Summary Production Management

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.

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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.

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Operation management decisions

Strategic decisions Tactical decisions

Entire company specific, bound by strategic decision

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Historical developments

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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...