Production Management

T.Y.B.A.F PRODUCTION MANAGEMENT P.O.M.

THEORY:-

Production management:-

MEANING:-

According to carl heyel, “production is the process of transforming raw materials or

purchased components into finished products for sale”. There is creation of utilities through

the process of production satisfaction of human wants is the guiding principle of production

activities. Thus production is a process by which goods and services are manufactured or

brought into existence.

DEFINITION:-

According to E.L., BRECH.

“Production management is the process of effective planning and regulating the operations

of that section of an enterprise which is responsible for the actual transformation of materials

into finished products.”

IMPORTANCE OF PRODUCTION MANAGEMENT:-

Production of useful and quality goods at low or reasonable production cost.

Provides regular and continues supply of goods and service to consumers.

Provides better services to consumers as regards variety, price and supply, etc.

Maintains optimum inventory level.

Ensure better utilization of available material resources and human resources.

Creates employment opportunities and thereby provides better life and welfare to people.

Improves the profitability and reputation of the organization through the production of

consumer friendly and quality goods at reasonable costs.

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FUNCTIONS OF PRODUCTION MANAGEMENT:-

Production process must be designed and developed in a proper manner.

For efficient production , suitable location , layout of plant and provisions of water,

electricity within the production unit are essential.

Production management deals with preparation of production budget.

Cost control relates to effective control in order to minimize the cost of production.

Production management is concerned with the expansion of production activites.

Product research and development relates to the introduction of new product line.

PROBLEMS IN PRODUCTION MANAGEMENT:-

Selection of promising products in the product line of the company.

Product improvement, product modification.

Problems relating to quality improvement and cost control.

Problems relating to process of globalization and liberalization of Indian

economy.

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PRODUCTIVITY:-

Productivity refers to the physical relation between the quality produced (output) and the

quantity of resource used in the course of production (input)

Productivity (P) = output of production (O)/ Input of labour (I)

MEASUREMENT OF PRODUCTIVITY:-

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MEASUREMENT OF PRODUCTIVITY

PARTIAL PRODUCTIVITY

LAND LABOUR CAPITAL PROCESS PRODUCTIVITY

TOTAL PRODUCTIVITY

TOTAL PRODUCTIVITY INDEX


QUALITY MANAGEMENT:-

INTRODUCTION:-

Quality management is the single most important process in any organization,

Whether for profit, nonprofit or an organization such as a health-care maintenance

organization. It defines the purpose of quality for the organization it represents. Quality

management is often forgotten, but it guarantees the quality in output from any organization

and exists as an asset that always adds value to it.

Quality has become much more significant since the world's demand for products has grown

exponentially. Along with more demand, the demand for specialist products and quality in

production has grown together. Competition has been a strong factor in this and so has

something known as "the global village" (where companies are competing on a global level).

Probably the most significant change has been the change in society, which has driven a

demand that never existed before. And this global sea-change has made a significant

difference to any quality considerations.

MEASURES TO CHECK QUALITY:-

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MEASURES TO CHECK QUALITY


INVENTORY MANAGEMENT:-

INTRODUCTION:-

Inventory management refers to planning the levels of stock on hand, whether they

are stocks of raw material, work-in-progress or finished goods. Such stocks will help

to make profitable purchasing and continuous manufacturing. Business can maintain

a safety margin for periods of scarcity of raw materials or to meet unusually high

demand. Inventory management deals with how many units should be purchased or

manufactured at one time or how many units should he kept in stock. Business must

strike a balance so that it does not run out of stock and raw materials should come to

the plant exactly when they are needed to complete production. Ideally, products

should be ready for delivery just at the time sale is likely to start.

TECHNIQUES OF INVENTORY MANAGEMENT:-

ABC (Always Better Control)

Economic Order Quantity (EOQ)

Cardex

MAPICS

Just In Time (JIT)

High, Medium & Low (HML) Classification

Maximum-Minimum System

Material Requirement Planning (MRP)

Vital, Essential & Desirable (VED) Classification

Fast moving, slow moving & non-moving (FSN) Classification

PRATICAL STUDY:-

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INTRODUCTION ABOUT COMPANY:-

We had visited to the yashraj Engineering Ltd (Heavy Machine Division). Mr. Raju.M.

Vasita is the proud owner of the company.

It is situated at admin & factory, plot no. PAP R- 268 to270, MIDC rabale, Navi Mumbai-

400 701. It is company which undertakes the various engineering works under it such as

boring, planning, floor boring etc.

The company was established 5 years back i.e. in the year 2008. The company has unit in

area of 3000 sq.km in which 112 workers are working and 200 machines are available in

working condition out of which 30 are import from the china and remaining from India itself.

The company in the last financial year had the turnover around 8 crore and The company was

very well surrounded by the latest and the upgrade technology as it is established recently

and has the potential to fulfill the market demand as they have around 3% market share

The future of the company looks very much bright as the manager of the company told that

the in the coming year company is trying to established it’s another unit in the Gujarat and

Kerala.

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ANALYSIS:-

PRODUCTION MANAGEMENT:-

The company in which we visited is the manufacturing unit and it deals with engineering

products the company is very well developed in their production system as they have good

production management. They have the group of 10 expect people who design the production

system for the company most of that system contain application of principles of management

such as planning, organizing, controlling and direction.

The above chart shows the company production management system besides that the on

every step the company keep check on the quality of the product and the time taken as per the

standard set up by them

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Survey Research and development

Planning on budget and prodction process

Organizing the material for production

Quality check of material

Start of intial production

Check on the process on

different level

Report to management

Final quality check and delivery to

client


PRODUCTIVITY:-

Every company keeps the tight eye on the productivity as it determines the company’s

efficency through input – output ratio the company keep check on its productivity as they has

the standard set up by the company cost account and on the bases on that they keep eye on

the productivity. Their standards are as follows, P=O/I.

These are some of the standard set up by the company evaluate the productivity of their

product

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one iron bar

25litres nitron zx mixture

10,000 nails

one jumbo

iron rod

30litres fusion

stable

chem ical

10 long iron rods


The techniques used by the company are:-

ERGONOMICS:-

Ergonomics is often called human factor engineering. It refers to man-machine relationship.

It is designed to match the technology to human needs. Ergonomics is a systematic attempt to

make work as safe as possible. It improves worker’s productivity. Ergonomics is welcome

because it fulfills various provisions of industrial laws in our country. Increased stress on

health management and reduction in medical cost has also made ergonomics popular in India.

Even employment of physically challenged workers is found to be productive.

TOTAL QUALITY MANAGEMENT:-

TQM improves quality and productivity by trying to perfect the entire manufacturing

process. Under TQM quality and productivity teams are created. TQM stresses coordination

with other departments like product design, purchasing, sales and service. All the

departments work together to improve manufacturing quality and productivity.

MEASUREMENT OF PRODUCTIVITY:-

Labour productivity = output (units/value of output) /No. of man- hours worked

Machine productivity = output (production)/No. of machine-hours worked

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QUALITY MANAGEMENT:-

The company been new in the market and for the survive purpose it had to maintain the

quality of the product and for that purpose it has to maintain its quality management system

and it is as follow,

RAW MATERIAL CHECK:-

FINISHED PRODUCT QUALITY CHECK:-

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Raw material check gateway check

sample hit test

acid test check

SIZE AND WEIGHT CHECK

FLEXIBLE CHECK

STRENGTH CHECK


INVENTORY MANAGEMENT:-

Every company has to keep check on the inventory that they keep or produce with

themselves and it has to see that working capital should not be affected and capital should not

be block more than standard.

The system used by the company to manage its inventory is known as MAXIMUM-

MINIMUM SYSTEM.

Under max-min system the company has the 4 levels of inventory management and in each

level the inventory is represented in various colors such as Green, Yellow, Purple & Red.

The above levels help the company to know the level of inventory they have and they should

have with it so, that they should avoid blocking of capital in the inventory.

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Full level of inventory

Moderate level of inventory

Low level of inventory

Least level of inventory


QUESTIONARIES:-

What is the importance of the management in your business?

What is the importance of the production management in your business?

How your production management system works?

How many levels in your production management?

How you check the production process?

What is productivity?

What kind of technique used by your company to improve or maintain

productivity?

Do you think productivity effect the profit & if yes than how?

What kind of problems faced by you in the production process and how

you overcome it?

How you motivate your employees?

Do you aware about NPC?

Do you have quality management system?

How that system works?

Do you have ISO certificate?

What are the problems faced by your company when it comes to quality

of product?

How company overcome that problems?

How company manages its inventory control system?

What are the major problems faced if there will be no inventory

management?

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COMPANY’s VIEW:-

The management plays the important role as nothing can be done without

management for every work in the business management is necessary and its

principle are exist in every step of the business.

The production management also plays the important role because of the

production management the process of the production works smoothly and work

will complete on time and with no delays and business goodwill also increase in

the firm.

Our production process involved the 3 basic levels i.e.

Basic,

Mid,

Final.

We have the various standards set up by us which enable us to keep supervision

on the production process. For instant we have per hour production standard with

machine and labour standard productivity.

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Order from party

Raw material purchase

check material at gate

send material at production line

processing levels

check of quality till product

final quality check

packing and store in warehouse

delivery to party


Productivity is the ratio between input-output which tells us that for how many

units of finished goods corresponding input number of units needed.

We use the TQM and Ergonomics for improvement in our productivity.

Yes, it affects the profitability factor very hard as if company thinks of 100 units

of output and estimated the profit of Rs.1 lakh but output will be 80 units than the

profit of the company will be change from 1 lakh to 80 thousand as output is

declined but the expenses behind those units incurred.

The major problem is of the labour as the labour is very unpredictable they leave

the job in between and sometimes demanding the wage hike that also at the time

of urgent production which affects the productivity very hard. We will make a

mutual understanding and talk to them that if because of you the production is

delay than we will not be able to hike your wage complete the production process

first we will take into your problem in consideration.

We motivates them through monetary terms by giving them incentives if their

performance was more than a mark and give them double wage if they overtime.

Yes, we are the registered with the National Productivity Council and they guide

us through their various work shop and the magazines and the seminar conducted

by them and they have their council at Vahsi.

Yes, we have the quality management system which checks the product on the

different level of production by different tests.

It works basically on two levels firstly at

Raw material check (gateway check, hit test and acid test check)

Finished product check (size & weight check, flexible check and strength check)

Yes, we have the ISO 9000 certificate which we taken last year.

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We basically face the problem of lack of interest by our employees and low level

management as they are not delegate to focus on quality of the product and

another one is the time period as today in this competitive situation where large

companies providing quality products from the years so to achieve that type of

quality time plays important role and we overcome the problems by paying more

commission to employees on the units basis and leave allowance and we are now

focusing on more on know-how to improve the quality of the product.

We are following the maximum-minimum system for over inventory control

system and in that we have 4 different levels that indicate inventory level.

Blocking of capital in the inventory is the major problem and besides that if there

is over inventory than its carrying cost also creates the major problems.

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CONCLUSION:-

By seeing the various aspects of the production management and by study them

and its implication in the industries we are here conclude that the production

activity is not activity which is like windfall, it is hardcore hard work over

period of many nights. It has to do a lot of things and make the decisions as per

the changing needs and situation of the markets.

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BIBLIOGRAPHY:-

Vipul’s textbook (P.O.M.) SEM Vl

Profile of Yashraj Engineering

Mr. Karsan Vasita (Owner of Yashraj Engineering)

www.qualitymantaince.com

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http://www.qualitymantaince.com/


RESPONSIBILITY CHART:-

THERORY

COMPANY INFO

THEORY

CONCLUSION,PRINTOUTS ,FORMA

TING THOERY

CHARTS

ANALYSIS

AARTI

LAVINA

VARSHA

MONICA

PREETI

MANOJ

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Production Management

Documents

Transcript of Production Management