Introduction
Production Management
Prepared By :
Dr. Geeta Sharma
Business Survival
Productivity

Efficiency
Business Survival Productivity


Profitability
Efficiency
Profitability Depends upon:
Cost minimization
Quality improvement

Product: Value of the product is more than the combined value of
inputs used.

Product Vs. Service:

Services are invisible products
Services are produced and consumed simultaneously
Services cannot be stored
Products may be perishable cut services can’t



Production and Production management
Production
is the process of making the products.
Different inputs like materials, human, capital and other resources are
transformed into higher valued goods and services.
“Production is a process by which goods and services are created”
Production Management:
Production Management is the process of effectively planning and
regulating that part of an enterprise which is responsible for the actual
transmission of material into finished goods.
 it includes:
process of making decision
Quality, Quantity and costs are main causes of concern for
production manager.

Scope / Functions of production
management
 Production
design and development of
production process
 Production planning & control
 Purchasing
 Plan implementation
 Inventory Control
Objectives


PRIMARY
Quality
 Quantity
 Cost/Price
 Time

SECONDARY

Men
Machines
Materials
Services
Techniques




Production management in India
 Early
years of independence
 Years
of reforming India
Early years of independence





Business controlled by govt.
Industries reserved by govt. or required license
from govt.
Investment by private and foreign individuals
was negligible.
Because of govt. intervention, no huge scale
production
Because of license raj: no competition, biased
towards govt. owned companies against pvt.
Businesses.
Years of Reforming India









Introduction of industrial policy 1991.
Liberalization
Govt. decontrol over business started.
Govt. stake declined tn stages to 74% to 51%, to 49% and ever
lesser than that in some cases.
Entry of Private and Foreign industries reduce inefficiency
Declining Protection of SSI as they were not doing well.
Due to elimination og geographical boundaries in nation: volume of
production grows, cost per unit come down, save in cost, large
profits.
Competition increases: beneficial for the customers: large variety of
goods.
Govt. bureaucracy ends
Operations strategy
Corporate vision and mission
Organization strategy
Operations Strategy
Organization strategies focus on achieving corporate
objectives by utilizing a company’s current strengths and
identifying capability to improve the company’s
competitive
position.
Operations Strategy should be flexible enough to
support a product or service through its entire life cycle
and
able
to
accommodate
future
changes.
Should be consistence with the strategies of other
departments.
Strategic planning is concerned with long term planning
and involves sections of target market and distribution
channels.
Assignment
 Case
study of tata global
 Indian Textile Industry’s Global Flight
 Evaluate the system of Japanese
Manufacturing in detail.