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Vinod P Patel

 The management of those resources and


activities of a business that are required to produce
goods for sale to consumers or to other
organizations. Production management is concerned
with the manufacturing industry. The growing
interest in the production management task in
service industries has led to the use of operations
management as a more general term.
 It is attainment of an organization's sales goals in an
effective & efficient manner through planning,
staffing, training, leading & controlling
organizational resources. Revenue, sales, and
sources of funds fuel organizations and the
management of that process is the most important
function.
The four phase-model of Management process is one
of many useful frameworks for planning the sales
process. It includes:
 Conception – What will be offered?
 Planning – How?
 Execution – When and at what pace and scale?
 Control – How will feedback and contingencies be
acted upon?
 Feedback – How we have to integrate and reply
back activity to activity?
 Make-to-stock: Items produced in
anticipation of orders
 Make-to-order: Items produced to meet
specific customer orders
 Assemble to order: Final product
assembled from make-to-stock items
Mixer

Finished Goods Warehouse


Raw Material Warehouse

Snack Bar Line


Mixer

Form Bake Pack

Mixer

Mixer
 Communications
 Marketing does not share data with production
(sales promotions and large, unexpected orders)
 Inventory
 True inventory status not known
 No real-time data on actual sales
 Accounting and Purchasing
 Difficulty forecasting raw material and labor costs
 Adjusting accounts for actual vs. standard costs
time consuming and done infrequently
 Work from sales forecast to create
aggregate production plan
 Break down aggregate plan into more
specific plans
 Use production plan to determine raw
material requirements
SALES
FORCASTING

SALES AND OPERATION


PLANNING

DEMAND MANAGEMENT

DETAILED
MRP
SDHEDULING

PRODUCTION PURCHASING
 Production data does not get entered into
an ERP system directly
 Many methods of gathering shop floor data
are available
 ERP allows shop floor data to be collected
once for production and accounting purposes,
and data is consistent in both areas
 Sales and operations planning (S&OP): The
process of planning future aggregate resource
levels so that supply is in balance with demand.
 Staffing plan: A sales and operations plan of a
service firm, which centers on staffing and other
human resource–related factors.
 Production plan: A sales and operations plan of a
manufacturing firm, which centers on production
rates and inventory holdings.
 The sales and operations plan is useful
because it focuses on a general course of
action, consistent with the company’s
strategic goals and objectives, without getting
bogged down in details.
 Product family: A group of customers,
services, or products that have similar demand
requirements and common process, labor, and
materials requirements.
 A company can aggregate its workforce in
various ways as well, depending on its
flexibility.
 The company looks at time in the aggregate –
months, quarters, or seasons—rather than in
days or hours.
Six objectives usually are considered during
development of a plan:

1. Minimize Costs/Maximize Profits


2. Maximize Customer Service
3. Minimize Inventory Investment
4. Minimize Changes in Production Rates
5. Minimize Changes in Workforce Levels
6. Maximize Utilization of Plant and Equipment
THANK YOU

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