Production Management Essay Example
Production Management Essay Example

Production Management Essay Example

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  • Pages: 4 (1020 words)
  • Published: March 21, 2017
  • Type: Case Study
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Production & Operations Management

The process of transforming raw materials and other inputs into finished products is referred to as production. Its primary objective is to combine individuals, machinery, and materials to meet people's needs by delivering goods and services. As both manufacturing and service organizations encompass these elements, the term production management is being replaced with Operations Management. Operations involve converting inputs into outputs, thereby enhancing the value of a particular entity. This value can be added through modifications, transportation, storage, or inspection.

Productivity of Conversion Process

The evaluation of the productivity of the conversion process involves comparing the output to the input. The efficiency, or productivity, is determined by dividing the goods and services produced (output) by factors such as capital, manpower, materials, machines, land, and buildings (input).

Production is seen as a system consisting of inte

...

rconnected objects. An organization can be viewed as a system with various subsystems including finance, marketing, accounting, personnel, engineering, procurement, physical distribution, and production/operations.

From a systems perspective on production, there are three main systems:
(i) Production system
(ii) Conversion subsystem
(iii) Control subsystem.

Production system: inputs in the form of materials, personnel, capital, utilities, and information are converted into desired products and services (outputs) in a conversion subsystem. The control subsystem maintains a portion of the output to assess if it meets acceptable quantities, quality, and cost. If the output meets these standards, no changes are necessary. However, if the standards are not met, managerial corrective action is needed.

The control subsystem ensures consistent system performance by providing feedback information for managerial corrective action. The production system model is illustrated in the following figure.

A Production System Mode

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There are five types of production systems: Project Production, Jobbing or Job Production, Batch Production, Mass Production, and Continuous Production. Each type has its own characteristics and requirements. Project Production involves undertaking a single complex assignment with a definite beginning and end. It requires varying resources, involves multiple agencies, and has a fixed position assembly layout. However, it often faces high cost overruns and personnel problems related to interests, contracts, or location. Scheduling and control are crucial in this type, with network-planning techniques like PERT and CPM being useful.Jobbing or Job Production focuses on producing one or a few units of a product based on customer requirements. It has small production runs, discontinuous material flow, and disproportionate manufacturing cycle time.It utilizes general-purpose machines and process layout and requires highly skilled labor and competent supervisors.Large work-in-progress is common in this type of production.The text describes different types of production methods such as Simple Planning & Control functions,Batch Production,and Mass/Flow ProdutionThe methods mentioned above include different features like short production runs, skilled labor, limited control span, general-purpose layouts, manual handling of materials, and the requirement for production planning and control. In Batch Production, a specific quantity of each product is authorized for manufacturing at a given time. On the other hand, Mass and Flow Production involve conducting a production run on one or multiple machines in sequential order while stocking the products in a warehouse until they are sold.

Characteristics of Continuous Flow Production: This type of production involves a continuous flow of materials. It utilizes special purpose machines and a product type layout. Mechanized material handling is employed, along with low skilled labor. The manufacturing cycle

time is short, making supervision easy. There is limited work-in-progress and lesser flexibility in production schedules.

Characteristics of Process Production: In this type of production, the production run continues indefinitely. Special purpose machines with built-in controls are used, as well as highly mechanized materials handling. The manufacturing cycle time is virtually zero. Low skilled labor is required, but the supervisor must be a process specialist. Work-in-progress is negligible and there is limited production planning ; scheduling involved.
Control functions include the selection of the manufacturing process, capacity flexibility, and output/product variety. The objectives of Production Planning and Control (PPC) are to deliver quality goods in required quantities to the customer on schedule, achieve maximum customer satisfaction at minimum cost, ensure maximum utilization of resources, minimize manufacturing cycle time, maintain optimum inventory levels, maintain flexibility in manufacturing operations, and coordinate between labor, machines, and supporting departments.

To contribute to effective cost reduction and control, PPC functions can prepare production schedules and ensure timely delivery. These functions can be divided into three phases: planning, action, and control. In the planning phase, there are two activities: preplanning (product planning and development,demand forecasting ,resources planning,facilities planning ,plant location planning ,and plant layout planning )and active planning(planning for quantity,determination of product-mix,routing,scheduling material planning ,process planning,capacity plannig,and tool-planning).The action phase involves executing and implementing functions like dispatching and progressing. The control phase encompasses functions such as status reporting, material and tool control, quality control, inventory control, labor output control, cost control, inspecting, evaluating, and taking corrective actions. The production planning and control department is essential in the overall production system by playing a crucial role in the production management cycle.

The Production/Operations Management Cycle involves

the use of production planning and control to manage manufacturing operations and coordinate with other departments within the firm. The PPC department has direct connections with the marketing, purchase, Stores, Maintenance, R;D, Industrial engineering, and Quality control departments, as well as the manufacturing department. It is linked to various aspects such as product structure/design documents, manufacturing documents, assembled products, and finished goods. The efficiency of the PPC function can be measured in four areas:

  1. Delivery: This includes calculating the number of on-time deliveries and those that were delayed over a specific period, typically one year.
  2. Inventory Levels: This involves assessing the average inventory value, surplus inventory, non-moving inventory, and the inventory turnover ratio.
  3. Production/Operations Management: This entails comparing planned and actual production, tracking the number of overtime hours, and evaluating machine utilization ratio.
  4. Costs incurred: This covers the expenses associated with carrying out the PPC function in relation to production value and sales value generated.
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