Production Management

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Concept of Production Management

ð Production requires the organised utilisation of natural resources, men, money,
material and machines.
ð It also states that “Production is an organised activity of converting raw materials into
useful products.”
ð But before starting the work of actual production, production planning is done in
order to anticipate possible difficulties and decide in advance as to how the production
should be carried out in a best and economical way.
ð Since mere planning of production is not only sufficient, hence management takes all
possible steps to see that plans made by the planning department are properly adhered
to and the standards set are attained.
ð In order to achieve it, control over production is exercised.
ð The aim production control is to produce the products of right quality, in right
quantity, at the right time by using the best and least expensive methods.
ð Production planning and control can thus be defined as the process of planning the
production in advance, setting the exact route of each item, fixing the starting and
finishing dates for each item, to give production orders to shops and lastly to follow up
the progress of products according to orders.
ð The principle of production planning and control lies in the statement “First plan
your work, and then work your plan.”

Methods of Production
ð Following are the three main methods of production:-
(1) Job or Unit Production
ð This is the oldest method of production on very small scale.
ð With this method individual requirement of the consumers can be met.
ð Each job order stands alone and is not likely to be repeated.
ð This type of production has a lot of flexibility of operation and hence general purpose
machines are required.
ð Factories adopting this type of production are generally small in size.
ð The layout of such factories is made flexible so that different type of works can be
easily and efficiently carried out with the slight adjustments.
ð Even in this age of industrialisation many things are produced on unit production.
ð This type of production is used for things which cannot be produced on a large scale,
things of high artistic nature requiring maximum attention, die work etc.
ð Man working in unit production gets an opportunity to produce large type of
products and he can become expert in very short time.
ð Advantages:-
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· It is the only method which can meet the individual requirements.
· There is no managerial problem, because of very less number of workers.
· Such type of production requires less money and is easy to start.
· There is less risk of loss to the factory adopting this type of production.
· Because of flexibility, there is no chance of failure of factory due to the reduction
of demand.
ð Disadvantages:-
· There is no scope of commercial economy.
· As the purchase of raw material is less hence cost of raw materials amount to be
slightly more.
· For handling different types of jobs, only skilled and intelligent workers are
needed, thus labour cost increases.

(2) Mass or Continuous Production

ð This method of production is a large scale production.
ð Mass production is a continuous production and it does not have any non-producing
time.
ð This type of production requires specially planned layout, one purpose machinery
and costly jigs and fixtures etc.
ð In this method with the use of automatic machines, articles automatically move
forward from one stage to the next stage of manufacturing operation.
ð With the help of specialised machines, articles of standardised nature can easily and
economically be produced on a large scale.
ð Layout of the plant is such that it can be used only one type of product.
ð Sequence of flow of the product during manufacturing remains same.
ð In this type of production different machines are assigned a definite nature of work.
ð Throughout the run of the plant only type of product can be manufactured.
ð To avoid the problem of material handling, use of mechanical means such as
conveyors of different types, cranes etc. can be used.
ð Advantages:-
· Mass production gives better quality and increased production.
· Wastage is less.
· As raw materials are purchased on a large scale higher margin of profits can be
made while purchasing them.
· Sales and advertising do not prove to be costly as their expenses are spread over
thousands of articles produced; hence cost per unit is low.
· Only few skilled and rest semi-skilled workers are required hence labour cost is
reduced.
ð Disadvantages:-
· During the period of less demand heavy losses on the invested capital may take
place.
· Because of all the machines used are one purpose machines therefore, this type of
production is not changeable to other types of production.
· Most of the workers handle only particular operation. They may get skill in their
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job but after some time they feel bored with the repetition of same type of work.
· As this type of production is on large scale, therefore it cannot fulfil individual
taste. It produces things of standardised form which are demanded on a large scale.

(3) Batch Production

ð This type of production is generally adopted in medium size enterprise.
ð Batch production is a stage in between Job production and Mass production.
ð Batch production is bigger in scale than the Job production while it is smaller than
that of Mass production.
ð Batch production requires more machines than that of Job production and fewer
machines than that of Mass production.
ð In batch production some of the machines are one purpose machines and remaining
are general purpose machines.
ð As in this type of production two or more types of products are manufactured in lots
at regular interval, therefore this is known as Batch Production.
ð Most of the engineering concerns are adopting batch production.
ð In this type of production different products are manufactured and stacked and then
sold on receipt of orders.
ð Advantages:-
· While comparing with mass production it requires less capital.
· If demand for one product decrease then production for another product may be
increased, thus the risk of loss is very less.
· Comparing with job production, it is more advantageous commercially.
ð Disadvantages:-
· Comparing with mass production, cost of sales and advertisement per unit is
more.
· Raw materials to be purchased are in less quantity than that in mass production.
Therefore, it is slightly costlier than that of mass production.

Production Function and Plant Layout

ð Three aspects of works planning and organisation viz.
(1) The production system
(2) Plant layout
(3) Factory building are interrelated and decide the shape of things to come into
existence.
ð Correct layout has an important contribution towards efficient running of production
affairs because it
· Increase the speed of in-process work
· Reduces the manufacturing time
· Lowers the cost of handling material
ð Besides planning for the placement of machines and equipments, layout is required
to make provision of
· Storage of materials and finished products
· Service facilities like, repairs, maintenance, power generation and others

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· Different sectional offices for managerial, supervisory inspection etc. as well as for
future expansion.
ð Group or Process layout is adopted in job production as well as in batch production to
some extent, while line layout or product layout is the rule in the case of small
production and process production.
ð In line layout, materials are worked out into finished products through a series of
integrated operations.
ð Line layout is the only choice available to mass production and process production
industries.
ð Line layout:-
· Eliminates cross handling of materials
· Conserves floor space
· Assures steady flow of production
· In-process coordination between operations
· Economises
· The use of materials
· Reduces the cost and time of manufacture
· Increases the volume of production on the contrary
ð Group layout is effective in job production under which a variety of products is
manufactured in small quantities at irregular intervals and through a varying sequence
of operations by the use of the mass machines.
ð Group layout imparts flexibility to the use of machines and facilitates the work of
supervision and inspection and reduces servicing charges for maintenance.
ð But the defeat of group layout lies in:-
· Poor coordination between operations
· Excessive materials handling
· Back tracking of work in process
ð With a view to securing the advantages of both types, a mixed type of layout is
adopted in many companies.
ð The mixed type offers the best solution as far as small and medium sized industries
are concerned.
ð Under this type of layout, machines are arranged partly on the basis of line layout and
partly on group layout.

Product Development
ð A product is an article obtained by the transformation of raw material and is sold by
the manufacturer i.e. is essential in orders to
(a) Meet changing consumer needs
(b) Manufacture improved and low cost products
(c) Maintain sales position and profit margin.
ð Product development is carried out after applied research which follows pure
research.
ð Development concerns the most economically feasible method for applying the
principles identical through research.
ð The development involves design and fabrication of new or modified product and
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then testing it to find its usefulness.
ð Product development generally involves considerable expenditure but a concern has
to meet if it has to survive when competition is hard.
ð Product development methods:- products can be developed by
(1) Imitation:- i.e. marketing another product similar to one in the market. E.g. when
one company introduced a refrigerator with automatic defrosting unit, other imitated
and marketed their own refrigerators having such a unit.
(2) Adaptation:- i.e. developing an improved product for an already existing in the
market. E.g. the introduction of electronic and atomic clocks against mechanically
spring wound clocks.
(3) Invention:- i.e. inventing the product by research work. E.g. synthetic fibres like
nylon, polyester etc. for making garments and other items of use.

Production Planning and Control

ð Products are manufactured by the transformation of raw materials into finished

goods.
ð This is how production is achieved.
ð Planning look ahead, anticipates possible difficulties and decides in advance as to
how the production, should be carried out in a best and economic way.
ð The control phase makes sure that the programmed production is constantly
maintained.
ð A production planning and control system has many functions to perform, some
before the arrival of raw materials and tools, and others while the raw material
undergoes processing.

ð The various functions are as follows:-

(1) Planning Phase

Prior Planning Active Planning

ð Forecasting ð Process planning and routing

ð Order writing ð Material control
ð Product design ð Tool control
ð Loading
ð Scheduling

(2) Action Phase => Dispatching

(3) Control Phase

Progress Reporting Corrective Action

ð Data processing ð Expediting

ð Replaning

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ð The above points can be summarised as under:-
a) Forecasting:- Estimation of type, quantity and quality of future work.
b) Order writing:- Giving authority to one or more persons to undertake a job.
c) Product design:- Collection of information regarding specifications, bill of
materials, drawing etc.
d) Process planning and routing:- Finding the most economical process of doing a
work and deciding how and where the work will be done.
e) Material control:- It involves determining the requirements and control of
materials.
f) Tool control:-It involves determining the requirements and control of tools used.
g) Loading:- Assignment of work to manpower, machinery etc.
h) Scheduling:- It is the time phase of loading and determines when and in what
sequence the work will be carried out. It fixes the starting as well as the finishing time
for the job.
i) Dispatching:- It is the transition from planning to action phase. In this phase the
workers is ordered to start actual work.
j) Progress reporting:-
(1) Data regarding the job progress is collected.
(2) It is interpreted by comparison with the present level of performance.
k) Corrective action:-
(1) Expediting means taking action if the progress reporting indicates a deviation of the
plan from the originally set targets.
(2) Replanning of the whole affair becomes essential, in case expediting fails to bring
the deviated plan to its actual path.

The role of Supervisor as a middle level management

Supervisor has got an important role to play in factory management. Supervision
means overseeing the subordinates at work at the factory level. The supervisor is a
part of the management team and he holds the designation of first line managers. He
is a person who has to perform many functions which helps in achieving productivity.
Therefore, supervisor can be called as the only manager who has an important role
at execution level. There are certain philosophers who call supervisors as workers.
There are yet some more philosophers who call them as managers. But actually he
should be called as a manager or operative manager. His primary job is to manage
the workers at operative level of management.

A supervisor plays multiplinary role at one time like -

1. As a Planner - A supervisor has to plan the daily work schedules in the factory.
At the same time he has to divide the work to various workers according to their
abilities.
2. As a Manager - It is righty said that a supervisor is a part of the management
team of an enterprise. He is, in fact, an operative manager.
3. As a Guide and Leader - A factory supervisor leads the workers by guiding
them the way of perform their daily tasks. In fact, he plays a role of an inspirer by
telling them.
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 4. As a Mediator - A Supervisor is called a linking pin between management and
workers. He is the spokesperson of management as well as worker.
5. As an Inspector - An important role of supervisor is to enforce discipline in the
factory. For this, the work includes checking progress of work against the time
schedule, recording the work performances at regular intervals and reporting the
deviations if any from those. He can also frame rules and regulations which have
to be followed by workers during their work.
6. As a Counselor - A supervisor plays the role of a counselor to the worker’s
problem. He has to perform this role in order to build good relations and co-
operation from workers. This can be done not only by listening to the grievances
but also handling the grievances and satisfying the workers.

Therefore, we can say that effective and efficient supervision helps in serving better
work performance, building good human relations, creating a congenial and co-
operative environment. This all helps in increasing productivity

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