Complete understanding of production process in an industry.
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1. PRODUCTION Presented By A. Wadut Al Mamun
2. Tangible Intangible PRODUCT
3. ELEMENTS OF PRODUCTION (1) Land (including all natural
resources) (2) Labor (including all human resources) (3) Capital
(including all man-made resources) (4) Enterprise (which brings all
the previous resources together for production).
4. MARKET ENVIRONMENT MICRO ENVIRONMENT Major internal factors
in an organisation that affect its performance is known as
micro-environment. Example: Competitor, customer, supplier and
general public. MACRO ENVIRONMENT Major external factors in an
organisation that affect its performance is known as
macro-environment. Example: Political, economical, demographic and
social conditions.
5. 1.PRACTICES A standard set of process or rule or procedure
or method used in a particular field or profession 2. SYSTEMATIC
Any process marked by methodical plan or procedure and
repeatability 3.PROCESS A sequence of procedure that consumes
resources to convert input into out put. These O/P serve as I/P for
the next stage until required goal is achieved
6. PROCEDURE A fixed step by step action is known as
procedure
7. 1. STAGE A subsection of a project that are performed
together and scheduled output is expected. 2.RESOURCE A economic or
productive factor that requires to accomplish an activity. 3.OUTPUT
An amount of work, energy or goods, produced by a machine or man or
company in a given time
8. INVESTMENT FIXED INCOME BONDS FIXED DEPOSITS PREFERENCE
SHARES VARIABLE INCOME OWNERS EQUITY PROPERTY OWNERSHIP
9. GOAL An observable and measurable end result having one or
more objectives to be achieved within a more or less fixed
timeframe. END RESULT A final outcome of a process. The end result
of an investment basically amo unts to how much money was made or
lost as a direct result of deciding on that particular course of
action.
10. SERVICES Services are mostly intangible. Eg: consultancy,
education, insurance, expertise, medical treatment, or
transportation COMPETITOR Any person or entity which is a rival
against another Competition also requires companies to become more
efficient in order to reduce costs
11. SIMPLE PRODUCTION CHART
12. Production System Mass Production approach by Ford
Automobile Makes Outputs available in Large Quantities at Lower
Unit Costs than Individually- Crafted Items Lean Production system
by Toyota Automobile Make output with a continuous and zero defect
process by utilizing optimal resources in time
13. Henry Fords Mass Production System In 1910 Henry Ford laid
the foundation of first highly organized assembly line system of
automobile manufacturing. He organized all the elements of a
manufacturing system-- people, machines, tooling, and products--
and arranged them in a continuous system called conveyer system for
manufacturing the Model-T automobile. Ford was so incredibly
successful he quickly became one of the world's richest men and put
the world on wheels. Ford Motor Company produced A-Bomber an Hour
during WWII for USAF using the same concept.
14. Mass Production MODEL T Machine that Changed the World
Initially, took 14 hours to Assemble Model T - Mass Production
reduced Time to 1 Hour and 33 Minutes Model Ts Price dropped from
$1,000 in 1908 to $360 in 1916 1914: Ford produced 308,162 cars,
more than all 299 other auto manufacturers combined 1927:
Automobile Produced every 24 seconds
15. Toyota lean production 1956 Taiichi Ohno went to US to
study Fords Manufacturing Facilities Found Mass Production
Principles not Applicable: Scale of Japanese Markets Desire for
Product Variety Unable to Afford Resources and Inventories
Toyoda
16. Toyota Lean Production system Japanese economy was in
shambles and Toyota could not afford Mass Production of vehicles
due to smaller market size. Toyota begin to design a whole new
concept of Production System which is now also known as
Just-in-Time system. Taichii Ohno and Shigeo Shingo, are known as
the brain behind Toyota Production System or Lean Production System
or Just-in-Time System approach
17. Mass Production Vs Lean Production *Mass production is
producing goods in large quantities at low cost per unit. *This
system is also known as Push System or Just-in-Case System. *Mass
production requires mass consumption. *With precision equipment,
large numbers of identical parts could be produced at low cost and
with a small work force. Lean Production producing goods as per
requirement This system is also known as Pull system or Just In
Time Lean Production required lean consumption zero waste Meet the
demand with optimal utilization of recourses and zero waste