MA. LORELY L.

LIBAN

PRODUCTION MANAGEMENT MIDTERM EXAMINATION

1. Draw and illustrate a simple production organization.

Product Manager

Production Planning Personnel

Production Control Personnel

Inventory Control Personnel

The Product Manager will be the head in the Production. His work will be facilitated by different personnel such as the Production Planning, Production Control and Inventory Control Personnel. The Production Planning Personnel will be in-charge in the order booking, production budget, material records, methods to be used in production, machines & tools, operation layout, time estimating and scheduling. The Production Control Personnel will take care of dispatching or preparing of various documents such as Job Cards, Route sheets, for each and every component of the product. These documents are to be released from Production Management department to give signal for starting the production. He will also take care for the expediting. Once the documents are dispatched, the management wants to know whether the activities are being carried out as per the plans or not. Expediting officer plan and feed back the progress of the work to the management. This will help the management to evaluate the plans. Lastly, the Inventory Control Officer is task to conduct stores management, quality control, handling, receiving, simplification and standardization. 2. Give the objectives of Production Management. There are various objectives of Production management, to wit: a. To be able to create a product that is desirable to the needs and whims of the market while meeting the organizational objectives of effectiveness, efficiency and adaptability. b. To be able to create a product that is in consonance with the trend in the market. c. To be able to create a product at a low cost. d. To be able to create a product that will increase the sales of the company. e. To be able to create a product that will maximize the value of the through productivity. 3. What are the responsibilities of production manager? A Product Manager is the key to every successful production; in lieu he had these following responsibilities: a. To conduct a research regarding the products that a firm should produce. b. To contact suppliers that will offer them raw materials at a reasonable price.

c. To see to it that the raw materials to be use are freshly procured and safe for production and consumption. d. To see to it that the production process is properly and safely undertaken according to the scheduled plan. e. To see to it that there has been a quality test undertaken to the finished products. 4. Discuss the roles of the production management as a decision maker. A Product Managers primordial and most essential task is decision making. Being a decision maker entails a very strict and rigid analysis of the factors that needed to be considered. A common dilemma of a product manager is to determine what he is going to consider in the production. Is it the quantity or the quality of products? The product manager as a decision maker has to consider and weigh both circumstances. If he chooses the quality of goods, of course customers will receive the same however at a higher price which undoubtedly customers will be aloof to buy. On the other hand, if he chooses quantity of goods, customers will definitely buy them however if they are not satisfied with the quality of the product the firm itself will be affected. Therefore, the product manager as a decision maker should choose the one that conforms to the objectives of the firm and at the same time will give them the highest possible profit at the lowest possible cost that will meet the needs and whims of the market. 5. Explain the product planning activity. Production planning focuses on the planning and daily management of production activities. This includes ensuring all necessary supplies are in stock, planning work in process, and handling rework. Production planning also involves managing the human resources needed to build a product. 6. What is product life cycle? Explain. Product Life Cycle is the stages through which a product passes from development to being withdrawn from the market. The first stage is the development stage, where a market research is conducted. From this information, a product will be designed to meet the consumers needs. Then comes the launch of the product, which is likely to be associated with informative advertising and promotion to make consumers aware that the product is now available on the market and what its purpose is. The next stage is the growth stage, which is when sales and revenue increase. Then comes a period of maturity for the product, when sales and revenue level off. Competitors may enter the market and take away sales of the product. Or the market may become saturated. Finally, the product goes into decline as sales fall. 7. Discuss the process planning. Process planning is a key element in project management that focuses on selecting resources for use in the execution and completion of a project. In a manufacturing setting, this aspect of planning also includes establishing the general sequence of steps that begin with the acquisition of materials and end with the creation of a finished product. Process planning is often closely associated with project planning, although the specific functions of each tool are used differently in the overall strategic planning.

8. What is methods study? Methods study is process of subjecting each part of a given piece of work to close analysis to eliminate every unnecessary element or operation, as a means of approaching the quickest and best method of performing the work. It also includes formulation of incentive schemes and improvement and standardization of equipment, methods, operator training, working conditions, etc. 9. Name the factors that influence the selection of a plant site. There are various factors that must be considered in selecting a suitable plant site. The factors to be considered are: a. Location with respect to the target market b. Availability of land c. Availability of raw materials d. Transport facilities e. Availability of labor f. Availability of utilities (Water, Electricity, etc) g. Environmental impact and effluent disposal h. Local community considerations 10. Explain the major objectives of a plant lay out study. The study of plant lay out is very relevant in the production management. Its major object is to optimize the production process within the plant. If this objective had been attained, this would result to productivity of activities, reduction of cost regarding to money, time, labor and land. It would also result to a smooth flow of job, materials and labor force. Another objective would be to provide enough capacity production by better implementation of machineries through suitable locating of them regarding the nature of job, labor force by reduction of movement, easing job and better psychological condition (increased safety and better working environment), material by reduction of wastage through smooth handling, land by maximum usage of space