Production Management System Definition:
Production management, also called operations management, is used in planning and controlling industrial processes to ensure that they move efficiently and effectively.
Production management techniques are utilized in both service and manufacturing industries to ensure efficient and effective production at the required level. It shares similar levels of importance and scope with other business specialties, such as marketing, human resources, and financial management. In manufacturing operations, production management performs key functions related to product design, capacity and quality planning and control, and workforce organization and supervision.
Production Management System Meaning:
Production management involves planning, organizing, directing, and controlling all production actions. Its main goal is to convert raw materials into finished goods or products. Production management also involves making decisions about the quality, quantity, and cost of production. It is guided by management principles specific to production.
Production management is a part of business management. It is also called a Production Function. Production management is now replaced by operations management.
The main objective of production management is to produce goods and services of the right quality and quantity, within a short duration of time and at low cost. It also aims to improve efficiency levels. A reputable organization can effectively face competition with the help of production management, which makes full or optimum use of available production capacity.
Types of Production Management System
There are three main types of basic production systems: the batch system, the continuous system, and the project system.
In the Batch System, general-purpose equipment and methods are used to produce small quantities of output processes such as goods or services with specifications that are different from one batch to another. A given quantity of a product is moved as a batch through one or more steps, and the total volume emerges automatically at the end of the production cycle. Examples are systems for producing specialized machine tools, heavy-duty construction equipment, specialty chemicals, and processed food products, or the system for processing claims in a large insurance company. Batch production systems are often associated with job shops.
2) Continuous System
In the Continuous System, all the items are to be processed flow through a series of steps, or operations, that are similar to most other products being processed. Since huge volumes of throughput are expected, specially designed equipment and methods are often used so that lower production costs can be gained. Most of the tasks handled by workers are divided into relatively small segments that can be quickly managed and efficiently performed. Examples are systems for assembling automobiles and their engines, as well as other consumer products such as televisions, washing machines, and personal computers. Continuous Production systems are often related to assembly systems or assembly line systems and, as noted below, are common in mass production operations.
The two types of systems mentioned are often found in combination. In the production of integrated circuits for electronic equipment, for example, thousands of circuits are processed as a batch on several large slices of silicon crystal through dozens, or even hundreds, of processing steps. The tiny circuits, each with a few millimeters on a side, are then separated and individually assembled with other circuit elements on a continuous level of line to produce the final product.
3) Project /One-Shot System
The third type of production system is called the project, or one-shot system. It is used for a single kind of product, such as building a ship, or the prototype of a product such as an airplane or a large computer, resources are brought together only once. Due to the singular nature of project systems, special methods of management have been developed to contain the costs of production at rational levels.
Production Management System Project:
The Production Management System is a database-driven project used to computerize the store department of a manufacturing unit. This is where the requirements are fulfilled, and raw materials are managed for further production processes. If any element of raw material or spare parts is missing, the entire production process is impeded.
The following are some important elements that are required for Production Management System Project.
- Receiving orders from specific departments
- The material required to be fulfilled for the order received
- Bill of material required plan
- Raising indents for stores
- Material Issuance
- Stock level maintenance
- Red order level pointers
- Ordering materials to be procured from a supplier
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