Introduction to Production Management PDF

INTRODUCTION TO PRODUCTION MANAGEMENT  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...

INTRODUCTION TO PRODUCTION MANAGEMENT  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  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  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  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  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”)  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  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  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  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  BRIEF HISTORY OF PRODUCTION MANAGEMENT THE COMPUTER ERA Around 1955, IBM developed digital computer Operations Research and other Management Science techniques were used  BRIEF HISTORY OF PRODUCTION MANAGEMENT THE PRODUCTION AND OPERATIONS MANAGEMENT SCENARIO TODAY Quality of life ‘Service’ utility Demand for ‘variety’ in products and services Concept of ‘customer’ and ‘customer orientation’  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  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  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  TYPES OF PRODUCTION SYSTEMS Flow or Continuous system Intermittent production system  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  CHARACTERISTICS OF FLOW SYSTEM Volume of outputis generally large and goods are produced in anticipation of demand Product design and operations sequence are standardized Special purpose automaticmachinesare 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  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  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  TYPES OF FLOW SYSTEM 1. Mass production 2. Process production 3. Assembly lines  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  PROCESS PRODUCTION Production is carriedon 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  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  INTERMITTENT PRODUCTION SYSTEM 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  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  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  TYPES OF INTERMITTENT PRODUCTION SYSTEM 1. Job production 2. Batch production 3. Project production  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 production process Each product constitutes a separate job for Ship building, electric power plant, construction, etc are common dam examples of production job  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 Awide range of generalpurpose machines like grinders, drilling, press, shapers, etc is used  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  DEMERITS OF JOB PRODUCTION Most complex system of production Work loads are unbalanced Speed of work is slow Unit costs are high  BATCH PRODUCTION “The manufacturing 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  DEMERITS OF BATCH PRODUCTION Work-in-progress inventory is high Large storage space is required Machine set-upsand toolingarrangements have to be changed frequently Idle time between one operation and other  PROJECT PRODUCTION Company accepts a single/complex order It must be completed within a given period of time and at an estimated cost. E.g. construction of airports, metro project, satellites