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Summary about PRODUCTION / MANUFACTURING MANAGEMENT, NATURE OF PRODUCTION, PRODUCTION , PRODUCTION SYSTEM MODEL, CONCEPT
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finished products”.
understood, if we view the manufacturing function from 3 angles.
1.PRODUCTION SYSTEM MODEL
(^).
ENVIRONMENT
Legal/ political, social, tech & eco
MARKET: competition, product information, customer desires
PRIMARY RESOURCES: materials & supplies, personnel, capital
(money), utilities
PHYSICAL: manufacturing, mining LOCATIONAL SERVICES: transportation EXCHANGE SERVICES :retailing/ wholesaling STORAGE SERVICES :warehousing OTHER PVT SERVICES :insurance, fin utilities, real estate, health, business service & personal service GOVT SERVICES :local, state, central
GOODS & SERVICES
EXAMPLES:
Purchased parts, raw materials, supplies, paints, tools, equipments, personnel, building, utilities.
Transforms raw material into finished automobiles through fabrication & assembly operations.
automob iles
2.College’s & university’s
Students, books, supplies, personnel, building, utilities.
Transmits information & develops skills knowledge
Educate d persons
ORGANISATION FUNCTION
(^) The process of conversion is at the heart of production & is present in some form in all organisations. (^) It may be stated that every organisation irrespective of its purpose has a production function where dept’s & personnel play a central role in achieving the objectives of the organisation.
i. Strategi c decision s (plannin g products processe s & facilities )
1.Production processes 2.Production technology 3.Facility layout 4.Allocating resources to strategic alternative 5.long range capacity planning & facility
-Developing long range production plans including process design. -selecting & managing production technology. -planning the arrangement of facilities -planning for the optimal distribution of scarce resources among product line or business units.
-answering the ‘how much’
ii. Operatin g decisions (planning productio n to meet demand)
1.Production planning systems 2.Independent demand inventory systems 3.Resource requirements planning systems 4.Shop floor planning & control
-Aggregate planning & master production scheduling. -planning & controlling finished goods inventories. -planning materials & capacity requirements.
-short range decisions about what to produce & when to produce at each work centre. -Managing all facts of materials system.
IMPORTANCE OF PRODUCTION
FUNCTION
(^) Standard of living of people depends on production of goods & services. (^) More the production , higher the std of living of the people.
PRODUCTION FUNCTION CAN OFFER
COMPETITIVE ADVANTAGE TO A FIRM
IN THE FOLLOWING AREAS.
(^) Shorter new –product lead time (^) More inventory turns (^) Shorter manufacturing lead time (^) Higher quality (^) Greater flexibility (^) Better customer (^) Reduced wastage
SCOPE OF PRODUCTION &
OPERATIONS MANAGEMENT
(^) Quality management (^) Maintenance management (^) Production planning & control (^) Method improvement & work simplification etc.
THE ENVIRONMENTAL SET OF ATHE ENVIRONMENTAL SET OF A
FURNITURE MANUFACTURING FURNITURE MANUFACTURING
Raw material supplier’s
Wholesaler’s/ Retailer’s
customers
Other stakeholders
Competitor’ s
Potential supplier’s
For customers
For supplier’s
Potential customers
Potential wholesaler’s & retailers
Government
Local Pressure group’s communitie’s
A STAKE HOLDER APPROACH TO
BUSINESS ORGANISATION
OTHERS
FINANCIAL COMMUNITY
LOCAL COMMUNITIES GOVT
SUPPLIERS
EMPLOYEES
CUSTOMERS
THE ORGANISATION
CATEGORIES
Location of demand & competition Demand forecasting helps determine where goods or services are most likely to be sold (^) Convenience & inconvenience of location may affect
the number of potential customers & thus revenue. (^) Companies with high –volume purchases are changing
their practices to favour suppliers located closer to the purchasers plant (JIT).
2) TANGIBLE COST FACTORS:-
(^) Transport cost
a. Food processing :-perishable (should be processed quickly)
b. Forest & mineral industries: (loss of weight)
(^) Cost & availability of raw material.
ii. Energy availability & cost’s:
% use of electricity & natural gas example :- steel & mining.
