured strictly to customer’s specifications within the given period and within the price fixed prior to the contract. • Eg: general repair shop, tailoring shops.
  • 12. CHARACTARITIC OF JOBBING PRODUCTION • 1. Small production runs. • 2. Discontinuous flow of materials. • 3. Not proportionate manufacture cycle time. • 4. Highly skilled labour. • 5. Highly competent knowledgeable supervision. • 6. Large WIP. • 7. Limited function of PPC.
  • 13. PROJECT PRODUCTION • Project production is characterized by complex sets of activities that must be performed in a particular order within the estimated expenditure. • Eg: construction of Roads, Buildings etc.
  • 14. CHARACTARITIC OF PROJECT PRODUCTION • 1. Definite beginning & definite end. • 2. Non uniform requirement of resources. • 3. Involvement of different agencies. • 4. Fixed position layout. • 5. High cost overrun. • 6. Scheduling & control.
  • 15. MASS & FLOW PRODUCTION • Mass as well as flow production are characterized by the manufacturer of several number of a std product and stocked in the warehouses as finished goods awaiting sales. The goods under mass production are manufactured either at a single operation or a series of operation on one machine. • Eg: Assembly shop of automobiles, radios, electric fans.
  • 16. CHARACTARITIC OF MASS & FLOW PRODUCTION • 1. Continuous flow of material. • 2. Special purpose m/c and product type layout. • 3. Mechanized material handling. • 4. Low skilled labour. • 5. Short manufacturing cycle time. • 6. Easy supervision. • 7. Limited WIP.
  • 17. PROCESS PRODUCTION • Process production is characterized by the manufacture of single product produced and stocked in the warehouses awaiting sales. • Eg: Sugar, Steel, Paper, Cement plants.
  • 18. CHARACTARITIC OF PROCESS PRODUCTION • 1. Special purpose m/c with built in control. • 2. Highly mechanized material building. • 3. Virtually zero manufacturing time. • 4. Low skilled labor. • 5. Highly qualified supervisors. • 6. Negligible WIP. • 7. Limited PPC.
  • 19. WHAT IS PRODUCTIVITY ? • Productivity is the quantitative relation between what we produce and what we use as a source of produce them. So, Productivity is the arithmetic ratio of output to the amount of input. • PRODUCTIVITY = Output / Input. • Productivity refers to the efficiency of the production system.
  • 20. PRODUCTIVITY MEASURES • 1. PARTIAL PRODUCTIVITY MEASURE (PPM) • PARTIAL PRODUCTIVITY= Total output / individual input. • (a) Labor Productivity=Total o/p / Labor input • (b) Capital Productivity = Total o/p / Material input • (c) Material Productivity = Total o/p / Capital input • (d) Energy Productivity = Total o/p / Energy input. • 2. TOTAL PRODUCTIVITY MEASURE (TPM) • = Total tangible o/p / Total tangible i/p • Tangible o/p= Value of FG & Partial units produced, dividend from securities, interest, other incomes • Tangible i/p = Value of ( human , material, capital, other inputs)
  • 21. FACTORS EFFECTING PRODUCTIVITY • 1. PRODUCT. • 2. PLANT &EQUIPMENT. • 3. TECHNOLOGY. • 4. MATERIAL & ENERGY. • 5. HUMAN FACTOR. • 6. WORK METHOD. • 7. MANAGEMENT STYLE.
  • 22. PRODUCTIVITY IMPROVEMENT TECHNIQUES • 1. TECHNOLOGY BASED • 2. EMPLOYEE BASED.’ • 3. MATERIAL BASED. • 4. PROCESS BASED. • 5. PRODUCT BASED. • 6. MANAGEMENT BASED.