session 1

INTRODUCTION TO
PRODUCTION
MANAGEMENT


Topics covered under session 1



§ Introduction
§ Meaning
§ Nature of Production system
§ Production as a system
§


§ Production is the process by which, raw materials

and other inputs are converted into finished
goods.

information
Organization Transformation

Resources Services


Production in manufacturing organization:



§ Production is an intentional act of producing

something in an organized manner. It is the
manufacture of a physical object though the use
of men, material and equipment.


Production in Service organization:



§ Production, means discharge of some function which

has some utility.
§ Example: banks, transport companies.



§ Production is the process by which, raw materials

and other inputs are converted into finished
goods.
§ Synonym of production is manufacturing.
§ Manufacturing refers to the process of producing
only tangible goods.
§ Production refers to creation of tangible goods and
intangible services.



Production can be better understood viewing:



1. Production as a system
2. Production as an organizational function
3. Decision making in production.
1.
2. Production as a system
i. Production system: A system, whose function is to
convert a set of inputs into a set of desired outputs.
ii.
iii. Conversion sub-system: A sub-system of the larger
production system where, inputs are converted
into outputs.
iv.
v. Control sub-system: A sub-system of the larger
production system where, a portion of the output is
monitored for feedback signals to provide
corrective action.


 2. Production as a an organization function



 Production system is its conversion sub-system,

wherein workers, materials and machines are used to
convert inputs into products and services.


 3. Decision Making in Production:

§ Operations managers plan, organize, staff, direct and
control all the activities in the process of conversion.
§ Operation managers are expected to take decisions and
implement.


 Decisions made by operation managers falls into three

categories:
§ Strategic decisions – products, processes
§ Operating decisions – planning productions to meet
demand
§ Control decisions – quality, overhead cost, maintenance.
 

 Decision-making in Production
Types of Decisions Area of Involvement Nature of Activities

 
ecisions (Planning
Production Processes
products and Facilities)
Developing long range production plans
 
Production Technology Selecting and managing production technology.
 
Facility Layout Planning the arrangement of facilities.
 
Planning for the optimal distribution of scarce resour
Allocating Resources to Strategic Alternatives
 
Answering questions about long range production ca
Long Range Capacity Planning and  Facility Location

 

 Decision-making in Production
Types of Decisions Area of Involvement Nature of Activities

 
cisions (Planning production
Production Planning
to Meet Systems
Demand)
Aggregate Planning and master production scheduling
 
Inventory Systems Planning and controlling finished goods inventories.
 
Resource Requirements Planning Systems
 Planning materials and capacity requirements.
Shop Floor Planning  and Control
Short range decisions about what to produce and when to produce
 
Materials ManagementManaging all facts of materials system.
 

 Decision-making in Production
Types of Decisions Area of Involvement Nature of Activities


sions (Planning and
 controlling operations)
Productivity and EmployeesPlanning for the effective and efficient use of human.
 
Total Quality Control
Planning and controlling the quality of products and s
 
Project Planning and control Techniques
 Planning and controlling projects.
Maintenance Management and Reliability
Planning for Managing all facts of materials system.