BGMEA University of Fashion & Technology

MECH-4101
Production Planning and Control

TOPIC: PRODUCTION & PRODUCTIVITY

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BGMEA University of Fashion & Technology
BOOK REFERENCES

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 PRODUCTION
Production is defined as the process or procedure to transform a set of
input into output having the desired utility and quality. Production is a
value-addition process.

Production system is an organized process of conversion of raw materials

into useful finished products.

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VALUE ADDED/NON VALUE ADDED ACTIVITY

Value Added Activity: Creating or making something of value that a

customer is willing to pay for & Which change the shape of the
product.

Non Value Added Activity: Creating or making something for what a

customer is not willing to pay for & Which not change the shape of the
product.

Waste : Anything that does not add value but adds cost to the product.
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PRODUCTION SYSTEM

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PRODUCTION SYSTEM(Continued)
Transformation
Process
• Cutting
INPUT • Sewing OUTPUT
• Washing
• Finishing

Feed back

• Men
• Materials
• Money Goods &
• Management Services
• Information 6
• Energy
PRODUCTIVITY
A general definition is that productivity is the relationship between
the output generated by a production or service system and the
input provided to create this output.

Higher productivity brings higher margin in a business and increment in

productivity level reduces garment manufacturing cost. Hence factory can
make more profit through productivity improvement. 7
PRODUCTION & PRODUCTIVITY
The concepts of production and productivity are totally different. Production
refers to absolute output where as productivity is a relative term where in the
output is always expressed in term of inputs. Increase in production may or may
not be an indicator of increase in productivity. If the production is increased for
the same input, then there is an increase in productivity.
If viewed in quantitative terms, production is the quantity of output produced,
while productivity is the ratio of the output produced to the input used.

Productivity is said to be increased, when

The production increases without increase in inputs.
The production remains same with decrease in inputs.
The output increases more as compared to input. 8
BENEFITS FROM INCREASED PRODUCTIVITY
Higher productivity results in higher volume of production and hence increased sales, lower cost and higher
profit. It is beneficial to all concerns as stated below:

(a) Benefits to the management:

More profit
Higher productivity ensures stability of the organization
Higher productivity and higher volume of sales provide opportunity for expansion of the
concern and wide spread market
It provides overall prosperity and reputation of the organization

(b) Benefits to workers:

Higher wages
More wages permits better standard of living of worker 9
Better working conditions
Job security and satisfaction
BENEFITS FROM INCREASED PRODUCTIVITY
(c) Benefits to the consumers:
 More productivity ensures better quality of product
 It also enables reduction in prices
 More satisfaction to consumers

(d) Benefits to nation:

 It provides greater national wealth
 It increases per capita income
 It helps expansion of international market with the help of standardizes
and good quality products
 It improves standard of living
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 It helps better utilization of resources of the nation
FACTORS INFLUENCING PRODUCTIVITY
Controllable
1. Product
2. Plant & Equipment
3. Technology
4. Materials
5. Human Factors
6. Management Style
Uncontrollable
7. Infrastructure
8. Natural Resources
9. Government Policy
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PRODUCTIVITY IMPROVEMENT TECHNIQUES
TECHNOLOGY BASED
1. Computer Aided Design (CAD)
2. Robotics
3. Laser Technology
4. Modern Maintenance Techniques
5. Energy Technology
6. Flexible Manufacturing Techniques (FMS)
EMPLOYEE BASED
7. Financial and non-financial incentives at individual and group level
8. Employee promotion
9. Job design, Job enlargement, Job enrichment and Job rotation
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10.Personal Development
PRODUCTIVITY IMPROVEMENT TECHNIQUES
MATERIAL BASED
1. Material Planning and Control
2. Purchasing, Logistics
3. Material Storage and retrieval
4. Waste Elimination

MANAGEMENT BASED
5. Management style
6. Communication in the organization
7. Work Culture
8. Motivation 13
9. Promoting Group activity
PRODUCTIVITY IMPROVEMENT TECHNIQUES
PROCESS BASED
1. Method Engineering and Work simplification
2. Job Design, Job safety
3. Human Factor Engineering

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PRODUCTIVITY MEASURES
(a)Labor Productivity:
The resource inputs are aggregated in terms of labor hours. Hence
this index is relatively free of changes caused by wage rates and
labor mix. By improving methods of work (eliminating unnecessary
movement, etc.) the output of a worker can be increased.

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PRODUCTIVITY MEASURES
(b)Machine Productivity:
By use of sophisticated modern machines, better method of
manufacture and reducing idle time of machines, the number of
pieces (items) produced by a machine per hour can be increased.

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PRODUCTIVITY MEASURES
(c)Materials Productivity:
Materials that can be converted into products to be sold, both as
raw materials or auxiliary materials such as solvents or other
chemicals and paints needed in the process of manufacturing and
packaging material. By product design and by use of skilled
workmen, material wastage can be greatly reduced. Thus from a
given quantity of material more number of pieces can be produced.

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PRODUCTIVITY MEASURES
(d)Energy Productivity:
The resource input is the amount of energy consumed in kilowatts.

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PRODUCTIVITY MEASURES (Problem)

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DYNAMICS OF PRODUCTIVITY CHANGE
Productivity improvement results in lower cost per unit by
effective utilization of all the resources and reducing wastage.
Lower cost per unit contributes to increased profit levels so that
company can reinvest the surplus in new technology, equipment’s
and machines. This will result in further productivity increase and
also there is a greater employment generation due to new
investments. The productivity increase sets in chain reaction as
shown fig:

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DYNAMICS OF PRODUCTIVITY CHANGE(Contd.)
Improve in
productivity

More out put

Increase in wages

Increase in Demand
Reduction in for Goods & services
production cost Better M/c

Lower Price Greater Employment

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More Profit More savings Higher Investment
T H A N K S TO A LL

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