PRODUCTION MANAGEMENT – 103211
Dr.Karthik Mohandoss
CHAPTER – I
Introduction
to
Production Management
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LEARNING OUTCOMES
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By the end of this chapter you will be in a position
to understand
 About the basic concepts underlying production
management.
 Definition of production, production management
& skills.
 Different types of skills present.
 The
level of skill distributed amongst the
hierarchy of management.
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Basic Concepts
Production is defined as “the step-by-step conversion of one form of
utility of the product to the user.” Thus production is a value addition
process. At each stage of processing, there will be value addition.
Production management deals with decision-making related to production
processes so that the resulting goods or service is produced according to
specification, in the amount and by the schedule demanded and at minimum
cost."
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material into another form through some process to create or enhance the
DEFINITION
The set of interrelated management activities, which
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are involved in manufacturing certain products, is
called as Production Management. If the same
concept is extended to services management, then
the corresponding set of management activities is
called as Operations Management.
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O b j e c t i v e s o f P ro d u c t i o n M a n a g e m e n t : Right Quality:
One of the main objectives of production management is to ensure right quality of
products to the customers based on their needs. The quality of product is established
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based upon the customers’ needs. The right quality is not necessarily best quality. It is
determined by the cost of the product and the technical characteristics as suited to the
specific requirements.
Right Quantity:
Production management facilitates to make production in the right quantity to avoid
excess or deficit volume of products. The manufacturing organization should produce
the products in right number. If they are produced in excess of demand the capital will
block up in the form of inventory and if the quantity is produced in short of demand,
leads to shortage of products.
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Right time:
Production management helps the organization to carry on the production
at the right time. Timeliness of delivery is one of the important parameter
to judge the effectiveness of production department. So, the production
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department has to make the optimal utilization of input resources to
achieve its objective.
Right cost:
With the help of production management, an organization is able to carry
on the production process at a reasonable cost level. Manufacturing costs
are established before the product is actually manufactured. Hence, all
attempts should be made to produce the products at pre-established cost,
so as to reduce the variation between actual and the standard (pre6
established) cost.
MANAGER
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P RODUCTION
&
SKILLS
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Definition
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A production manager is involved with the planning,
coordination and control of manufacturing processes.
They ensure that goods and services are produced
efficiently and that the correct amount is produced at the
right cost and level of quality.
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SKILLS
A skill is defined as the ability to translate knowledge
into action that results in desired performance.
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Managerial competency is a skill based capability for
high performance in a management job
Managerial Skills are knowledge to fulfill some activities
or tasks. This knowledge can be learned. However, it
also can be acquired through practical fulfillment of
these activities. Therefore, skills can be acquired through
learning and experience of individuals.
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TYPES OF MANAGERIAL SKILLS
Robert Katz identifies three types of skills that are

Technical,

Conceptual &

Human or Interpersonal Managerial Skills.
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essential for a successful management process
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TECHNICAL SKILLS
These are skills about techniques of completion of tasks.
equipment, but also they are skills need to performed sales,
marketing and so on.
For example, some individual work in a sales department and
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These skills are not only for working on machines or other
have skills about sales that were developed through education
and experience. This person is perfect for the sales manager
because he has great technical skills about sales.
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CONCEPTUAL SKILLS
Ability or knowledge of managers for abstract thinking that
means to see the whole through analysis and diagnose of
as a whole.
Why are managers need these skills?
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different states and to predict the future state of the business
Firstly, one business has more business elements or functions
as selling, marketing, finance, production… All of these
business elements have different goals even completely
opposed as marketing and production.
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These skills help top managers to look outside from the
goals of single business elements and make decisions
Conceptual skills are more vital for top managers, little
for mid-level managers, and it is not required for first-
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that will satisfy overall business goals.
level managers. As we go from a bottom of the
managerial hierarchy to the top, significance of these
skills is increasing.
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HUMAN OR I NTERPERSONAL MANAGERIAL S KILLS
Human or interpersonal managerial skills are knowledge
important task for managers is to work with people.
Without people, there is no need for management and
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of managers to work with people. One of the most
managers.
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GRAPH DENOTING THE SKILLS AT VARIOUS
LEVELS
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POINTS TO REMEMBER
1.
Technical skill is the ability to use a special
2.
Human skill is the ability to work well in
cooperation with other people
3.
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proficiency or expertise in one’s work
Emotional intelligence is the ability to manage
ourselves and our relationships effectively
4.
Conceptual skill is the ability to think
analytically and solve complex problems
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ASSIGNMENT - I
Conceptual skills are more vital for top managers, little
level managers. Do you agree this statement? Justify
your answer with suitable example, in detail.
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for mid-level managers, and it is not required for first-
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Thank you
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