Production management can be conceived and practiced as that function of organization which is concerned with the design, planning and control of resources for the production of goods/services. Production management is a process of planning, organizing, directing and controlling the activities of the production.
According Edwood Buffa- “Production management deals with decision making related to production processes so that resulting goods or services are produced according specifications, in the amount and by the schedule demanded and at minimum cost”.
Production and Planning And Control(PPC):-
The efficiency of production system is started in terms of its ability to produce products with required quality and quantity at predetermined cost and time. Production planning and control is a powerful tool available to the management to achieve the stated objectives. Production planning starts with the analysis of the given data. Demand and delivery schedule etc. and on the basis of information available, a scheme of utilization of firms resources like machines, materials and men are worked out to obtain the targets set as per the plan by using control techniques.
PPC can be defined as, “direction and co-ordination of firms resources towards attaining prefixed goals”.
Need for PPC:-
Production planning and control system is needed to achieve-
Effective utilization of firm’s resources.
To achieve the production objectives with respect to quality, quantity, time and cost.
To obtain the uninterrupted flow of materials in order to meet customers demand with respect to quality and order product characteristics.
To help the company to supply a good quality goods/services to the customers on a continuous basis at competitive rates.
Objectives of PPC:-
-Systematic planning of production activities to achieve the highest efficiency in production of good. -To organize the production facilities like machines, men etc. to achieve stated production objectives with respect to quality, quantity, time and cost.
-Optimum scheduling of resources.
-Co- ordinate with other departments relating to production to achieve regular, balanced and uninterrupted production flow.
-To confirm delivery commitment.-To be able to make adjustments due to changes in demand and occasionalCharacteristics of phases in Product Life Cycle (PLC):-
Demand and product generally tends to follow a predictable pattern, which is referred to as product life Cycle. Products go through a series of stages beginning with introductions stages followed by rapid growth, maturity and finally the decline of the demand. Time spans of these stages vary from few weeks or months to years.
Introduction stages: - This Stage marks of the product in to the market. It may be entirely new product i the market or old product in the new market. Demand for the product is low as customers do not know much about the product. Organization has to invest heavily in the adjustment to makes product familiar to the customers
Growth:-Once the product passes the introducing stages, the sales starts increasing because of the acceptability of the product by the customer’s sales will grow faster because of lower competition.
Maturity: - Sales growth reaches a point above, which it will not grow. The competition will be fierce and the sales will be maintained at this level for some period.
Decline:- the competitors will entire the market with better product features, advanced technology and reduced prices. This is the threat to the existence of the product and the sales start decline. If proper care is not taken at these stages, products are to be taken off from the market.
