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:-
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Criterion of classification
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Categories of models
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A. Purpose
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Descriptive, Explanatory, predictive, pressiption
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B. Degree of Abstraction
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Physical, schematic, Analogue, mathematical
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C. Specified behaviour Charactsistics
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Static, Dynamic, Linear to non-linear
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D. Degree certainty
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Deterministic, probabilistic
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E. Procedure or method Of solution
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Analytical, Simulation
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F. Form of structure
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Allocative, Inventory, queuing, replacement,
competitive
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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.
