session 3

FRAME WORK OF
PRODUCTION
MANAGEMENT


Topics covered under session 3



§ Framework of Production Management

§ Importance of Production Management
§ Objectives of Production Management
§ Functions of Production Management


Importance of Production Management:

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 service
§ Reduced wastage


Different areas of achieving Productivity with productivity



function are:
§ Engaging volume of production
§ Reducing rejection rate
§ Minimizing re-work rate
§ Maintaining delivery schedules
§ Controlling idle machine and manpower hours
§ Establishing / updating / improving / setting industrial
engineering norms
§ Updating processes and procedures
§ Maintaining accuracy and timeliness of MIS
§ Decreasing machine set-up time
§ Controlling overtime
§
§ Good house-keeping
§ Checking absenteeism, thefts/pilferage and
misconduct
§ Eliminating accidents
§ Effective grievance-handling
§ Effective training and team building
§ Minimizing inventory and achieving better yields
§ Enhancing customer satisfaction
§ Total Quality Management (TQM)
§ Business Process Re-engineering (BPRE)
Objectives of Productivity Management are:


§ Customer Satisfaction
§ Quality of the product in accordance with the acceptable
standards.
§ Competitive product cost.
§ Easy maintenance and reliability of the product.
§ Product is in compliance with all functional specifications.
§ Profitability
§ Market price should be competitive and pre-fixed that help
determine the profitability for an organization.
§ To produce right quality that meets all product
specifications at minimal cost.
§ Timeliness: safeguard against
§ Idle time in terms of manpower and machinery
§ High process inventories
§ Poor maintenance of machinery
§ Inefficient process cycle
§ Non-availability of resources such as input materials,
consumables etc.
Functions that the Productivity Management perform:


1. Planning
1. Product design and development
2. Production Process Selection
3. Planning Facility Location
4. Planning Facility Layout
5. Capacity Planning
6. Production Planning
2. Organizing
1. Work Study
2. Material Management
3. Purchasing Management
3. Controlling
1. Stores Management
2. Value Analysis
3. Quality Control
4. Maintenance Management
5. Inventory Management
6.