SCOPE,IMPORTANCE AND OBJECTIVE

OF PRODUCTION MANAGEMENT
Prepared by
SUPRIYA CHATTERJEE-01
BHUSHAN CHINCHMALATPURE-02
NILESH CHOGALE-03
KRUSHNANT DEVKER-04
UMESH DISALE-05
 Contents
 Introduction

 Operation concept of Production

 Objective of production management

 Conversion process of production

 Components of production function

 Importance

 Scope

 Responsibilities of production manager

 Organization for production

 Qualities of production manager

 Introduction

 It is the process by which goods and services

are produced
Operation concept of production

 It includes both manufacturing as well as

service organizations
 Operation function is the heart for any
organization
 Operation function is the process of changing
inputs into outputs thereby adding value to
some entity
 Objectives of production Management

 Producing right kind of goods

 Maximizing output of goods

 Quality objective

 Capacity utililisation

 Cost objective
Conversion process of production
Organization Inputs Resources Transformation Output

Steel
Two-wheeler Fabrication and Motor Bikes and
sheets,Engine,Tyres,C Tools, Dyes, workers
factory Assembling Scooters
ontrol panel

Imparting
Business School Graduates Faculty members MBA’s
knowledge and skill

Displays,SKU’s,
Supermarkets Shoppers Attract Shoppers Sales
Sales persons

Food
Food,Chef,
Preparations,creatin Satisfy
Restaurants Food loving customers Beverages,
g conductive Customers
Ambience,captains
Environment
 Scope of PM
Maintenance
and
replacement

Cost reduction
Work study
and job design and cost
control

Quality Process
assurance and selection and
control planning

Product
Inventory selection and
control
design

Plant layout
Capacity
planning and material
handling
Production
planning and Plant location
control
 Importance

 To ensure smooth and efficient operation

 Minimization of production cost

 To Improve productivity of business firm

 Maximize profit
 Reduction of waste
Responsibilities of production manager

 To forecast the requirement

 Utilize the factor
 Reduce quality costs
 Reduce material handling costs
 Improve labor productivity
 Minimize throughput time
 To build team spirit
 Organization for production
Managing director

GM GM GM GM GM
(Finance) (TQM) (Manufacturing) (Marketing) (HR)

Maintenance Material Production Manager

Manager Manager Manager PPC

Foreman
Foreman Foreman Foreman
Machine
assembly Paint shop Gear shop
shop
 Qualities of production manager

 Intelligence
 Enthusiasm and perseverance
 Imagination
 Resourcefulness
 Self control
 Sympathy
 Communication ability
 Flexibility
Type Public (BSE: 500470)
Industry Steel
Founded 1907
Headquarters Mumbai, India[1]
Area served Worldwide
Ratan Tata (Chairman)
Key people B Muthuraman (Vice Chairman)
HM Nerurkar(MD)
Hot and cold rolled coils and sheets
Wire and rods
Products Construction bars
Pipes
Structurals and forging quality steel
Revenue ▼ $21.582 billion (2010)[2]
Profit ▲ $-423.5 million (2010)[2]
Total assets ▲ $24.446 billion (2010)[2]
Total equity ▲ $5.082 billion (2010)[2]
Employees 81,269 (2010)[3]
Parent Tata Group
Website TataSteel.com
OBJECTIVES

 To findthe reason behind the

implementation of TOP?
 To study steps taken by TISCO for reducing
costs
 To study the long run benefits of low cost
production
Data collection
 TISCO appointed McKinsey and Booz-Allen & Hamilton to
study its operations and suggest ways to cut costs.

 A TOP programmed was formed called as WAVE which

divided into 5 phases.

 The Phase I of a Wave was two weeks long. During this

phase, the cost base was examined and the items that had a
maximum impact on the bottom-line were identified.
ANALYSIS 1

 No longer control steel prices which are

dictated by international markets.
 It aimed achieving large improvements in
throughput, quality and cost in the short
term.
 In the long run, TOP was expected to enable
the TISCO to achieve high rates of
performance improvement
Analysis 2
 by adopting innovative strategies and other cost-cutting
exercises. For example, TISCO stopped using manganese, an
expensive metal used to increase the strength and flexibility
of steel.
 to reduce its manpower costs-reduced its workforce from
78,000 to 40,000 employees.
 adopted Performance Ethic Program me (PEP),
 Performance Management System (PMS). It would identify
and reward strong performers,
 formed a small cross-functional in-house team consisting of
consultants
Analysis 3

 Need for increased profits

 competitive standing
 Improved productivity
RECOMMENDATIONS

 Project should be planned abroad where

power, raw material, technology easily
available at low cost.
 Company can enter into merger and
acquisition