Chapter 1: Introduction of Production
* Defined as producing goods or services.
* The step by step conversion of one form of material into another form through chemical or mechanical process to create or enhance the utility of the product to the user.
* Production management
* A system that contains all the important activities in producing goods and services. * Deals with decision making related to production process so that the resulting goods or services are produced according to specifications, in the amount and by the schedule and out of minimum cost.
* There are four main components / element in the production system are: i. Input (source)
ii. The transformation
iii. The output (results)
iv. Feedback from the environment
Feedback Of The Environment
Diagram shows basic components of a production system
* Why / Important of Production?
i. To fulfill the need of the customer through the marketing dept. ii. To minimize the cost at the lowest rate while maximizing the profit. iii. To produce a high quality product and service in order to meet the customer satisfaction. iv. To determine the reasonable price at cost to meet the customer demand.
* The function of production & operation
* Main function- transforming the input to output.
* Three concepts of production system
i. Production system
* Receive input in the form of raw materials, labor, capital, machinery, facilities and information. ii. Transformation subsystem
* Input will be converted in the subsystem transformation into product or service that is called output. iii. Controlling subsystem
* To determine whether products or services produced can be accepted or not in terms of quantity, cost and quality. If not acceptable, corrective actions and improvements must be made by the management.
* Three main categories of input
i. Outside Input...
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