mec 6121 #1 introduction to production management

The University of ZambiaSchool of Engineering

Department of Mechanical Engineering

PRODUCTION MANAGEMENT I(MEC 6121)

Terence Malama (PhD, MEng, BEng, ASME)

LECTURE SLIDES #1

INTRODUCTION TO PRODUCTION MANAGEMENT

Today’s presentation…

Manufacturing Management

Manufacturing versus Production

Business Management

Operations Management

Definition

Production and Operations

Management

Production Activities of Enterprises

The Tasks of POM

Production System

Production Organization

Enterprise System

Classification of Production

Systems

08-Dec-16 2MEC 6121 - PM by Dr. T. Malama

What is a business?

An organization or economic system where goods and

services are exchanged for one another or for money.


Every business requires some form of investment and

enough customers to whom its output can be sold on a

consistent basis in order to make a profit.

Businesses can be

privately owned,

not-for-profit or

state-owned.

So, key purposes of a business are:

1. PROFIT

2. SERVE COMMUNITY

i. OWNERS

(SHAREHOLDERS)

ii. EMPLOYEES

iii. CUSTOMERS

iv. GOVT

Business Management

Finance => money side of business


Manufacturing and/or services

Purchasing,

transportation,

and physical distribution

LOGISTICS

Human Resources Management

Recruitment,

Employee benefits

Technology and IT

Administrative Systems

Defn: BM is the art of running a business

Elements

Business Management … cont. 1


Relationship between a business

and community is symbiotic.

Employees

Customers

Resources

Etc.

Manufacturing Management


Planning a manufacturing organizational structure

Develop strategy and goals

Assign people to structure

Manpower planning and performance

Wages

Labor

Manufacturing processes

Process design

Planning manufacturing/production systems

Defn: Manufacturing is the art of making tangible things.

Defn: MM is the art of running a manufacturing system.

Aspects

Manufacturing Management … cont. 2


Materials management

Planning of production and materials

Evaluation

Materials handling and warehousing

Basic handling principles

Equipment and systems for handling

Planning the warehouse

Manufacturing Management … cont. 3


Quality management

Quality Control

Vendor quality

Customer feedback information

Facilities management

Location

Plant capacity, layout, equipment installation

Automation

Manufacturing vs Production


Production is a broader term that spans both

Manufacturing and Services functions

Production is the application of Resources,

People and Machinery, to Convert Inputs into

Finished Goods and Services

Production

Manufacturing

Services

• Resources

• People

• Machinery

Inputs Finished Goods and Services

Management of theproduction process

The creation of goods and services by turning

inputs into outputs, which are products

and services

Production and Operations Management


Production

Operations Management

Operations Management - Definition


Operations management is defined as the design,

operation, and improvement of the systems that

create and deliver the firm’s primary products and

services

The core of Operations Management is the

management of production systems i.e.,

production planning and control

Production Activities of Enterprises


1. Decision activities;

2. Technology activities;

3. Supply activities;

4. Manufacturing activities;

5. Sales activities; and

6. Financial activities

Production

activities

Production Organization


An enterprise can hardly achieve its full purpose without

correctly organizing its production activities since they are

mutually inter-dependent and tightly connected.

The Tasks of POM


-> Organizing the production activities (reasonably well),

-> making good use of the resources (efficiently)

for the following purposes:

Complete the product production

Achieve the business objective

Reduce cost, improve quality, and reduce production time (cycle)

Promote production system’s flexibility

Production System


System overview

An enterprise is a large system

A production system is a subsystem of

the whole enterprise system, and its

main function is producing products

A production system uses operations

resources to transforms inputs into

some desired outputs.

ENTE

RP

RIS

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Sys

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Enterprise System


Inputs


External

– Legal, Economic, Social, Technological

Market

– Competition, Customer Desires, Product

Information

Primary Resources

– Materials, Personnel, Capital, Utilities

Inputs are in 3 categories:

Conversion Subsystem


Physical (Manufacturing)

Locational Services (Transportation)

Exchange Services (Retailing)

Storage Services (Warehousing)

Other Private Services (Insurance)

Government Services (Central)

Outputs


Direct

– Products

– Services

Indirect

– Taxes

– Employee Impact

– Environmental Impact

– Technological Developments

Inputs are in 2 categories:

POM System


Operations Decision Making


Strategic Decisions


These decisions are of strategic importance and

have long-term significance for the organization

(Long Range Decisions).

Examples include deciding:

the design for a new product’s production

process

where to locate a new factory

whether to launch a new-product

development project

Operating Decisions


These decisions are necessary if the ongoing

production of goods and services is to satisfy

market demands and provide profits (Medium

Range Decisions).


how much finished-goods inventory to carry

the amount of overtime to use next week

number of employees

shits or hours

Control Decisions


These decisions concern the day-to-day

activities of workers, quality of products and

services, production and overhead costs, and

machine maintenance (Short Range Decisions).


scheduling of products

frequency of preventive maintenance

new quality control acceptance criteria

Elements of Production Systems


I. Structure Elements: the framework of production system

Technology, e.g. Process Technology and combination of

Equipment

Facility, e.g. scale and layout of Facilities

Capacity, e.g. The capacity and flexibility of production

Integration，e.g. inner-integration，outer-integration

II. Non-structure elements: elements that support and control

system’ function

Personnel organization

Production planning

Production control

Production inventory

Quality management

Classification of Production System


I. Classified based on production process continuity:

– Continuous flow production system

– Discrete production system

III. Classified based on industry:

– manufacturing industry

– service industry

II. Classified based on customization:

– make to stock

– produce to order

Production Planning Hierarchy


Production Planning: Units of Measure


09-Dec-16 29

-2-Production Planning and Control

MEC 6121 - PM by Dr. T. Malama

NEXT MEETING …


THANK YOU!