introduction to production management

Description
it gives an introduction to the subject production managemment

CHP 1: INTRODUCTION TO
PRODUCTION MANAGEMENT
If you don’t produce then what you will sell and if you don’t sell how you will survive???

FUNCTIONAL AREAS OF MANAGEMENT
FINANCE ? MARKETING ? HUMAN RESOURCE ? IT ? LAW ? PRODUCTION ? LOGISTICS
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INTRODUCTION
Production management is one functional area of total business management. ? Production is the base of marketing and other business activities. ? Production management is basically concerned with manufacturing and other related or supplementary activities. ? A production system takes inputs and converts them into outputs. ? The conversion process is the predominant activity of a production system.
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DEFINITION
“Production is the process of transforming raw materials or purchased components into finished products for sales.” Carl Hayel “Production management is the process of planning, organizing, directing & controlling the activities of the production function. Production function is the conversion of raw materials into finished products”
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“ Production Management is concerned with those processes which convert the inputs into outputs. These inputs are various resources like raw material, Men, Machines, Methods, etc and the outputs are goods and services. - H. A. Harding

A WORD OF THOUGHT…

Is production applicable only to products?

PRODUCTION FUNCTION

• • • • • •

LABOR ENERGY MATERIAL CAPITAL EQUIPMENT INFORMATION

CONVESION
• TRANSFORMATION PROCESS

• GOODS • SERVICES • IDEAS

INPUT

OUTPUT

EXAMPLES:
PRODUCTION SYSTEM

INPUTS

CONVERSION

OUTPUTS

STEEL

Iron Ore, Coal, Labor, Machinery

Smelting, Rolling

Steel Sections, Sheets

RESTAURANT

Hungry Customers, Chefs, Services, Equipments

Cooking and Serving food

Satisfied Customers

COLLEGE

High School Students, Teachers, Library

Teaching

Graduates

AIRLINE

Airplanes, Pilots, Engineers, flight Attendants

Air Transportation

Satisfied Customers to their Destination

OBJECTIVES: PRIMARY AND SECONDARY
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PRIMARY OBJECTIVE:
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Produce the products with right quality Produce the products in right quantity Deliver the product at right time Deliver the product at right place To perform the above functions at the right price
To attain optimum utilization of resources i.e. 4M’s
Machinery ? Material ? Manpower ? Money
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SECONDARY OBJECTIVE
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To Minimize total cost of production ? To eliminate non value adding activity
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INTERACTION OF PRODUCTION DEPARTMENT
MARKETING
FINANCE

MATERIALS & PURCHASE

HUMAN RESOURCE

PRODUCTION
R & D or DESIGN

IT

INDUSTRIAL ENGINEERING

QUALITY INSPECTION

PRODUCTION ORGANIZATION

GENERAL MANAGER

PRODUCTION MANGER

PLANT MAINTENANCE

PRODUCTION PLANNING & CONTROL

PRODUCTION ENGINEERING

QUALITY CONTROL

R&D

“PRODUCTION CYCLE STARTS AND END WITH THE CUSTOMER”

WHY CONSUMER IS THE CENTRE OF ALL ACTIVITIES?
PRODUCTION

PROCESS DEVELOPMENT

SALES TO CONSUMER

NEW PRODUCT DESIGN

RESEARCH FEEDBACK FROM CONSUMER

FUNCTIONS OF PRODUCTION MANAGEMENT
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Design & Development of Production Process Selection of Machines & Equipment Decision on Location Decision on Layout Provision for Essential Facilities Production Planning & Control Production Budget & Inventory Control Cost Control Quality Control Routing & Scheduling Product R & D Expansion & Diversification Co-ordination with other department Reporting to top management Materials planning & procurement

DUTIES & RESPONSIBILITIES OF PRODUCTION MANAGER
Production Planning ? Production Control ? Quality Control ? Material Handling ? Plant Layout ? Inventory Control ? Employee Motivation ? Cost Control ? Plant Maintenance ? Introduction of new production technology
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THANK YOU… NOW LET START PRODUCING…



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