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Production Management

Consumed at Ease

Syllabus

Production Management

Production Management refers to the set of activities like

Men, Material & Machinery that are interlinked together

to achieve Operational & organizational objectives in the

Optimal time period in an economical Way.

System 

Combination of Elements or components that

are interlinked together to Achieve

Operational and organizational objectives.

System

Control

The monitoring of performance through a

feedback by comparing the results achieved with

the planned targets so that performance can be

improved through proper corrective action.

Types of control

• Proactive control – Predict the future & act.

• Reactive control – reacting to what has happened.

Business System

Production / Operations system

Feed Back

Operations Objectives 

Meaning: Operational objectives are long range

goals to be achieved by operations function to

achieve the corporate goals.

Operations Objectives

• To produce required quantity

• To achieve required quality

• To meet delivery time

• Economical way of doing

Production Management - Overview

History of Production Management

Types of Operation System

Production Flow Output Specification of Output

GoodsServices

CustomizedStandard

Flow Shop Job Shop Projects

Continuous Pro Mass Pro

Batch Pro Job Pro Open JS Closed JS

Flow Shop• Spl resources – Sequence / Serial• Product Based seq / serial.• Unique products• Quantity of pro is huge.• Steady flow of materials• Economies of scale

Flow Shop Contd…

• Continuous Production• Raw material to finished products

• Ex: Cement, chemicals & fertilizers.

Flow Shop Contd…

• Mass Production• Multiple operations per machine

• Ex: Automobiles, Durables, etc..

Job Shop

• Gen. equip with spl. outfits

• Pro. flow depends on work

• Variety of products

• Pro. quantity is less

• Intermittent flow of materials

Job Shop

Based on Job flow Based on orders

Batch Pro Job Pro Open Closed

Job Shop Contd…

• Batch Production• Production done in batches.

• Batches are based on orders.

• Ex: Drugs, Garments & ancillary parts.

Job Shop Contd…

• Job Production• Also known as Job Order Production.

• Mostly done for uncommon occasions.

• Ex: Specialty equipment.

Job Shop Contd…

• Closed Job Shop• Mostly an internal job shop.

• Not open for orders from other companies.

• Ex:Standard Chartered Bank & Scope

Job Shop Contd…

• Open Job Shop• Mostly a third party

• Open for orders from others.

• Ex: E Yantra – AirTel & Vodofone.

Characteristics & ComparisonFlow Shop & Job Shop

Flow Shop Job Shop

Products

Standardized Products Non standardized

Equipments / Resources

Spl. Purpose equipments Gen. Equip. with outfits

Work force satisfaction

Repetitive work low sat. Multifaceted – high sat.

In process Inventory

as resources are balanced waiting time inventory

Contd…Flow Shop Job Shop

Cycle Time (CT)

Low per unit CT High per unit CT

Cost of Production (COP)

Low per unit COP High per unit COP

Quantity of Production

High Low

Scope for Novelty & Flexibility

Low scope High scope

Production Planning & Control

Not a complex process Highly complex

Projects•One time occurrence

•Product Manufactured is Huge

•Production planning – N/w analysis

•Ex: Ship Building, Space vehicles, etc.

Communication in POM

Computer Integrated Manufacturing (CIM)

The process of integration of automated industry. CIM is the integration of all the subsystems within an organization as a single system.

Capitalizing on similarities by implementation of GT.

CIM Contd…

CIM

Organizational Part Operational Part

•Corporate Services

•Finance

•Business Planning

•Marketing

•Computer Aided Engineering (CAE)

•Computer Aided Manufacturing (CAM)

CIM Operational Part contd…

Operational Part

Computer Aided Engg Computer Aided ManufacturingCAPPCAPCAQCCADDCADMRP

FMSFASAC / CCFMCFMADNCDAS

Production DAS Machine DAS

Conceptual Framework of CIM

G T

ComputerTechnology

CAM

CAD

ROBOTICS

MPC

AMH

CIM – Conceptual Contd..

GT => Group Technology

CAD => Computer Aided Design

CAM => Computer Aided Manufacturing

AMH => Automated Material Handling

MPC => Manufacturing Planning & Control

Group Technology

Group Technology (GT) is the realization that

many problems are similar and that, by

grouping similar problems, single solution

can be found to a set of problems, thus

saving time and effort.

Flexible Manufacturing System

Collection of pro. equip. logically organized

under a host computer & physically connected

by a central transport system. The objective

being increased flexibility in pro.sys.

Global Supply Chain

Supply chain refers to the way that materials flow

through different organizations, starting with raw

materials and ending with finished products

delivered to the ultimate consumer.

Global complexities - GSC

      •Exchange rate Risks

•Counter trade opportunities & Requirements

•Legal regulations

•Cultural & Language differences

•Labor – training, availability, etc.,.

•Logistics – transport, shipping, warehousing, etc.

•Security of men, material, products & intellectual property.

Global Supply Chains to Value Chains

Barriers:

•Political stability

•Infrastructure

•Transaction cost

•Market mass – target population

•Potential for repeat customers

•Availability of trained personnel

Global Supply Chains to Value Chains

Ways for Transformation:

Leverage Value

Redefine business boundaries

Strengthen relationship – compete / partner with

Supply chain responsiveness

Manage right – value profit trade off

Bring in change

Global Supply Chain

Unit – 1 Ends.