Production Management Ass.docx

Agnes Lorenza LE 53 2101657202 PRODUCTION MANAGEMENT

Production is the creation of goods using land, labour, capital, entrepreneurship and knowledge (the factors of production). Production Management--> "All the activities managers do to help firms create goods". Operations Management is a specialized area in management that converts or transforms resources into goods and services. Operations management includes: Inventory management, Quality control, Production scheduling, Follow-up services. Production process trough input, process control and output (good, service, idea)

Questions: 1. 2. 3. 4. 5.

Explain with example, like what is Flexible Manufacturing? What are Mass Customization and Lean Manufacturing? Why the facility lay out plan so important in a manufactures? Explain about MRP and ERP. Explain about Just In Time in manufactures.

Answer 1. A Flexible Manufacturing System is one that can be changed or adapted rapidly to

manufacture different products or components at different volumes of production. Flexible manufacturing systems are usually seen at their most efficient when manufacturing components rather than finished products. For example a CD/DVD manufacturing facility may have a number of manufacturing units in standby mode until their capacity is required. When not required units can be shut down rapidly. This makes a manufacturing plant more efficient. The example below shows a CD/DVD manufacturing plant. It has two production lines. Each production line is automated and can be activated very quickly. For example, if there is a need to increase the manufacture of a new music CD, both production lines can be used. Also, if there is a need to speed up any stage of manufacture, for instance the screen printing of each completed CD - then the screen printing bay of each production line can be used. This system has built in flexibility.

2. Mass Customization -- Tailoring products to meet the needs of a large number of individual

customers. More manufacturers are learning to customize. Mass customization exists in the service sector too. Lean Manufacturing -- Using less of everything than in mass production. Compared to others, lean companies: 1. 2. 3. 4. 5.

Take half the human effort. Have half the defects in finished products. Require one-third the engineering effort. Use half the floor space. Carry 90% less inventory.

3. Economies in Handling

Nearly 30% to 40% of the manufacturing cost is accounted for, by materials handling. Every effort should, therefore, be made to cut down on this cost. Long distance movements should be avoided and specific handling operations must be eliminated. A cynic may say that the cheapest way to handle materials is not to handle them at all. But, in a factory, materials have to be handled; and therefore, it all depends on the layout. Effective Use of Available Area Every inch of the plant area is valuable, especially in urban areas. Efforts should therefore be made to make use of the available area by planning the layout properly. Some steps for achieving this end are: location of equipment and services in order that they may perform multiple functions; development of up-to-date work areas and operator job assignments for a full utilization of the labor force. Minimization of Production Delays Repeat orders and new customers will be the result of prompt execution of orders. Every management should try to keep to the delivery schedules. Often, the deadline dates for delivery of production orders are a bug-a-boo to the management. Plant layout is a significant factor in the timely execution of orders. An ideal layout eliminates such causes of delays as shortage of space, long-distance movements of materials, spoiled work and thus contributes to the speedy execution of orders. Improved Quality Control Timely execution of orders will be meaningful when the quality of the output is not below expectations. To ensure quality, inspection should be conducted at different stages of manufacture. An ideal layout provides for inspection to ensure better quality control.

Minimum Equipment Investment Investment on equipment can be minimized by planned machine balance and location, minimum handling distances, by the installation of general purpose machines and by planned machine loading. A good plant layout provides all these advantages. Avoidance of Bottlenecks Bottlenecks refer to any place in a production process where materials tend to pile up or are produced at a speed, less rapid than the previous or subsequent operations. Bottlenecks are caused by inadequate machine capacity, inadequate storage space or low speed on part of the operators. The results of bottlenecks are delays in productions schedules, congestion, accidents and wastage of floor area. All these may be overcome with an efficient layout. Better Production Control Production Control is concerned with the production of the product of the right type, at the right time and at a reasonable cost. A good plant layout is a requisite for good production control and provides the production control officers with a systematic basis upon which to build organization and procedures. Better Supervision A good plant layout ensures better supervision in two ways: 1.Determining the number of workers to be handled by a supervisor and 2.Enabling the supervisor to get a full view of the entire plant at one glance. A good plant layout is, therefore, the first step to good supervision. Improved Utilization of Labor Labor is paid for every hour it spends in the factory. The efficiency of a management lies in utilizing the time for productive purpose. A good plant layout is one of the factors in effective utilization of labor. It makes possible individual operations, the process and flow of materials handling in such a way that the time of each worker is effectively spent on productive operations. Improved Employee Morale Employee morale is achieved when workers are cheerful and confident. This state of mental condition is vital to the success of any organization. 4. Materials Requirement Planning (MRP) -- A computer-based operations management

system that uses sales forecasts to make sure parts and materials are available when needed.

Enterprise Resource Planning (ERP) -- A newer version of MRP, combines computerized functions into a single integrated software program using a single database. 5. Just-in-time (JIT) manufacturing is a production model in which items are created to meet

demand, not created in surplus or in advance of need. The purpose of JIT production is to avoid the waste associated with overproduction, waiting and excess inventory, three of the seven waste categories defined in the Toyota Production System (known in North America as the lean production model).