Product design deals with conversion of ideas into reality. It is obvious that the physical productivity of one factor can be measured only in the context of this factor being used in conjunction with other factors. Content Guidelines 2. Vehicle Assembly Building Interior of the Vehicle Assembly Building (VAB) at the Kennedy Space Center, Florida, U.S. what inputs will produce what output. The price factor is left out altogether. (iii) The nature of the quantity of the various factors and the manner in which they are combined will depend on the state of technical knowledge. Even though we cannot reduce the noise level at the source due to the nature of production, the glass factory is doing its best to give the residents the best possible living conditions as they do not wish to move. (iii) Minimum possible inventory levels (i.e.,optimum inventory levels). A change in technology will mean a shift to another production function. Quality control aims at prevention of defects at the source, relies on effective feed back system and corrective action procedure. An entrepreneur combines the other three factors of production to add to supply. (vi) Control or decision making subsystem. These. Contemporary Production of Nature Introduction The harmonious development of man is impossible without a constant interaction with nature.   To make inspection prompt to ensure quality control. To reduce companies cost through reduction of losses due to defects. Planning bridges the gap from where we are, to where we want to go. It is an important strategic level decision-making for an organization. Nature of Production Management Production management is not only related to the transformation of inputs into goods and services, but it is also related to other management activities. Production changes with period of time. (ii) The output is the result of a joint use of the facts of production. Welcome to EconomicsDiscussion.net! It distinguishes itself from other functions such as personnel, marketing, finance, etc., by its primary concern for ‘conversion by using physical resources.’ Following are the activities which are listed under production and operations management functions: Location of facilities for operations is a long-term capacity decision which involves a long term commitment about the geographically static factors that affect a business organization. ‘Material Handling’ refers to the ‘moving of materials from the store room to the machine and from one machine to the next during the process of manufacture’. To produce optimal quality at reduced price. Definition:1. Before publishing your Articles on this site, please read the following pages: 1. It will alter the cost conditions. The creation of goods and services to satisfyhuman wants.2. It is the configuration of departments, work centers and equipment in the conversion process. It has no reference to money price. Production/Operations as a Means of Creating Utility: To purchase, receive, transport and store materials efficiently and to reduce the related cost. (iv) In specifying the production function of a firm, we have to take into account the variability of factors of production and also whether they are divisible or indivisible. During the process of converting the raw materials into finished goods, various types of utilities are created while adding value to the outputs. Quality control can also be defined as ‘that industrial management technique by means of which product of uniform acceptable quality is manufactured’. Disclaimer Copyright, Share Your Knowledge Materials management is that aspect of management function which is primarily concerned with the acquisition, control and use of materials needed and flow of goods and services connected with the production process having some predetermined objectives in view. Top Posts & Pages. The systems approach views any organisation or entity as an arrangement of interrelated parts that interact in ways that can be specified and to some extent predicted. Thus, the state of technical knowledge is treated as given (i.e., as a parameter) for specifying a production function. Nature of Product and Market Strategy. In real life, a manufacturer wants to know how much of the various factors or inputs, viz., land (i.e. The conversion process may include manufacturing processes such as cutting, drilling, machining, welding, painting, etc., and other processes such as packing, selling, etc. The nature of production management is to drive the development of the product for the company and business. (ii) Minimum scrap/rework resulting in better product quality. It is also defined as the ‘art and science of moving, packing and storing of products in any form’. It is necessary for him to know this so that he may be able not only to assess his requirements of productive services but also roughly to estimate the probable cost. These decisions encompass the selection of a process, choice of technology, process flow analysis and layout of the facilities. Scheduling may be defined as ‘the fixation of time and date for each operation’ as well as it determines the sequence of operations to be followed. Production is viewed as a system which converts a set of inputs into a set of desired outputs. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. It is a systematic control of various factors that affect the quality of the product. Plant layout refers to the physical arrangement of facilities. The act of producing; creation; manufacture. This is created by changing the places of inputs or transporting the inputs from the source of their availability to the place of their use to be converted into outputs. Entrepreneurship as a Factor of Production Entrepreneurship is the drive to develop an idea into a business. Improvement in technology will result in a larger output from a given combination of the factors of production. Objectives of Production/Operations Management: Production/Operations as a Conversion/Transformation Process. (iv) Maximum utilisation of all kinds of resources needed. Scheduling determines the programmer for the operations. Again, it is on the basis of technical knowledge at the time that labour, machines and other factors will be combined in the processes of production. According to James Moore, “Plant layout is a plan of an optimum arrangement of facilities including personnel, operating equipment, storage space, material handling equipment’s and all other supporting services along with the design of best structure to contain all these facilities”. Every business organization have to design, develop and introduce new products as a survival and growth strategy. Adoption of more efficient techniques of production, too, will add to the output. It is a specialized activity for a modern manufacturing concern, with 50 to 75% of the cost of production. To achieve interchange ability of manufacture in large scale production. (iv) Production/operations as a means of creating utility. A production system has the following elements or parts: (ii) Conversion process or transformation process. In reality, most products are combinations of these items. A system is defined as the collection of interrelated entities. The Nature of Production 1. It shows the maximum amount of output that can be produced from a given set of inputs in the existing state of technology. Nature of Production Function: Production function can be expressed as under: X = f (a, b, c, d …) Here X is the output of a commodity per unit of time and a, b, c, d, ,,,,, are the various productive resources which go into the making of the quantity of the commodity. Similarly, the productivity of machines will be determined by the technical advances embodied in them. The main objectives of materials management are: Operations management has been gaining increased recognition in recent years because of the following reasons: (i) The application of operations management concepts in service operations. Prosumption involves both production and consumption rather than focusing on either one (production) or the other (consumption). (iii) The introduction of operation management concepts to other areas such as marketing and human resources and. Production and operations management concern with the conversion of inputs into outputs, using physical resources, so as to provide the desired utilities to the customer while meeting the other organizational objectives of effectiveness, efficiency and adaptability. Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. The less efficient are the techniques, the smaller will be the output. Accordingly, it refers to a flow of inputs resulting in a flow of outputs over a period of time, leaving prices aside. For understanding the nature of production function, the following points may be emphasized: (i) The production function represents a purely technical relationship in physical quantities between the inputs of factors and the output of the products.

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