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Production management

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Production management

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Production management

  1. 1. Production Management : Nature, Scope & Importance Faculty (BADM)
  2. 2. Previous Years’ Questions • What do you mean by production function?(2012 VS) • What do you mean by Production? Explain the different production systems.(2012 ET) • What is Production Management? Explain the importance of Production Management. (2011 ET) • Explain the continuous production system and batch production system. (2010 S) • Define ‘Production Management’. Clearly explain the Scope of Production Management (2009 ET) • What do you mean by ‘Production Process’? (2006 VS)
  3. 3. Production Management • Production is the act of producing something useful. It implies the creation of goods and services to satisfy human wants. • It refers to the application of management principles to the production function in a factory. • Production management is the planning, acquisition, use and control of the physical resources employed in the provision of goods and services. • It involves planning, organizing, directing and controlling the manufacturing activities to produce useful goods and services in order to satisfy customer wants and generate profits for the firm.
  4. 4. Production Management • According to Barry Shore, “It is the management of any operational system which transforms inputs into outputs.” • In the words of Roger Schroeder, “Operations management is the study of decision making in the operation function.”
  5. 5. Characteristics of Production Management • Creative Function • Creates Utility • Core of Any Business • Wide Scope • Goal of Business • Related with Factory Management • Ancillary Function • Advisory Function • Also applies to ‘service’ • Decisions • Functional Area • Pervasive Function • Analytical Process • People Emphasis • Based on Specialization • Mechanization • New Technologies
  6. 6. Production Process Production Process is a process in which raw material is transformed into a useful product which is needed by people and organisations.
  7. 7. Scope or Function and Responsibilities of Production Management • Design of the Product • Design of the Production System • Selection of Location • Plant Buildings • Layout of Plant • Installation of Machinery • Capacity Planning • Production Planning • Production Control • Quality Control
  8. 8. Scope or Function and Responsibilities of Production Management • Method Analysis • Inventory Control • Work Measurement • Maintenance and Replacement • Cost Reduction and Control • Scheduling, Dispatching and Progressing • Storekeeping • Purchasing Materials • Handling of Materials • Building Good Work Environment • Research & Development
  9. 9. Transformation Process Means of Production: Raw Material, Tools, Capital, Human Resource Creation of Utility/Value Creation by Transformation Production: Product/Service required by People Feedback
  10. 10. Types of Production Process 1. Extractive Production Process- here material is extracted from natural resources (earth, water, forest), e.g. Crude Oil, Gas, Fish, etc. 2. Construction Production Process – (Building, road, Bridge) (Immovable assets) 3. Service Production Process – Bank, Restaurant, Transportation
  11. 11. 4. Production Process in Manufacturing - engaged in production of goods by converting raw material into products – its classification is as follows • On the basis of size Production Process Small Scale Production process or (Job) production process produces as per the needs of customer Large scale or mass production – large no. of units are manufactured, but it requires huge investment
  12. 12. • On the basis of nature of Production – Analytical Production Process & Engaged in analysing some basic material in order to separate different products associated or mixed in it. • Crude Oil analyzed into Petrol, Diesel, Kerosene, Lubricants etc. – Synthetical Production Process & mixing two or more materials with a view to manufacture a new products. • Example – Cosmetics, Soaps, Shampoo, Medicine Etc. – Processing Production Process- Engaged in processing of raw materials or producer goods through a series of manufacturing process in order to produce some new product. – Conditioning Production Process - where the basic form of raw material changes, e.g. molding of iron – Assembly Production Process - Assembling of various related parts or components in order to make a useful product. • Example – Cars, TV sets, Computer Sets
  13. 13. based on Production System – Job or Unit Production Process: each unit is created as per directions of customer. Production is on the basis of individual needs, There is no standardization in production of product. – Continuous Production Process(Flow Shop): large scale production, use of machine.

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