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Production Management
Department of Mechanical Engineering,
University of Management & Technology, Sialkot
Inputs of production system are very important. For instance each of these inputs need
to needs to a major academic discipline.

• Human resource development: Managing manpower

• Maintenance Department: Management of machines and their problems
• Accounts Department: Management of money
• Information Department: Managing energy
• Materials Management: Deals with the packing and storage of raw and final material
▪ Organizational climate is set by the Senior Management.
▪ The climate of one organization is distinctly different from the other which one can
sense who worked in two different organizations.

Organizational climate is a composite of:

• Organization structure
• System of motivations
• Leadership style
• Communication pattern
• Quality of discipline & interpersonal relationships
• Treatment with employees Contents
Rensis Likert recognized four management styles, or systems.

System-1: Exploitative-authoritative
System-2: Benevolent-authoritative
System-3: Consultative
System-4: Participative-group
EXPLOITATIVE-AUTHORITATIVE

❑ System-1 ( Theory X)

▪ The management forces the worker through tight discipline to give the required
production output without any regard to their well being.
▪ The employees fear the bosses.
▪ All the decisions are taken at top level.
▪ For mistakes punishments are practiced rather than the scientific investigation and
corrective action.
BENEVOLENT-AUTHORITATIVE

❑ System-2 ( Theory X):

• This Likert system is based on a master-servant relationship between management

and employees, where rewards are the sole motivators and both teamwork and
communication are minimal.
• The employees are expected to be loyal, subservient and co-operative in
production.
• Behavior of the management is decent and kind.

• Decision making is centralized at the top and the employees are not involved in
planning and decision making.
CONSULTATIVE

❑ System-3 ( Theory X):

• In this style, managers partly trust subordinates, Employees are allowed to give
suggestions, but the final decision making is by the management.
• Motivation through rewards is practiced, but in some cases punishments by the
management is also practiced.
• Controlling is primarily exercised by the top management with some sharing of
responsibility at the middle and lower levels.
PARTICIPATIVE-GROUP

❑ System-4 ( Theory Y):

• The management behavior is supportive (Theory Y).

• There is extensive interaction between the management, the supervisors and the
employees with high degree of mutual interest.
• The employees are given various types of incentive.
• The employees are motivated, goal oriented and conscious of their responsibility.
• Decision making by group participation prevails.
• Performance report are provided at lower management for self assessment and
control. Contents
The performance of japan economy in 70’s and 80’s with 7-8% annual increase in
productivity against 2-4% of annual of other countries and high quality products with
reasonable prices, attracted the attention of manufacturing executives all over the
world.
➢ The salient features of Japanese management system are:
• Long term employment
• Promotion and pay increase
• Job rotation
• Continuing education
• Consensual decision making
• Group consciousness
• Holistic concern for people
Type of production
On the basis of volume and
variety, production system can
be classified as:

• Job shop production,

• Batch production,

• Mass production and

• Continuous production
Discrete Production Continuous Production

▪ In discrete production system, ▪ In continuous production systems,

Production setup is changed regularly same product is produced continuously
to accommodate the production of in the same sequence or operations.
different products of different designs
and specifications.
▪ Products may be produced in different ▪ Production continues to 24 hours
shifts. without shifts.

Examples; Example;
▪ Auto, Electronics, Textile ▪ Petro refinery, Chemical and Power
plants.
“Job production is the production of one item at a time. It is associated with high
quality goods, customized orders and unique items”.

❑ Characteristics

The Job-shop production system is followed when there is:

o High variety of products and low volume.
o Highly skilled operators because of uniqueness.
o Use of general purpose machines and facilities arranged into different
departments.
o Large inventory of materials, tools, parts.
Advantages Disadvantages

o Because of general purpose o Higher level of inventory at all levels

machines and facilities, variety of and hence higher inventory cost.
products can be produced.
o Operators will become more skilled,
o Production planning is complicated.
as each job gives them learning
opportunities.
o Full potential of operators can be o Larger space requirements.
utilized.
o Opportunity exists for creative
methods and innovative ideas. o Higher cost due to frequent set up
changes.
❑ Technology
A satellite used for scientific discovery has a unique design that is only produced
once.
❑ Bakery
Wedding cakes are high value items that are created one at a time. They are always
customized and are considered a creative product. Depending on the order, staff
may spend an entire shift on one cake.
❑ Bespoke
A high quality tailored suit is produced by hand from customer requirements and
measurements.

Classification
“Batch production is a method of production that creates several items at the same
time in a series of production steps”. The items that are created together are known
as a batch.

❑ Characteristics

Batch production system is used under the following circumstances:

o When there is shorter production runs.
o When plant and machinery are flexible.
o When plant and machinery set up is used for the production of item in a batch and
change of set up is required for processing the next batch.
o When manufacturing time and cost are lower as compared to job order production.
Advantages Disadvantages

o Betterutilization of plant and o Production planning and control is

machinery. complex.
o Cost per unit is lower as compared to o Higher set up costs due to frequent
job order production. changes in set up.
o Flexibility
to accommodate and o Materialhandling is complex
process number of products. because of irregular and longer
flows.
“The production of goods using a continuous process whereby production steps are
run concurrently”.
❑ Example
Production at a bicycle factory involves 12 steps that are performed at 12 work
stations. All 12 steps are in process at all times meaning that 12 bicycles are always
at various stages of assembly.

Characteristics:
o Large volume of products.
o Flow of materials, components and parts is continuous.
o Production planning and control is easy.
o Perfectly balanced production lines.
Advantages Disadvantages

o Higher rate of production. o High investment in production

facilities.
o Less skilled operators are required.
o Breakdown of one machine will stop
o Low process inventory.
an entire production line.
o Manufacturing cost per unit is low.
o Line layout needs major change with
the changes in the product design.
o The cycle time is determined by the
slowest operation.
o Classification
▪ Production facilities are arranged as per the sequence of production operations
from the first operations to the finished product.

▪ The items are made to flow through the sequence of operations through material
handling devices such as conveyors, transfer devices, etc.

❑Characteristics
o Dedicated plant and equipment with zero flexibility.
o Material handling is fully automated.
o Process follows a predetermined sequence of operations.
Advantages Disadvantages

o Higher rate of production o Product differentiation is limited.

o Unit cost is lower due to high volume o Very high investment for setting flow
of production. lines.
o Person with limited skills can be used o Flexibility
to accommodate and
on the production line. process number of products does not
exist.
o Manpower is not required for
material handling as it is completely
automatic.
❑ Criteria: ▪ Level 4 (10 points) – Excellent such
that the work reflects all the
following.
1. Includes all the information
needed in a frequency distribution
▪ Level 3 (7 points) – Very
2. All information’s are clear and Satisfactory such that the work
accurate reflects only 4 of the following
3. Well-written and neatly done
4. Submitted on time ▪ Level 2 (5 points) – Satisfactory
5. Not copied or similar to some such that the work reflects only 3 of
other assignment the following

▪ Level 1 (2 points) – Needs

improvement such that the work
reflects only 2 of the following
1. Historical Evolution/ Development in Production/ Operations Management.

2. Industrial Development in Pakistan.

3. Merits and Demetris of Partial productivity.

4. What is productivity Cycle? What are various factors that influence productivity?

▪ Deadline: 12-March-2019
1. Make a list of top 15 international brands in the world with their market value
and role in the economy of country.

2. Case study on Rise/Decline of any international Brand.

Deadline: 19-March-2019
❑What are various factors that need to be kept in mind while selecting a production
system?

❑ Visit any manufacturing system (fast food restaurant like Pizza hut) and report
following questions.
▪ Identify the type of production system followed.
▪ Check how production system is managed.
▪ Find out utilization of the resources namely manpower, capacity and material.
▪ How the customer services is rendered [feedback system exist or not]

▪ Deadline: 26-March-2019