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Introduction To Production Management: Session 1

The document discusses production management. It defines production as the process of converting raw materials into finished goods. It views production as a system and organizational function. As a system, production has a conversion subsystem that transforms inputs into outputs. As a function, production utilizes workers, machines, and materials. The document outlines strategic, operating, and control decisions made by operations managers regarding areas like production planning, quality control, and maintenance management.

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Narayana Reddy
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43 views

Introduction To Production Management: Session 1

The document discusses production management. It defines production as the process of converting raw materials into finished goods. It views production as a system and organizational function. As a system, production has a conversion subsystem that transforms inputs into outputs. As a function, production utilizes workers, machines, and materials. The document outlines strategic, operating, and control decisions made by operations managers regarding areas like production planning, quality control, and maintenance management.

Uploaded by

Narayana Reddy
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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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.

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