Production and Materials Management

Industry Business Unit Production Input Process Output

Design

Research

Quality Check/Enhancement

Planning

Controlling

Inspection

Storing

Warehousing

Technique-know-how

Sectors/ Factors/ Operations/ Functions

PPC – Production Planning and Controlling

Production management is a branch of management which is related to

be referred as the process concentrated with the conversion of inputs
(raw material mechanism, information) into outputs (semi-finished
goods, services) with the help of certain processes (planning,
scheduling, controlling etc.) while management is the process of
expertation of these factors of production in order to achieve the
desired results.

Production Management Concerned with conversion

Input Process Output

Material Planning Semi-Finished

Machine Scheduling Finished

Manpower Controlling

# Factors of Production

Land Investment, Interest Return on Investment, Technique

# According to Elwood S. Buffa –

Production management means with decision making related to

production process so that the resulting goods and services are
produced according to specifications in amounts and by the schedules
demanded and at minimum cost.

Decision making relating to Production of Goods and Services

Specification

Schedules

Minimum Cost

# Features of Production Management

 Transformational process (concerned with the conversion)

  Results into value addition
 System itself
 Exists for certain objectives
 Carried out in part of organisation
 Inter-relationship among the system
 Strotum formulation
 Specialization of functions
 Increase in entropy (energy)

# Scope of Production Management

With the inception of factory system, there were so many problems of

production and it was necessary to tackle the problems of quality
control, layout facilities, meeting schedules. This was the time to begun
with the scope of production management

1.0 – 1780 – Steam Engine

2.0 – 1870 – Electricity

3.0 – 1970 – Automation

3.5 – 1980 – Computerization

4.0 – 2011 – Digitalization

5.0 – 2020 – Personalization

The various activities that form scope of production function can be

classified into two major heads.

1. Designing or formulating of production system.

2. Analyzing and controlling of production operation after
production system has been activated.
Activities related to production system designing:

Decisions relating to the production system design are the firm and
foremost activity of the production management. In this function the
production system designer should pay full attention to two important
sectors as-

1. Human Factors – The impact of production system on the workers

operating it.
2. Research and Development activities – It has a vital impact on
production designing.

# Role – Function of Production Management

4R’s

Right Quantity

Right Quality

Right Time

Right Place

2 Extended R’s – Right Cost – (Types of all cost)

Right Price – (Cost + Profit)

# Functions of Production Manager

1. Selection of product and design

2. Selection of process and planning
3. Selection of plant location
4. Capacity planning – Productivity
5. Product planning – Turnover
 6. Production control
7. Quality and cost control
8. Method analysis – PERT/ CPM (Taylor)
9. Inventory control

10 Plant layout and material handling

11 Work measurements – Taylor – Time taken, Work done

12 Maintenance and replacement of machines

13 Other functions – Labour efficiency, Store management, Price

analysis etc.

PERT – Program Evaluation and Review Technique

CPM – Critical Path Method

# Production System

Production system is assembling of objects united by some form of

regular interaction. It is composed of a number of components, these
components are combined together for the accomplishment of pre-
determined goals.

# According to Edward Buffa –

“Production is a process by which goods and services are created.”

The production process consists of a number activities and operations.

These activities and operations can be applied in different combination
to achieve desired goals.

A production system includes all the functions required to design,

produce, distribute and service to manufacture a product.
# Features of Production System

1. Production system is that activity thereby resources flowing

within or defined system are combined and transformed in a
controlled manner to add value in accordance with the policies
communicated by management.
2. It is a part of organizational function.
3. It requires decisions at all levels (strategic controlling and
operating).
4. It is a system of various subsystems.
5. It has definite objectives.
6. It is an open-end system.
7. It aims at optimum use of resources at optimum cost of
production.
8. The system transforms the various inputs to useful outputs.

# Reason of choices of production system (factors influencing)

1. Effect of volume or variety

2. Capacity of the plant
3. Lead time
4. Flexibility
5. Efficiency
6. Environment