PRODUCTION MANAGEMENT-INTRODUCTION TO PRODUCTION MANAGEMENT

                               

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BASIC CONCEPTS

Organizations of whatever kind are viable only if they provide satisfaction to the customers and this simple criterion is the only general condition for the continued existence of an organization.  Many people confuse the work of the production engineer with that of  a production manager; but it is important to realize that production management is not the same as production engineering, although they have some areas of common interests. 

Production engineering is concerned with the design of physical equipment while production manager is concern is concerned with the organization of the use of the equipment and other resources.  It then follows that knowledge of engineering of any sort is not a necessary requirement for production management.

DEFINITION AND SCOPE

Production is to the manufacturing enterprise what the engine is to the automobile.  It keeps it in constant motion with the primary objective of delivering convenience and comfort to customers through its products.  Production management refers to those activities involving planning, organizing, directing, integrating, controlling and evaluating the entire process of manufacturing goods or providing services at the right cost and in its right time, quantity, quality and place.

THE PRODUCTION SYSTEM AS A BLACK BOX

The “Black Box” is essentially a converted mechanism which requires a set of inputs and in turn yields a set of outputs.  In essence, production system can simply be defined as the activity of transforming raw materials or components into finished products. 

The Black  Box approach facilitates description of the various types of manufacturing systems.  Viewing the production function as a black box means starting at the output rather than the input side.  Simply put, this means starting with the question, what to produce? Determining what product to produce is not easy.  Production system in the scientific sense consists of job, the transforming processes, outputs and elements of control and monitoring devices. 

 

By a system, we refer to a set of functions, activities, elements or components related to the achievement of an objective or set of objectives.

The main objective of production management is to optimize the production system.  By optimization, we mean achieving the best possible result from a given input or set of inputs and a given design of physical equipments. 

Its functions include:

-          Production Planning

-          Production Control

-          Implementation

-          Modification of production policies

-          Modification of Designs with the help of the production engineer, based on the feedback received from the system and varying circumstances. 

PRODUCTION MANAGEMENT COMPONENTS

Production management components are grouped into the five following sub-headings:

(1)   The Product:  The Product represents the most obvious embodiment of the interface between marketing and production not only that the consumer should want the product, but also the organization must be capable of producing the product precisely.  Therefore, agreement has been reached between all the business functions on the following issues:

a.      Performance

b.      Quality

c.       Quantity

d.      Selling price and production costs

e.      Delivery dates

In reaching agreement on the above, cognizance must be taken of external factors, such as the needs of the market and the existing culture, the legal constraints and the environmental demand. 

(2)   The Plant:  Before any product can be made, some plant must be required both in terms of buildings and equipment.  The plant which accounts for the bulk of the fixed assets of the organization must match the needs of the product, the market, the operation and the organization.  The production manager, therefore, is concerned with questions such as;

 

i.                    Future possible demands

ii.                  Design and layout of buildings

iii.                Performance and reliability of equipment

iv.                 Maintenance of performance

v.                   Safety of installations and operation

vi.                 Social responsibility

(3)   The Process: Every decision reached in product manufacture is normally made by bringing together the technical and organizational needs of the product and the organization together with the people with the organization.  In deciding upon a process, it is necessary to examine such factors as:

i.                    Available capacity

ii.                  Available skills

iii.                Types of production

iv.                Layout of plant and equipment

v.                  Safety

vi.                Maintenance requirements

vii.              Costs to be achieved

(4)   The Programmes:  Another conspicuous interface between production and marketing are the usual timetable setting down the delivery to finished products.  This timetable does not match set delivery but it also effectively determines cash flow which is the prime controller of organizational viability.  Therefore, a good delivery timetable should produce the timetable for the following:

i.                    Purchasing

ii.                  Manufacturing

iii.                Maintenance

iv.                Cash storage

v.                  Transport

(5)   People:  In the final analysis, production from start to end depends on people.  Like all other products of man, man himself is variable in intellect, skill, expectations and output.  The production manager should therefore be  involved in the following:

i.                    Wages

ii.                  Safety

iii.                Conditions of work

iv.                 Motivation and incentives

v.                   Trade Unions

vi.                 Education and training   

References:

Nathaniel C. O.  (2002 -2010), Production Management Concepts and Cases, Enugu: Precision Publishers Limited.