Production Management

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CHAPTER I
BACKGROUND OF THE STUDY AND ITS SETTING

Introduction
Today, we are living in a fast-paced world where the use of technology is highly needed in a business to cope-up with our changing world. As the years go by, the business world is leaning more and more toward it, making it almost impossible to separate the two from each other. Technology, provides us everything that we need, from doing simple calculations to programming a system to help a business become competitive. One of the foundations of a successful business is a good business strategy. In order for a business to achieve such goal, they use different types of information systems. With the advancement offered by technology, the development of different information systems was made possible. Manufacturing requirements are determined based on sales forecast, customer orders or inventory targets.  Production schedule is generated with information provided by different modules such as customer order, inventory, manufacturing order and purchase order.  With this schedule, management can effectively plan the production, monitor the inventory movement and set the production target.  Furthermore, the system provides tools to analyze productivity and its production cost given the schedule and the actual production for a certain period. Nowadays, production management system has been developed not only to serve the needs of production but it caters to the needs of sales and their customers as well. With the enhanced production management system, the sales activity becomes more efficient. Features are provided where customer satisfaction is met. Because of accurate and on time sales information of customer orders, production and its plan is easily done. An effective control of inventory and cost is achieved. Philippines, as a popular marketplace around the world, have different type of companies within. One of those companies is the Flying House General Enterprises, Inc., they specialized in customizing giveaway items, jackets, eco-bags, and other merchandises ordered from them. Every year, their clients get bigger and bigger, and a manual process of recording, retrieving and generating reports are harder than ever since they are using manual system to get things done. Background of the Study

An organization that produces or distributes a good or services is called a business. Every business engages in at least three major activities. The first activity, production involves making a product or providing a service. The second activity is marketing. Marketing deals with how goods or services are exchange between producers and the consumers. The third activity, finance, deals with all money matters related to running a business. Whether a business has one worker or one million workers, it is involved with production, marketing and finance.

An important characteristic of business is that it is a dynamic, or constantly changing. Business reacts quickly to the changing nature of society especially when it comes to the use of technology. Flying House General Enterprises Inc., is different, since 1990 the company started operating as a single proprietor with a fully manual process on their payroll, sales, purchases, liquidation of expenses and collection. Year 2000 it becomes a corporation but still using their manual process. Until now the company does not even change their accustomed process in their business. Being prone to error and having delayed result is the usual problem encountered by the said company. The problem stated above leads the proponents to create a “LAN-based Sales and Production Management System for Flying House General Enterprise, Inc.

Theoretical Framework
Theoretical Framework is a compilation of organized concepts or ideas. It guides the proponents to determine what thing will be measured and what statistical relationship will be looked for. Project

Control
Project Evaluation
Project
Management

Executing, Monitoring...
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