Summary Production Management

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Date Submitted: 01/07/2013 01:22 AM

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Chapter 1

What is production management?

Every organisation has three primary functions”Finance, marketing and operations management.

Finance ( Capital investments, cashflows

Marketing ( Customer demands

Production Management(PM) ( PM is responsible for planning en the execution of these plans and resource planning.

It’s a management function. The things that belong to this function are: the people, equipment, technology, materials and information.

The role of PM is to transform a company’s inputs to finished goods or services. .

Inputs: workers, material, equipment, information, facilities and processes.

Outputs: Finished goods or services.

The responsibility of PM is to orchestrate all te resources needed for the final product. In short: PM is responsible for all aspect of a process to change input in output.


Value added ( all the increase of value during the transformation to final output. Example: How bigger the increase, how more productive the company is. (lowering costs)

To achieve this, a company must be efficient

Differences between manufacturing and service organisations.

Manufacturing: primary produce a tanglible product/low customer contact.

Service: Primary intanglibe product: ideas, information/high customer contact.


Operation management decisions

Strategic decisions Tactical decisions

Entire company specific, bound by strategic decision


Historical developments


Details, for the other developments see the schedule

Scientific Management

An approch te management that focused on improving output through redesigning jobs and determining acceptable levels of worker output.

Taylor: Motivation by cash. Plan and do have to be separated. Look at what people can en what the smartest way is to work by.

Ford: analyse and measure technical aspects. Redisign/development of mass production.

The Human Relations Movement

Hawthorne studies: focus is on giving more consideration to...