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
customers 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.