Friday, February 28, 2014

Production management

Q 1. Meaning of production management:
Generally, production management refers to the sound and efficient accomplishment of production activities. Production management is the composition of two words- production and management. In order to understand the meaning of production management we should have knowledge about the words “production" and "management".

Production is associated with two aspects- goods and services. From the view point of goods, production is the fabrication of a physical object through e use of labour, material and equipment with reference to service, production is the discharge of a function which has some utility. Production process of converting inputs into goods and services is illustrated below:

On the other hand, management means the art and science of getting things done through the efforts of other people so as to achieve the desired objectives with efficiency.

By combining the meaning of these two terms we can say that production management is a process applied to the- smooth accomplishment of overall production activities. In other words, production management refers to those activities which ensure the production of goods of right quality at minimum cost.

Q 2. Scope of production management:
By scope we mean the areas with in which certain principles work..In other words, it means the boundaries of any operation. By scope of production management we refer to the activities/ operations which come within the purview of production management.
The scope of production management is very extensive. Because it deals with those activities which directly or indirectly facilitate the creation of form utility. Production management is the sum total of planning, organizing, directing and controlling applied to production operations in order to produce large volume of goods at a minimum cost. As a result, production manager is to keep careful attention on production activities. That is, he is to perform a number of indispensable functions to discharge his responsibility efficiently and effectively. These functions come within the preview of production management.
According to Louis J. Rago, the scope of production management can be examined from three different tasks. These tasks are:
(a) Production engineering task.
(b) Production planning task and
(c) Production control task.
From the engineering point of view, the scope of production management involves plant layout, material handling process planning and product design. On the other hand, from the planning point of view, production management deals with the planning of labour requirements, machine utilization, raw material availability, capital, replacement, quality, time allocation, cost standard etc. lf we judge the scope of production management from controlling view points, it may be said that facilitate the implementation of planning task come within the purview of production management.

Q 3. The current Era of Production management
Almost two and a half centuries have been passed since Adam Smith. Productivity and the total productive capacity have expanded tremendously. During this period, production management has been developing largely as an empirical applied science. The applied science that envisaged by Taylor is really developing. The basic development aspects of production management of current era are briefly discussed below:
l. Emphasis on human relations: Since world war two, managers have become aware of human relations. Harmonious industrial relations increase production efficiency. Industrial psychologists have found relation of morale to production. According to them, emphasis on workers attitude, desire and opinion help to motivate them. Today, most companies are quite conscious of industrial democracy and wider participation of workers in management.
2. Stress on regular research: Another development of post world war two is to the tendency of companies to give stress on regular research. For some reasons, continuous research is indispensable. In modern competitive business world, producers like to satisfy the customers by supplying goods of high quality goods through regular research is a pre condition to exist in the market. Due to technological advancement, no good can remain unchanged: for an indefinite period. Reduction of technological for an indefinite inherent in research.
3. Introduction of Automation: A third aspect of today’s production method is automation. Automation as a production device is used extensively in operations management. lt reduces labour cost. It is highly suitable to produce large volume at minimum time. It also increased the quality of goods. Now—a —days, it is increasingly applied in the field of production.
4. Innovation of computers: A wonderful invention of modern science is computer. lt helps to solves complex problem of production management. It is very fast, time saving and economical device for processing data. It facilitates the task of decision making and model building.
5. Application of operations research: Shortly after world war two, companies have been using statistical and mathematical tools in decision making. These mathematical and statistical tools are termed as operations research. These tools enable managers to make correct and optimum decisions. The applications of operation research tools such as linear programming, simulation are extremely popular in modern industrial enterprises.
6. Introduction of system dynamic: The idea of system is first introduced by an American named prof. J Forrester. According to him, the entire business organization is to be viewed as a whole system. Because various departments of an organization are interconnected and interdependent parts of the whole system. So problems are to be solved from the view point of organization but not from departmental viewpoint. Prof. Forrester introduced computer simulation to achieve system objectives. The concept of system is very popular in the industrially developed countries.
It is obvious that the increased gradual development in production management with make it applied science in future.

Q 4. Decision making in production management
Management’s primary function is to make decisions that determine an organization’s future course of action over both short and long term. There exists a different decision alternative. In the decision making process we select from among these alternatives the course of action to be carried out. In this world of science and technology, correct decision is very important. Because different problems are inherent in the production system. These problems require two major types of decisions one relates to the operation and control of the system.
Long term strategic decisions related to the design of the productive system are:
l. Selection and design of product: Decisions must be taken about product selection and its design. There are strong inter-action between production and A design with productive capacity, and vice-versa.
2. Selection of equipment and processes: Decisions are to be taken about machine technology and process to be used in production. Alternative equipments and processes are available for a given purpose. Management must make decision on the basis of capital commitment and facility design.
3. Design and specification of job: Job design is an integral part of total system ` design. It involves the basic organization work and integrates human engineering data to produce optimally designed jobs.
4. Location of system: Decision about plant location and location of additional production units is very important in production management. Location decisions can be important if the balance of cost factors determined by nearness to market and material supplies is critical.
5. Production design of items processed: Operation manager must make sound decision about production design of items processed. Because cost interacts strongly with design of parts, products, paper work forms or the design of the service offered.
6. Facility layout: Decision related to design capacity, basic models of production, shifts, use of over time and sub contracting must be made. Operations and equipment must be located in relation to each other. Thus, it will minimize overall interaction cost or meet the requirement of complex criterion.

Short run decisions related to day to day operation and control:
l. Inventory and production control: Decisions must be made regarding the allocation of productive capacity, consistent with demand and inventory policy. Possible schedules must be work out. The load on workers and machines and the flow of production must be controlled.
2. Maintenance and reliability of the system: Decisions must be made regarding maintenance effort. In making decisions, the random nature for equipment breakdown and machine down time associated with important costs of loss of sales must be considered.
3. Quality control: Decision must be made to determine and regulate the permissible levels of risk. Because sometimes, bad parts are produced, errors one made and good parts are against probable losses resulting from passing defective material and service.
4. Labour control: Labour is stillthe major cost element in most products and services. Production planning requires an appraisal of the labour components. Thus, much effort has gone into developing work measurement and wage payment system.
5. Cost control and improvement: Supervisors must make day to day decisions that involve the balance of labour, material and some overhead cost. ln controlling the activities, costs may be controlled.

Q 5. Model Definition, model defined
Model defined: The concept of model is not new. They have been with us in one form or another since our childhood. Dolls, toy planes, etc. are models. On the other hand, budget, job description, profit and loss account etc. are only regarded as model. Some definitions on model are quoted below:
l. "A model is a general term denoting any abstract representation of a real situation." — Garrett silver.
2. “Model is always an abstraction to some degree of the real life things or process for which we want to predict the performance." E. S. Buffa.

Model is an artificial laboratory that reflect the relation of different organization activities and where the rational results of inference are examined. Model is a representation of facts and information in a condensed and suirplied form so as to help the decision maker to arrive at certain logical conclusion pertaining to a problem or real life situation.

Q 6. Types of model
Models may be classified according to their ftmctions, purposes, degree of abstraction, procedure of solution, etc. N. P. Loomba has given the following classification of models:-
Criterion of classification
Categories of models

A. Purpose
Descriptive, Explanatory, predictive, pressiption

B. Degree of Abstraction
Physical, schematic, Analogue, mathematical
C. Specified behaviour Charactsistics
Static, Dynamic, Linear to non-linear
D. Degree certainty
Deterministic, probabilistic
E. Procedure or method Of solution
Analytical, Simulation
F. Form of structure
Allocative, Inventory, queuing, replacement, competitive

1. Descriptive model: The model which describes the situation under study is called descriptive model. For example a table showing various demand levels and their respective frequencies, is a descriptive model.
2. Explanatory model: A model which explains behaviour of various components of the system under study is called explanatory model. For example, correlation between share price and earning per share.
3. Predictive model: Predictive model predicts future behaviour of various variables on the basis of their present relationship, e. g. demand forecast. 
4. Prescriptive model: This model suggests the preferred course of action in a given situation, such as linear programming model or inventory model.
5. Physical model: It is also called iconic model. These models are those which look like what they represent. A toy on no plane is an iconic model.
6. Schematic model: lt is closely related to Analogue model} Schematic models represent a system by utilizing a set of properties different from those present in the system. Diagrams, drawings, graphs, flow chart etc. are schematic models.
7. Mathematical model: It is also regarded as symbolic model. Mathematical models are the most abstract models. The model in which symbolism is used to depict factors in a real world situation is called mathematical model.
8. Static model: Static model are concerned with determining an answer for a particular set of fixed conditions that will probably not change significantly in the short run.
9. Dynamic model: Dynamic models take account of time factor and admit the impact of changes generated by time.
l0. Linear model: A linear model is one where each of its components is related to other variables linearly.
11. Non-Linear model: A non-linear model is one in which one or more components of the model exhibit non-linear behavior.
l2. Deterministic model: In deterministic models, variables and their relationships are stated exactly. Conditions of certainty and perfect knowledge are presumed to exist. Same results are always obtained from the same data.
13. Probabilistic model: Probabilistic models are used to deal with those situations in - which outcomes of managerial actions can not be predicted   certainty.
14. Analytical model: In analytical procedure, we get either a general formula which can be used directly to solve a specific problem or we have an algorithm and the algorithm can be applied to solve a specific problem.
15. Simulation: In simulation models, we have neither a formula nor an algorithm. In stead, the model is experimented upon, by inserting into it specific values of controllable variables, under assumed conditions, and then observing their effect on the decision variable. Simulation works efficiently with computers.
16. Allocation model: Allocation models deal with the problem of allocation of scarce resources among competing activities. Transportation model, or the assignment model are examples of allocation model.
17. Inventory model: Inventory models deal with a class of problems involving the storage of idle resource until they are needed.
18. Queuing model: Queuing models help solve a class of problem in which a set of customers arrive service at a set of service facilities.
19. Replacement model: Replacement models serve to solve a class of problems in which equipment or other assets must be replaced because of deterioration or complete failure.
20. Competitive model: Competitive models help analyze those situations in which two or more opponents are involved in choosing rational strategies in order to minimize a measure of effectiveness.

Q 7. Responsibility of production management
The responsibility of production management is inherent in the proper performance of production activities production manager is to take policies to produce goods of right quality and quantity at minimum cost and time. His responsibility is to help the organization to achieve goals. He can discharge this responsibility by performing production activities effectively and efficiently. The responsibility of production manager is often same in different organizations.

The men in staff positions will engage in one or more of the following activity:
1. The determination of the organization’s need for various factors of production.
2. The development of efficient facility layouts.
3. The design of systems for transporting materials, personnel, and clients.
4. The evaluation of alternative capital expenditor proposals.
5. The maintenance of production facilities.
6. The selection of the most economical work methods.
7. The implementation of safety programs.
8. The establishment of work standards.
9. The administration of wage incentive plans.
10. The control of inventory levels.
11. The scheduling of operations.
12. The purchasing of materials, supplies and equipment
13. The application of quality assurance techniques.

Those individuals who hold line positions will ordinarily be expected to do the following:
1. Supervise the work force.
2. Satisfy output requirement. ·
3. Meet schedule completion dates.
4. Control operating costs.
5. Satisfy established quality requirements.
6. Provide staff personnel with needed information.
7. Implement the decisions of staff personnel.

Q 8. Plant Maintenance
Meaning: Machines and buildings are wearing all the time. So they need repairs from time to time. Transportation facilities need continuous lubrication and repairs. Plant services require occasional upkeep. Maintenance consists of all activities required to keep factory buildings, machines, transportation facilities and plant services up to date, efficient, and effective. According to the predetermined standards Gordon B. Carson defines maintenance in the following words:
"The task of maintenance is to keep building and grounds, service equipment, and production machinery in satisfactory condition, according to the standards set by – management.”

Function of maintenance: The maintenance functions are briefly, illustrated in the following manner:
1. Inspect machinery and equipment at such interval that will ensure detection of maladjustment, wear and impending breakdown.
2. Make such repairs, renewals or replacement as will be necessary.
3. Keep systematic records of inspection and repair.
4. Keep records to warm of the necessity for re-inspection.
5. Keep the factory premises clean and in effective working condition.
6. Suggest and assist in developing changes and improvement in the design or machinery and equipment.
7. Put into effect changes and improvements developed.
8. Operate such service activities as may be assigned to the maintenance department.
9. Keep the plant at maximum production efficiency.
10. Ensure the safety of the workforce.
11. Keep adequate stock of spares.
12. Train the maintenance personnel.
13. Keep the machines and equipments in working condition.
14. Minimize the wear and tear and preserve the value of the plant.

Q 9. Preventive Maintenance
Preventive; maintenance is some time termed as planned maintenance or scheduled maintenance or systematic plant maintenance preventive maintenance concerns itself with preventing trouble before it occurs, though all conceived plans of repair, adjustment, over handing and lubrication. Preventive maintenance is intended to prevent future break downs or similar occurrences. This is to say that it is performed on an asset while the asset in still capable of functioning in a satisfactory manner for some time.
Preventive maintenance is based on the idea. "Prevention is better than cure". It is economical than unscheduled maintenance, as we know that "a stitch in time saves nine"

Q 10. Duties of maintenance department
Maintenance is the task keeping the buildings and equipments in a satisfactory condition according to standards set by management. The work is under the control of works, plant or maintenance engineers, who normally reports to the works manager. The main functions, according to Radford and Richardeon, of maintenance department are seven in number. They are:
1. Mechanical maintenance and plant
2. Electrical installation and maintenance.
3. Building additions and maintenance.
4. Plant over hand.
5. Equipment spares store keeping.
6. Plant records.
7. Factory cleaning.

Clande George Jr. classified the duties of maintenance department under five main heads. These are briefly discussed below:
1. Inspection: Inspection from or maintenance stand point is concerned with the t routine and scheduled cheeks of the plans, building and its equipment to keep track of its conditions and to cheek for needed repairs.
2. Engineering: Engineering is concerned with developing changes and improvements in the plant, building, or the operative equipment. Recurring breakdowns in certain equipment may suggest the need for an engineering study by the maintenance department of determine what has caused the difficulty.
3. Production: Production puts into operation the ideas developed by the engineering phase. The production function is also concerned with performing the work suggested by the inspection function as well as performing other tasks. Such as servicing and lubricating equipment.
4. Clerical: Clerical work is largely keeping records of costs, time, progress on jobs, and the like. In addition to these, however, the maintenance department is responsible for maintaining a complete set of records pertaining to the important features of the plant, equipment and other properties.
5. House keeping: House keeping means taking care of the detail of upkeep and cleaning of all buildings, equipments tools and plant facilities.

Q 11. Organization for plant maintenance
Maintenance activity would be headed by a director of maintenance, a junior executive in charge of maintenance department, itself a part of the manufacturing operations division. Hence, the maintenance director receives order and instructions from the vice-president for manufacturing operations and in tum reports to him. Three foremen assist him in planning and controlling the various maintenance department activities. The first of these will be the master mechanic, heading all mechanical maintenance, typically centered around the mechanic shop. The second foreman is in charge of electrical maintenance, including power, lights, signal systems, electronic control, motors, and wiring of the plant. He supervises all electrical repairs from replacing defective building wiring to replacement of defective light switches. The third maintenance supervisor is the general maintenance service foreman, whose special province is building maintenance and care, including janitorial work, ground keeping, plant painting and plant protection activities, among other functions.

Q 12. Production control defined
Production control is a composite word, having composed of two terms- "production" and "control". The term production is used to denote the process of converting raw materials into finished products with the ultimate objective of distributing them to the consumer at a profit. On the other hand, control means measuring activities and correcting deviations according to predetermined standard.
Combining the meaning of these two terms we can say that production control is a set of well defined procedures, the objective of which is to help production of described output at a minimum cost by integrating the elements of production process into a flow without interruption.
Different writers and authorities defined the term in different ways. A few them are quoted below:
1. “Production control is the means by which a manufacturing plan is determined, information issued for its execution and data collected and recorded which will enable the plan to be controlled through all its stages.” —R. B. Rose V
2. "Production control is a directive agency whose purpose, where production is divided into separate operations, is to coordinate those operations in the most effective fashion through the exercise of the functions of planning, scheduling, inspecting, routing, dispatching and observing, with object of producing the described quantity of goods of the right quality at A the correct time and place" — M.C.  Shukla ·

Q 13. Functions and Importance of production control
Functions of production control: Applied to production control the term "function” means the activities which production control performs. The production control department of a modern manufacturing concern performs different functions relating to production- planning and control.
The functions of production control are discussed below:
1. Production planning: Production planning is deciding in advance the effective performance of production operations. Planning of production means- determining in advance what work to do, where to do, when to do, and by whom it is to be done. It also determines what assets to employ in production and how they are to be utilized to execute the production goals. Generally, production planning department make decisions concerning production inputs and its availability, quality per unit, plant capacity, production method, production program, volume of production and the like.
2. Routing: Routing determines where and by whom the work is to be done. Production routine is one of the elements in planned production. It involves the planning of the best sequence of operations to be followed in manufacturing a product, prescribing the path to be followed in the process of production and designing the materials, machines, tools and personnel to be used in course of production.
3. Scheduling: it involves determining when the work is to be done. Scheduling arranges the different operations involved in manufacturing in order of priority, setting down the starting and finishing times for each. It includes the scheduling of materials, pasts, machines and all other requisites of production.
4. Dispatching: It involves the issue of proper orders and instructions to proper persons and departments for carrying out the work according to the production route and schedule establishment. It ensures the proper allocation and movement of materials and store required at every stage, as well- as allocation of machines, tools and personnel required for each operation, so that work proceeds smoothly according to schedule.
5. Progress or Follow up: This is the test function of production control and consists of hastening or expediting the movement of materials and the production process as a whole. It is the function of comparing the achievement with the plan every stage and of taking suitable remedial action if there is any variation from the plan. That is, it includes investigation of the causes of deviations, assisting in their removal and preventing their recurrence.

Importance of production control
The importance of production control will be clear from its contribution. Some of the important contributions of production control are briefly discussed below:
1. Cost estimation: Production control by providing a record of the material used, the machine and man hour required in jobs, helps in the estimation of costs.
2. Regularity and time saving: By planning ahead it ensures order and regularity in production and marked possible proper allocation of work which prevents loss of machine time and man hour and helps fuller utilization of resources.
3. Stimulus to production: Production control not only regulates production but also stimulates it. Dispatching and expediting provide the necessary stimulus to production.
4. Keeping delivery date: Proper schedule of timings are maintained in production. Thus, it is production control which quickens production and keeps delivery dates. Delivering an order on time is obviously important to the customer and to the development of customer- goodwill.
5. Corrective and preventive measures: The follow up process not only expedites work but also focuses attention on irregularities, holds up for taking corrective and preventive actions. It also keeps management informed of the progress of work at every stage.
6. Ensure better quality: Production control ensures the quality of production means of inspection. Inspection is carried out to ensure that finished products conform to the pre determined standard of quality.

Q 14. Types / Forms of production control
Production control methods differ from company to company. This extreme variation is very difficult to describe. However, the most widely used control methods are briefly discussed below:
1. Order control: Order control is used in the intermittent manufacturing concerns. These undertaking produce goods on the basis of orders placed by the customer. It is also true that sometimes companies get Repeat orders for the same thing. In such a , they may make very few things or even nothings, to stock manufactures do not produce goods continuously.
Production is planned individually for each order. Producers make out separate directives to cover every lots production. A separate cost record is kept for every lot order control is very expensive. Because control work is done for every order. Besides, paper work that needed for order control is very costly.

2. Flow control: It is used in the continuous production system. Here production is made on the basis of sales forecast. Manufactures, who make products on production lines, use flow control. That is, flow control is used for line assembled products. Products are produced in parts and assembled at different work stations, when they move through the line, workers stay at separate work stations to assemble the products. The distance of these work stations from each other is only 5 or 6 feet. As soon as a man puts on his part the product moves on and another product comes to him for its parts. Parts and sub assembles must flow to the man along the line at a rate equal to their use. Flow production control must match up the rates of flow of parts, sub assembles and final assembles. In case of flow control, variety of finished products is to be controlled. Flow of parts is to be determined to match their use.

3. Load control: It is closely related to order control. The factory’s load is its work ahead. Loads can be expressed in tons, in dollar value or in time. Time is used for production control purpose. Master schedules are approved after matching their load against the factory’s capacity. Thus, load control refers to schedule making for one or more by important machines. The big key machine is used for many sizes and varieties of products and the load control idea is to allocate its time to jobs. Usually the key machine is a fast producer, such as printing press that prints magazines.

4. Block control:  Block control is the variation of order control. It is used in the men’s cloth industry. Before men’s suits are manufactured, styles and cloth patterns are decided upon, and pictures and samples sent out to the retailers. Retailers make their selections and order the suits they want.
A block is a number of suits the factory can turn out in half a day. Within a block, every suit has its own individual suit number, so that sleeves, pockets, etc, for the suit will be brought together into the right coat. All suits belonging to the same order carry the order number and all suits in the block carry the block number.

Q 15. Steps involved in routing
Steps involved in routing:
1. Analysis of products to determine the requirements of the factor of production.
2. Analysis of production process to determine the best process of production.
3. Analysis of the capacity of individual machine so that it can be utilized fully.
4. Determining the number of works involved in producing a particular commodity.
5. Determining the sequence of production work.
6. Determining the time requirement of processing each product.
7. Determine the economic lot size in production.
8. Determine the accepted level of spoilage.
9. Prepare the production flow chart and route sheet.