Production Management

Production function is that part of an organization, which is concerned with the transformation of a range of inputs into the required outputs (products) having the requisite quality level. Production is defined as the step-by-step conversion of one form of material into another form through chemical or mechanical process to create or enhance the utility of the product to the user. Thus production is a value addition process. At each stage of processing, there will be value addition. Some examples of production are: manufacturing custom-made products like, boilers with a specific capacity, some structural fabrication works for selected customers, etc. Production management is a process of planning, organizing, directing and controlling the activities of the production function. It combines and transforms various resources used in the production subsystem of the organization into value added product in a controlled manner as per the policies of the organization. Production management as, Production management deals with decision making related to production processes so that the resulting goods or services are produced according to specifications, in the amount and by the schedule demanded and out of minimum cost.

RIGHT QUANTITY

The manufacturing organization should produce the products in right number. If they are produced in excess of demand the capital will block up in the form of inventory and if the quantity is produced in short of demand, leads to shortage of products.

RIGHT TIME

Timeliness of delivery is one of the important parameter to judge the effectiveness of production department. So, the production department has to make the optimal utilization of input resources to achieve its objective.

PLANNING

Activities that establishes a course of action and guide future decision-making is planning. The operations manager defines the objectives for the operations subsystem of the organization, and the policies, and procedures for achieving the objectives. This stage includes clarifying the role and focus of operations in the organizations overall strategy. It also involves product planning, facility designing and using the conversion process. Be it a work order against sales or material requests, POSORBIS ERP will show every aspect of your material resource Planning (MRP). Track material consumption of serialized or batched inventory to curb expenses and achieve zero wasted resources. Optimize your workstations based on the resources available for open production orders. Identify and eliminate bottlenecks at the production-floor level by creating a Production capacity plan. You can also maintain and manage planning schedules for a predefined period of time (30 days, 45 days, etc).

ORGANIZING

Activities that establishes a structure of tasks and authority. Operation managers establish a structure of roles and the flow of information within the operations subsystem. They determine the activities required to achieve the goals and assign authority and responsibility for carrying them out.

MODELS

As operation managers plan, organise, and control the conversion process, they encounter many problems and must make many decisions. They can simplify their difficulties using models like aggregate planning models for examining how best to use existing capacity in short-term, break even analysis to identify break even volumes, linear programming and computer simulation for capacity utilisation, decision tree analysis for long-term capacity problem of facility expansion, simple median model for determining best locations of facilities etc.

Bill of Material (BOM)

A Bill of Material is at the heart of POSORBIS ERP, and a well-defined BOM ensures robustness and accuracy. POSORBIS ERP BOM is hierarchical, with the finished product at the top. It also includes product codes, part descriptions, quantities, costs and additional specifications.