MEANING,FUNCTION AND SCOPE OF PRODUCTION MANAGEMENT

Ø   MEANING,FUNCTION AND SCOPE OF PRODUCTION MANAGEMENT
PRODUCTION AND OPERATION MANAGEMENT

PRODUCTION AND OPERATION MANAGEMENT

Ø  A CONCEPTUAL SERIES ON COMPETITION OF COMMERCE AND MANAGEMENT LECTURE 3

Ø  MEANING OF PRODUCTION MANAGEMENT

·         IS CONCERNED WITH DECISION MAKING RELATING TO PROCESSES FOR PRODUCING GOODS AND SERVICES IN ACCORDANCE WITH THE PREDETERMINED SPECIFICATIONS AND STANDARDS BY INCURRING MINIMUM COST.

u   PRODUCTION IS THE PROCESS BY WHICH RAW MATERIALS AND OTHER INPUTS ARE CONVERTED INTO FINISHED PRODUCT.

·         MANUFACTURING IS CONCERNED WITH MANUFACTURING OF TANGIBLE GOODS

·         PRODUCTION INCLUDES CREATION OF BOTH TANGIBLE AND INTANGIBLE

Ø  NATURE OF PRODUCTION MANAGEMENT

1.     PRODUCTION AS SYSTEM:-CONVERSION OF A SET OF INPUTS INTO A SET OF DESIRED OUTPUTS

2.     CONVERSION SUBSYSTEM:-A SUB SYSTEM OF LARGE PRODUCTION SYSTEM WHERE INPUTS ARE CONVERTED INTO OUTPUT

3.     CONTROL SUB SYSTEM:-A SUBSYSTEM OF THE LARGE PRODUCTION SYSTEM WHERE A PORTION OF THE OUTPUT IS MONITORED FOR FEED BACK FOR TAKING CORRECTIVE ACTION

Ø  THE OBJECTIVE OF PRODUCTION MGMT

·         PRODUCTION INCLUDES CREATION OF BOTH TANGIBLE AND INTANGIBLE SERVICES. THE OBJECTIVE OF THE PRODUCTION DEPARTMENT:-

1.     CONVERT THE AVAILABLE CAPITAL INTO PHYSICAL RESOURCES REQUIRED FOR PRODUCTION

2.     CONVERSION OF RAW MATERIAL AND OTHER INPUTS TO SALABLE GOODS AND SERVICES

3.     PRODUCTION OF GOODS AT THE RIGHT TIME AND IN SUFFICIENT QUANTITY AT THE MINIMUM COST AND RIGHT QUALITY

Ø  FUNCTION

1.     DEMAND FORECASTING AND DETERMINATION OF REQUIREMENT OF VARIOUS SOURCES

2.     ARRANGEMENT FOR THE PROCUREMENT OF REQUIRED FACTORS OF PRODUCTION

3.     ALSO ARRANGEMENT OF SUPPORTING INFRASTRUCTURE FOR EXAMPLE SUFFICIENT MATERIALS,CONSUMABLES,COMPONENTS AND QUALITY CONTROL

4.     OPTIMUM UTILIZATION OF THE RESOURCES

Ø  IMPORTANT ASPECT OF PRODUCTION FUNCTION

1. MANUFACTURING FUNCTION:-

a)    PRODUCTION OF GOODS,RESEARCH AND DESIGN

b)    SELECTION OF FACTORY SITE AND LAYOUT

2. ANCILLARY FUNCTION:-SUPPORT OR SMOOTHEN PRODUCTION FUNCTION

1. PRODUCTION PLANNING AND CONTROL
2. STORE KEEPING
3. MATERIAL HANDLING

3. ADVISORY FUNCTION: WORK STUDY,METHOD STUDY,RESEARCH AND QUALITY CONTROL

Ø  SCOPE OF PRODUCTION MANAGEMENT AT STRATEGIC LEVEL

i.        NEW PRODUCT IDENTIFICATION AND DESIGN:-: DEVELOPMENT OF THE PRODUCT ACCORDING TO CUSTOMER’S REQUIREMENTS AND VALUE ANALYSIS SHOULD BE APPLIED TO MAINTAIN THE RIGHT QUALITY AT MINIMUM COST

ii.        PROCESS DESIGN AND PLANNING:-APPROPRIATE TECHNOLOGY

iii.        FACILITIES LOCATION AND LAYOUT PLANNING:-STRATEGIC DECISION AND SO DUE CONSIDERATION SHOULD BE GIVEN

iv.        DESIGN OF MATERIAL HANDLING SYSTEM:-SELECTION OF PARTICULAR FLOW PATTERN AND MATERIAL HANDLING EQUIPMENT

v.        CAPACITY PLANNING: PROCUREMENT OF FIXED ASSETS AND SIZE OF THE PLANT WHICH IS DEPENDENT ON VOLUME OF PRODUCTION.

Ø  SCOPE OF PRODUCTION AT OPERATION LEVEL

i.        PRODUCTION PLANNING

ii.        PRODUCTION CONTROL

iii.        INVENTORY CONTROL

iv.        MAINTENANCE AND REPLACEMENT

v.        COST REDUCTION AND COST CONTROL

vi.        WORK SYSTEM AND DESIGN