Production Management

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:-

·         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 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

·         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 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  Order writing ð  Product design	ð  Process planning and routing ð  Material control 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

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.
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