2. INTRODUCTION TO PRODUCTION
MANAGEMENT
ď˘ âProduction
management is the
process of effectively
planning and
regulating the
operations of that part
of an enterprise which
is responsible for
actual transformation
of materials into
finished productsâ.
3. ď˘ Production management techniques are used in both
manufacturing and service industries.
ď˘ Production management responsibilities include the
traditional âfive M'sâ: men and women, machines,
methods, materials, and money.
ď˘ Managers are expected to maintain an efficient
production process with a workforce that can readily
adapt to new equipment and schedules.
4. ď˘ They may use industrial engineering methods, such
as time-and-motion studies, to design efficient work
methods. They are responsible for managing both
physical (raw) materials and information materials
(paperwork or electronic documentation). Of their
duties involving money, inventory control is the
most important. This involves tracking all
component parts, work in process, finished goods,
packaging materials, and general supplies.
5. EMERGING TRENDS IN PRODUCTION
MANAGEMENT
ď˘ Lean Production
ď˘ Total Quality Management (TQM)
ď˘ Supply Chain Management
6. WHAT IS LEAN PRODUCTION?
ďś Lean production has its roots in Toyota Automobile Co.
of Japan, where waste was to be avoided at all cost the
excluding part included :
(1) The waste in time.
(2) The waste of investment
(3) The waste of having ideal workers.
ďś The core idea is to maximise CUSTOMER VALUE
while minimising waste.
7. ABOUT LEAN PRODUCTION:
ďśThe ultimate goal is to provide perfect
value to the customer through perfect
value creation process that has ZERO
waste.
ďśLean production has its key element that is
-JIT (Just âIn-Time) & Autonomation (
Smart Automation)
8. JIT (JUST-IN-TIME)
ď˘ âJIT is an approach that seeks to eliminate all sources
of waste in production activities by providing the right
part at the right place at the right time.â
ď˘ It is known by different names:
- The Toyota system.
- Zero Inventory.
- Kan âBan system.
9. AUTONOMATION
ď˘ If an abnormal situation arises then the machine
stops and the worker will stop the production line.
ď˘ It is a quality control process that applies the
following four principles:
- Detect the abnormality.
- Stop.
- Fix or correct the immediate condition.
- Investigate the root cause and install a
countermeasure.
10. BENEFITS OF LEAN PRODUCTION
o Inventory levels are drastically reduced.
o Product quality is improved elimination of unpleasant
suppliers .
o Reduction in customer related problems.
o Improvements in employees morale.
11. TOTAL QUALITY MANAGEMENT
(TQM)
ď˘ A core definition of (TQM) describes a management
approach to longâterm success through customer
satisfaction. In a TQM effort, all members of an
organization participate in improving processes,
products, services, and the culture in which they work.
12. TQM
ď˘ Total quality management can be summarized as a
management system for a customer-focused organization
that involves all employees in continual improvement. It
uses strategy, data, and effective communications to
integrate the quality discipline into the culture and
activities of the organization
13. BENEFITS OF TQM
ď˘ Strengthened competitive position
ď˘ Higher productivity
ď˘ Enhanced market image
ď˘ Reduced costs and better cost management
ď˘ Higher profitability
ď˘ Improved customer focus and satisfaction
14. SUPPLY CHAIN MANAGEMENT
ď˘ Communicator of customer demand from point of sale
to supplier
ď˘ Physical flow process that engineers the movement of
goods
15. BENEFITS OF SUPPLY CHAIN
MANAGEMENT
Lower inventory, transportation, warehousing,
and packaging costs
Greater supply chain flexibility
Improved customer service
Higher revenues
Increased performance and profitability
16. KEY PROCESSES OF
SUPPLY CHAIN MANAGEMENT
ď˘ Customer relationship management
ď˘ Customer service management
ď˘ Demand management
ď˘ Order fulfillment
ď˘ Manufacturing flow management
ď˘ Supplier relationship management
ď˘ Product development and commercialization
ď˘ Returns management