Managing Production Systems (Managing Manufacturing Systems)

Managing Manufacturing Systems  Managing manufacturing system involves –Coming up with new products –Developing and manufacturing these products  At low cost, selling and servicing these items  Requires team of management

Managing Manufacturing Systems  Marketing –Market research –Potential market –Market gap analysis –Total market –Market share  R&D –Research: searching for new materials, processes etc –Development: Use of discoveries from research to solve problems –Prototyping

Managing Manufacturing Systems  Production –Production Engineering or Productizing (changing a product design to make it easy to manufacture) –Next step: production –QC: quality control –Safety during production: OSHA (Occupational safety and health administration) –Environment: EPA (Environmental protection agency) –A company may get fined or even shut downed if it doesn’t follow OSHA or EPA rules

Managing Manufacturing Systems  Servicing –A manufacturer must have a plan to take care of the products that need maintenance through WARRENTY –After warranty period the product becomes Through away –Repair plan may include  Setting up its own repair shop or center providing the service is cost effective, rapid etc. otherwise:  The maintenance job can be given to dealers instead.

Managing Manufacturing Systems  Selling a product (Sales department put to work the plan made by Marketing dept.) –Direct sales –Sales representative (commission) –Dealers –Retail stores –Discount Distributors MC MC SR Order Payment MC D Order Small stock MC R Payment Order Large & varied stock DDC D Payment Order Small stock M M: Manufacturer C: Customer SR: Sales Rep D: Distributor R: Retailer DD: Discount dist.

Managing Manufacturing Systems  Financing the manufacturing –A company’s survival depends upon its Financial management –A key tool in Financial management is the Business Plan –A Business Plan states goal of the business, methods required to reach them, capital required. –One of the most important part in a business plan is known as Cash flow analysis which tells if a business is running at a loss or is making a profit. –Most startups run at a loss. Most of the money, during this time comes from personal savings, venture capital etc. –Another way to generate money is through stocks. SEC (Securites and exchange commission)

Managing Manufacturing Systems  Scheduling tool in manufacturing –PERT: Program Evaluation and review Technique

Managing Manufacturing Systems  Common elements of management –Planning  Building design & financial arrangements, Market research and R&D –Organizing  Selecting Contractors, Selecting right labor for the right job –Leading  Solving disputes, promoting good work habits, selecting correct market –Controlling  Progress meetings, Monitoring product sales