session 3

FRAME WORK OF PRODUCTION

MANAGEMENT

Topics covered under session 3

Framework of Production Management Importance of Production Management Objectives of Production Management Functions of Production Management

Importance of Production Management:Production function can offer competitive advantage to

a firm in the following areas: Shorter new-product lead-time More inventory turns Shorter manufacturing lead-time Higher quality Greater flexibility Better customer service Reduced wastage

Different areas of achieving Productivity with productivity function are: Engaging volume of production Reducing rejection rate Minimizing re-work rate Maintaining delivery schedules Controlling idle machine and manpower hours Establishing / updating / improving / setting industrial

engineering norms Updating processes and procedures Maintaining accuracy and timeliness of MIS Decreasing machine set-up time Controlling overtime

Good house-keeping Checking absenteeism, thefts/pilferage and misconduct Eliminating accidents Effective grievance-handling Effective training and team building Minimizing inventory and achieving better yields Enhancing customer satisfaction Total Quality Management (TQM) Business Process Re-engineering (BPRE)

Objectives of Productivity Management are: Customer Satisfaction

Quality of the product in accordance with the acceptable standards. Competitive product cost. Easy maintenance and reliability of the product. Product is in compliance with all functional specifications.

Profitability Market price should be competitive and pre-fixed that help

determine the profitability for an organization. To produce right quality that meets all product specifications at

minimal cost. Timeliness: safeguard against

Idle time in terms of manpower and machinery High process inventories Poor maintenance of machinery Inefficient process cycle Non-availability of resources such as input materials, consumables

etc.

Functions that the Productivity Management perform:1. Planning

1. Product design and development2. Production Process Selection3. Planning Facility Location4. Planning Facility Layout5. Capacity Planning6. Production Planning

2. Organizing1. Work Study2. Material Management3. Purchasing Management

3. Controlling1. Stores Management2. Value Analysis3. Quality Control4. Maintenance Management5. Inventory Management