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G R A D UAT E S T U D I E S
THE FIVE MS
Production managements responsibilities are summarized by the five
Ms: men, machines, methods, materials, and money. Men refers to
the human element in operating systems. Since the vast majority of
manufacturing personnel work in the physical production of goods,
people management is one of the production managers most
important responsibilities.
The production manager must also choose the machines and methods
of the company, first selecting the equipment and technology to be
used in the manufacture of the product or service and then planning
and controlling the methods and procedures for their use. The
flexibility of the production process and the ability of workers to adapt
to equipment and schedules are important issues in this phase of
production management.
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research procedures are required to analyze the many factors that
impinge on the problem.
Inventory control is another important phase of production
management. Inventories include raw materials, component parts,
work in process, finished goods, packing and packaging materials, and
general supplies. Although the effective use of financial resources is
generally regarded as beyond the responsibility of production
management, many manufacturing firms with large inventories (some
accounting for more than 50 percent of total assets) usually hold
production managers responsible for inventories. Successful inventory
management, which involves the solution of the problem of which
items to carry in inventory in various locations, is critical to a
companys competitive success. Not carrying an item can result in
delays in getting needed parts or supplies, but carrying every item at
every location can tie up huge amounts of capital and result in an
accumulation of obsolete, unusable stock. Managers generally rely on
mathematical models and computer systems developed by industrial
engineers and operations researchers to handle the problems of
inventory control.
To control labour costs, managers must first measure the amount and
type of work required to produce a product and then specify welldesigned, efficient methods for accomplishing the necessary
manufacturing tasks. The concepts of work measurement and time
study introduced by Taylor and the Gilbreths, as well as incentive
systems to motivate and reward high levels of worker output, are
important tools in this area of management. In new operations
particularly, it is important to anticipate human resource requirements
and to translate them into recruiting and training programs so that a
nucleus of appropriately skilled operators is available as production
machinery and equipment are installed. Specialized groups responsible
for support activities (such as equipment maintenance, plant services
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and production scheduling, and control activities) also need to be
hired, trained, and properly equipped. This type of careful personnel
planning reduces the chance that expensive capital equipment will
stand idle and that effort, time, and materials will be wasted during
start-up and regular operations.
The effective use and control of materials often involves investigations
of the causes of scrap and waste; this, in turn, can lead to alternative
materials and handling methods to improve the production process.
The effective control of machinery and equipment depends on each
machines suitability to its specific task, the degree of its utilization,
the extent to which it is kept in optimum running condition, and the
degree to which it can be mechanically or electronically controlled.
PRODUCTION-CONTROL SUMMARY
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PROCESSES
INVENTORY
INSPECTION
COSTS
measuring
rate of
inspecting
output;
recording stock
collecting
OBSERVATION
materials and
recording idle levels
cost data
parts
time or
downtime
ANALYSIS
analyzing
demand for
comparing
estimating
stocks in
progress with
process
different uses
the plan
capabilities
and at different
times
CORRECTIVE
expediting
ACTION
EVALUATION
estimating
production
capacity and
maintenance
schedules
computing
costs in
relation to
estimates
issuing
production and
procurement
orders
initiating full
inspection;
adjusting
processes
adjusting
selling price
of product
drawing up
replenishment
policies and
inventory
systems
reassessing
specifications;
improving
processes and
procedures
evaluating
production
economics;
improving
data
T H E U N I V E R S I T Y OF M A N I L A
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1. Accomplishment of firm's objectives : Production
management helps the business firm to achieve all its objectives.
It produces products, which satisfy the customers' needs and
wants. So, the firm will increase its sales. This will help it to
achieve its objectives.
2. Reputation, Goodwill and Image : Production management
helps the firm to satisfy its customers. This increases the firms
reputation, goodwill and image. A good image helps the firm to
expand and grow.
3. Helps to introduce new products : Production management
helps to introduce new products in the market. It conducts
Research and development (R&D). This helps the firm to develop
newer and better quality products. These products are successful
in the market because they give full satisfaction to the
customers.
4. Supports other functional areas: Production management
supports other functional areas in an organisation, such as
marketing, finance, and personnel. The marketing department
will find it easier to sell good-quality products, and the finance
department will get more funds due to increase in sales. It will
also get more loans and share capital for expansion and
modernisation. The personnel department will be able to manage
the human resources effectively due to the better performance of
the production department.
5. Helps to face competition : Production management helps the
firm to face competition in the market. This is because production
management produces products of right quantity, right quality,
right price and at the right time. These products are delivered to
the customers as per their requirements.
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3. Improves quality and reduces cost : Production management
improves the quality of the products because of research and
development. Because of large-scale production, there are
economies of large scale. This brings down the cost of production.
So, consumer prices also reduce.
4. Spread effect : Because of production, other sectors also
expand. Companies making spare parts will expand. The service
sector such as banking, transport, communication, insurance,
BPO, etc. also expand. This spread effect offers more job
opportunities and boosts economy.
5. Creates utility : Production creates Form Utility. Consumers can
get form utility in the shape, size and designs of the product.
Production also creates time utility, because goods are available
whenever consumers need it.
6. Boosts economy : Production management ensures optimum
utilisation of resources and effective production of goods and
services. This leads to speedy economic growth and well-being of
the nation.
T H E U N I V E R S I T Y OF M A N I L A
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T H E U N I V E R S I T Y OF M A N I L A
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including global operations; and the organization of departments and a
facilitys physical layout.
5. Operating decisions (sometimes called the operations infrastructure)
deal with operating the facility after it has been built. At this stage
operations managers help coordinate the various parts of the internal
and external supply chain (Supply-Chain Management), forecast
demand (Forecasting), manage inventory (Inventory Management),
and control output and staffing levels over time (Aggregate Planning).
They also make decisions that synchronize internal processes with
those of suppliers and that release new purchase or production orders
(Resource Planning), whether to implement just-in-time techniques
(Lean Systems), and which customers or jobs to give top priority
(Scheduling) (Karjewski & Ritzman, 2002).
DIFFERENCES & SIMILARITIES BETWEEN MANUFACTURING & SERVICE
ORGANIZATIONS
DIFFERENCES (KARJEWSKI & RITZMAN, 2002)
Manufacturing Organizations
Service Organizations
Physical, durable product
Intangible, perishable product
Output that can be inventoried
Output
that
cannot
be
Low customer contact
inventoried
High customer contact
Long response time
Short response time
Regional, national, international
Local markets
markets
Large facilities
Small facilities
Capital intensive
Labor intensive
Quality easily measured
Quality not easily measured
SIMILARITIES
Every organization has processes that must be designed and managed
effectively
Some type of technology must be used in each process
Every organization is concerned about quality, productivity, and the
timely response to customers
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Both must make choices about the capacity, location, and the layout of
its facilities
Every organization deals with suppliers of outside services and
materials as well as scheduling problems
Matching staffing levels and capacities with forecasted demands is a
universal problem
Even the distinctions between them can get blurred:
o
Concept
Tool
Originator
1910's
Principles of scientific
management
Formalized time-study
and work-study
Frederick Taylor
Industrial psychology
Motion study
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Quality control
Walter Shewhart,
H.F. Dodge, & H.G.
Romig
Hawthorne Studies of
worker motivation
1940's
Multidisciplinary team
approaches to
complex system
problems
Simplex method of
lineary programming
Operations
research groups
and George B.
Dantzig
1950's60's
Extensive
development of
operations research
tools
Simulation, waiting-line
theory, decision theory,
mathematical
programming, project
scheduling & CPM
Many researchers
1970's
Widespread use of
computers in
business
Shop scheduling,
inventory control,
forecasting, project
management, MRP
Led by computer
manufacturers
McDonalds
Manufacturing
strategy paradigm
Manufacturing as a
competitive weapon
Harvard Business
Kanban, poka-yokes,
CIM, FMS, CAD/CAM,
robots, et
1930's
1980's
Synchronous
manufacturing
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Baldrige quality award,
ISO 9000, QFD, value &
concurrent engineering,
continuous improvement
Radical change
M. Hammer &
major consulting
firms
Electronic enterprise
Internet, WWW
US Government,
Netscape,
Microsoft
Supply chain
management
SAP/R3, client/server
SAP, Oracle
E-commerce
Internet, WWW
Amazon, eBay,
AOL, Yahoo
Total quality
management
1990's
Business process
reengineering
2000's
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Unable to control anything in your personal life, you are instead content to
completely control everything that happens at your workplace. Often even
YOU don't understand what you are saying but who the hell can tell. It is
written that Geeks shall inherit the Earth.
Engineering
One of only two signs that actually studied in school. It is said that engineers
place ninety percent of all Personal Ads. You can be happy with yourself; your
office is full of all the latest "ergodynamic" gadgets.
Accounting
The only other sign that studied in school. You are mostly immune from office
politics. You are the most feared person in the organization; combined with
your extreme organizational traits, the majority of rumors concerning you
say that you are completely insane.
Human Resources
Ironically, given your access to confidential information, you tend to be the
biggest gossip within the organization. Possibly the only other person that
does less work than marketing, you are unable to return any calls today
because you have to get a haircut, have lunch AND then mail a letter.
Management/Middle Management
Catty, cutthroat, yet completely spineless, you are destined to remain at
your current job for the rest of your life. Unable to make a single decision you
tend to measure your worth by the number of meetings you can schedule for
yourself. Best suited to marry other "Middle Managers" as everyone in your
social circle is a "Middle Manager."
Senior Management
See above - Same sign, different title
Customer Service
Bright, cheery, positive, you are a fifty-cent cab ride from taking your own
life. As children very few of you asked your parents for a little cubicle for your
room and a headset so you could pretend to play "Customer Service."
Continually passed over for promotions, your best bet is to sleep with your
manager.
Consultant
Lacking any specific knowledge, you use acronyms to avoid revealing your
utter lack of experience. You have convinced yourself that your "skills" are in
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demand and that you could get a higher paying job with any other
organization in a heartbeat. You will spend an eternity contemplating these
career opportunities without ever taking direct action.
Recruiter, "Headhunter"
As a "person" that profits from the success of others, most people who
actually work for a living disdain you. Paid on commission and susceptible to
alcoholism, your ulcers and frequent heart attacks correspond directly with
fluctuations in the stock market.
Partner, President, CEO
You are brilliant or lucky. Your inability to figure out complex systems such as
the fax machine suggests the latter.
Government Worker
Paid to take days off. Government workers are genius inventors, like the
invention of new Holidays. They usually suffer from deep depression or
anxiety and usually commit serious crimes while on the job...Thus the term
"Go Postal".
.
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Production managers are also involved with product design and purchasing.
In a small firm you may have to make many of the decisions yourself, but in
a larger organisation planners, controllers, production engineers and
production supervisors will assist you.
In progressive firms, the production manager's role tends to be more closely
integrated with other functions, such as marketing, sales and finance.
PRODUCTION MANAGER
What do Production Managers do?
Production Managers organize the business, finance and employment issues
in film and television productions. As a Production Manager, you would be in
charge of how the production budget is spent and making sure that
everything
runs
smoothly
during
filming.
T H E U N I V E R S I T Y OF M A N I L A
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union agreements are followed
You could work your way up through the industry to become a Production
Manager in various ways. For example you could start as a runner or an
assistant or secretary in the production office, and progress to production
coordinator then assistant production manager. You might also start as a
trainee production accountant. Alternatively, you could progress from runner
to 3rd assistant director then 2nd and 1st assistant director, or to assistant
TV floor manager then floor manager or location manager.
T H E U N I V E R S I T Y OF M A N I L A
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one. The variety of the work on a day-to-day basis recommends this job to
people with strong work ethics, curious minds, and organizational abilities.
Many production managers are asked to implement systems of production
tracking and quality control, so the first step for product managers is to
become intimate with existing systems of production, past cost estimates,
and company policies. Youve got to be careful not to make
recommendations until youve gathered enough information to make
intelligent ones, offered a five-year production manager. Also, production
managers need to gain the trust of the people who work for them. If youre
not credible, youre not effective, said one production manager. A good
production manager will also react to situations as they occur. Flexibility is
the key to success, as one respondent noted. Priorities, backlogs,
breakdowns, strikes-all of these can alter intricately planned scheduling, and
the production manager has to be flexible enough to adjust to these
situations without reducing overall efficiency. Its not unusual for the
production manager to be located on the production floor, in order to see
first-hand the running of the production process. But while production
managers are involved in each stage of production, few micromanage the
day-to-day details of each departments work. A production manager spends
some time working alone on reports, but most of his/her time (over 60
percent) is spent meeting with representatives from different levels of the
production process. In situations where production facilities are spread over
large areas, a production manager spends a significant amount of time on
the telephone. The visible, tangible results they produce are a source of
satisfaction for most production managers. Many noted that it was good to
be able to point to shipments going out and coming in, to quality products
produced cheaply and efficiently, and to the increase companies see in their
bottom line. One summarized his feelings simply by saying, It feels great
because people at first resent what you do, and when they see the results,
they come around. Everybody wins.
PAYING YOUR DUES
Production managers have no specific academic requirements, but
coursework that proves helpful includes economics, accounting, finance,
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production and manufacturing systems, organizational behavior, psychology,
sociology, and English. Production managers have to be well organized and
creative-a combination of talents that many find difficult to demonstrate
through ordinary work experience. Production experience can be a big plus
on a resume. No licensing requirements exist, and professional organizations
are significant only in areas of specialization, such as for quality control
managers or human resource managers.
ASSOCIATED CAREERS
Production managers who decide to leave the profession search out
challenges that excite both the creative and the detailed sides of their
personalities. Many become entrepreneurs, efficiency experts, and strategic
marketers. Their intimacy with the production process makes a transition to
general administrative management easy, but relatively few take this option.
It seems that the profession provides a challenge that few are in a hurry to
forsake.
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