PRODUCTION FUNCTIONAL MANAGEMENT Creation of utilities by converting raw material to final product by various scientific methods and regulations Very important field of management

PRODUCTION FUNCTIONAL MANAGEMENT This area deals with designing of plant layout, decide about the plant location for various products and providing various plant utilities Refers to the arrangement of physical facilities such as machines, equipment, tools, furniture, etc (with quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of raw material to the delivery of the final product) PLANT LAY OUT AND LOCATION

PRODUCTION FUNCTIONAL MANAGEMENT Managers have to plan about various production policies and production methods A typical large manufacturing business engaging in production planning will aim to maximize profitability while maintaining a satisfied consumer base It prepares a detailed plan for achieving the production goals economically, efficiently and in time It forecasts each step in the production process It also tries to remove the causes of wastage PRODUCTION PLANNING

PRODUCTION FUNCTIONAL MANAGEMENT PRODUCTION PLANNING Production planning provides answers for two major questions: 1)WHAT WORK SHOULD BE DONE? 2)HOW MUCH TIME WILL BE TAKEN TO PERFORM THE WORK? So, production planning decides the ways and means of production DEFINITION= Production planning is concerned with the determination, acquisition and arrangements of all facilitates necessary for future operations

PRODUCTION FUNCTIONAL MANAGEMENT MATERIAL MANAGEMENT This area deals with purchase, storage, issue and control of the material required for production department Part of business logistics and refers to overseeing the location and movement of physical items/products 3 main elements- spare parts, quality control and inventory management Material management is important in large manufacturing and distribution environments (warehouses)

PRODUCTION FUNCTIONAL MANAGEMENT RESEARCH AND DEVELOPMENT (R&D) Deals with research and development activities of manufacturing dept Refinement in existing product line or develop a new product are the major activities R&D can be very expensive and the chances of success can be slim, with a relatively low rate of commercially successful ideas However, in many industries, a committed programme of R&D is absolutely essential in order for firms to maintain their competitiveness

PRODUCTION FUNCTIONAL MANAGEMENT QUALITY CONTROL Works for production of quality product by doing various tests which ensure the customer satisfaction Quality control, ensuring products are of high and consistent value is a major part of material management All parts and materials must be tested to ensure that a specific level of quality is met