production management, meaning, nature, function, PPC, production planning & control

Unit 1st, production management for BBA

1. Production Management Unit 1 Submitted to : Shah Mohd . S ir By Raman Neeraj Millind

2. Meaning Nature Function Responsibility of Production Manager Production Planning And Control (PPC) Here We Discuss

3. Meaning of Production Management: Production Management refers to the application of management principles to the production function in a factory. In other words, production management involves application of planning, organizing, directing and controlling the production process. The application of management to the field of production has been the result of at least three developments: i ) First is the development of factory system of production. Until the emergence of the concept of manufacturing, there was no such thing as management as we know it. It is true that people operated business of one type or another, but for the most part, these people were owners of business and did not regard themselves as managers as well,

4. ii) Essentially stems from the first, namely, the development of the large corporation with many owners and the necessity to hire people to operate the business , (iii) Stems from the work of many of the pioneers of scientific management who were able to demonstrate the value, from a performance and profit point of view, of some of the techniques they were developing.

5. Nature of Production Management: The production function represents a purely technical relationship in physical quantities between the inputs of factors and the output of the products. It has no reference to money price. The price factor is left out altogether . (ii) The output is the result of a joint use of the facts of production. It is obvious that the physical productivity of one factor can be measured only in the context of this factor being used in conjunction with other factors .

6. (iii) The nature of the quantity of the various factors and the manner in which they are combined will depend on the state of technical knowledge. For instance, labour productivity will depend on the quality of labour as determined by their education and training. Similarly, the productivity of machines will be determined by the technical advances embodied in them . (iv) In specifying the production function of a firm, we have to take into account the variability of factors of production and also whether they are divisible or indivisible. These features of the factors of production will determine their physical productivities and hence the nature of the production functions.

7. Functions :-

8. 1. Selection of Product and Design Production management first selects the right product for production. Then it selects the right design for the product. Care must be taken while selecting the product and design because the survival and success of the company depend on it. The product must be selected only after detailed evaluation of all the other alternative products. After selecting the right product, the right design must be selected. The design must be according to the customers' requirements. It must give the customers maximum value at the lowest cost. So, production management must use techniques such as value engineering and value analysis. 2. Selection of Production Process Production management must select the right production process. They must decide about the type of technology, machines, material handling system, etc 3. Selecting Right Production Capacity Production management must select the right production capacity to match the demand for the product. This is because more or less capacity will create problems. The production manager must plan the capacity for both short and long term's production. He must use break-even analysis for capacity planning .

9. 4. Production Planning Production management includes production planning. Here, the production manager decides about the routing and scheduling . Routing  means deciding the path of work and the sequence of operations. The main objective of routing is to find out the best and most economical sequence of operations to be followed in the manufacturing process. Routing ensures a smooth flow of work . Scheduling  means to decide when to start and when to complete a particular production activity . 5. Production Control Production management also includes production control. The manager has to monitor and control the production. He has to find out whether the actual production is done as per plans or not. He has to compare actual production with the plans and finds out the deviations. He then takes necessary steps to correct these deviations .

10. 6. Quality and Cost Control Production management also includes quality and cost control. Quality and Cost Control are given a lot of importance in today's competitive world. Customers all over the world want good-quality products at cheapest prices. To satisfy this demand of consumers, the production manager must continuously improve the quality of his products. Along with this, he must also take essential steps to reduce the cost of his products. 7 . Inventory Control Production management also includes inventory control. The production manager must monitor the level of inventories. There must be neither over stocking nor under stocking of inventories. If there is an  overstocking , then the working capital will be blocked, and the materials may be spoiled, wasted or misused. If there is an  understocking , then production will not take place as per schedule, and deliveries will be affected. 8 . Maintenance and Replacement of Machines Production management ensures proper maintenance and replacement of machines and equipments . The production manager must have an efficient system for continuous inspection (routine checks), cleaning, oiling, maintenance and replacement of machines, equipments , spare parts, etc. This prevents breakdown of machines and avoids production halts.

11. Responsibility of Production manager Production managers are responsible for the technical management, supervision and control of industrial production processes. planning and organizing production schedules assessing project and resource requirements estimating, negotiating and agreeing budgets and timescales with clients and managers ensuring that health and safety regulations are met determining quality control standards overseeing production processes re-negotiating timescales or schedules as necessary

12. selecting, ordering and purchasing materials organizing the repair and routine maintenance of production equipment liaising with buyers and marketing and sales staff supervising the work of junior staff organizing relevant training sessions In larger companies, there may be close links between production management and general or strategic management and marketing or finance roles .

13. Production  planning is the planning of  production   and manufacturing  modules in a company or industry. It utilizes the resource allocation of activities of employees, materials and production  capacity, in order to serve different customers . Some of the important functions of production planning and control are listed in following : Production Planning and Control

14. 1. Materials Function : Raw materials, finished parts and bought out components should be made available in required quantities and at required time to ensure the correct start and end for each operation resulting in uninterrupted production. The function includes the specification of materials (quality & quantity) delivery dates, variety reduction ( standardisation ) procurement and make or buy decisions . 2. Machines and Equipment: This function is related with the detailed analysis of available production facilities, equipment down time, maintenance policy procedure and schedules. Concerned with economy of jigs and fixtures, equipment availability. Thus the duties include the analysis of facilities and making their availability with minimum down time because of breakdowns . 3. Methods: This function is concerned with the analysis of alternatives and selection of the best method with due consideration to constraints imposed. Developing specifications for processes is an important aspect of PPC and determination of sequence of Operations.

15. (a) Fixation of path of travel giving due consideration to layout. (b) Breaking don of operations to define each operation in detail. (c) Deciding the set up time and process time for each operation. 4. Process Planning (Routing): It is concerned with selection of path or route which the raw should follow to get transformed in to finished product . The duties include:

16. 5. Estimating: Once the overall method and sequence of operations is fixed and process sheet for each operation is available, then the operations times are estimated. This function is carried out using extensive analysis of operations along with methods and routing and standard times for operation are established using work measurement techniques . 6. Loading and Scheduling: Scheduling is concerned with preparation of machine loads and fixation of Starting and completion dates for each of the operations. Machines have to be loaded according to their capability of performing the given task and according to their capacity . 7. Dispatching: This is the execution phase of planning. It is the process of setting production activities in motion through release of orders and instructions. It authorises the start of Production activities by releasing materials, components, tools, fixtures and instruction sheets to the operator. The activities involved are: (a) To assign definite work to definite machines, work centres and men. (b) To issue required materials from stores. (c) To issue jigs, fixtures and make them available at correct point of use. (d) Release necessary work orders, time tickets etc. to authorise timely start of operations. (e) To record start and finish time of each job on each machine or by each man.

17. 8. Expediting: This is the control tool that keeps a close observation on the progress of the work. It is a logical step after dispatching which is called “follow-up” or “Progress”. It co-ordinates extensively to execute the production plan. Progressing function can be divided in to three parts, i.e. follow up of materials, follow up of work in process and follow up of assembly. The duties include: 1. Identification of bottlenecks and delays and interruptions because of which the production schedule may be disrupted. 2. To devise action plans (remedies) for correct the errors. 3 To see that production rate is in line with schedule. 9. Inspection: It is a measure control tool. Though the aspects of quality control are the separate function, this is of very much important to PPC both for the execution of the current plans and in scope for future planning. This forms the basis for knowing the limitations with respects to methods, processes etc. which is very much useful for evaluation phase. 10. Evaluation: This stage though neglected is a crucial to the improvement of productive efficiency. A thorough analysis of all the factors influencing the production planning and control helps to identify the weak spots and the corrective action with respect to preplanning and planning will be effected by a feed back. The success of this step depends on the communication, Data and information gathering and analysis.