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EEM Q/A Notes- LJIET By: - Dhruvi Bhatt

1. Define product, production and production management. (Dec2010) )(MGMT-II) [LJIET]

PRODUCT

Though many authors define the product with Consumer orientation, it is better for us to deal w

different angles, because it will be helpful for us to understand the subject of production a

Operation Management.(i !or a Consumer" The product is a combination of or optimal mi# of potential utiliti

This is because e$ery consumer e#pects some use or uses from the product. %enhe&she always identifies the product in terms of the uses. 'ay for e#ample'oap can

identified by comple#ion, cleanliness of body, freshness, fragrance or health.... e

)ecause of this, many producers ad$ertise that they are selling health, or they are selli

Cine star Comple#ion or they are selling freshness and so on.(ii !or a *roduction Manager" *roduct is the combination of $arious surfaces a

processes (or operations. This is because the production Manager is solely responsib

for producing the product. %e has to thin+ of the $arious surfaces by which the produis made of, so that he can plan for processes by which a particular surface can be ma

and plan for reuired capacity of the facility by which the surface is produced. -hiplanning he has to see that the reuired surface is produced by the best and cheapmethod (optimally, so as to ma+e the product to face competition in the mar+et.

(iii !or a !inancial Manager" !or him the product is a mi# of $arious cost elements as he

responsible for the profitability of the product.(i$ !or a *ersonnel Manager" !or him the product is a mi# of $arious s+ills, as he is t

person who selects and trains the personnel to meet the demand of the s+ill to produ

the product.

n general we can define the product as a bundle of tangible and intangible attributes, which alowith the ser$ice is meant to satisfy the customer wants.

1.2. PRODUCTION*roduction means application of processes (Technology to the raw material to add the use a

economic $alues to arri$e at desired product by the best method, without sacrificing the desir

uality.-e ha$e three ways of *roduction, they are"

(i *roduction by Disintegration" )y separating the contents of Crude oil or a mi#ture t

desired products are produced. !or e#ample the crude oil is disintegrated into $ario

fuel oils. 'imilarly salt production is also an e#ample for product produced disintegrated. -e can use Mechanical or Chemical or both technologies to get t

desired product, so that it will ha$e desired use $alue.

(ii *roduction by ntegration" n this type of *roduction $arious Components of tproducts are assembled together to get the desired product. n this process, *hysical a

Chemical *roperties of the materials used may change. The e#amples are" /ssembly

Two wheelers, four wheelers and so on.(iii *roduction by 'er$ice" %ere the Chemical and Mechanical *roperties of materials a

impro$ed without any physical change. The e#ample for this is %eat Treatment

metals. n real world, a combination of abo$e methods is used.n general production is the use of any process or procedure designed to transform a set of inp

elements into a set of output elements, which ha$e use $alue and economic $alue.

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DEFINITION OF PRODUCTION MANAGEMENT

t may be defined as"

(i *roduction management is the performance of the management acti$ities with regards

selecting, designing, operating, Controlling and updating production system.

(ii t is the processes of effecti$ely planning, coordinating and controlling the production, tis the operations of that part of an enterprise, it means to say that production and operatio

Management is responsible for the actual transformation of raw materials into finishproducts.

(iii *roduction management is a function of Management, related to planning, coordinati

and controlling the resources reuired for production to produce specified product

specified methods, by optimal utili0ation of resources.(i$ *roduction management is defined as management function which plans, organi0

coordinates, directs and controls the material supply and processing acti$ities of

enterprise, so that specified products are produced by specified methods to meet appro$ed sales program. These acti$ities are being carried out in such a manner that ab

*lant and Capital a$ailable are used to the best ad$antage of the organi0ation.

2. 'tate the benefits deri$ed from effecti$e production management. (Dec2010) (MGMT-

[LJIET]

The efficient *roduction Management will gi$e benefits to the $arious sections of the society. Th

are" (i Consumer benefits from impro$ed industrial *roducti$ity, increased use $alue in t

product. *roducts are a$ailable to him at right place, at right price, at right time, in desired uantand of desired uality. (ii n$estors" They get increased security for their in$estments, adeua

mar+et returns, and creditability and good image in the society. (iii 3mployee gets adeua

-ages, 4ob security, impro$ed wor+ing conditions and increased *ersonal and 4ob satisfaction. (

'uppliers" -ill get confidence in management and their bills can be reali0ed with out any delay. Community" community enjoys )enefits from economic and social stability. ($i The 5ation w

achie$e prospects and security because of increased *roducti$ity and healthy industratmosphere.

6. 'tate the functions of production management department.(Dec2010) (MGMT-II) [LJIET]

!75CTO5' O! *8OD7CTO5 M/5/93M35T D3*/8TM35T

The functions of *roduction Management depend upon the si0e of the firm.

n small firms the production Manager may ha$e to loo+ after production planning and contalong with *ersonnel,Mar+eting, !inance and *urchase functions.

n medium si0ed firms, there may be separate managers for *ersonnel, mar+eting and !inan

functions. )ut the production planning and control and *urchase and stores may be under tcontrol of *roduction management department.

n large si0ed firms the acti$ities of *roduction Management is confined to the management

production acti$ities only. /s such, there is no hard and fast rule or guidelines to specify tfunction of *roduction Management, but in the academic interest we can mention some of t

functions, which are loo+ed after by the *roduction Management department. They are"

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(i Matera!"# t includes the selection of materials for the product. *roduction manag

must ha$e sound :nowledge of materials and their properties, so that he can seleappropriate materials for his product. 8esearch on materials is necessary to fi

alternati$es to satisfy the changing needs of the design in the product and a$ailability

material resumes.

() Met$%&"#!inding the best method for the process, to search for the methods to suit ta$ailable resources, identifying the seuence of process are some of the acti$ities

*roduction Management.(iii Mac$'e" a'& E*+e't#'election of suitable machinery for the process desire

designing the maintenance policy and design of layout of machines are ta+en care of

the *roduction Management department.

(i$ E"t+at',# To fi# up the *roduction targets and deli$ery dates and to +eep tproduction costs at minimum, production management department does a thorou

estimation of *roduction times and production costs. n competiti$e situation this w

help the management to decide what should be done in arresting the costs at desirle$el.

($ L%a&', a'& c$e&!',#The *roduction Management department has to draw ttime table for $arious production acti$ities, specifying when to start and when to finithe process reuired. t also has to draw the timings of materials mo$ement and plan t

acti$ities of manpower. The scheduling is to be done +eeping in mind the loads on han

and capacities of facilities a$ailable.($i R%t',#This is the most important function of *roduction Management departme

The 8outing consists of fi#ing the flow lines for $arious raw materials, componen

etc., from the stores to the pac+ing of finished product, so that all concerned +now

what e#actly is happening on the shop floor.($ii D"*atc$'," The *roduction Management department has to prepare $ario

documents such as 4ob Cards, 8oute sheets, Mo$e Cards, nspection Cards for each a

e$ery component of the product. These are prepared in a set of fi$e copies. Thedocuments are to be released from *roduction Management department to gi$e gre

signal for starting the production. The acti$ities of the shop floor will follow t

instructions gi$en in these documents. /cti$ity of releasing the document is +nowndispatching.

($iii E*e&t', %r F%!!%/ *#Once the documents are dispatched, the management wan

to +now whether the acti$ities are being carried out as per the plans or not. 3#pediti

engineers go round the production floor along with the plans, compare the actual wthe plan and feed bac+ the progress of the wor+ to the management. This will help t

management to e$aluate the plans.

(i# I'"*ect%'#%ere inspection is generally concerned with the inspection acti$ities duriproduction, but a separate uality control department does the uality inspection, whi

is not under the control of *roduction Management. This is true because, if the ual

inspection is gi$en to production Management, then there is a chance of ualifying tdefecti$e products also. !or e#ample Teaching and e#amining of students is gi$en to t

same person, then there is a possibility of passing all the students in the first grade.

a$oid this situation an e#ternal person does correction of answer scripts, so that tuality of answers is correctly judged.

(# Ea!at%'# The *roduction department must e$aluate itself and its contribution

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fulfilling the corporate objecti$es and the departmental objecti$es. This is necessary f

setting up the standards for future.-hate$er may be the si0e of the firm; *roduction management department alone mu

do 8outing, 'cheduling, oading, Dispatching and e#pediting. This is because t

department +nows $ery well regarding materials, Methods, and a$ailable resources e

f the firms are small, all the abo$ementioned functions (i to # are to be carried out *roduction Management Department. n medium si0ed firms in addition to 8outin

'cheduling and oading, Dispatching and e#pediting, some more functions lMethods, Machines may be under the control of *roduction Management Departme

n large firms, there will be 'eparate departments for Methods, Machines, Materials a

others but routing, loading and scheduling are the sole functions of *roducti

Management. /ll the abo$e ten functions are categori0ed in three stage, that*replanning, *lanning and control stages as shown in figure.

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(ii 'i0e of the *lant" i.e., 'mall ndustry, Medium si0ed ndustry or arge ndustry.

(iii Type of *roduction" n general there are three classifications in types of *roductisystem. They are discussed below.

(a J% Pr%&ct%'#n this system *roducts are manufactured to meet the reuirements o

specific order. The uality in$ol$ed is small and the manufacturing of the product will taplace as per the specifications gi$en by the customer. This system may be further classifi

as.(i The 4ob produced only once" %ere the customer $isit the firm and boo+

order. /fter the completion of the product, he ta+es deli$ery of the product a

lea$es the firm. %e may not $isit the firm to boo+ the order for the sam

product. The firm has to plan for material, process and manpower only afrecei$ing the order from the customer. The firms ha$e no scope for preplanni

the production of the product.

(ii The job produced at irregular inter$als" %ere the customer $isits the firmplace orders for the same type of the product at irregular inter$als. The firm w

not ha$e any idea of customer=s $isit. %ere also planning for materials, proceand manpower will start only after ta+ing the order from the customer. n cathe firm maintains the record of the 4obs *roduced by it, it can refer to t

pre$ious plans, when the customer arri$es at the firm to boo+ the order.

(iii The 4obs *roduced periodically at regular inter$als" n this system, the customarri$es at the firm to place orders for the same type of product at regu

inter$als. %ere firm +nows $ery well that the customer $isits at regular inter$a

it can plan for materials, and process and manpower and ha$e them in a mas

file. /s soon as the customer $isits and boo+s the order, the firm can stproduction. f the $olume of the order is considerably large and the number

regularly $isiting customers are large in number, the 4ob *roduction syste

slowly transform into )atch *roduction system.

(b 3atc$ Pr%&ct%'# )atch *roduction is the manufacture of number of identical produ

either to meet the specific order or to satisfy the demand. -hen the *roduction of plant aeuipment is terminated, the plant and euipment can be used for producing simi

products. This system also can be classified under three categories.

(i / batch produced only once" %ere customer places order with the firm for t

product of his specification. The si0e of the order is greater than that of jproduction order. The firm has to plan for the resources after ta+ing the ord

from the customer.

(ii / )atch produced at irregular inter$als as per Customer order or when the nearises" /s the freuency is irregular, the firm can maintain a file of its detail

plans and it can refer to its pre$ious files and start production.(iii / )atch *roduced periodically at +nown nter$als" %ere the firm either recei$

order from the customer at regular inter$als or it may produce the product

satisfy the demand. t can ha$e well designed file of its plans, mater

reuirement and instructions for the ready reference. t can also purchamaterials reuired in bul+ in ad$ance. /s the freuency of regular orders go

on increasing the )atch *roduction system becomes Mass *roduction 'yste

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%ere also, in case the demand for a particular product ceases, the plant a

machinery can be used for producing other products with slight modificationlayout or in machinery and euipment.

(c C%'t'%" Pr%&ct%'#Continuous *roduction system is the speciali0ed manufacture

identical products on which the machinery and euipment is fully engaged. The continuoproduction is normally associated with large uantities and with high rate of deman

%ence the ad$antage of automatic production is ta+en. This system is classified as(i Mass *roduction" %ere same type of product is produced to meet the demand

an assembly line or the mar+et. This system needs good planning for materi

process, maintenance of machines and instruction to operators. *urchase

materials in bul+ uantities is ad$isable.(ii !low *roduction" The difference between Mass and !low *roduction is the ty

of product and its relation to the plant. n Mass *roduction identical products a

produced in large numbers. f the demand falls or ceases, the machinery aeuipment, after slight modification be used for manufacturing products

similar nature. n flow production, the plant and euipment is designed forspecified product. %ence if the demand falls for the product or ceases, the placannot be used for manufacturing other products. t is to be scraped.

The ea+*!e"for the abo$e discussed production system arei. 4ob *roduction 'hop" Tailors shop; cycle and $ehicles repair shops, 4ob typing shops, sm

-or+shops.

ii. )atch *roduction 'hop" Tyre *roduction 'hops, 8eadymade dress companies, Cosme

manufacturing companies...etc.iii. Mass *roduction 'hops" Components of industrial products,

i$. !low *roduction" Cement !actory, 'ugar factory, Oil refineries...etc.,

1. Define manpower resources planning. 3#plain the importance of manpower 8esources

planning. .(Dec 2010)(MGMT-II) [ LJIET]

>%uman resource planning is the process of analysing an organi0ation?s human resource

reuirements under changing conditions and de$eloping acti$ities necessary to satisfy these need

A4ames -. -al+er

>%uman resource planning is the process for identifying an organisation?s current and future hum

resource reuirements, de$eloping and implementing plans to meet these reuirements and

monitoring their o$erall effecti$eness.@

A)eardwell, Claydon and )eardwell

>%uman resource planning is the process for ensuring that the human resource reuirements of an

organi0ation are identified and plans are made for satisfying those reuirements.@