12-07-2012, 02:28 PM
PRODUCTION PLANNING AND CONTROL
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INTRODUCTION
After taking decisions about the type of business, its location, layout etc. the entrepreneur steps into the shoe of production manager and attempts to apply managerial principles to the production function in an enterprise. Production is a process whereby raw material is converted into semi finished products and thereby adds to the value of utility of products, which can be measured as the difference between the value of inputs and value of outputs. Production function encompasses the activities of procurement, allocation and utilization of resources. The main objective of production function is to produce the goods and services demanded by the customers in the most efficient and economical way. Therefore efficient management of the production function is of utmost importance in order to achieve this objective
PRODUCT DESIGN
Product design is a strategic decision as the image and profit earning capacity of a small firm depends largely on product design. Once the product to be produced is decided by the entrepreneur the next step is to prepare its design. Product design consists of form and function. The form designing includes decisions regarding its shape, size, color and appearance of the product. The functional design involves the working conditions of the product. Once a product is designed, it prevails for a long time therefore various factors are to be considered before designing it. These factors are listed below: -
(a) Standardization
(b) Reliability
© Maintainability
(d) Servicing
(e) Reproducibility
(f) Sustainability
(g) Product simplification
(h) Quality Commensuration with cost
(i) Product value
(j) Consumer quality
(k) Needs and tastes of consumers.
Above all, the product design should be dictated by the market demand. It is an important decision and therefore the entrepreneur should pay due effort, time, energy and attention in order to get the best results.
DESIGN OF PRODUCTION SYSTEM
Production system is the framework within which the production activities of an enterprise take place. Manufacturing process is the conversion process through which inputs are converted into outputs. An appropriate designing of production system ensures the coordination of various production operations. There is no single pattern of production system which is universally applicable to all types of production system varies from one enterprise to another
TYPES OF PRODUCTION SYSTEM
Broadly one can think of three types of production systems which are mentioned here under: -
(a) Continuous production
(b) Job or unit production
© Intermittent production
(a) Continuous production: -
It refers to the production of standardized products with a standard set of process and operation sequence in anticipation of demand. It is also known as mass flow production or assembly line production. This system ensures less work in process inventory and high product quality but involves large investment in machinery and equipment. The system is suitable in plants involving large volume and small variety of output e.g. oil \refineries reform cement manufacturing etc.
(b) Job or Unit production: -
It involves production as per customer’s specification each batch or order consists of a small lot of identical products and is different from other batches. The system requires comparatively smaller investment in machines and equipment. It is flexible and can be adapted to changes in product design and order size without much inconvenience. This system is most suitable where heterogeneous products are produced against specific orders.
© Intermittent Production:
Under this system the goods are produced partly for inventory and partly for customer's orders. E.g. components are made for inventory but they are combined differently for different customers. . Automobile plants, printing presses, electrical goods plant are examples of this type of manufacturing.
MANUFACTURING PROCESS
The nature of the process of production required by these three different types of production system are distinct and require different conditions for their working. Selection of manufacturing process is also a strategic decision as changes in the same are costly. Therefore the manufacturing process is selected at the stage of planning a business venture. It should meet the basic two objectives i.e. to meet the specification of the final product and to be cost effective.
TYPES OF MANUFACTURING PROCESS
The manufacturing process is classified into four types.
(i) Jobbing production
(ii) Batch production
(iii) Mass or flow production
(iv) Process Production
Jobbing Production: -
Herein one or few units of the products are produced as per the requirement and specification of the customer. Production is to meet the delivery schedule and costs are fixed prior to the contract.
Batch Production: -
In this, limited quantities of each of the different types of products are manufactured on same set of machines. Different products are produced separately one after the other.
Mass or flow production:
Under this, the production run is conducted on a set of machines arranged according to the sequence of operations. A huge quantity of same product is manufactured at a time and is stocked for sale. Different product will require different manufacturing lines. Since one line can produce only one type of product, this process is also called as line flow.