Production Management! marco15fernandez@hotmail.com! 4491643743! 30 enero p1! 27 febrero. P2! 27 marzo p3! 15 abril p4!

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Entregar al nal de cada mes el portafolio de evidencias, ! Incluir:! Apuntes.! Tareas ! Talleres ! Exmenes!

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Enterprise Resource Planning! Course objective.! Create and develop knowledge and understanding the principles and practices of production management.!

Production Management!
Process of Planning, organizing, directing and controlling of production activities.! Process of effectively planning and regulating the operations to successfully achieve the production.!

Process!
A set of interrelated or interacting activities which transforms inputs into outputs.! !

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Input

Process

Output

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Objective !

To produce goods and services of right quality and quantity at the right time and right manufacturing cost.!

Quality!
The right quality it's not necessary the best one, the right quality it's determined by the cost of the product, and the technical characteristics as suited to the specic requirements.!

! Quantity.! The products should be produced in the right number.! ! Time! ! Cost!

Timeliness of delivery is one of the important parameters to judge the effectiveness of production department. So, the production department has to make e optimal utilization of input resources.!

Manufacturing costs are established before the product it's manufactured. hence, all attempts should be made to produce the products at pre-established cost.!

! Production! Part of an organization which is concerned with the transformation of inputs into outputs.! !
It's also dened as "the step-by-step conversion" of one form of material into another through a chemical or mechanical process.!

! Is a conversion function By which foods and services are produced.! !

Examples!
Manufacturing custom-made products ! Manufacturing standardized products!

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Production System!
Is a collection of people, equipment, processes and procedures organized to perform the manufacturing operations of a company or other organizations.! It's a system used to convert demand information into products.! ! ! !

Resources
Demand information

Production system

Products

Raw material and parts

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Is a system whose function is to transform an input I to a desired output by means of a process (the production process and of resources)!

Transformation process!
Involved operation (mechanical or chemical) to change/ convert inputs into outputs!

Exercise #1!
1) what do you mean by process! A process it's a systematic series of actions to transform inputs into outputs.! 2) what do you mean by production.! Production it's a group of processes that transform the materials into nal products! 3) what do you mean by production system.! A production system it's the group of activities realized to transform in an organized way to produce the goods in a systematic way! 4) dene production management! It's the way that we plan, organize, direct and control how does the organization ows.!

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Excercise #2!
Example of a production system!
Automobile Factory Input Output Process Resources

Constumer demand,! Materials, parts. Complete cars Assembly, welding, painting, testing, People, manufactury, money.

Bakery Input Output Flour, milk, butter, eggs, yeast, sugar, Bread, cakes, bitumen,

Bakery Process Resources Restaurant

Input Output Process Resources

Mix, bake, cook, mould Machinery, baker, mixer, oven

Vegetables, fruits, rawmeat, clients Meals, beverages Cook, cutting, bowling, washing, cleaning, chopping Plate, chairs, stove, forks,

Department store Input Output Process Resources Clients Happy costumes, Persuade, sell, Building, stock, Clothes, consumer electronics, electro domestic, perfumes

Classication of production system! !

Job shop ! Batch! Mass (!

Continuous!
(never stops) ex oil rening, chemicals, synthetic bers, paper ! Facilities are arranged of the sequence of production operation!

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Workshop #1!
What is the importance of production Management for a business rm and your conclusion as a team.! - obtain prot ! -minimize production cost! -improve quality! -increase sales! -reduce wasted time / competitive advantage ! -avoid wasted materials !

Conclusion ! It's really important to reduce the cost, and increase the sales, mainly, then if you can avoid the wasted materials, and the waisted time, you can be more competitive, and be more rentable, so you can grow your business, with high annual revenue.!

! Operations! Operations can be categorized into " manufacturing operations" and "service operations"! !
Manufacturing is characterized by tangible outputs ( products), that costumes overtime, jobs, that use less labor and more equipment, little costumer contact, no costumer participation, etc.!

Services is characterized by intangible outputs, outputs that costumes consumes immediately, jobs that use more ,a or and less equipment that use more labor and less equipment and elementary methods for measuring conversion activities!

Because of the terms production management and operation s management are often interchanged, the following denitions should be considered!

! Production! !

Is directly related to the manufacturing of goods ( products to be produced) !

Operations !
It's concerned with services. Has to be understood as a daily actions necessary for the production system works.!

Production management

Operations management

It is concerned with manufacturing It is concerned with services Output is tangible Job use less labor and more equipment There is no consumer participation

Output is intangible Job use more labor and less equipment Frequent consumer participation

Business research!
Is a eld of practical study in which a company obtains data and analyzes it in order to better manage the company. Business research can include nancial data, consumer feedback, product research and competitive analysis.! IT is a practical study in which a company obtain data and analyses it in order to better manage the company!

Business strategy!
is a document that clearly articulates the direction a business will pursue and the steps it will take to achieve its goals. In a standard business plan, the business strategy results from goals established to support the stated mission of the businesswoman!

It is a long term plan of action designed to achieve a particular goal or a set of goals or objectives. A typical business strategy is developed in three steps: analysis integration and implementation !

Business ethics!
is the behavior that a business adheres to in its daily dealings with the world. The ethics of a particular business can be diverse!

Business development!
is a broad term applied to the process of strengthening ties with existing clients as well as cultivating customers in other sectors of the consumer market! Prices if marketing, sakes, and !

! development strategies for your company! ! !

1.) what is production? ! The act of making products, goods and services ! 2) what is a production system? ! It's a chain of actions than together compliments the full process of making a ! product ! 3) what does production management means? ! To plan, organize, direct and control the activities that are in the workow production ! The main functions are to obtain more prot, be more efcient, and reduce costs / production planning and control. Provision of plant services inventory control. Quality control, plan layout!

4) types if production system !

Continuous one product high volume,( coke )! Mass more products, mid-high volume (cars)! Batch mid variety mid volume ( clothing) ! Workshop high variety and minimal production ( bakery) !

5) what are the advantages of job shop, batch, and continuos production ! A) job shop ( high variety, high quality) ! B) batch ( faster than job shop, enough variety, different products, cost reduction) ! C) continuos ( never stop, high quantity, products that require never stopping ! 6) what is a business strategy and how it's developed! It's an action plan that would be developed in a long time, you need to know how you are right now, identify how you want to be, and the action plan that you have to do to achieve the objectives !

Unit 2!
Production planning and controlling! !
Production planning is a pre-production activity.! It's the pre determination of manufacturing requirements such as manpower, materials, machines, and manufacturing process.!

Theres a client that requires ! 1500 units for April 2013! 100 units batch 2 days / 60 units a day! 15 days of lead time! Labor week 5 days! 55 kg a 20kg b 40kg c per 100 units! Inventory a) 400 b) 50 c) 240!

A carefully developed production plan will allow your company to meet the following objectives! -minimize costs / maximize prots! -maximize costumer service! -minimize inventory investment ! -Minimize changes in production rates! -Minimize changes in work-force levels! -Maximize the utilization of plant and equipment!

! Production control!

It is a mechanism to monitor the execution of the plans! Can be dened as the process which involves the coordination of the manufacturing resources.! It can be said that production controls reviews the progress of the work, and takes corrective steps when required!

Steps in the control activity!

Initiation of the production! The progressing! The implementation of a corrective action!

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Steps in production planning and control!

The production planning and control phase involves steps like planning, routing, scheduling, dispatching, and follow-up! The rst important step in production Planning and control is co corned with careful preparation of production plans! Production loans determine what will be produced and where, and what type by whom, and how.! The planning function formulates production plans, and trails ages them into requirements for men, machinery and materials!

Routing is one important step in production planning and control. It is useful for smooth and efcient working of the whole plant factory.!

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Routing has the following objectives! - to determine the sequence of manufacturing operations! - to ensure the strict adherence to the sequence so determined! - to strive for the best possible sequence of operations! - to inuence the design and layout of the factory building! Schedules is concerned with timetable of production. It arranges the different manufacturing operations in order of priority, xing the time, and date for the commencement and completion of each operation! Dispatching ! Dispatching is concerned with starting the process and operations ode production. Dispatching is based on the route of sheets and schedule sheets. Dispatching provides the necessary authority to start the routed and schedule work.! Functions of dispatching! To ensure that the rig materials are moved fromThe stores to machines and from operation to operation ! To distribute machine loading and schedule for each worst order! To instruct tools department to issue the right tools and xtures in time! To authorize the work as per the predetermined dates and time! To direct impose turn at various stages of production! To inform the follow-yo section that production is starting !

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The follow-up fountains helps expediting the movement of ,ate rials and production process as a whole! There are certain factors over which the manufacturing part rent has no control and the hence follow-up is necessary!

Workshop #3!
1.-your understanding and advantages about centralized PPC! Accurate determination of production control, ! Decision making process is very fast! Centralized coordination or all works! 2.- Denition of *process planning*! Process planning is a key element in project management that focuses on selecting resources for use in the execution and completion of a project. In a manufacturing setting, this aspect of planning also includes establishing the general sequence of steps that begin with the acquisition of materials and end with the creation of a nished product. Process planning is often closely associated with project planning, although the specic functions of each tool are used differently in the overall strategic planning.!

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3.- list and explain the facts to be considered before a process planning activity!

This factor affects the planning process because if current economical conditions are good or bad this will be discovered during the rst step, and the condition of the economy provides information that can make the plan successful or unsuccessful.! Another factor that affects the planning process and is priorities, and this factor comes into play highly in relation to the third step of the planning process. ! A factor that inuences the planning process is budget, and any plan that does not have a budget to support it will not make it during the implementation stage! Ethics also play a role in the planning process because ethical beliefs can inuence priorities and goals! The human! Tech!

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Workshop 4.!
Investigate which are the functions any manager should perform to ensure business success (4 functions) !

Planning! !

Planning is dened as the "idea generation" process of business management. It is when managers think of certain missions and visions and formulate short-term and periodic goals to achieve those ideals.!

Managers decide on the courses of actions the business need to take and how it should be done.!

! Organizing! ! !

Managers see to it that the business is well organized and has the right people in the right position and that's where the function of organizing comes in.! Apart from, hiring decisions, organizing also includes dissemination of relevant business information, division of workload and the allocation of economic resources.!

! Leading! ! !

Leadership is considered as the greatest factor in the eld of business. Entrepreneurs and managers are leaders in their own rights. They must display a high degree of leadership in order for their plans and objectives to push through.! Needless to say, different attitudes and personal characteristics need different types of leadership methods. Likewise, the managers must know how to cope up with varying personalities.!

! Controlling! !

The function of control involves a close monitoring of the business operation. Managers are the gureheads of business owners. Thus, they must be in total control of each and every business move.!

Master production schedule!

Follows the aggregate planning. It express the overall plans of specic end items or models that can be assigned priorities ! Is a schedule showing week by week how many of each product must be produced according to costumer orders and demand forecast! Is an important link between marketing and production !

! Functions !

To translate aggregate plans into specic end items. ! To evaluate alternative schedules! To generate material requirements ! Generate capacity requirements! Facilitate information process! Effective utilization of capacity !

MRP (material requirement planning)!

Material requirements planning is system of planning and scheduling! Refers to the basis calculation used to determine the components required form the end item! requirements ! Technique for determining the quantity and timing for the acquisition for dependent demand items needed to satisfy the msp requirements! Determines how many components are required and when they are required ! Provides a close coordination among various works centers and help to air r uninterrupted workow materials !

The inputs to the MRP system are:! 1) master production schedule! 2) An inventory status le! 3) Bill of materials !