INTRODUCTION TO

PRODUCTION MANAGEMENT

• Production management is the

process of effectively planning and
regulating the operations of that part
of an enterprise which is responsible
for actual transformation of materials
into finished products.
 Production management techniques are used in
both manufacturing and service industries.

 Production management responsibilitiesinclude

the traditional “five M’s”: men and women,
machines, methods, materials, money.

 Managers are expected to maintain an efficient

production process with a workforce that can
readily adapt to new equipment and schedules.
 They may use industrial engineering methods,
such as time-and-motion studies, to design
efficient work methods. They are responsible
for managing both physical (raw) materials and
information materials and information
materials (paperwork or electronic
documentation). Of their duties involving
money, inventory control is the most
important. This involves tracking all
component parts, work in process, finished
goods, packaging materials, and general
supplies.
Emerging trends in production
management

Lean production

Total quality management(TQM)

Supply chain management

 What is lean production
 Lean production has its roots in Toyota Automobiles
Co. of Japan, where waste was to be avoided at all cost
the excluding part included:
1. The waste in time.
2. The waste of investment
3. The waste of having ideal workers.
 The core idea is to maximise customer VALUE
while minimising waste.
About lean production

 The ultimate goal is to provide perfect

value to the customer through perfect value
creation process that has ZERO waste.
 Lean production has its key element that is
–JIT(Just-In-Time) & Autonomation(smart
autonomation)
JIT(Just-In-Time)

 “JIT is an approach that seeks to eliminate all

sources of waste in production activities by
providing the right part at the right place at
the right time.”
 It is known by different names:
1. The Toyota system
2. Zero Inventory
3. Kan –Ban system
Autonomation

 If an abnormal situation arrises then the machine stops

and the worker will stop the productionline .
 It is a quality control process that applies the following
four principles:
1. Detect the abnormality.
2. Stop
3. Fix or correct the immediate condition .
4. Investigate the route cause and install countermeasure
BENEFIT OF LEAN PRODUCTION

 Inventory levels are drastically

reduced .
 Product quality is improved
elimination of unpleasant suppliers.
 Reduction in customer related
problem.
 Improvement in employees morale.
 TOTAL QUALITY MANAGEMENT
( TQM)

A core definition of TQM describe a

management approach to long term
success through customer satisfaction.
In a TQM effort, all members of an
organization participate in improving
processes , products, services, and the
culture in which they work.
BENEFIT OF TQM

 Strengthened competitive position

 Higher productivity
 Enhance market image
 Reduced cost and better cost management
 Higher profitability
 Improved customer focus and satisfaction