Assignment EPM Justine

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BULACAN STATE UNIVERSITY

College of Engineering
Malolos City

Manufacturing Engineering Department

MFE 405
ENGINEERING PRODUCTION MANAGEMENT

ASSIGNMENT NO. 1

Name: _____Justine G. Viñas_______________


Course/Year/Section: _MFE 4A______________
Date: _August 20, 2023_____________________
BULACAN STATE UNIVERSITY
College of Engineering
Malolos City

1. What is Production Management?


Production management is an aspect of running a business as it involves overseeing the
transformation of materials, human resources, and capital into the final products that a
company produces. It encompasses responsibilities such as planning and executing the
manufacturing process. In addition to managing materials and inventories production
management also involves ensuring compliance, with design specifications optimizing
equipment usage monitoring performance and effectively utilizing labor in alignment
with the company’s production strategy.

2. Identify the history and Development of Manufacturing Management.

Craftsmanship Era (Pre-Industrial Revolution):


Prior to the introduction of large-scale industrialization, experienced artisans who worked
alone or in small groups were mostly responsible for manufacturing. From the raw
ingredients to the completed goods, each artisan oversaw the entire production process.
This method was highly customizable, but it had limitations in terms of scalability and
efficiency.
Scientific Management (Late 19th to early 20th centuries):
Many people consider Frederick Taylor to be the founder of scientific management. He
applied scientific analysis methods to manufacturing processes, with special emphasis on
time and motion analyses to determine the most effective ways to carry out operations.
Taylor's work served as the cornerstone for streamlining procedures and increasing
worker productivity.
Fordism and Mass Production (Early 20th century):
With the advent of assembly line methods and mass production, Henry Ford transformed
the industrial industry. Ford was able to drastically lower expenses while significantly
increasing production rates by dividing complex activities down into simpler, repetitive
tasks. This strategy signaled a turn toward more efficient, uniform procedures.
Quality Management and Total Quality Control (Mid-20th century):
The development of quality management techniques began in the middle of the 20th
century, most notably with the work of W. Joseph Juran and Edward Deming. To ensure
dependable and high-quality output, they placed a strong emphasis on statistical
techniques and process control. This period saw a shift from prioritizing quantity alone to
emphasizing both quantity and quality.
Lean Manufacturing and Just-In-Time (JIT) Production (1970s-1980s):
Lean manufacturing and JIT production were first introduced by the Toyota Production
System, which was created in Japan. By aligning production with consumer demand, this
strategy attempted to reduce waste, decrease inventory, and increase overall efficiency.
Computerization and Automation (Late 20th century - present):
The development of computers and automation technology brought about yet another
change in production management. The management of complex manufacturing
BULACAN STATE UNIVERSITY
College of Engineering
Malolos City

processes now depends heavily on computer-aided design (CAD), computer-aided


manufacturing (CAM), and computer-integrated manufacturing (CIM).
Industry 4.0 and Digital Manufacturing (21st century):
The contemporary era of production management is defined by industry 4.0. It involves
the creation of "smart factories" that are equipped with real-time monitoring, data-driven
decision-making, and adaptable production processes through the integration of cyber-
physical systems, the Internet of Things (IoT), big data, and advanced analytics.

3. What are the objectives of Production Management?


The primary goal of production management is to provide goods and services of the
appropriate quality, quantity, time, and cost. It also attempts to enhance efficiency. An
efficient company may successfully compete.

Resource Efficiency: Improve resource utilization for more cost-effective production.


High Productivity: Increase output while decreasing input.
Quality Control: Ensure constant product/service quality.
Customer Demand: Meet the needs of the customer on time.
Reduce production expenses as much as possible.
Inventory Control: Maintain optimal inventory levels.
Efficient Scheduling: The most effective allocation of manufacturing tasks.
Reduce order fulfillment time with shorter lead times.
Technology Integration: Take use of technology breakthroughs.
Employee Well-Being: Ensure job satisfaction and safety.
Continuous Improvement: Over time, refine procedures.
Sustainability: Reduce your environmental impact.

4. Define Operations Management


Operations management is the methodical planning, organizing, directing, and managing
of an organization's activities involved in producing goods and providing services. It
entails creating, managing, and improving processes to ensure efficient and effective
resource usage while satisfying quality standards and client demands. Production, supply
chain management, inventory control, quality assurance, and process improvement are all
functions of operations management. Its primary purpose is to improve efficiency and
create value for both the firm and its consumers.

5. Define Operations Management


Problem:
A shoe manufacturing company is considering the production of a new line of sneakers.
The company estimates that the fixed costs associated with producing this new line,
including machinery and marketing, amount to $200,000. The variable cost to produce
each pair of sneakers is $20, and the company plans to sell each pair for $80. What is the
break-even point in terms of the number of pairs of sneakers the company needs to sell to
cover its costs?
BULACAN STATE UNIVERSITY
College of Engineering
Malolos City

Solution:
The break-even point is the point at which total revenue equals total costs, resulting in
zero profit. To find the break-even point, we can use the following formula:

Break-Even Point (in units) = Fixed Costs / (Selling Price per Unit - Variable Cost per
Unit)

Given the data:


Fixed Costs = $200,000
Selling Price per Unit = $80
Variable Cost per Unit = $20

Break-Even Point (in units) = $200,000 / ($80 - $20) = $200,000 / $60 = 3,333.33

Since you can't sell a fraction of a shoe, the company needs to sell approximately 3,334
pairs of sneakers to cover its costs and reach the break-even point.

This means that if the company sells fewer than 3,334 pairs, it will not cover its costs and
will experience a loss. Selling more than 3,334 pairs will result in a profit. The break-
even analysis helps the company understand the sales volume required to avoid losses
and make informed decisions about pricing and production levels.

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