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Production Management

337655(37)
VIth Sem
Mechanical Engineering Department
Delivered By:
Kanishka Jha
Associate Professor

The word manufacturing was originally derived from two Latin words manus (hand) and
factus(make), so that the combination means make by hand.
In this way manufacturing was accomplished when the word first appeared in English around 1567.
Commercial goods of those times were made by hand. The methods were handicraft, accomplished
in small shops and the goods were relatively simple. As many years passed, the products become
more complex along with processes. Thus factories were developed with many workers at a single
site; the work was organized using machines.
Production 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. Therefore, it is that part of an organization,
which is concerned with the transformation of a range of inputs into the required (products/services)
having the requisite quality level.

What is Production management?


In any manufacturing system, the job of a Production Manager is to manage the
process of converting inputs into the desired outputs.
Production Management can be defined as the management of the conversion process, which converts land, labour, capital, and
management inputs into desired outputs of goods and services. It is also concerned with the design and the operation of systems for
manufacture, transport, supply or service. (Operation & Production)
The traditional view of manufacturing management began in eighteenth century when Adam & Smith recognised the economic
benefits of specialisation of labour. He recommended breaking of jobs down into subtasks and recognises workers to specialised
tasks in which they would become highly skilled and efficient. In the early twentieth century, F.W. Taylor implemented Smiths
theories and developed scientific management. From then till 1930, many techniques were developed prevailing the traditional
view.
Examples:

Date

Contribution

Contributor

1776

Specialization of labour in manufacturing

1799

Interchangeable parts, cost accounting Eli Whitney and others

1832

Division of labour by skill; assignment of jobs by skill; basics of

Adam Smith

time study Charles Babbage


1900

Scientific management time study and work study developed;

dividing planning and doing of work


1900

Frederick W. Taylor

Motion of study of jobs Frank B. Gilbreth

System: It consists of elements or components. The elements or components are interlinked together
to achieve the objective for which it exists. Eg: human body, educational institutions, business
organizations.

Figure. Transformation process

Components of a system: The input, processing, output and control of a system are called the
components of a system.
Control: There are two types of control, namely Proactive Control and Reactive Control. There are
three types of feedback mechanisms such as feed forward control, feedback control and concurrent

Production means application of processes. (Technology) to the raw material to add the use and economic values to arrive
at desired product by the best method, with out sacrificing the desired quality. We have three ways of Production, they are:
(i) Production by Disintegration:
By separating the contents of Crude oil or a mixture the desired products are produced. For example the crude oil is
disintegrated into various fuel oils. Similarly salt production is also an example for product produced by disintegrated. We
can use Mechanical or Chemical or both technologies to get the desired product, so that it will have desired use value.
(ii) Production by Integration:
In this type of Production various Components of the products are assembled together to get the desired product. In this
process, Physical and Chemical Properties of the materials used may change. The examples are: Assembly of Two
wheelers, Four wheelers and so on.
(iii) Production by Service:
Here the Chemical and Mechanical Properties of materials are improved without any physical change. The example for
this is Heat Treatment of metals. In real world, a combination of above methods is used. In general production is the use of
any process or procedure designed to transform a set of input elements into a set of output elements, which have use value
and economic value.

Management
Management can be explained as an art or science, (in fact it is a
combination of art and science) of getting things done by the people, by
planning, coordinating, organizing, directing and controlling the activities
to meet specified goals, with in the frame work of agreed policies. The
above explanation put emphasis on getting things done, Planning,
Organizing, Coordinating, and controlling and specific objectives and
agreed policies. Todays manager needs scientific base as well as personal
tactics to manage the people under him to achieve the desired goals.
Above discussion about product, production and management will help us
to understand what exactly the Production Management or Production,
and Operations Management is.

5 P`s of Production Management


1. PRODUCTS.
2. PLANT.
3. PROCESS.
4. PROGRAMS.
5. PEOPLE.
When this five element integrated a
successful production management
takes place.

Objectives of Production Management:


The objective of the production management is to produce goods services of right
quality and quantity at the right time and right manufacturing cost.
1. RIGHT QUALITY
The quality of product is established based upon the customers needs. The right quality is not necessarily best
quality. It is determined by the cost of the product and the technical characteristics as suited to the specific
requirements.
2. RIGHT QUANTITY
The manufacturing organization should produce the products in right number. If they are produced in excess
of demand the capital will block up in the form of inventory and if the quantity is produced in short of
demand, leads to shortage of products.
3. RIGHT TIME
Timeliness of delivery is one of the important parameter to judge the effectiveness of production department.
So, the production department has to make the optimal utilization of input resources to achieve its objective.
4. RIGHT MANUFACTURING COST
Manufacturing costs are established before the product is actually manufactured. Hence, all attempts should
be made to produce the products at pre-established cost, so as to reduce the variation between actual and the
standard (pre-established) cost.

Functions of PM..
Activities that convert capital into resources Use for production
Activities that convert resources into goods and services
1. Production of goods at right time and in sufficient quantity
2. At minimum possible cost
3. At acceptable quality
Functions of Personnel's:
.Forecasting the demand for the products
.Arrangement of procurement
.Arrangement of services

Scope Of Production Management


Production management concern with the conversion of inputs into outputs, using physical resources,
so as to provide the desired utilities to the customer while meeting the other organizational objectives
of effectiveness, efficiency and adoptability. It distinguishes itself from other functions such as
personnel, marketing, finance, etc., by its primary concern for conversion by using physical
resources. Following are the activities which are listed under production and operations management
functions:
1. Location of facilities
2. Plant layouts and material handling
3. Product design
4. Process design
5. Production and planning control
6. Quality control
7. Materials management
8. Maintenance management.

1. New product identification and


Design
2. Process design and planning
3. Facilities location and layout planning
4. Design of material handling system
5. Capacity planning
Production planning
Production control
Inventory, maintenance, etc.

Location of Facilities
Geo. Static
Factors

Long Term Captivity


Long Term Commitment

Building, Machinery
Selection of
Improper Location Waste of investment
Location

Key

Expansion, Plan & policy


Diversification of plan, change of raw ..source

Product Design
Design , Develop & Introduce New To survive
Ideas into New Product - Challenge
Reality

Marketting, product development & Manufacturing


Process Need of customer Technical Specification

PDD

Plant Layout & Material Handling


Personnel, Euip., Storage, Material Handling
Phy.
Long Term Commitment
Arrangement of
Facilities

Material
handling

Science of moving, packing and storing


50-75% of cost of production

Material
Handling

Increases O/P Improves quality


Speed up deliveries reduce cost of production

All activities required to manufacture


Link between Marketing Customer needs &
expectations

Process Design

Macroscopic

Decision
Of
Selection

Decision making of an overall process


Converting into raw material into finished good
Process, Technology, Pr. Flow & Layout
Improper Location Waste of investment

Analyze the work flow


Decision Selection of appropriate work station

TYPES OF PRODUCTION
1. BATCH PRODUCTION
2. MASS & FLOW PRODUCTION
3. PROCESS PRODUCTION
4. PROJECT PRODUCTION
5. JOBBING PRODUCTION

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