IPM

Production System

•“Transformation Processes”

•Processes that transform resources into useful goods and services

•Allows smooth transformation of the inputs to outputs

Factors of Production

• Labor

• Space

• Capital

5 M’s

(Man, Machine, Material, Method, Money)

Production Facilities

•Before starting of any production process the organization has to decide about the facilities to produce.

•Facilities has to be installed on the basis of the requirement and the availability of the resources to the organization

Determinant of Production Facilities TPMPCLP

•Types of Product

•Production quantity

•Market

•Product demand

•Competitors for the product

•Location

•Product Variety

Plant Location

•Plant location refers to the choice of region and the selection of a particular site for setting up a business or factory.

•In this the plant location play the important role. The location selected should be such that it enables the business to achieve its objectives efficiently.

•It is a strategic decision that cannot be changed once taken. If at all changed only at considerable loss, the location should be selected as per its own requirements and circumstances.

Ideal Location

•The main aim of any business (manufacturing or services) is to maximize the profits and to minimize the cost

•An ideal location is one where the cost of the product is kept to minimum, with a large market share, the least risk and the maximum social gain.

•It is the place of maximum net advantage or which gives lowest unit cost of production and distribution.

Factors affecting the plant location primary

• availability of raw materials

• availability of fuel and power

• availability of water

• availability of labor

• nearness to the market

• Transport facilities

Factors affecting the plant location secondary

• availability of finance

• availability of facilities

• suitaibility of climate

• government policies

• competition between states

• disposal of waste

Plant Layout

•a plan of optimum management of facilities which include; personnel, operating equipment, storage space, material handling equipment, and all other support services

•It includes the arrangement and location of work centers and various service centers like inspection, storage, and shipping within the manufacturing/factory building.

•the allocation of space and the arrangement of equipment in such a manner that overall operating cost is minimized

Objectives of a Good Plant Layout

•Congestion reduction

•Elimination of unnecessary occupied areas

•Improvement on control and supervision

•Better adjustment and changing directions

•Better utilization of the workforce, equipment and services

•Reduction on health risks and increase on workers safety

•Ensuring that workers satisfaction is increased

•Reduction on  delays and manufacturing time as well as production capacity

Factors Influencing Facility Layout

•Management/Managerial Policy and Decisions

•Nature of Plant Location

•Type of Machinery used

•Nature of product to be manufactured or produced

•Method of production

•Minimum movement

•The arrangement of materials handling equipment

•Availability of Floor Area

•Type of Industry

•Possibility of future expansion

What makes a good Plant Layout

•OVERALL INTEGRATION OF FACTORS

•MINIMUM MOVEMENT

•UNI-DIRECTION FLOW

•EFFECTIVE USE OF AVAILABLE SPACE

•MAXIMUM VISIBILITY

•MAXIMUM ACCESSIBILITY

Advantages of a Good Plant Layout

•Reduced investment in machines

•Flexibility in production

•Better and more efficient supervision

•Better utilization of men and machines

•Full and efficient utilization of equipment

Disadvantages of a Bad Plant Layout

•Difficulty in the movement of materials

•More floor space is needed

•Difficulty in production control

•More production time

Production System

“The methods, procedure or arrangement which includes all functions require to accumulate the inputs, process or reprocess the inputs and delivers the marketable outputs (goods)

Plant Location Factors

•       Nearness to the raw material

•       Land and labor cost

•       Transportation

•       Nearness to related and ancillary industries

Plant Layout Factors

•       Products

•       Production system

•       Purchase and inventory policy

•       Safety and personnel policies

Intermittent Production System

produced based on customer’s order

Continuous Production System

GOODS ARE PRODUCED CONSTANTLY AS

PER DEMAND FORECAST AND PRODUCED ON A LARGE SCALE FOR STOCKING AND SELLING.

THEY ARE NOT PRODUCED ON CUSTOMER’S ORDERS.

Intermittent PS 3 KINDS

JOB, BATCH, PROJECT

CONTINUATION PS 2 KINDS

MASS, PROCESS

FACTORS INVOLVED IN FACILITIES

• Machines and equipment

• Tools

• Technology

• Inspection aid

• Process details

• Operating Personnel

• Production Volume