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Production Management and Efficiency Guide

The document outlines key concepts in production management, including effective resource management, inventory types, and the role of the operations department. It discusses productivity measures, methods to increase efficiency, and various production methods such as custom job production and continuous flow production. Additionally, it highlights the impact of technology on production, including automation and CAD/CAM systems, while also addressing the advantages and disadvantages of these approaches.

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ariesbeat4848
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8 views3 pages

Production Management and Efficiency Guide

The document outlines key concepts in production management, including effective resource management, inventory types, and the role of the operations department. It discusses productivity measures, methods to increase efficiency, and various production methods such as custom job production and continuous flow production. Additionally, it highlights the impact of technology on production, including automation and CAD/CAM systems, while also addressing the advantages and disadvantages of these approaches.

Uploaded by

ariesbeat4848
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

🔹 Production Definition- Effective 🔹 Inventory Management

management of resources to produce goods and


services. • Inventory types: Raw materials, Work-
in-progress, Finished goods
🔹 Role of Operations Department • Reorder level: When inventory hits this,
reorder to max level
• Use resources cost-effectively & • Lead time: Time taken for new stock to
efficiently arrive
• Manage inventory properly • Buffer stock: Minimum inventory to
• Produce output to meet customer prevent stockouts during lead time
demand • High inventory → High holding costs
• Maintain quality standards
🔹 Lean Production
🔹 Productivity
Goal: Reduce waste, increase efficiency
• Measure of efficiency: Output ÷ Inputs
• Labour productivity = Output produced 7 Wastes:
÷ Number of employees
1. Overproduction
• Goal: Increase productivity → Lower
2. Waiting
costs → Sell more & reduce prices
3. Transportation
Ways to increase productivity: 4. Excess Inventory
5. Motion
• Train workers → better skills, less 6. Over-processing
waste 7. Defects
• Automation → faster, fewer errors
• Motivate employees → higher efficiency
• Improve quality control → reduce waste
Benefits: 🔹 Factors Affecting Production Method
Choice
• Lower inventory costs
• Faster production • Nature of product (custom vs standard)
• Fewer defects → higher customer • Market size (large → flow, small →
satisfaction batch/job)
• Lower costs → competitive prices & • Demand pattern (steady → flow,
higher profits irregular → batch/job)
• Business size (small firms avoid costly
Methods:
flow production)
• Kaizen: Continuous improvement via
🔹 Technology in Production
worker suggestions; rearrange factory
layout for smooth flow
• Automation: Computer-controlled
machinery
• Just-in-Time (JIT): Inventory arrives
• Mechanization: Machines operated by
exactly when needed; requires reliable
people
suppliers
• CAD: Computer-aided design for
• Cell Production: Divide line into teams
product modelling
focused on parts → improves morale &
• CAM: Computer-aided manufacturing to
efficiency
control machines
🔹 Methods of Production • CIM: Integration of CAD & CAM for full
automation
Method Description Advantages Disadvantages • EPOS: Scanning items at checkout,
Custom- Flexible, high Expensive, slow,
Job updates stock automatically
made, one- quality, skilled labour
Production
off products varied work needed
• EFTPOS: Electronic card payments

Small groups Flexible, Expensive linked to bank accounts


Batch
of similar variety, less moving/resetting
Production
products downtime machines Advantages:
Continuous High volume, Boring, expensive
Flow
large-scale low cost, setup, risky if • Higher productivity
Production
output automated breakdown
• Better quality & job satisfaction (less
boring work)
• Faster communication & accurate stock
control
• Easier product innovation

Disadvantages:

• Job losses/unemployment
• High setup and update costs
• Resistance from employees
• Rapid tech obsolescence

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