PRODUCTION-FACTORS OF PRODUCTION-POM And SPOM.pptx
PRODUCTION, FACTOR OF PRODUCTION,
MANAGEMENT AND SCOPE OF
PIOLO VINCENT DELLOSA RHEA MAE HUNAT ROSE ANN MACARIO
Production operations management is the process which combines and
transforms various resources used in the production/operation
subsystem of the organization into value added products/services in a
controlled manner as per the policies of the organization. It is also a
business function responsible for planning, coordinating and controlling
the resources needed to produce products and services for a company.
Operation Management designs, operates and improves productive
systems, systems for getting work done.
Transformation of raw materials (input) to desired product and services
(outputs) by adding economic value to it thru:
Separation – extraction
Modification/improvement – alternating physical attributes
Assembly – in manufacturing plant
Production management is a process of planning, organizing directing and
controlling the activities of the production function. It combines and transforms
various resources used in the production subsystem of the organization into value
added product in a controlled manner as per the policies of the organization.
Objectives of Production Management
The objective of the production management is to produce good services of right
quality and quantity at the right time and right manufacturing cost.
1. Right Quality
2. Right Quantity
3. Right Time
4. Right Manufacturing Cost
The 5 PS of Production are the product, plant, programmes, processes and people.
These factors are combine together to produce good and services.
The selection of location is a key-decision as large investment is made in building
plant and machinery. Location of plant should be based on the company's
expansion, plan and policy, diversification plan for the products, changing sources
of raw materials and many other factors.
1. Location - Strategic Importance
2. Long term commitment/costs
3. Impact on investments, revenues,
4. Supply Chains
6. Profit potential
7. No single location may be better
8. Identify several locations from
which to choose
10. Expand existing facilities
11. Add new facilitie
" A plan of an optimum arrangement of facilities including personnel, equipment,
equipment, storage space and handling of materials". (James Moore)
"Handling" is the art and science of moving, packing, and storing products in any
"All about solving users' problems and design thinking, which is part of that
process". (Martha Bergmann)
Product Development - translate the needs of customers into technical
1. Marketing 2. Product Development 3. Manufacturing
A macroscopic decision-making of an overall process route for converting the raw
material into finished products.
PRODUCTION PLANNING AND CONTROL
Define as the process of planning the production in advance, setting the exact
route of each item, fixing the starting and finishing dates for each item to give
production orders to shops and to follow up the progress of products according
to the orders.
Routing - the selection of path which each part of the product will follow, which
being transformed from raw material to finished products. Scheduling - define
as the fixation of time and date for each operation as well as it determines the
sequence of operations to followed. Dispatching - concerned with the starting
Is the aspect of management function which is primarily concerned with the
acquisition, control and use of materials needed and flow of goods and services
connected with the production process having some predetermined objectives in
The main objectives of materials management are:
• To minimize material cost.
• To purchase, receive, transport and store materials efficiently and to reduce the
• To cut down costs through simplification, standardization, value analysis, import
• To trace new sources of supply and to develop cordial relations with them in
order to ensure continuous supply at reasonable rates.
• To reduce investment tied in the inventories for use in other productive purposes
and to develop high inventory turnover ratios.
May be defined as a system that is used to maintain a desired level of quality in a
product or service.
The main objectives of quality control are:
• To improve the companies income by making the production more acceptable to
to the customers i.e., by providing long life, greater usefulness, maintainability,
• To reduce companies cost through reduction of losses due to defects.
• To achieve interchange ability of manufacture in large scale production.
• To produce optimal quality at reduced price.
• To ensure satisfaction of customers with productions or services or high quality
level, to build customer goodwill, confidence and reputation of manufacturer.
• To make inspection prompt to ensure quality control.
• To check the variation during manufacturing.
Is very important that the plant machinery should be properly maintained.
The main objectives of maintenance management are:
• To achieve minimum breakdown and to keep the plant in good working
condition at the lowest possible cost.
• To keep machines and other facilities in such a condition that permits them to
be used at their optimal capacity without interruption.
• To ensure the availability of the machines, buildings and services required by
other sections of the factory for the performance of their functions at optimal
return on investment.
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