Production Management: Key Elements

Elements of Production Management

• Money is a key element.
• Men (labor) are essential for production.
• Materials are required for the production process.
• Machines are used in production.
• Markets are necessary to sell the products.
• Methods define how production is carried out.

Dimensions of Quality

• Performance is a factor.
• Reliability matters.
• Durability is important.
• Serviceability is a consideration.
• Aesthetics play a role.
• Features are part of quality.
• Perceived Quality influences overall quality.
• Conformance to Standards is critical.

Main Functions of Production Planning

• Estimating is a core function.
• Routing is necessary.
• Scheduling is required.

Supportive/Secondary Objectives

• Equipment Quality is a secondary objective.
• Availability of raw materials is crucial.
• Right Manpower is a supportive objective.

Production Systems

• MASS PRODUCTION system includes producing standardized components of a product in bulk or on a large scale.
• CONTINUOUS PRODUCTION management systems include a continuous flow of material physically and without any type of interruption and is considered a primary production management system.
• Intermittent production management systems have irregular intervals or breaks in the manufacturing of products as products or services are produced as per the orders of customers.
• In BATCH PRODUCTION, a product is manufactured in different batches or groups as per the orders received from the customers or based on the assumption of the product’s continuous demand.

Objectives of Production Management

• One objective of production management is ensuring the organization produces products and services in the right numbers as per demand (RIGHT QUANTITY).
• Ensuring the organization produces products at the RIGHT QUALITY as per customer requirements.

Product and Service Delivery

• Organizational systems MUST BE CAREFULLY DESIGNED TO ENSURE THAT THE SERVICE IS CONSISTENTLY DELIVERED
• THE PERFORMANCE OF THE PRODUCT OFTEN INFLUENCES THE PROFITABILITY OR REPUTATION OF THE END-USER.

Functions of Production Management

• Production control regulates the sequential flow of materials in the manufacturing process i.e. from raw material to finished goods
• Selection of correct production capacity includes choosing the production capacity according to the product demand as problems may arise in case of excess or less capacity.