Welcome
to
Presentation of
Production Management
System

INDEX
Chapter – 1 Production Management
1.1 What is Production?
1.2What is Production Management?
1.3 Objectives of Production Management
1.4 Process of Production Management
1.5 Classification of Production system
1.6 Features of Production system
1.7 Importance of Production Management

What is Production?
A production system takes inputs and converts them into
outputs.
1) Creation of good & services
2) To satisfy needs
3) Conversion
4) Final goods & services

What is Production Management?
Management Principles –
How to manage the production ?
~ Application of Principles
~ Conversion/ Operation
~ Final goods & services

Objectives of Production Management
 To satisfy customer needs
 To minimize waste & cost cutting
 To manage materials
 To utilize recourses
 To minimize cost of production
To smooth production process
To use new technology
 To get maximum output

• Inputs
Resources
Process
• Conversion
sub-system
• Output
Finished
goods
Production as a system

Inputs of a Production System
 External
Legal, Economic, Social, Technological
 Market
Competition, Customer Desires, Product Info.
 Primary Resources
Materials, Personnel, Capital, Utilities

Conversion Subsystem
 Physical (Manufacturing)
 Locational Services (Transportation)
 Exchange Services (Retailing)
 Storage Services (Warehousing)
 Other Private Services (Insurance)
 Government Services (Federal, State, Local)

Outputs of a Production System
 Direct
Products & Services
 Indirect
Waste,
Pollution &
Technological Advances

Classification of Production System
Production
System
Intermittent
Production system
Job Shop
System
Batch
Production
Continuous flow
Shop production
system
Mass
Production
Process
Production
Analytical
Synthetic
Assembly
Production

Classification of Production System
Feature of Intermittent production system ~
 Flow of production is not continuous.
 Verity of products are produced.
 Volume of production is small.
 General purpose machines are used.
 Sequence of operation changes as per design.
 Production depends on customer orders.

Classification of Production System
Feature of continuous production system ~
Flow of production is continuous & intermittent.
 Products are standardized.
 Products are produced as per quality standers.
 Products are produced in anticipation of demand.
 Standardized routing sheets & schedules are
prepared .

Importance of Production Management
Standard of Living ~
• Increases with good quality of goods & services
 Competitive Advantage ~
• Greater flexibility
• Shorter lead time
• Reduced Wastage
• Better Customer Services
• Higher inventory terms

Chapter No. 2
Plant Location

INDEX
Chapter – 2 Plant Location
2.1 What is Plant Location
2.2 Need for selection of a plant
2.3 Factors affects to the plant
2.4 End of the presentation

What is Plant/Facility Location?
Facility Location
Geographical site
Operation
Achievement of maximum production &
Economy effectiveness

Need for location decision
 Starting a new business
 Expansion
 Not able to achieve the demand
 Due to rising cost of production
 Market test, preferences, etc.
 Social & economical reasons
 Does not renew the lease
 Depends on company

Factors affecting plant location decision
1) Law & Order situation
2) Availability of infrastructure facility
3) Good industrial relations
4) Availability of skilled workforce
5) Social infrastructure

Factors affecting plant location
decision(cont.)
6) Investor friendly attitude
7) Nearness to market
8) Nearness to raw materials’ source
9) Nearness to supportive industrial & services
10) Must meet safety requirements &
11) Miscellaneous factors

Plant location decision need detailed analysis
because -
1) Wrong plant location = Higher cost
2) If shifting = very disturbing & largely affect on cycle
of production
3) Big multinational companies invest millions of rupees
if so it will affect. etc

Examples of Plant Location in India
1) Textile Mills = Mumbai, Ahmedabad
2) Nuclear power plant = Environmental safety, socio-economic etc.
3) Steel plant = Jharkhand, Bengal, Chattisgad, Orissa
4) Cement industries = Coal deposites
5) Coal based fertilizer = Ramagundam
6) Gas based fertilizer = Namroop, Tal Vaishet
7) Oil based fertilizer = Naptha (Mangalore, Madras, Cochin)
8) Software Companies = Pune, Banglore, etc.

Presented by,
Mr. Rahul Shrinivas Boddhul BBA MBA
Solapur University,
SOLAPUR
Thank you!
Have a nice day!