ASSIGNMENT NO.

1
Student Name: Vikas Student Roll No: 2021030222
Course: MBA Semester: 2nd
Subject: Production and Operational management Faculty: Ms. Manpreet Kaur
Issue Date : 12-04-2022 Return Date: 20-04-2022
Assignment Weightage: 15 Marks
PURPOSE:-
The assignment is designed to assess what students have learnt over last few weeks.
ASSIGNMENT OBJECTIVE/ OBJECTIVES
Student must understand their assignments questions.
 Assignment Question:
Types of Production
The maximum length of each task should be minimum five pages 1.5 spaced, with 1-inch margins and 12-
point Time New Roman font.
ASSESSMENT GUIDANCE: -
Individual or in group? Individual
To obtain 40%:- Presentation
To obtain 50%:- Presentation + Interpretation
To obtain above 60%:- Presentation + Interpretation + Innovation
COMMENTS:-
Criterion (Grade): Excellent Good Satisfactory Poor
Presentation: Excellent Good Satisfactory Poor
Interpretation: Excellent Good Satisfactory Poor
Innovation: Excellent Good Satisfactory Poor
Adequate reference to sources: Yes No
Relevance of Content: Well Focused Relevant Irrelevant

Marks/Grades Obtained:-____________________

Faculty Signature Date:-______________

 PRODUCTION MANAGEMENT

PRODUCTION:

Production is the process by which the raw material and others inputs are converted into finished products.

MANAGEMENT:

Management is a process of planning, organising, directing, and controlling the financial, physical and
human resources of an organization to achieve its goals effectively and efficiently.

PRODUCTION MANAGEMENT:

Production Management deals with the decision making related to production process so that the resulting
goods and services are produced accordingly to specifications.

DEFINITION:

According to E.S.Euffa “Production management as follows production management deals with the
decision making related to production process so that the resulting goods and services are produced
accordingly to specifications, in the amount and by the schedule demanded out of minimum cost.

OBJECTIVES OF PRODUCTION MANAGEMENT

1. Production In Right Quantity:- Production management formulate and implement various

production strategies to ensure production in right quantity. Production in the right quantity is important
for every organisation to ensure profitability. Excess or shortage in production will have adverse effects.
Excess production of products will leads to blockage of funds in inventory. Whereas the shortage in
production will create a shortage of its products and will not be able to fulfil demand.
2. Minimisation of Production Time: Completion of production activities timely is essential for the
achievement of the goal. Production management designs schedules for various production activities of
business. It monitors all production activities and ensures that all operations are going as per planned
schedules. In case of any deviation in production activities, production manager takes all necessary
corrective measures to remove these deviations. It helps in minimising the overall time involved in
production activities.
3. Production Of Right Quality:- Production management ensures that quality products are
manufactured by the organisation. It aims that customers’ expectations are fulfilled by the product.
Attempts are made to convert the needs of customers into production specification while designing a

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 product. Certain standards are set through production management process and attempts are made to
fulfil these standards.

4. Minimisation Of Cost:- Cost reduction is the primary focus of every business. Production
management aims at minimising the cost of product activities of business. It involves usage of sound
supply chain management in production planning minimising the overall production and supply cost.
Production management estimates the true cost of a product before its production and tries to keep its
production cost within the parameter of pre-estimated cost.
5. Planning And Control Of Materials:- Production management helps in maintaining the
optimum stock of inventory within the organisation. It keeps complete record of all materials required
for various production activities. By maintaining records, shortage of any raw materials can be easily
detected. It helps in ensuring that all raw materials are always available in the right quantity so that
production activities are not affected.
6. Optimum Utilisation Of Resources:- Proper utilisation of all resources is must to earn the
desired profit and achieve desired goals. Production management issues rules and guidelines for all
persons associated with production operations. It monitors their activities and helps them in improving
their efficiency. Production managers check the overall activities and productivity of all departments of
organisations. It is ensured that there is no wastage of resources and all resources are efficiently utilised.

SCOPE OF PRODUCTION MANAGEMENT

1. Location of Facilities:- The selection of location is a key decision as large investment is made in
building, land, and machinery.
2. Plant Layout & material handling :- Plant layout refers to the physical arrangement of facilities.
Material handling refers to the moving of material from the storeroom to the machine & from machine to
the next during the process of manufacturing.
3. Product Design:- Product design deals with the conversion of the ideas about the product into the
reality
4. Process Design:- It is the decision making on overall process route for converting the raw material
into the finished goods
5. Production Planning & Controlling ( P.P.C):- P.P .C can be defined as the process of planning
the production in advance, setting the exact route of each item, fixing the starting & finishing dates for
each item to give production orders to shops & to follow up the progress of products according to the
orders.

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6. Quality Control:-Quality control may be defined as a system that is used to maintain a desired level
of quality in a product & service.
7. Material Handling:- Material management is that aspect of management function which is primarily
concern with the acquisition control & use of the needed material.
8. Maintenance Management:-Maintenance deal with taking care of factory layout, types of
machinery. This is essential for equipment & machinery which are a very important part of the total
production process.

TYPES OF PRODUCTION SYSTEM

The types of production system are grouped into two categories, namely:

1. Intermittent production system

2. Continuous production system

1. Intermittent production system: Intermittent means something that starts and stops at irregular
intervals (time intervals). In the intermittent production system, goods are produced according to
customer orders. These products are produced on a small scale. The production flow is intermittent
(irregular). In other words, the production flows are not continuous.

In this types of production system, large varieties of products are produced. These products are of
different sizes. The design of these products keeps changing. It keeps changing based on product design
and size. Therefore, this system is very flexible.

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Characteristics of an intermittent production system are listed below:

(i) The production flow is not continuous. It is intermittent.

(ii) Wide varieties of products are produced.

(iii) The production volume is small.

(iv) General-purpose machines are used. Different types of products can be produced by the use of these
machines.

(v) The sequence of operations continues to change according to the product design.

(vi) The quantity, size, shape, design, etc. Product depends on customer orders.

The types of intermittent production system include:

i. Project production flows: Here, in the project’s production flows, the company accepts a single
complex order or contract. The order must be completed within a certain period of time and at an estimated
cost. Consider making a boat. Such products are never manufactured in large quantities. Labour, facilities
and other resources focus on these products. Therefore, each product can be treated as a project, which
requires the sequencing of certain activities, either in series or simultaneously. PERT/CPM or network
analysis is a useful technique to plan and control such projects.

Examples of project production flows mainly include the construction of airports, roads, buildings,
shipbuilding, dams, etc.

Characteristics of project production flows:

1. A resource requirement varies with the production phases.

2. Many agencies are involved and their jobs are interrelated.

3. Generally. Delays take place at the end of the project.

4. As routing and programming changes, inspection is required.

ii. Jobbing production flows: In the job production flows, the company accepts a contract to produce
one or a few units of a product strictly according to the specifications given by the customer. The product is
produced within a certain period and at a fixed cost. This cost is fixed at the time of signing the contract.

Examples of such job production flows include services provided by clothing workshops, repair shops,
manufacturers of special machine tools, etc.

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Characteristics of jobbing production flows:

1. The production of items takes place in small batches.

2. Items are manufactured according to customer specifications.

3. Highly skilled labour is needed for specialized jobs.

4. There is a disproportionate manufacturing cycle time.

iii. Batch production flows: In batch production flows, the production schedule is decided according
to specific orders or is based on demand forecasts. Here, the production of items takes place in lots or lots. A
product is divided into different jobs. All jobs in a production batch must be completed before starting the
next production batch.

Examples of batch production flows include, manufacture of drugs and pharmaceuticals, medium and heavy
machinery, etc.

Characteristics of batch production flows batch instruction:

1. Products are manufactured and stored until demand arises.

2. General-purpose machines and equipment are installed.

3. There is a possibility of major work in progress.

4. You need detailed production planning and control.

2. Continuous production system: Continuous means something that operates constantly without
irregularities or frequent stops. In the continuous production system, goods are constantly produced
according to the demand forecast. The goods are produced on a large scale for storage and sale. They are not
produced at the customer’s request. Here, the inputs and outputs are standardized together with the
production process and the sequence.

The following are examples of the continuous production system.

(i) The production system of the food industry is based solely on the demand forecast. Here a large-scale
food production takes place. It is also a continuous production.

(ii) Similarly, the production and processing system of a fuel industry is also based solely on the demand
forecast. Crude oil and other raw sources are continuously processed on a large scale to obtain a usable form
of fuel and offset global energy demand.

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The characteristics of a continuous production system are listed below:

(i) The production flow is continuous. It is not intermittent

(ii) The products are standardized.

(ii) Products are produced with predetermined quality standards.

(iv) Products are produced in anticipation of demand.

(v) Standardized roadmaps and schedules are prepared.

The types of continuous production systems include:

1. Mass production flows

2. Process production flows.

1. Mass production flows: Here, the company produces different types of large-scale products and
stores them in warehouses until they are demanded in the market. Products are produced with the help of a
single operation or use a series of operations.

E.g. Mass production is the production of toothpaste, soaps, pens, etc.

Characteristics of mass production flows:

1. Continuous production flow, depends on market demand.

2. Here, there is limited work in progress.

3. Supervision is easy: few instructions are necessary.

4. The material is mainly handled by machines.

5. The flow of materials is continuous with little or no glue.

2. Production processes: Here, a single product is produced and stored in warehouses until it is demanded
in the market. The flexibility of these plants is almost nil because only one product can be produced.
Examples of production process flows include steel, cement, paper, sugar, etc.

Characteristics of process production flows:

1. Highly mechanized system for material handling.

2. Low skilled labor and skilled technicians are required.

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3. Very little work in progress, since the flow of material is continuous.

4. Production planning and programming can be decided in advance.

5. The complete production system is designed to produce a single item.

IMPORTANCE OF PRODUCTION MANAGEMENT

1. Minimizes price of Production: Production management helps to reduce the value of production.
It tries to maximize the output and minimize the inputs. This helps the firm to attain its price reduction
and potency objective.
2. Accomplishment of Firm’s Objectives : Production management helps the business organization
to attain all its objectives. It produces product that satisfy the customer’s wants and needs. So, the firm
can increase its sales. This can facilitate it to attain its objectives.
3. Reputation, Goodwill and Image: Production management helps the firm to satisfy its
customers. This will increase the firm’s name, goodwill and image. an honest image helps the firm to
expand and grow.
4. Helps to Face Competition: Production management helps the firm to face competition within the
market. This can be as a result of production management produces product of right amount, right
quality, and right value and at the correct time. These product are delivered to the purchasers as per their
necessities.
5. Optimum Utilization of Resources: Production management facilitates optimum utilization of
resources like work force, machines etc. therefore the firm will meet its capability utilization objective.
this may bring higher returns to the organization.
6. Supports different useful Areas: Production management supports different useful areas in a
corporation, like selling, finance and personnel. The marketing department can notice it easier to sell
good-quality product and therefore the finance department can get a lot of funds as a result of increase in
sales. it’ll conjointly get a lot of loans and share capital for enlargement and modernization. The staff
office are going to be ready to manage the human resources effectively because of the higher
performance of the production department

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