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Thursday, 23 April 2015

PRODUCTION MANAGEMENT- PRODUCTION MANAGEMENT PROBLEMS



                                
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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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