principles of production

7/28/2019 Principles of Production

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WELCOME TO MADAM & STUDENTS


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PRINCIPLES OF PRODUCTION

PRESENTATION

UNDER THE SUPERVISION OF

Muhammad Ali 2009-EE-51

Ather Rehman 2009-EE-13

Adil Aslam 2008-EE-37Jabbar Serwer 2009-EE-17

Umer Farooq 2009-EE-11

Anique Naeem 2009-EE-48


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Ather


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Principles Of Production

Presentation On


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Principles Of Production

PRODUCTION CYCLE

DEMAND SCHEDULE

SUPPLY SCHEDULE

MARGINALITY

STRATEGY AND TACTICS


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Planning

Production

Testing

PublishingEvaluation

Time: 1/3

Requirement Specifications; goals, audience...Contracts

Design(prototyping)

Roles

Time: 1/6Develop specifications- file namingStructure ; vertical pass, horizontal passCoding

Time: 1/4 for component Testing,

1/4 for system-wide Testing

Test the system based on the specificationsRevisionsValidation

To launch the projectPerformance monitoring

To evaluate the processDocumentation


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Planning Principle

production plan defines the material (what)and the moves (when and where).

FACTORS

consultation between the planner(s)

a team approach

strategic objectives of the organization

document existing methods and problems


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Planning

Good Planning?Achievable timelines

Clearly defined workflow

Clear roles and responsibilities

Decision-making framework


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Standardization

Means less variety and customization in themethods and equipment employed.

Increased adapting methods and adaptingequipments


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Product Design

Standardization Reliability

Maintainability

Servicing

Reproducibility

Sustainability

Product simplification

Quality Commensuration with cost

Product value

Consumer quality

Needs and tastes of consumers.


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Types of production

Continuous production

Job or unit production

Intermittent production


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Continuous Production

also known as mass flow production orassembly line production

Production of standard products

By using standard principles

In the anticipation of demand.


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Contd

involves large investment in machinery andequipment. The system is suitable in plants

involving large volume and small variety of

output e.g. oil refineries reform cement

manufacturing etc.


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Job Or Unit Production

Production as per customer's specification

System requires comparatively smaller

investment in machines and equipment. Flexible and adaptable.

More suitable for heterogenous products

produced against specific orders


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Intermittent Production

goods are produced partly for inventory andpartly for customers

E.g. components are made for inventory butthey are combined differently for differentcustomers. .

Automobile plants, printing presses,electrical goods plant are examples of this

type of manufacturing.mer's orders


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umer


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Demand Schedule

Relationship b/w market price and quantitybought is called demand schedule and its

graphical presentation is called demand

curve.

Higher the price

buying power become low

Production of concrened good become lowvice versa


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Demand Schedule For Cornfalkes

Item Price ($) of corn flakes Quantity demanded of

corn flakes

A 5 4

B 4 9

C 3 10

D 2 12

E 1 20


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Law Of Downward Slopping

When the price of commodity is raised,buyers tend to buy less of commodity vice

versa.


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Factors Affecting The Curve

Demand

Average income

Population

Prices of related Goods

Tastes

Special influences


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jabbar


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SUPPLY SCHEDULE

Relationship between market price and theamount of a commodity a producers are

willing to produce and sell, keeping others

things constant is called supply schedule

and its graphical representation is called

supply curve.


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Supply Schedule for cornflakes

Item Price ($) of corn flakes Quantity supplied of corn

flakes

A 5 4

B 4 9

C 3 10

D 2 12

E 1 20


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Law of upward slopping

Also called the law of diminishing returns/law of diminishing marginal utility and

defined ;

Latter in the presentation


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Factors affecting supply curve

Techonology

Input prices

Prices of relted goods Government policy

Special influence


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Marginal Product

The increase in total product when one

more unit of a variable resource isemployed holding the use of all other

resources constant.


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i.e

In our farmers case, she is holding landconstant and increasing labor.

The marginal product of labor is theincrease in wheat production as each

successive worker is employed.


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# of workers employed total product, Q marginal product of

labor

1 1000 1000

2 2500 1500

3 3500 1000

4 4000 500

5 4400 4006 4700 300

7 4800 100

8 4850 50


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Important Result

Notice for our farmer in the short run,marginal product eventually declines

as more and more workers are employed

(never to rise again The farmer has a fixed amount of land and

is cramming more and more workers onto

it. It will be more and more difficult to

increase wheat output, since the land is

being strained.


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Cont;

This resultdiminishing marginal product--

is so important that it is known as, The Lawof Diminishing Returns.


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Short Run Production

The short run is a period of time too shortfor the firm to vary the use of at least one of

its resources.

Short Run Production:

Consider a wheat farmer who only needstwo resourcesland and laborto produce

wheat. In the short run her use of land is

fixed.


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Strategy and Tactics

Strategy in General

Corporate strategy

competitive strategy


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Strategy in General

relationships between ends and means, betweenthe results we seek and the resources at our

disposal.

Strategy and tactics are both concerned withconceiving and then carrying out courses of action

intended to attain particular objectives.

strategy is concerned with how you deploy orallocate the resources at your disposal whereas

tactics is concerned with how you employ or make

use of them.


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Corporate strategy

Corporate strategy defines the markets and the businessesin which a company will operate.

Corporate strategy is typically decided in the context ofdefining the

companys mission (what the company does)

companys vision (why it exists, and what it is intended to

become).


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Competitive or business strategy

defines for a given business the basis onwhich it will compete.

Competitive strategy hinges on a companyscapabilities, strengths, and weaknesses in

relation to market characteristics and the

corresponding capabilities, strengths, and

weaknesses of its competitors.


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Cont;

five basic factors effecting the competitivestrategy:

1. Threat of new entrants.

2. Threat of substitute products or services.

3. Bargaining power of suppliers.

4. Bargaining power of buyers. 5. Rivalry among existing firms.


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overview


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anique


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Some techniques

Small-Lot Production

Reduced Setup Times

Employee Involvement and Empowerment Supplier Involvement

Equipment Maintenance

Pull Production Quality at the Source


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principles of production

Documents