Production Management

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Production & Operations Management:

Production is the process by which raw materials and other inputs are converted into finished products. The essential feature of production is to bring together people, machines and materials to provide goods and services and thereby to satisfy the wants of people. Since both manufacturing and service organizations involve the above-mentioned features, the term production management is gradually replaced by the term Operations Management. An Operation may be defined as the process of changing inputs into outputs and thereby adding value to some entity. The value can be added by alteration, transportation, storage or inspection.

Productivity of Conversion Process:

The Productivity can be measured by the ratio of the output to the input.

Productivity or Operational efficiency = Output / Input
= [Goods & Services] / [Capital, Manpower, Material, Machine, Land & Buildings]

Production as a System:

A System is a collection of objects related by regular interaction and interdependence. A systems model of organization identifies the subsystems that make up the organization. As for example a business firm might have finance, marketing, accounting, personnel, engineering, purchase and physical distribution systems in addition to the production/operations system. Considering the systems perspective of production, there are three systems: (i) Production system, (ii) Conversion subsystem and (iii) Control subsystem.

Production system receives inputs in the form of materials, personnel, capital, utilities and information. These inputs are changed in a conversion subsystem into desired products and services, which are called outputs. A portion of the output is maintained in the control subsystem to determine whether it is acceptable in terms of quantity, quality and cost. If it is acceptable then no change is required in the system. If however, the appropriate standards are not met, managerial corrective action is required. The control subsystem ensures a uniform level of system performance by providing feedback information so that corrective action may be taken by managers. The following figure illustrates the production system.



Types of Production:

Production systems can basically be classified into five groups:

1. Project Production: In this type a single assignment of complex nature is undertaken for completion within the given period and within the estimated expenditure. Characteristics:
• Definite beginning and definite end.
• Non-uniform requirement of resources.
• Involvement of different agencies.
• Fixed position assembly type of layout.
• High cost overruns.
• Personnel problems related with interest, contractual nature of the work or location. • Scheduling and control is very important and network-planning techniques like PERT and CPM is found to be very useful. 2. Jobbing or Job Production: In this type one or few units of a product are produced to customer’s requirement within the given date and price fixed prior to the contract. Characteristics:

• Small production runs.
• Discontinuous flow of materials.
• Disproportionate manufacturing cycle time.
• General-purpose machines and process layout.
• High skilled labors.
• Highly competent supervisors.
• Large work-in-progress.
• Simple Production Planning & Control functions.

3. Batch Production: In this type limited quantity of each type of product is authorized for manufacture at a time.

• Short production runs.
• Skilled labors in specific trades.
• Supervisor to be knowledgeable in specific processes. • Limited span of...
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