Production Management, History of Production management, Types of production systems

1. P R E S E N T E D B Y
S I M R A N K A U R
PRODUCTION
MANAGEMENT

2. MEANING OF PRODUCTION MANAGEMENT
 Production management is a branch of
management related to production function
 It is a management which by scientific planning
and regulation sets into motion the part of an
enterprise to which it has been entrusted the task
of actual transformation of inputs into outputs

3. MEANING OF PRODUCTION MANAGEMENT
 Production may be referred to as the process
concerned with the conversion inputs into output with
the help of certain processes while management is the
process of exploitation of these factors of production in
order to achieve the desired results
 Production management is assigned with following
tasks
i) Specifying and accumulating input resources
ii) Designing and installing the assembly or conversion
process to transform inputs into outputs
iii) Coordinating and operating production process so
that desired goods and services may be produced
efficiently and at a minimum cost

4. SCOPE OF PRODUCTION MANAGEMENT
 Product selection and design
 Activities relating to production systems designing
 Facilities location
 Method study
 Facilities layout and materials handling
 Capacity planning
 Production planning
 Production control
 Inventory control

5. RESPONSIBILITIES OF PRODUCTION
MANAGER
 He assembles appropriate resources and direct the
use of these resources in transforming material and
time of people into products and services
 He respond to forces from external environment
such as government regulation, labour organization
as well as local, regional, national and international
economic conditions
 He is able to channelize the production process in a
manner which ensures most efficient use of
resources to the best advantage for enterprise

6. BRIEF HISTORY OF PRODUCTION
MANAGEMENT
INDUSTRIAL EFFICIENCY
 F.W.Taylor studied simple output-to-time
relationship for manual labour such as brick-laying
(modern “time study”)
 Frank Gilberth and Lillian Gilberth examined
motions of the limbs of workers in performing the
jobs and tried to standardize these motions into
certain categories and utilize the classification to
arrive at standards for time required to perform a
given job (modern “motion study”)

7. BRIEF HISTORY OF PRODUCTION
MANAGEMENT
COLLECTIVE EFFICIENCY
 Through the efforts of scientists such as Gantt who
shifted attention to scheduling of operations
 Basic inventory model was presented by F.W.Harris

8. BRIEF HISTORY OF PRODUCTION
MANAGEMENT
QUALITY CONTROL
 Control over the quality of finished material
 Focus was on quality aspects
 In 1931, Walter Shewart gave the theory of “Control
charts”
 In 1935, H.F.Dodge and H.G.Roming came up with
the application of statistical principles

9. BRIEF HISTORY OF PRODUCTION
MANAGEMENT
EFFECTIVENESS AS A FUNCTION OF INTERNAL
CLIMATE
 Hawthorne experiments
 Taylor’s theory of Elementalization of Task
 Henry Ford’s Assembly Line

10. BRIEF HISTORY OF PRODUCTION
MANAGEMENT
ADVENT OF OPERATIONS RESEARCH
TECHNIQUE
 It came up during World War II period
 Various techniques such as Linear programming,
Mathematical programming, Game theory, Queuing
Theory, etc developed by people such as George
Dantzig, A. Charnes, W.W. Cooper, etc

11. BRIEF HISTORY OF PRODUCTION
MANAGEMENT
THE COMPUTER ERA
 Around 1955, IBM developed digital computer
 Operations Research and other Management Science
techniques were used

12. BRIEF HISTORY OF PRODUCTION
MANAGEMENT
THE PRODUCTION AND OPERATIONS
MANAGEMENT SCENARIO TODAY
 Quality of life
 ‘Service’ or ‘state’ utility
 Demand for ‘variety’ in products and services
 Concept of ‘customer’ and ‘customer orientation’

13. SYSTEM
 System is a logical arrangement of components
designed to achieve particular objectives according
to a plan
 Webster defined “System is a regularly interacting
inter-dependent group of items forming a unified
whole

14. ELEMENTS OF PRODUCTION SYSTEM
 INPUTS: physical and human resources utilized in
production process
 CONVERSION PROCESS: series of operations which
are performed on materials and parts
 OUTPUTS: products or completed parts resulting
from conversion process
 STORAGE: takes place after receipt of inputs,
between one operation and the other and after the
output

15. ELEMENTS OF PRODUCTION SYSTEM
 TRANSPORTATION: inputs are transported from
one operation to another in production process
 INFORMATION: provides system control through
measurement, comparison, feedback and corrective
actions

16. TYPES OF PRODUCTION SYSTEMS
 Flow or Continuous system
 Intermittent production system

17. FLOW OR CONTINUOUS SYSTEM
 According to Buffa, “Continuous flow production
situations are those where the facilities are
standardized as to routings and flow since inputs are
standardized. Therefore a standard set of processes
and sequence of processes can be adopted.”
 Manufacturing of large quantities of a single or at
most a very few varieties of products with a standard
set of processes and sequences

18. CHARACTERISTICS OF FLOW SYSTEM
 Volume of output is generally large and goods are
produced in anticipation of demand
 Product design and operations sequence are
standardized
 Special purpose automatic machines are used to
perform standardized operations
 Machine capacities are balanced
 Fixed path materials handling equipment is used
 Product layout designed according to a separate line
for each product is considered

19. MERITS OF FLOW SYSTEM
 Work-in-progress inventory is minimum
 Quality of output is kept uniform
 Any delay at any stage is automatically detected
 Handling of materials is reduced
 Control over materials, cost and output is simplified
 Work can be done by semi-skilled workers

20. DEMERITS OF FLOW SYSTEM
 Very rigid
 If there is a fault in one operation, the entire process
is disturbed
 Necessary to avoid piling up of work or any blockage
in the line
 Investments in machines are fairly high

21. TYPES OF FLOW SYSTEM
1. Mass production
2. Process production
3. Assembly lines

22. MASS PRODUCTION
 Manufacturing of standardized parts or components
on a large scale
 Offers economies of scale as volume of output is
large
 Quality of products tends to be uniform and high due
to standardization and mechanization

23. PROCESS PRODUCTION
 Production is carried on continuously through a
uniform and standardized sequence of operations
 Highly sophisticated and automatic machines are
used
 Employed in bulk processing of certain materials
 Not labour-intensive and the worker is just an
operator to monitor the system and take corrective
steps, if called for

24. ASSEMBLY LINES
 Type of flow production which is developed in
automobile industry in USA
 Each machine must directly receive material from
previous machine and pass it directly to the next
machine

25. INTERMITTENT PRODUCTION SYSTEM
Buffer, ”Intermittent situations are those where the
facilities must be flexible enough to handle a variety of
products and sizes or where the basic nature of the
activity imposes change of important characteristics of
the input (eg, change in production design). In
instances such as these, no single sequence pattern of
operations is appropriate, so the relative location of
the operation must be a compromise that is best for all
inputs considered together”

26. CHARACTERISTICS OF INTERMITTENT
PRODUCTION SYSTEM
 Flow of production is intermittent, not continuous
 Volume of production is generally small
 A wide variety of products are produced
 General purpose, machines and equipment are used
so as to be adaptable to a wide variety of operations
 Process layout is most suited
 No single sequence of operations is used and
periodical adjustments are made to suit different
jobs or batches

27. INTERMITTENT PRODUCTION SYSTEMS ARE
EFFECTIVE WHEN
 Production centres should be located in such a
manner so that they can handle a wide range of
inputs
 Transportation facilities between production centres
should be flexible enough to accommodate variety of
routes for different inputs
 Should be provided with necessary storage facility

28. TYPES OF INTERMITTENT PRODUCTION
SYSTEM
1. Job production
2. Batch production

29. JOB PRODUCTION
 Involves manufacturing of single complete unit with
the use of a group of operators and process as per the
customer’s order
 ‘Special order’ type of production
 Product is usually costly and non-standardized
 Each product constitutes a separate job for
production process
 Ship building, electric power plant, dam
construction, etc are common examples of job
production

30. CHARACTERISTICS OF JOB PRODUCTION
 Product manufactured is custom-made or non-
standardized
 Volume of output is generally small
 Variable path materials handling equipment are used
 A wide range of general purpose machines like
grinders, drilling, press, shapers, etc is used

31. MERITS OF JOB PRODUCTION
 Flexible
 Can be adopted easily to changes in product design
 Fault in one operation doesn’t result into complete
stoppage of process
 Cost effective
 Time effective
 Reduced material handling
 Reduced work-in-progress inventory
 Waiting period between operations is reduced

32. DEMERITS OF JOB PRODUCTION
 Most complex system of production
 Raw materials and work-in-progress inventories are
high
 Work loads are unbalanced
 Speed of work is slow
 Unit costs are high

33. BATCH PRODUCTION
 “The manufacture of a product in small or large
batches or lots at intervals by a series of operations,
each operation being carried out on the whole batch
before any subsequent operation is performed”
 Mixture of mass production and job production
 Each product being produced for comparatively
short time
 Quantity of product manufactured is comparatively
large

34. DEMERITS OF BATCH PRODUCTION
 Work-in-progress inventory is high
 Large storage space is required
 No standard sequence of operation can be used
 Machine set-ups and tooling arrangements have to
be changed frequently
 Idle time between one operation and other

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