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INTRODUCTION TO

INDUSTRIALENGINEERING &MANAGEMENT

Module Leader: Ms. Tayyiba Rashid

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PRODUCTION

In economics, Production is simply the conversionof inputs into outputs. It is an economic processthat uses resources to create a commodity that is

suitable for Trade. This can include manufacturing, storing, shipping,

and packaging. Some economists define productionbroadly as all economic activity other thanconsumption. They see every commercial activity

other than the final purchase as some form ofproduction.

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The inputs or resources used in theproduction process are called factorsby economists.

These factors are: Raw materials

Labour services

Capital goods

Land

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TYPES OF PRODUCTION

INTERMITTENTPRODUCTION

CONTINUOUS PRODUCTION

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A fixed factor of production is onewhose quantity cannot readily be

changed.

A variable factor of production is one

whose usage rate can be changedeasily.

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PRODUCTIVITY It is the measure of O/P as

compared to I/P.

Productivity= O/P

I/P

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FUNDAMENTAL

CONCEPTS TIME EFFICIENTPRODUCTION METHODS

ARE TO BE ADOPTED

USE OF TECHNICAL INNOVATIONS IN THEPRODUCTION PROCESS TO ENHANCE THEPRODUCTION RATE

ALL THE RESOURCES MUST BE USEDEFFICIENTLY

CUSTOMER SATISFACTION IS A PRIMEFACTOR

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WAYS TO INCREASE

PRODUCTIVITY INCREASE IN O/P USING THE SAME VOLUME OF

RESOURCES

DECREASE IN RESOURCES USED FOR SAME O/P

HIGHER O/P USING LESSER VOLUME OF RESOURCES HIGHER % INCREASE IN O/P COMPARED WITH %

INCREASE OF I/P

HIGHER DECREASE IN RESOURCES USED AND LESSERDECREASE IN O/P

THE PRODUCTIVE SYSTEM ACCURE THEIR INCOMEFROM SALES OF THEIR O/P

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BENEFITS OF HIGHER

PRODUCTIVITY PRODUCTPRICES ARE REDUCED

PAY HIGHER DIVIDENDS TO INVESTOR

INCREASE THE WAGES AND HIGHER

BENEFITS TO THE EMP

LOYER

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CLASSIFICATION OF

PRODUCTIVITY PARTIAL PRODUCTIVITY:

Measurement of partial productivity

refers to the measurement solutions which do notmeet the requirements of total productivitymeasurement, yet, being practicable as indicatorsof total productivity

1. LABOUR PRODUCTIVITY:

It is the measure of the effectiveness ofwork force.

2. MATERIAL PRODUCTIVITY:

Ratio of goods produced to raw materialinput.

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3. ENERGY PRODUCTIVITY:Ratio of output to

energy supplied.

4. CAPITAL PRODUCTIVITY:This ratio is

important for investor who is interested inmaximizing the gain of his investment.

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VALUE ADDED PRODUCTIVITY:

It is the difference between

the income from sales and the cost offactors like material, supplies, energy and

utilities.

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FLOW CONTROL OF MATERIALS,

PARTS & SUB-ASSEMBLIES:

STOPPING OF LINE:

A bank of parts and sub-assemblies can be used to avoidproblem. Maintenance personnel should also monitor the

line at regular intervals.

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AGGREGATION MEASURE OF

PRODUCTIVITY:various input factors are assigned a

weightage and total weightage is 1.

TOTALPRODUCTIVITY MEASURE:

It is the ratio of total o/p tototal i/p.

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REJECTION OF PARTS AT LINES:If rejectionis quite high, thenenough parts arenotavailableto keep assemblygoing. Thisis avoided bychecking beforethe assembly.

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PRODUCTION RATE ANDRATE OF CONSUMPTIONOF PARTS AT ASSEMBLYSECTION

production of assembliestypically uses electric-

motor-powered movingtracks or conveyor beltsto move partially completeproducts to workers, who

perform simple repetitivetasks.

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The total product (or total physical product) ofa variable factor of production identifies what

outputs are possible using various levels of thevariable input.