T.Y.B.A.

PRODUCTION MANAGEMENT

P.O.M.

THEORY: Production management: MEANING:According to carl heyel, production is the process of transforming raw materials or purchased components into finished products for sale. There is creation of utilities through the process of production satisfaction of human wants is the guiding principle of production activities. Thus production is a process by which goods and services are manufactured or brought into existence.

DEFINITION:According to E.L., BRECH. Production management is the process of effective planning and regulating the operations of that section of an enterprise which is responsible for the actual transformation of materials into finished products.

IMPORTANCE OF PRODUCTION MANAGEMENT:

Production of useful and quality goods at low or reasonable production cost. Provides regular and continues supply of goods and service to consumers. Provides better services to consumers as regards variety, price and supply, etc. Maintains optimum inventory level. Ensure better utilization of available material resources and human resources. Creates employment opportunities and thereby provides better life and welfare to people. Improves the profitability and reputation of the organization through the production of consumer friendly and quality goods at reasonable costs.

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PRODUCTION MANAGEMENT

P.O.M.

FUNCTIONS OF PRODUCTION MANAGEMENT:

Production process must be designed and developed in a proper manner. For efficient production , suitable location , layout of plant and provisions of water, electricity within the production unit are essential. Production management deals with preparation of production budget. Cost control relates to effective control in order to minimize the cost of production. Production management is concerned with the expansion of production activites. Product research and development relates to the introduction of new product line.

PROBLEMS IN PRODUCTION MANAGEMENT:

Selection of promising products in the product line of the company. Product improvement, product modification. Problems relating to quality improvement and cost control. Problems relating to process of globalization and liberalization of Indian economy.

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PRODUCTION MANAGEMENT

P.O.M.

PRODUCTIVITY:Productivity refers to the physical relation between the quality produced (output) and the quantity of resource used in the course of production (input) Productivity (P) = output of production (O)/ Input of labour (I)

MEASUREMENT OF PRODUCTIVITY:-

MEASUREMENT OF PRODUCTIVITY

PARTIAL PRODUCTIVITY

TOTAL PRODUCTIVITY

LAND

LABOUR

CAPITAL

PROCESS

PRODUCTIVITY

TOTAL PRODUCTIVITY INDEX

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PRODUCTION MANAGEMENT

P.O.M.

QUALITY MANAGEMENT: INTRODUCTION:Quality management is the single most important process in any organization, Whether for profit, nonprofit or an organization such as a health-care maintenance organization. It defines the purpose of quality for the organization it represents. Quality management is often forgotten, but it guarantees the quality in output from any organization and exists as an asset that always adds value to it. Quality has become much more significant since the world's demand for products has grown exponentially. Along with more demand, the demand for specialist products and quality in production has grown together. Competition has been a strong factor in this and so has something known as "the global village" (where companies are competing on a global level). Probably the most significant change has been the change in society, which has driven a demand that never existed before. And this global sea-change has made a significant difference to any quality considerations.

MEASURES TO CHECK QUALITY:-

INSPECTION

CAUSE AND EFFECT DIAGRAM

TESTING

MEASURES TO CHECK QUALITY

CHECK SHEET

CONTROL CHARTS

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PRODUCTION MANAGEMENT

P.O.M.

INVENTORY MANAGEMENT: INTRODUCTION:Inventory management refers to planning the levels of stock on hand, whether they are stocks of raw material, work-in-progress or finished goods. Such stocks will help to make profitable purchasing and continuous manufacturing. Business can maintain a safety margin for periods of scarcity of raw materials or to meet unusually high demand. Inventory management deals with how many units should be purchased or manufactured at one time or how many units should he kept in stock. Business must strike a balance so that it does not run out of stock and raw materials should come to the plant exactly when they are needed to complete production. Ideally, products should be ready for delivery just at the time sale is likely to start.

TECHNIQUES OF INVENTORY MANAGEMENT: ABC (Always Better Control) Economic Order Quantity (EOQ) Cardex MAPICS Just In Time (JIT) High, Medium & Low (HML) Classification Maximum-Minimum System Material Requirement Planning (MRP) Vital, Essential & Desirable (VED) Classification Fast moving, slow moving & non-moving (FSN) Classification

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PRODUCTION MANAGEMENT

P.O.M.

PRATICAL STUDY: INTRODUCTION ABOUT COMPANY:We had visited to the yashraj Engineering Ltd (Heavy Machine Division). Mr. Raju.M. Vasita is the proud owner of the company. It is situated at admin & factory, plot no. PAP R- 268 to270, MIDC rabale, Navi Mumbai400 701. It is company which undertakes the various engineering works under it such as boring, planning, floor boring etc. The company was established 5 years back i.e. in the year 2008. The company has unit in area of 3000 sq.km in which 112 workers are working and 200 machines are available in working condition out of which 30 are import from the china and remaining from India itself. The company in the last financial year had the turnover around 8 crore and The company was very well surrounded by the latest and the upgrade technology as it is established recently and has the potential to fulfill the market demand as they have around 3% market share The future of the company looks very much bright as the manager of the company told that the in the coming year company is trying to established its another unit in the Gujarat and Kerala.

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PRODUCTION MANAGEMENT

P.O.M.

ANALYSIS: PRODUCTION MANAGEMENT:The company in which we visited is the manufacturing unit and it deals with engineering products the company is very well developed in their production system as they have good production management. They have the group of 10 expect people who design the production system for the company most of that system contain application of principles of management such as planning, organizing, controlling and direction.

Survey

Start of intial production

Check on the process on different level

Research and development

Quality check of material

Report to management

Planning on budget and prodction process

Organizing the material for production

Final quality check and delivery to client

The above chart shows the company production management system besides that the on every step the company keep check on the quality of the product and the time taken as per the standard set up by them

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PRODUCTION MANAGEMENT

P.O.M.

PRODUCTIVITY:Every company keeps the tight eye on the productivity as it determines the companys efficency through input output ratio the company keep check on its productivity as they has the standard set up by the company cost account and on the bases on that they keep eye on the productivity. Their standards are as follows, P=O/I.

one iron bar

25litres nitron zx mixture

10,000 nails

one jumbo iron rod

10 long iron rods

30litres fusion stable chemical

These are some of the standard set up by the company evaluate the productivity of their product

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P.O.M.

The techniques used by the company are: ERGONOMICS:-

Ergonomics is often called human factor engineering. It refers to man-machine relationship. It is designed to match the technology to human needs. Ergonomics is a systematic attempt to make work as safe as possible. It improves workers productivity. Ergonomics is welcome because it fulfills various provisions of industrial laws in our country. Increased stress on health management and reduction in medical cost has also made ergonomics popular in India. Even employment of physically challenged workers is found to be productive. TOTAL QUALITY MANAGEMENT:-

TQM improves quality and productivity by trying to perfect the entire manufacturing process. Under TQM quality and productivity teams are created. TQM stresses coordination with other departments like product design, purchasing, sales and service. All the departments work together to improve manufacturing quality and productivity. MEASUREMENT OF PRODUCTIVITY:-

Labour productivity = output (units/value of output)/No. of man- hours worked Machine productivity = output (production)/No. of machine-hours worked

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PRODUCTION MANAGEMENT

P.O.M.

QUALITY MANAGEMENT:The company been new in the market and for the survive purpose it had to maintain the quality of the product and for that purpose it has to maintain its quality management system and it is as follow, RAW MATERIAL CHECK:-

Raw material check gateway check

sample hit test

acid test check

FINISHED PRODUCT QUALITY CHECK:-

STRENGTH CHECK FLEXIBLE CHECK

SIZE AND WEIGHT CHECK

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INVENTORY MANAGEMENT:Every company has to keep check on the inventory that they keep or produce with themselves and it has to see that working capital should not be affected and capital should not be block more than standard. The system used by the company to manage its inventory is known as MAXIMUMMINIMUM SYSTEM. Under max-min system the company has the 4 levels of inventory management and in each level the inventory is represented in various colors such as Green, Yellow, Purple & Red.

Full level of inventory Moderate level of inventory Low level of inventory

Least level of inventory

The above levels help the company to know the level of inventory they have and they should have with it so, that they should avoid blocking of capital in the inventory.

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PRODUCTION MANAGEMENT

P.O.M.

QUESTIONARIES: What is the importance of the management in your business? What is the importance of the production management in your business? How your production management system works? How many levels in your production management? How you check the production process? What is productivity? What kind of technique used by your company to improve or maintain productivity? Do you think productivity effect the profit & if yes than how? What kind of problems faced by you in the production process and how you overcome it? How you motivate your employees? Do you aware about NPC? Do you have quality management system? How that system works? Do you have ISO certificate? What are the problems faced by your company when it comes to quality of product? How company overcome that problems? How company manages its inventory control system? What are the major problems faced if there will be no inventory management?

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T.Y.B.A.F

PRODUCTION MANAGEMENT

P.O.M.

COMPANYs VIEW: The management plays the important role as nothing can be done without management for every work in the business management is necessary and its principle are exist in every step of the business. The production management also plays the important role because of the production management the process of the production works smoothly and work will complete on time and with no delays and business goodwill also increase in the firm. Our production process involved the 3 basic levels i.e. Basic, Mid, Final.

Order from party

send material at production line

final quality check

Raw material purchase

processing levels

packing and store in warehouse

check material at gate

check of quality till product

delivery to party

We have the various standards set up by us which enable us to keep supervision on the production process. For instant we have per hour production standard with machine and labour standard productivity.
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PRODUCTION MANAGEMENT

P.O.M.

Productivity is the ratio between input-output which tells us that for how many units of finished goods corresponding input number of units needed. We use the TQM and Ergonomics for improvement in our productivity. Yes, it affects the profitability factor very hard as if company thinks of 100 units of output and estimated the profit of Rs.1 lakh but output will be 80 units than the profit of the company will be change from 1 lakh to 80 thousand as output is declined but the expenses behind those units incurred. The major problem is of the labour as the labour is very unpredictable they leave the job in between and sometimes demanding the wage hike that also at the time of urgent production which affects the productivity very hard. We will make a mutual understanding and talk to them that if because of you the production is delay than we will not be able to hike your wage complete the production process first we will take into your problem in consideration. We motivates them through monetary terms by giving them incentives if their performance was more than a mark and give them double wage if they overtime. Yes, we are the registered with the National Productivity Council and they guide us through their various work shop and the magazines and the seminar conducted by them and they have their council at Vahsi. Yes, we have the quality management system which checks the product on the different level of production by different tests. It works basically on two levels firstly at Raw material check (gateway check, hit test and acid test check) Finished product check (size & weight check, flexible check and strength check)

Yes, we have the ISO 9000 certificate which we taken last year.
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PRODUCTION MANAGEMENT

P.O.M.

We basically face the problem of lack of interest by our employees and low level management as they are not delegate to focus on quality of the product and another one is the time period as today in this competitive situation where large companies providing quality products from the years so to achieve that type of quality time plays important role and we overcome the problems by paying more commission to employees on the units basis and leave allowance and we are now focusing on more on know-how to improve the quality of the product. We are following the maximum-minimum system for over inventory control system and in that we have 4 different levels that indicate inventory level. Blocking of capital in the inventory is the major problem and besides that if there is over inventory than its carrying cost also creates the major problems.

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PRODUCTION MANAGEMENT

P.O.M.

CONCLUSION:By seeing the various aspects of the production management and by study them and its implication in the industries we are here conclude that the production activity is not activity which is like windfall, it is hardcore hard work over period of many nights. It has to do a lot of things and make the decisions as per the changing needs and situation of the markets.

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PRODUCTION MANAGEMENT

P.O.M.

BIBLIOGRAPHY: Vipuls textbook (P.O.M.) SEM Vl Profile of Yashraj Engineering Mr. Karsan Vasita (Owner of Yashraj Engineering) www.qualitymantaince.com

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T.Y.B.A.F

PRODUCTION MANAGEMENT

P.O.M.

RESPONSIBILITY CHART:-

ANALYSIS

THERORY

AARTI LAVINA

CONCLUSION,PRINT OUTS ,FORMATING THOERY CHARTS

THEORY

VARSHA MONICA

COMPANY INFO

PREETI MANOJ

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