THE ROLE OF

PRODUCTION
ORGANIZATION
HARI HARAN.K
M.E(C.I.M)
2009206028
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INTRODUCTION
Modern manufacturing can assume
many technology and organizational
form
This would seem to exclude a
classification based on clear cut
However, many ideas have been put
forward to integrate the various
recognizable typologies within
systematic frame work
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PRODUCT LIFE CYCLE

Each product may have a different life
cycle
PLC determines revenue earned
Contributes to strategic marketing
planning
May help the firm to identify when
a product needs support, redesign,
reinvigorating, withdrawal, etc.
May help in new product development
planning
May help in forecasting and managing
cash flow
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PRODUCT LIFE CYCLES GRAPH

Sales
Development

Introduction

Growth

Maturity

Saturation

Decline

Time
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STAGES OF PLC

INTRODUCTION/LAUNCH
GROWTH
MATURITY
SATURATION
DECLINE OR WITHDRAWAL

INTRODUCTION/LAUNCH:
Advertising and promotion campaigns
Target campaign at specific audience?
Monitor initial sales
Maximise publicity
High cost/low sales
Length of time type of product

GROWTH

Increased consumer awareness

Sales rise
Revenues increase
Costs - fixed costs/variable costs, profits
may be made
Monitor market competitors reaction?

MATURITY

Sales reach peak

Cost of supporting the product declines
Ratio of revenue to cost high
Sales growth likely to be low
Market share may be high
Competition likely to be greater
Price elasticity of demand?
Monitor market changes/amendments/new
strategies?

SATURATION

New entrants likely to mean market is flooded

Necessity to develop new strategies becomes more
pressing:
Searching out new markets:
Linking to changing fashions
Seeking new or exploiting market segments
Linking to joint ventures media/music, etc.

Developing new uses

Focus on adapting the product
Re-packaging or format
Improving the standard or quality
Developing the product range

DECLINE OR WITHDRAWAL

Product outlives/outgrows its usefulness/value

Fashions change
Technology changes
Sales decline
Cost of supporting starts to rise too far
Decision to withdraw may be dependent on
availability of new products and whether
fashions/trends will come around again?

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OPERATION CONTROL
In order to play their roles effectively,
the procedural functions must be able
to monitor the production process
It should guide along its way with
timely micro adjustment
We can group these functions together
in two specialized software module
Inventory and order management(IOM)
Shop floor control(SFC)

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FROM mrp to MRP

master production schedule(mps)
+
Material requirement planning(mrp)
+
Capacity requirement planning(crp)
=
MANUFACTURING RESOURSE
PLANNING(MRP)
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PRODUCTION FACILITY
A manufacturing company attempts to
organize its facilities in the most effective way
to serve the particular mission of each plant
One of the most important factor that
determine the type of manufacturing is the
type of products that are made
some product have different shape, sizes, and
different performance and they are intend to
different markets to indicate high product
variety
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TYPES OF PRODUCTION
FACILITY
Low production: quantities in the
range of 1 to 100 units
Medium production: quantities in the
range of 100 to 10,000 units
High production: quantities in the
range of 10,000 to million of units

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LOW PRODUCTION
The type of production facility usually
associated with quantity range from 1 to
100 units
This are mainly for job shop type of
organization
This kind of facility is used in space
capsules, air craft and special machinery
This type of production is referred to
fixed position layout
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MEDIUM PRODUCTION
The type of production facility usually
associated with quantity range from
100 to 10,000 unit
This are mainly for batch production
type of organization
This type of production is referred to
cellular layout

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HIGH PRODUCTION
The type of production facility usually
associated with quantity range from
10,000 to million of units
This are mainly for mass production
type of organization
This type of production is referred to
product layout

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TYPES OF PRODUCTION
ORGANIZATION
The construction-site type
organization
The job shop type organization
The repetitive-production type
organization
The continuous-process type
organization
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THE CONSTRUCTION-SITE
TYPE
Standards in the construction, ship building and
aerospace industries
This type of manufacturing is based on a single
product, generally of large size
The same site can often make several product
but each one keeps it busy for month or even
years
This kind of manufacturing process becomes
more manageable if more expressed as a PERT
network

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THE JOB SHOP TYPE

Medium volumes and a wide range of
products characterize the factories that
belong to this category, common above all
in the mechanical engineering industry
The product flow is composed of short runs
of identical items
Because of the lack of repetitiveness in the
task involved, robots and AI can successfully
make a cost effective contribution only in a
limited number of cases

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THE REPETITIVEPRODUCTION TYPE

When the volume exceed certain limits, a

fixed assignment of resources, which would
otherwise be risky, may be considered
justified
Each piece of machinery is dedicated to a
well defined phase of the process
Special department are disappear and their
role is taken by production line itself
Many Japanese firm have developed these to
improve their production

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THE CONTINUOUS-PROCESS
TYPE
When volumes are high, the basic products
are few and the main units of measure used
in the process are tons or feet
The product flow is typically continuous in
this type and most obvious example is
power plant
Among the manufacturing industries that fall
within this category we can mention as the
most typical chemical, iron, steel and textile

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THANK YOU FOR YOUR ATTENTION

&
LOOKING FORWARD FOR QUERIES

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