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PRODUCTION MANAGEMENT PROBLEMS
Poorly managed production is responsible for a number of
problems that may be categorized in the following broad terms:
(i)
Planning – related problems:
This result from inadequate planning of production requirements. Symptoms include persistent raw material
inadequacy, inability to deliver on time and in the right quantity and quality,
failure to meet customer specifications, prolonged use of obsolete and
inefficient machinery and equipment, lack of room for expansion and inadequate
working capital.
(ii)
Control-related problems:
Lax or inadequate control in production results in low volumes of
manufacture and high rates in quantity rejection, raw materials inventory, cost
of production, pilferage, raw materials spoilage and improper utilization,
excessive energy use, machine and equipment break down.
(iii)
Productivity -related problems: Small scale firms suffer from the
inherent disadvantages of being obliged to cater for limited, local markets,
hence the use of uneconomic scales of operation, the under-utilization of
inputs and the generation of suboptimal outputs. Productivity-related problems, some of which
may be traceable to poor planning and control practices, include: Inordinate dependence
on rapidly depleting indigenous raw materials, excessive labour costs,
relatively low yield per unit volume, low ratio of direct production time to
total time available for production and low output per worker compared with
that of other firms of similar size.
(iv)
Organization – related problems: Problems linked to the organization and
direction of the enterprise, as well as to the integration of its activities
further complicate the already difficult role of the small scale firms, who is
often not only the general manager of the business, but its purchasing manager,
overall supervisor, financial comptroller, marketing manager and
treasurer. The demands of the production
function on the entrepreneur’s time can be reduced or expanded, depending on
how well he organizes, directs, delegates and integrates all the limited
resources available to him.
(v)
Technology – development related
problems: In order
to ensure survival and long term viability, firms must be concerned not only
with productivity related issues, but also with the new technological developments
in software (management know-how) and hardware (new processes, machines and
equipment) and the need to adapt to such developments.
Questions:
1.
Explain
briefly the following concepts:
i.
Batch
production
ii.
Flow
production
iii.
Intermittent
Production
iv.
Job
Production
SOLUTION:
Batch Production: This occurs when quantities of products or
components are made at the same time. There
is repetition, but not continuous production.
Production often is for stock, but if a batch is required to fulfill a
special order, the items are usually completed in one run.
Continuous Production: Continuous production is
characterized by a constant flow of materials in the production process. Continuous production processes are
characterized by production of a standardized product to stock before specific
customer orders are received. A factory
assembling refrigerators is an example of continuous production.
Intermittent Production:
This is a process that has varieties in the flow of materials in
production and is often called job order or job for production. It is characterized
by production to specific customer orders after the orders are received. The product is built to customer
specifications. Machine shops that
produce a wide variety of products to customer specifications are examples of
intermittent production.
Job Production (Unit production): This occurs when a customer requires
a single product made to his specifications.
In this case, there must be a wider variety of machines and equipment
available to do all types of work and labour must have varied skills. There is no production for stock and there
are only limited stocks of materials kept
2.
Explain
the difference between production management and production engineering.
Solution:
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.
3.
Briefly
discuss the five Ps of production and its components.
Solution:
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 timbale 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
4.
Explain
the steps that should be taken before production and marketing a product.
Solution:
STEPS IN PRODUCTION
The following outlines show the steps taken before producing
and marketing a product:
(i)
Market Research: This probes the markets in an
attempt to ascertain the need for a new product.
(ii)
Research: This is carried out to provide
information on which to base a design for a prototype.
(iii)
Design Work:
This started which should produce a basic product.
(iv)
Development work:
This is carried out to develop the design.
(v)
Prototype Production:
This stage goes hand in hand with design and is the production of
few products, often made with parts
fashioned by hand. These are used for
experimental and test purposes.
(vi)
Pre-Production: This stage is tended to provide a
number of items as nearly as possible under factor conditions, using where
possible, the tools and equipment which will be used on the production
line. Those samples are tested and may
also be supplied to customers for their consideration.
(vii)
Manufacture: - The production is then put into
full production after an initial build-up to the final figure. This build-up allows time for the operatives
to learn the new assembly cycles and ensures that the initial progress will be
made in spite of the high level of rejects which may occur at the start of
production. Then the goods leave for the warehouse and become the
responsibility of the sales organization.
5.
Discuss
the concept of a “Black Box”
Solution:
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.
References:
Nathaniel C. O. (2002
-2010), Production Management Concepts and Cases, Enugu: Precision Publishers
Limited.
Note: You can read the book "The Other Woman In Marriage" at www.okadabooks.com
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