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.
08-Dec-16 3MEC 6121 - PM by Dr. T. Malama
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
10-Dec-16 4MEC 6121 - PM by Dr. T. Malama
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
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Relationship between a business
and community is symbiotic.
Employees
Customers
Resources
Etc.
Manufacturing Management
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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
09-Dec-16 7MEC 6121 - PM by Dr. T. Malama
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
09-Dec-16 8MEC 6121 - PM by Dr. T. Malama
Quality management
Quality Control
Vendor quality
Customer feedback information
Facilities management
Location
Plant capacity, layout, equipment installation
Automation
Manufacturing vs Production
09-Dec-16 9MEC 6121 - PM by Dr. T. Malama
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
09-Dec-16 10MEC 6121 - PM by Dr. T. Malama
Production
Operations Management
Operations Management - Definition
09-Dec-16 11MEC 6121 - PM by Dr. T. Malama
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
09-Dec-16 12MEC 6121 - PM by Dr. T. Malama
1. Decision activities;
2. Technology activities;
3. Supply activities;
4. Manufacturing activities;
5. Sales activities; and
6. Financial activities
Production
activities
Production Organization
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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
09-Dec-16 14MEC 6121 - PM by Dr. T. Malama
-> 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
09-Dec-16 15MEC 6121 - PM by Dr. T. Malama
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
EP
rod
uct
ion
Sys
tem
Res
ou
rces
Enterprise System
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Inputs
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External
– Legal, Economic, Social, Technological
Market
– Competition, Customer Desires, Product
Information
Primary Resources
– Materials, Personnel, Capital, Utilities
Inputs are in 3 categories:
Conversion Subsystem
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Physical (Manufacturing)
Locational Services (Transportation)
Exchange Services (Retailing)
Storage Services (Warehousing)
Other Private Services (Insurance)
Government Services (Central)
Outputs
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Direct
– Products
– Services
Indirect
– Taxes
– Employee Impact
– Environmental Impact
– Technological Developments
Inputs are in 2 categories:
POM System
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Operations Decision Making
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Strategic Decisions
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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
09-Dec-16 23MEC 6121 - PM by Dr. T. Malama
These decisions are necessary if the ongoing
production of goods and services is to satisfy
market demands and provide profits (Medium
Range Decisions).
Examples include deciding:
how much finished-goods inventory to carry
the amount of overtime to use next week
number of employees
shits or hours
Control Decisions
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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).
Examples include deciding:
scheduling of products
frequency of preventive maintenance
new quality control acceptance criteria
Elements of Production Systems
09-Dec-16 25MEC 6121 - PM by Dr. T. Malama
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
09-Dec-16 26MEC 6121 - PM by Dr. T. Malama
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
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Production Planning: Units of Measure
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09-Dec-16 29
-2-Production Planning and Control
MEC 6121 - PM by Dr. T. Malama
NEXT MEETING …
08-Dec-16 30MEC 6121 - PM by Dr. T. Malama
THANK YOU!