PLANNING

SCHEDULIN G

PRODUCTION CONTROL:

STRATEGY:

An elaborate and systematic plan of action

BUILD STRATERGY PROCESSFLOW

Production management cycle

Capacity planning

Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products. capacity planning, "capacity" is the maximum amount of work that an organization is capable of completing in a given period of time Capacity is calculated: (number of machines or workers) (number of shifts) (utilization) (efficiency).

Classes of capacity planning:

The broad classes of capacity planning are lead strategy, lag strategy, and match strategy. Lead strategy is adding capacity in anticipation of an increase in demand. Lead strategy is an aggressive strategy with the goal of luring customers away from the company's competitors. The possible disadvantage to this strategy is that it often results in excess inventory, which is costly and often wasteful. Lag strategy refers to adding capacity only after the organization is running at full capacity or beyond due to increase in demand . This is a more conservative strategy. It decreases the risk of waste, but it may result in the loss of possible customers. Match strategy is adding capacity in small amounts in response to changing demand in the market. This is a more moderate strategy.

These decisions are of strategic importance and have long-term significance for the organization.

Examples
THE DESIGN FOR A NEW PRODUCTS PRODUCTION PROCESS WHERE TO LOCATE A NEW FACTORY WHETHER TO LAUNCH A NEW-PRODUCT DEVELOPMENT PLAN

PRODUCTION OPERATION MANAGEMENT

OBJECTVE OF PRODUCTION MANAGEMENT

The objective of Production Management is to produce the desired product or specified product by specified methods so that the optimal utilization of available resources is met with. Hence the production management is responsible to produce the desired product, which has marketability at the cheapest price by proper planning, the manpower, material and processes.

TYPES OF PRODUCTION SYSTEMS

Job Production Batch Production Continuous Production

oMass Production oFlow Production

Job Production: In this system Products are manufactured to meet the requirements of a specific order. The quality involved is small and the manufacturing of the product will take place as per the Specifications given by the customer.

Batch Production: Batch Production is the manufacture of number of identical products either to meet the specific order or to satisfy the demand. When the Production of plant and equipment is terminated, the plant and equipment can be used for producing similar products.

Continuous Production: Continuous Production system is the specialized manufacture of identical products on which the machinery and equipment is fully engaged. The continuous production is normally associated with large quantities and with high rate of demand. Hence the advantage of automatic production is taken. This system is classified as Mass Production: Here same type of product is produced to meet the demand of an assembly line or the market. This system needs good planning for material, process,maintenance of machines and instruction to operators. Purchases of materials in bulk quantities is advisable. Flow Production: The difference between Mass and Flow Production is the type of product and its relation to the plant. In Mass Production identical products are produced in large numbers. If the demand falls or ceases, the machinery and equipment, after slight modification be used for manufacturing products of similar nature. In flow production, the plant and equipment is designed for a specified product.

Finance Sales HRM

OM
Marketing MIS QA

Engineering

Accounting

FUNCTIONS OF PRODUCTION MANAGEMENT DEPARTMENT The functions of Production Management depend upon the size of the firm. In small firms the production Manager may have to look after production planning and control along with Personnel,Marketing, Finance and Purchase functions. In medium sized firms, there may be separate managers for Personnel, marketing and Finance functions. But the production planning and control and Purchase and stores may be under the control of Production management department. In large sized firms the activities of Production Management is confined to the management of production activities only

There are no hard and fast rule or guidelines to specify the function of Production Management,but in the academic interest we can mention Some of the functions, which are looked after by theProduction Management department. They are

Materials Methods Machines and Equipment Estimating Loading and Scheduling Routing Despatching Expediting or Follow up Inspection  Evaluation

SCOPE OF PRODUCTION AND OPERATION MANAGEMENT:

STAGES OF PRODUCTION FUNCTION

References:

Ship design and construction TAGGART Ship production - RICHERD MOORE,HOWARD Production and operation management-BUFFA-WEILLY(1967)

THANK U