C o u r s e Ti t l e : A p p a re l P ro d u c t i o n P l a n n i n g a n d O p e r a t i o n

Management.

Course Code: GMT4109 C re d i t H o u r : 0 3

Production and Productivity
Golam Kibria
Lecturer
Department of AMT
 Production
Production along with marketing, merchandising, operations,
and finance is one of the essential functions in apparel
manufacturing. Production is any progress or procedure
developed to transform a set of input elements like men,
machinery, capital, information and energy into a set of
output elements like finished products and services in proper
quality and quantity, thus achieving the objectives of an
enterprise (Buffa and Sarin, 2009).
 Definition of Production

Production function is that part of an organization, which

is concerned with the transformation of a range of inputs
into the required outputs (products) having the requisite
quality level.
Production is defined as “the step-by-step conversion of
one form of material into another form through chemical
or mechanical process to create or enhance the utility of
the product to the user.” Thus production is a value
addition process. At each stage of processing, there will be
value addition.
Objectives of production system:
 Systematic planning of production activities to achieve the highest
efficiency in production of goods/services.
 To organize the production facilities like machines, men, etc., to achieve
stated production objectives with respect to quantity and quality time
and cost.
 Optimum scheduling of resources.
 Coordinate with other departments relating to production to achieve
regular balanced and uninterrupted production flow.
 To conform to delivery commitments.
 Materials planning and control.
 To be able to make adjustments due to changes in demand and rush
orders.
Classification of Production System
 Production systems can be classified as Job Shop, Batch, Mass and Continuous
Production systems.
 JOB SHOP PRODUCTION
Job shop production are characterised by manufacturing of one or few quantity of
products designed and produced as per the specification of customers within prefixed time
and cost. The distinguishing feature of this is low volume and high variety of products.A
job shop comprises of general purpose machines arranged into different departments.Each
job demands unique technological requirements, demands processing on machines in a
certain sequence.
 Characteristics:The Job-shop production system is followed when there is:
1. High variety of products and low volume.
2. Use of general purpose machines and facilities.
3. Highly skilled operators who can take up each job as a challenge because of
uniqueness.
4. Large inventory of materials, tools, parts.
5. Detailed planning is essential for sequencing the requirements of each
product, capacities for each work centre and order priorities.
Advantages:
Following are the advantages of job shop production:
 1. Because of general purpose machines and facilities variety of products can be
produced.
 2. Operators will become more skilled and competent, as each job gives them
learning opportunities.
 3. Full potential of operators can be utilized.
 4. Opportunity exists for creative methods and innovative ideas.
Limitations
Following are the limitations of job shop production:
 1. Higher cost due to frequent set up changes.
 2. Higher level of inventory at all levels and hence higher inventory cost.
 3. Production planning is complicated.
 4. Larger space requirements.
 BATCH PRODUCTION
Batch production is defined by American Production and Inventory Control Society
(APICS) “as a form of manufacturing in which the job passes through the functional
departments in lots or batches and each lot may have a different routing.” It is
characterized by the manufacture of limited number of products produced at regular
intervals and stocked awaiting sales.

 Characteristics: Batch production system is used under the following

circumstances:
1. When there is shorter production runs.
2. When plant and machinery are flexible.
3. 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.
4. When manufacturing lead time and cost are lower as compared to job order
production.
 Advantages
Following are the advantages of batch production:
 1. Better utilisation of plant and machinery.
 2. Promotes functional specialisation.
 3. Cost per unit is lower as compared to job order production.
 4. Lower investment in plant and machinery.
 5. Flexibility to accommodate and process number of products.
 6. Job satisfaction exists for operators.
 Limitations
Following are the limitations of batch production:
 1. Material handling is complex because of irregular and longer flows.
 2. Production planning and control is complex.
 3. Work in process inventory is higher compared to continuous production.
 4. Higher set up costs due to frequent changes in set up.
 MASS PRODUCTION
Manufacture of discrete parts or assemblies using a continuous process are called mass
production. This production system is justified by very large volume of production. The
machines are arranged in a line or product layout. Product and process standardization exists and
all outputs follow the same path.
 Characteristics
Mass production is used under the following circumstances:
 1. Standardization of product and process sequence.
 2. Dedicated special purpose machines having higher production capacities and output rates.
 3. Large volume of products.
 4. Shorter cycle time of production.
 5. Lower in process inventory.
 6. Perfectly balanced production lines.
 7. Flow of materials, components and parts is continuous and without any back tracking.
 8. Production planning and control is easy.
 9. Material handling can be completely automatic.
 Advantages
Following are the advantages of mass production:
 1. Higher rate of production with reduced cycle time.
 2. Higher capacity utilisation due to line balancing.
 3. Less skilled operators are required.
 4. Low process inventory.
 5. Manufacturing cost per unit is low.
 Limitations
Following are the limitations of mass production:
 1. Breakdown of one machine will stop an entire production line.
 2. Line layout needs major change with the changes in the product design.
 3. High investment in production facilities.
 4. The cycle time is determined by the slowest operation.
 CONTINUOUS PRODUCTION
 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
Continuous production is used under the following circumstances:
 1. Dedicated plant and equipment with zero flexibility.
 2. Material handling is fully automated.
 3. Process follows a predetermined sequence of operations.
 4. Component materials cannot be readily identified with final product.
 5. Planning and scheduling is a routine action.
 Advantages
Following are the advantages of continuous production:
 1. Standardization of product and process sequence.
 2. Higher rate of production with reduced cycle time.
 3. Higher capacity utilization due to line balancing.
 4. Manpower is not required for material handling as it is completely automatic.
 5. Person with limited skills can be used on the production line.
 6. Unit cost is lower due to high volume of production.
 Limitations
Following are the limitations of continuous production:
 1. Flexibility to accommodate and process number of products does not exist.
 2. Very high investment for setting flow lines.
 3. Product differentiation is limited.
 PRODUCTION MANAGEMENT
Production management is a process of planning, organizing,
directing and controlling the activities of the production function. It
combines and transforms various resources used in the production
subsystem of the organization into value added product in a controlled
manner as per the policies of the organization.
E.S. Buffa defines production management as, “Production
management deals with decision making related to production
processes so that the resulting goods or services are produced
according to specifications, in the amount and by the schedule
demanded and out of minimum cost.”
 Objectives of Production Management
The objective of the production management is ‘to produce goods services of
right quality and quantity at the right time and right manufacturing cost’.
 1. RIGHT QUALITY
The quality of product is established 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.
 2. RIGHT QUANTITY
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.
 3. RIGHT TIME
Timeliness of delivery is one of the important parameter to judge the
effectiveness of production department. So, the production department has
to make the optimal utilization of input resources to achieve its objective.

 4. RIGHT MANUFACTURING COST

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 (pre-established) cost.
Operations Management is

 The business function responsible for planning, coordinating, and

controlling the resources needed to produce products and services for a
company

 Operations management involves planning, organizing, and supervising

processes, and make necessary improvements for higher profitability. The
adjustments in the everyday operations have to support the company’s
strategic goals, so they are preceded by deep analysis and measurement of
the current processes.
Objectives Of Operation Management:
The Transformation Role of Operations
Management

 We say that operations management performs a transformation role in the

process of converting inputs such as raw materials into finished goods and
services. These inputs include human resources, such as workers, staff, and
managers; facilities and processes, such as buildings and equipment; they also
include materials, technology, and information. In the traditional
transformation model outputs are the goods and services a company
produces. This is shown in Figure .
Key Elements of Operations
Management
 Product selection and design: The right kind of products and good designs of
the products are crucial for the success of an organizing. A wrong selection of
the product and/or poor design of the products can render the company’s
operation ineffective and non-competitive. Products/services, therefore,
must be chosen after detailed evaluation of the product/services alternatives
in conformity with the organization’s objectives.

 Process selection and planning: Selection of the optimal “conversion

system” is as important as choice of products/services and their design.
Process selection decisions include decisions concerning choice of technology,
equipment, machines, material handling systems, mechanization and
automation.
Continued….

 Facilities (Plant) layout and materials handling:

 Plant layout is concerned with relative location of one department (Work
center) with another in order to facilitate material flow and processing of a
product in the most efficient manner through the shortest possible time. A
good layout reduces material handling cost, eliminates delays and congestion,
improves co-ordination, provide good housekeeping etc. while a poor layout
results in congestion, waste, frustration, inefficiency and loss of profit.

 Capacity Planning: Capacity planning concerns determination and acquisition of

productive resource to ensure that their availability matches the demand.
Capacity decisions have a direct influence on performance of production system
in respect of both resource productivity and customer service (i.e. delivery
performance).
Continued….

 Production Planning and Control (PPC): Production planning is the

system for specifying the production procedure to obtain the desired output
in a given time at optimum cost in conformance with specified standard of
quality, and control is essential to ensure that manufacturing takes place in
the manner stated in the plan.
 Inventory control: Inventory control deals with determination of optimal
inventory levels of raw materials, components, parts, tools; finished goods,
spares and supplies to ensure their availability with minimum capital lock up.
Material requirement planning (MRP) and just in time (JIT) are the latest
techniques that can help the firm to reduce inventory.
What are Management Skills?

 Management skills can be defined as certain attributes or abilities that an

executive should possess in order to fulfill specific tasks in an organization.
They include the capacity to perform executive duties in an organization
while avoiding crisis situations and promptly solving problems when they
occur. Management skills can be developed through learning and practical
experience as a manager. The skills help the manager to relate with their
fellow co-workers and know how to deal well with their subordinates, which
allows for the easy flow of activities in the organization.
 Good management skills are vital for any organization to succeed and achieve
its goals and objectives. A manager who fosters good management skills is
able to propel the company’s mission and vision or business goals forward
with fewer hurdles and objections from internal and external sources.
Required skills

 Organizational abilities. Organizing processes in an organization requires a

set of skills from planning and prioritizing through execution to monitoring.
These abilities together help the manager achieve productivity and efficiency.
 Analytic capabilities/understanding of process. The capability to understand
processes in your area often includes a broad understanding of other
functions, too. An attention to detail is often helpful to go deeper in the
analysis.
 Coordination of processes. Once processes are analyzed and understood,
they can be optimized for maximum efficiency. Quick decision-making is a
real advantage here, as well as a clear focus problem-solving.
Continued….

 People skills. Flaws in the interactions with employees or member of senior

management can seriously harm productivity, so an operation manager has to
have people skills to properly navigate the fine lines with their colleagues.
Furthermore, clear communication of the tasks and goals serves as great
motivation and to give a purpose for everyone.

 Creativity. Again, problem-solving skills are essential for a creative approach

if things don’t go in the right direction. When they do, creativity helps find
new ways to improve corporate performance.
Types of Management Skills

 According to American social and organizational psychologist Robert Katz, the

three basic types of management skills include:

 1. Technical Skills
 Technical skills involve skills that give the managers the ability and the
knowledge to use a variety of techniques to achieve their objectives. These
skills not only involve operating machines and software, production tools, and
pieces of equipment but also the skills needed to boost sales, design different
types of products and services, and market the services and the products.
2. Conceptual Skills
These involve the skills managers present in terms of the knowledge and ability for
abstract thinking and formulating ideas. The manager is able to see an entire concept,
analyze and diagnose a problem, and find creative solutions. This helps the manager to
effectively predict hurdles their department or the business as a whole may face.

3. Human or Interpersonal Skills

The human or the interpersonal skills are the skills that present the managers’ ability
to interact, work or relate effectively with people. These skills enable the managers to
make use of human potential in the company and motivate the employees for better
results.
Examples of Management Skills

 1. Planning

 2. Communication

 3. Decision-making

 4. Delegation

 5. Problem-solving

 6. Motivating