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Production is not the application of tools to materials but is the application of logic to



Production basics
Goods &



Input Processor Output


POM Technology


Role of Production Manager

• To meet production target & delivery schedule of goods & services planned.

• Optimum utilization of resources in process of converting them into goods &


• Profit
Product is defined as a "thing produced by labor or effort" or the "result of an act or a

Product line
• A product line is "a group of products that are closely related, either because they
function in a similar manner, are sold to the same customer groups, are marketed
through the same types of outlets, or fall within given price ranges."
• Product Management is concerned with looking after a product/service from
cradle to grave.

• It looks after the requirements, subcontractors, product testing/re-testing and

certification, delivery, post delivery support, obsolescence, withdrawal and
• Products should have a product life cycle that shows how they will be managed
throughout their life and beyond, and how they will be superseded if required.

• Product Management normally feed their products/services into

projects/programmes, based upon Customer System Requirements/Needs.
• Products can be defined in terms of :-
– Its physical attributes (weight, dimension or material)
– Colour texture, style, shape etc.
Types of Products
• Consumer Product
– Personal, family or household use.

• Industrial Product
– Products that are purchased to produce other projects

• Productivity is a measure of output from a production process per unit of input
(material & immaterial)

Total Productivity = Output Qty/ Input Qty

Output Volume

Input Volume

A building or place that provides a particular service or is used for a particular industry
• A facility layout is an arrangement of everything needed for production of goods
or delivery of services.

• A facility may also be defined as an entity that facilitates the performance of any
job. It may be a machine tool, a work centre, a manufacturing cell, a machine
shop, a department, a warehouse, etc.

• Facility layout techniques apply to the case where several physical means have to
be located in a certain area, either industrial processes or services.

• To carry out an appropriate plant layout, it’s important to take into account the
business strategic and tactical objectives
– Example: space requirements/cost per m2 in Malls; accessibility/privacy
in offices etc
• Plant layout planning includes decisions regarding the physical allocation of the
economic activity centers in a facility.
– An economic activity center is any entity occupying space.
– The objective of plant layout planning is a more effective work flow at the
facility, allowing workers and equipment being more productive.

The plant layout process starts at an aggregate level, taking into account the different
departments. As soon as we get into the details, the different issues arise, and the original
configuration may be changed through a feedback process.

Most layouts are designed properly for the initial conditions of the business, although as
long as the company grows and has to be adapted to internal and external changes, a re-
layout is necessary.
Factors affecting Plant Layout

• The factors affecting plant layout can be grouped into 8 categories:

– Materials
– Machinery
– Labor
– Material Handling
– Waiting Time
– Auxiliary Services
– The building
– Future Changes

Types of Plant Layouts

• The production process normally determines the type of plant layout to be applied
to the facility:
– Fixed position plant layout
• Product stays and resources move to it.
– Product oriented plant layout
• Machinery and Materials are placed following the product path.
– Process oriented plant layout (Functional Layout).
• Machinery is placed according to what they do and materials go to
– Cell Layout
• Hybrid Layout that tries to take advantage of different layouts


• Contribute to the profits of the enterprise
• Specific objectives of production planning and control are to establish routes and
• schedules for work that will ensure the optimum utilization of materials, workers,
and machines
• and to provide the means for ensuring the operation of the plant in accordance
with these plans.
• Production planning is the function of establishing an overall level of output,
called the production plan.
• The process also includes any other activities needed to satisfy current planned
levels of sales, while meeting the firm's general objectives regarding profit,
productivity, lead times, and customer satisfaction, as expressed in the overall
business plan.
• The managerial objective of production planning is to develop an integrated game
plan where the operations portion is the production plan. This production plan,
then, should link the firm's strategic goals to operations (the production function)
as well as coordinating operations with sales objectives, resource availability, and
financial budgets.
• The term production planning is really too limiting since the intent is not to
purely produce a plan for the operations function.

• It is normally prepared with information from marketing and coordinated with the
functions of manufacturing, engineering, finance, materials, and so on.
• Production planning establishes the basic objectives for work in each of the major
• All functions of an organization must be integrated with the strategic view of
where the company wants to go.
• The production plan also provides direct communication.

Process of Planning
• The production-planning process requires the comparison of sales requirements
and production capabilities
• The inclusion of budgets, pro forma financial statements, and supporting plans for
materials and workforce requirements, as well as the production plan itself.

• A primary purpose of the production plan is to establish production rates that will
achieve management's objective of satisfying customer demand. Demand
satisfaction could be accomplished through the maintaining, raising, or lowering
of inventories or backlogs, while keeping the workforce relatively stable. If the
firm has implemented a just-in-time philosophy, the firm would utilize a chase
strategy, which would mean satisfying customer demand while keeping
inventories at a minimum level.
Production System
• Production system is a system whose function is to convert a set of inputs into a
set of desired outputs. Production system is depicted under:-

Types of Production Systems

• Continuous production

• Job or unit production

• Intermittent production