Production Is Not The Application of Tools To Materials But Is The Application of Logic To Work
Production Is Not The Application of Tools To Materials But Is The Application of Logic To Work
work”-
Technology
Production basics
Goods &
Resources
Services
Time
Govt.
Organization
Feedback
Engg.
Science
POM Technology
Management
• Profit
Product is defined as a "thing produced by labor or effort" or the "result of an act or a
process
Product line
• A product line is "a group of products that are closely related, either because they
function in a similar manner, are sold to the same customer groups, are marketed
through the same types of outlets, or fall within given price ranges."
• Product Management is concerned with looking after a product/service from
cradle to grave.
• Industrial Product
– Products that are purchased to produce other projects
PRODUCTIVITY
• Productivity is a measure of output from a production process per unit of input
(material & immaterial)
Input Volume
FACILITY
A building or place that provides a particular service or is used for a particular industry
• A facility layout is an arrangement of everything needed for production of goods
or delivery of services.
• A facility may also be defined as an entity that facilitates the performance of any
job. It may be a machine tool, a work centre, a manufacturing cell, a machine
shop, a department, a warehouse, etc.
• Facility layout techniques apply to the case where several physical means have to
be located in a certain area, either industrial processes or services.
• To carry out an appropriate plant layout, it’s important to take into account the
business strategic and tactical objectives
– Example: space requirements/cost per m2 in Malls; accessibility/privacy
in offices etc
• Plant layout planning includes decisions regarding the physical allocation of the
economic activity centers in a facility.
– An economic activity center is any entity occupying space.
– The objective of plant layout planning is a more effective work flow at the
facility, allowing workers and equipment being more productive.
The plant layout process starts at an aggregate level, taking into account the different
departments. As soon as we get into the details, the different issues arise, and the original
configuration may be changed through a feedback process.
Most layouts are designed properly for the initial conditions of the business, although as
long as the company grows and has to be adapted to internal and external changes, a re-
layout is necessary.
Factors affecting Plant Layout
• It is normally prepared with information from marketing and coordinated with the
functions of manufacturing, engineering, finance, materials, and so on.
• Production planning establishes the basic objectives for work in each of the major
functions.
• All functions of an organization must be integrated with the strategic view of
where the company wants to go.
• The production plan also provides direct communication.
Process of Planning
• The production-planning process requires the comparison of sales requirements
and production capabilities
• The inclusion of budgets, pro forma financial statements, and supporting plans for
materials and workforce requirements, as well as the production plan itself.
• A primary purpose of the production plan is to establish production rates that will
achieve management's objective of satisfying customer demand. Demand
satisfaction could be accomplished through the maintaining, raising, or lowering
of inventories or backlogs, while keeping the workforce relatively stable. If the
firm has implemented a just-in-time philosophy, the firm would utilize a chase
strategy, which would mean satisfying customer demand while keeping
inventories at a minimum level.
Production System
• Production system is a system whose function is to convert a set of inputs into a
set of desired outputs. Production system is depicted under:-
• Intermittent production