The document provides an overview of production management concepts and issues faced by Pak Suzuki Motors Company Limited. It discusses key production management topics like the 7 Ms, plant layout, production planning, eliminating waste, and quality control. It also outlines real-life production issues at PSMCL like lack of coordination between planning and production control, issues with inventory management, and machines breaking down. The training aims to enhance production capabilities by linking conceptual knowledge to practical problems faced at the shop floor level.

1. SUPPLY CHAIN MANAGEMENT
(MODULE – II)
PRODUCTION MANAGEMENT
Conducted by:
Cost Control Department
Supply Chain Division
Pak Suzuki Motors Company Limited

2. Supply Chain
Management
Module-1
Procurement
Management
Module-2
Production
Management

3. Recap - Procurement Management
Source
Selection
•Existing
•New
Part
Development
•As per standards provided by
PSMCL
Ordering
• Ordering Parameters
• BOM
• MOQ
• Safety Stock
• Packing Size
• Frequency of delivery
• Quantity check
• Quality check
• Logistics
• Warehousing
SOURCING
PERFORMANCE
Delivery
Part Receiving

4. Recap - Source Selection
• Capabilities/ Technology Level
• Capacities
• Manpower
• Financial Health
• Market & Customer Base
• Acknowledged by customer

5. Recap - Ordering
Key Parameters
• Ordering frequency
• BOM
• MOQ/ Packing
• Lead Time
• Delivery Frequency
• Safety Stock

6. Recap - Delivery Frequency
Key Considerations
• Buyer-Supplier contract/ concepts
• Vendor Responsiveness and Reliability
• Vendor’s Credibility
• Pricing factors
• Inventory & logistic flow planning

7. Supply Chain
Management
Module-1
Procurement
Management
Module-2
Production
Management

8. Content of Training
• Purpose of Training
• Overview of Supply Chain Management (Make Module)
• Overview of Production Management
• Scope of Production Management
• Cycle in Production Management
• Real-life Production related Issues faced By PSMCL
– Commitments – Sense of Ownerships/ Responsibility
– Competencies – Professional Organization – Resources, Structure & Systems, Training & Development

9. Purpose Of Training
“Whatever products or services you supply to your customers, the main purpose of your business is
to train and develop your people.” Dr. Peter F. Drucker
1. To closely look at the Production issues at shop floor level.
2. To link shared knowledge with real-life issues in production
~Enhance Production Capability~

10. Five Secrets of High Performing Organizations
1. A strong leadership team
2. The ability to attract and retain quality people
3. A disciplined approach to their business
4. The ability to strategically use technology
5. The wise use of trusted outside providers

11. Customerprocesses
Supplierprocesses
Focal Company
DeliverSource
ReturnReturn
Plan
Supply Chain Overview
Make

12. Concept Of Production Management

13. Production Management
What is PM? -is effective planning to transform Raw Material into Finished goods
with the available resources.
INPUTS PROCESSES OUTPUT

14. Outline of Production Management
•7 Ms to 4 Ms
•Plant Location
•Plant Layout
•Product & Process Design
•Material Management
•Production System Classification
•Efficiency vs Responsiveness
Production
Capability
•Capacity Assessment
•Production Planning & Scheduling
Real Life
Issues &
Solutions
•3 Ms
•Eliminating Wastes (8 Muda)
•Maintenance Management
•Quality Control
PRODUCTION
PERFORMANCE
Scope
Production
System

15. 7 Ms
Marketing
Marketing
Men
Methods
Machines
Materials
7 M’s to 4 M’s

16. M1 - Men
Human resource - It is the recruitment, selection, training, promotion and grievances handling
of personnel.
Key Considerations:
• Job Assessment/ Analysis
• Job Skill Matrix
• Performance Management
– Attendance Monitoring Sheet

17. M2 – Materials
A basic ingredient in management whether it is a service industry or a product industry.
Key Considerations:
• Sourcing
• BOM
• Inventory Management
• Storage & Issuance to line

18. M3 - Machines
Machine are the basic tools to produce goods or to generate services.
Key Considerations:
• Technology level
• Volumes
• Maintenance

19. M4 - Methods

20. Facility Location – Key Factors
• Availability of Skill Labor, Utilities & Infrastructure
• Clustering – Alike Business & Downstream Suppliers
• Customer Proximity
• Free Trade Zone/ Agreement

21. Plant Layout
What is? is one which allows Material flow rapidly & directly for processing.

22. Product Design
Definition:
The process of entire set of activities required to bring a new product concept to a
state of market readiness.
Characteristics:
1. Appearance
2. Materials
3. Dimensions
4. Tolerances and
5. Performance standards

23. Process Selection
Definition:
A development process necessary to produce the designed product.
Variety
• Variants to be produced
Flexibility
• Degree of freedom
Volume
• How much to be produced

24. Material & Inventory Management
Material management
A technique, concerned with Planning, Organizing & Control of flow
of materials, from their purchase to destination.
Inventory Management :
• When and How much to purchase
• Maintaining predefined safety level all the time.

25. Bill Of Material

26. Q: How many books can you put in an empty backpack?
Answer: One! After that, it's not empty.
Brain Teaser 1

27. Outline of Production Management
• 7 Ms to 4 Ms
• Plant Location
• Plant Layout
• Product Design
• Process Design
• Material Management
• Classification Of Production System
• Efficiency vs Responsiveness
Production
Capability
• Capacity Assessment
• Time & Motion Study
• Production Planning & Scheduling
Real Life Issue
and Solutions
• 3 Ms
• Eliminating Wastes (7 Muda)
• Maintenance Management
• Quality Control
PRODUCTION
PERFORMANCE
Scope
Production
System

28. Production Systems

29. Business Model - Efficiency vs Responsiveness
Key Considerations

31. Outline of Production Management
• 7 Ms to 4 Ms
• Plant Location
• Plant Layout
• Product Design
• Process Design
• Material Management
• Classification Of Production System
• Efficiency vs Responsiveness
• Capacity Assessment
• Time & Motion Study
• Production Planning & Scheduling
Real Life Issue
and Solutions
• 3 Ms
• Eliminating Wastes (7 MUDA’s)
• Maintenance Management
• Quality Control
PRODUCTION
PERFORMANCE
Scope
Production
System
Production
Capability

32. Capacity Assessment
• Assess
• Plan
• Trial
• Execute
• Sustain

33. Capacity Measurement
Type of Business
Input Measures of
Capacity
Output Measures
of Capacity
Car manufacturer Labor hours Cars per shift
Hospital Available beds Patients per month
Pizza parlor Labor hours Pizzas per day
Retail store
Floor space in
square feet
Revenue per foot
33

34. Capacity Assessment Tool - Time & Motion Study
Definition:
To determine a ‘normal’ or average time for a job, by using observers to
record exactly how much time is being devoted to each task.
Steps:
1. Establish the standard job method
2. Break down the job into elements
3. Study the job
4. Rate the worker’s performance
5. Compute the Average time
6. Compute the Man minutes (Normal Time x No. of Workers)

35. Time Study Observation Sheet

36. Capacity Assessment Tool – Takt & Cycle Time
Takt Time - The rate at which we need to produce our product in order to satisfy
customer demand.
Cycle time - is how long it actually takes to make each unit.
Calculation
So, if our customer wants 240 toaster ovens and we have 480 minutes to produce these
toaster ovens, our takt time is 2 minutes per toaster oven (480/240).

37. Takt Time & Cycle Time - 3 Conditions
1. Cycle time > Takt time
Worst Condition
2. Cycle Time < Takt Time
Good Condition (Workers will be ideal for some time)
3. Cycle time = Takt time
Excellent Condition (100% Efficient).

38. Brain Teaser 2
Q: A monkey, a squirrel, and a bird are racing to the top of a
coconut tree. Who will get the banana first, the monkey, the
squirrel, or the bird?
Answer: None of them, because you can't get a banana from
a coconut tree!

39. Capacity Assessment Tool - Line Balancing
Definition:
Purpose is to minimize the number of people and/or machines on an assembly line that is required
to produce a given number of units.

40. Line balancing Example continued:
Assume that in order to produce the new fertilizer spreader on the assembly line requires doing the
following steps in the order specified:
b. What is the total number of stations or machines required?
TM (total machines) = total production time / cycle time = 244/60 = 4.067 or 5
Work
Element
Description Time (sec)
Immediate
Predecessor(s)
A Bolt leg frame to hopper 40 None
B Insert impeller shaft 30 A
C Attach axle 50 A
D Attach agitator 40 B
E Attach drive wheel 6 B
F Attach free wheel 25 C
G Mount lower post 15 C
H Attach controls 20 D, E
I Mount nameplate 18 F, G
Total 244

41. Finding a Solution
• The minimum number of workstations is 5 and the cycle time is 60 seconds, figure represents an
optimal solution to the problem
D
40
I
18
H
20
F
25
C
50
E
6
B
30
A
40
G
15
D
40
I
18
H
20
F
25
G
15
C
50
E
6
B
30
A
40

42. Plant Layout

43. Q: How many times can you take 5 from 25?
Answer: 1, after that, it's 20.
Brain Teaser 3

44. Production Planning & Control
Key Considerations:
• What to produce
• When to produce
• How much to produce.
• Involves taking a long-term view at overall production planning.
Outcomes:
• To ensure capacity utilization is in tune with forecast demand to
achieve:
Right: Quality, Quantity, Time, Cost

45. Answer: 8
Brain Teaser 4

46. Outline of Production Management
• 7 Ms to 4 Ms
• Plant Location
• Plant Layout
• Product Design
• Process Design
• Material Management
• Production System Classification
• Efficiency vs Responsiveness
Production
Planning
•Capacity Assessment
•Time & Motion Study
•Production Planning & Scheduling
Production
System
• 3 Ms
• Eliminating Wastes (7 MUDA’s)
• Maintenance Management
• Quality Control
PRODUCTION
PERFORMANCE
Scope
Production
System
Production
Capability
Real Life
issues &
Solutions

47. Three M’s Eliminations
1. Muda — Non-value-added. The most familiar M includes the eight wastes.
2. Muri — Overburdening people or equipment. Overburdening equipment causes
breakdowns and defects.
3. Mura — Unevenness. results from an irregular production schedule or fluctuating
production volumes due to internal problems, like downtime or missing parts or
defects

48. 7 Muda
1. Overproduction. Producing items for which there are no orders, which generates
overstaffing and storage and transportation costs because of excess inventory.

49. 2. Waiting (time on hand). Workers merely serving to watch an automated machine for next
processing step, tool, supply, part, etc., or having no work because of equipment downtime,
and capacity bottlenecks.
7 Muda

50. 3. Unnecessary transport or conveyance. Carrying work in process (WIP) long distances
or moving materials, parts or finished goods into or out of storage or between processes.
7 Muda

51. 4. Over/ incorrect processing. Taking unneeded steps to process the parts.
poor tool and product design, causing unnecessary motion and producing defects.
7 Muda

52. 5. Excess inventory - raw material, WIP, or finished goods causing longer lead times,
obsolescence, damaged goods, transportation and storage costs, and delay.
7 Muda

53. 6. Unnecessary movement. Any wasted motion employees have to perform during the
course of their work, such as looking for, reaching for, or stacking parts, tools, walking is
waste, etc.
7 Muda

54. 7. Defects. Production of defective parts or correction. Repair or rework, scrap, replacement
production, and inspection mean wasteful handling, time and effort.
7 Muda

55. 7 Muda
8. Unused employee creativity. Losing time, ideas, skills, improvements, and learning
opportunities by not engaging or listening to your employees.

56. SEVEN ZEROS
• Zero Defects: To avoid delays due to defects (Quality at the source)
• Zero (Excess) Lot Size: To avoid "waiting inventory" delays
• Zero Setups: To minimize setup delay and facilitate small lot sizes
• Zero Breakdowns: To avoid stopping tightly coupled line
• Zero (Excess) handling: To promote flaw of parts
• Zero Lead-Time: To ensure rapid replenishment of parts
• Zero Surging: Necessary in system without work in progress buffers

57. Maintenance Management
What is? encompasses and supplies solutions for the planning and
control of activities associated with maintenance activities of a
plant or facility.

58. Maintenance Management
Purpose: Equipment malfunctions have a direct impact on:
1. Production capacity
2. Production costs
3. Product and service quality
4. Employee or customer safety
5. Customer satisfaction

59. Types of Maintenance
MAINTENANCE
CORRECTIVE (UNPLANNED) PREVENTIVE (PLANNED)
Break Down
Emergency Repairs
Urgent
Not possible to Control
You are controlled by equipment
Planned Maintenance
Prepared Properly
Possible to Control
You control the Equipment

60. QC/QA
PROCESS FLOW DIAGRAM
A process to remove the defects by prevention or detection.
QC/QA Tools

62. HISTOGRAM

63. FISHBONE DIAGRAM

64. CONTROL CHARTS

65. Q: Three fat ladies stood under an umbrella but none of them
got wet. Why didn't any of them get wet?
Answer: It was not raining!
Brain Teaser 5

66. Q: Which word, if pronounced right, is wrong, but if
pronounced wrong is right?
Answer: Wrong!
Brain Teaser 6

67. Japanese Terminology - Andon
• The visible light or sign that denotes the state of an operation
(i.e., on, trouble or off.)

68. Japanese Terminology - POKA YOKE
• A product is prohibited from being taken out of its fixture if it has a quality defect as
a result of the machine or operator action.

69. Japanese Terminology - FIVE S's
• Seison: Maintaining a clean plant
• Seiton: Ordered placement & identification of all parts & work items
• Sheiri: Identifying & separating necessary from unnecessary items
• Seiketsu: Maintaining Seiri, Seiton, & Seison
• Shitsuke: Instilling Seiri, Seiton, Seison, & Seiketsu in workforce

70. Japanese Terminology - JIT
• Need to have suppliers that can supply raw materials in a short notice and are
therefore located close by in order to receive raw materials.

71. Q: If you had three apples and four oranges in one hand and four
apples and three oranges in the other hand, what would you
have?
Answer : Very Large Hands.
Brain Teaser 7

72. Japanese Terminology - Push vs Pull

73. Real Life Issues
• Low attention to forecast/ Tentative orders
• Need to organize material (part & consumables) according to requirement
(BOM, process flow, etc.)
• Issues in Inventory & warehouse management
• Lack of Coordination PPC in end to end process
• Lack of application for process capability
• Lack of application for capacity assessment
• Calculation of takt time (setup & process/cycle time & allowances)
• Lack of maintenance management
• LINE NAHI RUKNE DAIN GE (mall nahi hai/machine kharab hai)

74. PRODUCTION KPIs - VISUAL MANAGEMENT

75. Summary / Review
• 7 Ms to 4 Ms
• Plant Layout
• Product Design
• Process Design
• Material Management
• Production System Classification
• Efficiency Vs Responsiveness
• Capacity Assessment
• Time & Motion Study
• Production Planning & Scheduling
• 3 Ms
• Eliminating Wastes (7 MUDA’s)
• Maintenance Management
• Quality Control

76. Thank You