How to Analyze Your Production Organization and Plant

Production Unit
Statement of Mission- A mission is a goal or an objective. Missions are assigned to organization.
Statement of Function- A function refers to major areas of work that are being or will be done, in
order that a mission will be accomplished
Statement of Operations-An operation is work that is a part or component of a function. Operations
are doing things which together make up a function

Objectives of a Plant Layout

These are:
To improve operation, increase output, better service to customers, convenience and satisfaction for
company personnel.

Types of Layout
1.) Fixed Position -Hold the chief materials in one place and bring men and machines to it. This
layout is generally most economical when the product is physically large and heavy.
2.) Process Layout -It is economical when the process or nature of the operations is relatively
complex or costly. The product or materials are diversified or variable.
3.) Product Layout -When the quantity is large, the process is fairly simple and the product or
materials are relatively standardized, constant and not too large.

Chapter 6 -The Administrative Aspect of Production Management

The Essential Ingredients of the Production Planning and Control System

1. A Master Schedule
a. The capacity of the plant by department or machine center.
b. Capacity Requirements of each job.
C, The Priority of each job
2. Plan of Work
a. Steps in the process (what and how is to be done)
b. The estimated time of each step (by time study or past performance)
c. Utilization of equipment and personnel capacity
3. Schedule-a. Capacity of plant, machine, groups, departments
b. Existing jobs in process
c. Priority of existing jobs in process
d. Availability of materials
e. The plan of work
f. Provision for report of progress
4. Orderly Dispatching -a. The dispatcher should have requisite forms for schedule, showing what is
to be done, where, with that, when by whom.
b. The dispatcher must have knowledge of correlation between operations he can coordinate them by
issuance of orders.
c. The dispatcher should issue orders as close to performance time for each operation as possible to
ensure tightest possible control.
d. The dispatcher should get back reports as quickly as possible on performance so that swift
corrective action can be taken the line.
e. Records of progress must be maintained so that corrective action can be taken quickly, cost can
be accurately determined and compared with estimates and for pricing, and future costs estimates
and plans of work can be more accurate.
Steps in Production Control

1. Scheduling-Setting up of timetables that will govern the movement of the work as it is subjected to
the various fabricating processes.

2. Dispatching-Issuance of orders in terms of their priority and includes the assignment of work to
the operators of their machines.

3. Routing -It is a major responsibility of control function. It determines the path that work will take
through the shop, where and by whom the processing shall be done.

4. Follow-up-It is a branch of production control procedures which regulate the progresses of

materials and parts through the production processes. It fuse separate and unrelated production
activities into whole that means progress.

Labor Code Provisions (Book I)

Article 3 Declaration of Basic Policies
1. Protection to labor
2. Equality in work opportunities regardless of sex, race or creed
3. Regulation of relations between workers and employers
4. Right to self-organization
5. Collective bargaining
6. Security of tenure
7. Just and humane condition of work
Article 4 Construction in favor of labor in case
Article 12 Policies of the State in employment
1. Promote full employment
2. Protect citizens desiring to work locally and abroad
3. Free choice on available employment
4. Facilitate and regulate movement of workers in the national interest
Article 36 Regulatory power of the Labor Minister
Article 37 Visitorial power of the Labor Minister
Employment of Women (Book III)
Article 130 Night work prohibition for women workers ;
1. Prohibited to work between 10:00 pm to 6:00 am in an industrial company
2. Midnight to 6:00 pm in non-industrial as well as commercial companies
3. In agricultural undertaking during night time unless given 9 hours of rest.
Article 132 Facilities for women workers
Article 135 Discrimination prohibited
Article 136 Stipulation against marriage

Employment of Minors
Article 139 Minimum Employable Age:
1. Below 15 years old prohibited unless he works directly under his parents or guardian and
does not affect his schooling.
2. 15- 18 years old may be employed subject to appropriate DOLE regulations.
3. Below 18 years old not allowed in hazardous or deleterious employment.
Article 281 Regular and Casual Employment
1. Regular
When necessary or desirable in the usual course of business.
2. Casual
Not necessary or desirable
Article 282 Probationary Employment
Shall not exceed 6 months
III Post Employment
Article 280 Security of tenure
Article 284 Reduction of Personnel:
1. Labor saving device (Redundancy) 1 month per year of service.
2. Retrenchment one half month per year of service.
Article 285 Disease
One half month per year of service.
Article 286 Termination of employee
1. Without cause 1 month advance notice
2. With cause No notice required
Grounds:
a. Serious insult
b. Inhuman treatment
c. Commission of crime
d. Other similar causes
Article 287 Employment not deemed terminated
 1. Bonafide suspension not exceeding 6 months
2. Military or civic study
Article 288 May retire employee who reaches retirement age provided in CBA or other employment
contract.
Production Management
Production Manager- Production managers make sure manufacturing processes run smoothly and
cost-effectively, and deliver products on time
The production manager should concern himself with the ways and means of controlling production
activity to be able to attain the goals the unit has set to accomplish.
The production manager should also concern himself with the plant layout and material handling.
The production manager should concern himself with is inventory control which includes schedule of
production, production costs such as set up costs, direct material cost, direct labor costs, overtime
and shift premium costs, hiring, training and layoff costs, depreciation costs, lost orders, taxes
interest, storage, handling and price changes, procurement of raw materials, purchase of components
part and finished goods.
The production manager is the determination of time requirements commonly referred to as work
measurement.
The production manager is concerned with incentives.

Chapter 7-PRODUCTION SYSTEM AND PROCEDURES OVERVIEW

PRODUCTION -The action of making or manufacturing from components or raw materials, or the
process of being so manufactured.
Two Related Concepts about productivity:
Productivity-the effectiveness of productive effort, especially in industry, as measured in terms of the
rate of output per unit of input.
1. Efficiency
2. Effectiveness

I. Production System -The methods, procedure or arrangement which includes all functions
required to accumulate (gather) the inputs, process or reprocess the inputs, and deliver the
marketable output (goods)."Production system utilizes materials, funds, infrastructure, and
labour to produce the required output in form of goods.
Types of Subsystem in the Production Systems
1. The Physical system which acts in the transformation of inputs.
2. The Information System
Characters of production System
1.Material transportation process
2.Degree of repetitiveness
3. Information system
4. A material flow process

II. Kinds of Production System -Basic Types of Production Processes Intermittent Production
System Production is performed on a start-and-stop basis, such as for the manufacture of made-to-
order products. Done to produce small volume and high diversity products. Mass Production A
special type of intermittent production process using standardized methods and single-use machines
to produce long runs of standardized items. Usually used to produce small volume and low diversity
products.
Project Process Different employs and machineries are employed to produce perform a specified task
or project.
A production operation is the flow of materials is through one or more steps of a process. The
Basic elements of a production operation are :
1. Product Design
2. Process design
3. Material Flow
Two types of Decision
4. 1.Short run
5. 2. Long run
Production Models is to predict some facets of the performance of a production system that can be
really Helpful.
PRODUCTION PLANNING AND CONTROL The principle of production planning and control lies in
the statement First Plan Your Work and then Work on Your Plan.
Planning is deciding in advance what to do, how to do it, when to do it and who is to do it.
1. A master Schedule
a. the capacityof the plant by department or machine center
b. Capacity requiremennts for each job.
c. The priority of each job.
2. Plan of work
a. Steps in the process
b. Estimated time for each steps
c. Materials and equipments to be used
d. Utilization of equipments
3.Schedule
a. Capacity of the plant,machine group and departments
b. existing Jobs in process
c. Priority of existing job in process
d. Availability of materials
e. The plan of work
f. provision of report progress
4. Orderly Dispatching
is concerned with the starting the processes. It gives necessary authority so as to start a particular
work, which has already been planned under Routing and Scheduling. The function of follow-up
is to report daily the progress of work in each shop in a prescribed proforma and to investigate the
causes of deviations from the planned performance.
5. Records
 a. Corrective actions can be taken quickly
b. Cost can be accurately determined and compared with estimates and for pricing.
c. Failure cost estimates and plans of work can be more accurate.

Steps in production control

1. Scheduling
2. Dispatching
3. Routing
4. Follow-up
Production processes may be :
1. Specialized-limits or specialized only.
2. Simplified-company reduces its type
3. Standardized-setting up types
4. Mechanized-performing manufacturing
process
Plant layout refers to the physical arrangement of facilities. It is the configuration of departments,
work centres and equipment in the conversion process.
TYPES OF PLANT LAYOUT
1. Process layout or functional layout: Similar machine grouped together Used in job and
batch production and non-repetitive type of work. This type of layout makes production
planning and control more difficult.
2. Product layout or line layout: Machines and auxiliary services arranged in line according to
sequence of operation to be performed on the work. Raw material enters in line at one end,
operations are carried out in succession In a smooth flow and the finished product is
delivered at the other end of the line Used in mass production and repetitive work.
3. Static Or Fixed Position Layout: It is adopted when work piece is very big or too heavy to
move from one position to other and is consequently fixed in one place. Used in custom
ordered type production e.g. in construction work , ship building , air craft, pressure vessel,
locomotives , etc.
Equipment or machine operation is broken down into job assignments and job performance.
Assignments for utilization of equipments and machine should be guided by manufacturers operating
manuals.
1. Loading capacity
2. Speed limit
3. Gradeability
4. Working Condition
5. Weather
6. Time of the day

Chapter 8 -Production Planning and Control

PRODUCTION PLANNING AND CONTROL
Planning is a very important management function, since it determines the nature of the supervisors
other functions.
Planning is a process.
Choose Objectives
Objectives are the goals you wish to achieve or the desired results of your planning process.

Peter Druckers 8 critical areas where objectives must be set

Market standing
Innovation
Productivity
Physical and financial resources
Profitability
Workers performance and development
Work performance and attitude
Public responsibility
Communicate Objectives

Although you may not want to share your personal objectives, they should be known and
understood by all.
Management by objectives is an approach to communicating goals that has gained popularity in
recent years.

3 basic components of the management by objectives approach:

Employees should be evaluated according to what they accomplish, rather than how they
spend their time.
Employees should know what the objectives are.

Employees should have a part in setting their own objectives.

Identify Assumptions
Certain assumptions underlie all plans of action. These are often called premises

Long-range plans / short-range plans

Survey Resources
There may be resource limitations in time, money, work space, number of employees, type of
employees, staff assistance, material resources etc. Remember that often what is seen as a
limitation can become excuses.
At times, it becomes obvious that there are simply not enough resources available to achieve a
certain goal.
Check on Policy
Most policies are established to avoid repeating a trial and error process which has already
indicated one best way to do something. Generally, they reflect careful study or extensive
experience.
Develop Alternative Plans
 If there is only one possible course of action, planning is not necessary. The possibility for
alternative decisions makes planning necessary and challenging.
Planning is really a series of decisions.
Developing and considering alternatives can cause regrets later when the method not chosen
might have worked out better in the long run.
Compare Alternative Plans

When you have identified all possible alternative methods of reaching a goal you should begin
to evaluate each alternative in terms of cost, availability and expected results.
Finalize the Choice
Whenever you decide not to decide, you make the worst possible decision.

When you have identified a method that meets all the requirements and conforms to all
limitations that will achieve your goal efficiently and effectively, you will realize that the process
of eliminating alternatives has made the decision for you.
Develop New Procedures and Rules
Procedures and rules establish step by step guides for action within a general policy
framework.
Established procedures can be viewed as a sequence of steps that must be taken in order to
accomplish some stated objectives
3 stages of production tasks
Make-ready stage

Doing stage

Put-away stage

Work in Process
Supervisors Responsibility In Controlling WIP (Work In Process)
1. It is the supervisors responsibility to control each WIP at minimum level
2. It is the supervisors responsibility to make remedial measures in order to trim down WIP.
3. IT is the supervisors responsibility to cut down all cost related to WIP, eg,. Taxes, Insurance,
Storage, Spoil, Age, Interest, and maintenances.
4. It is the supervisors responsibility to make the WIP flow smoothly.
5. It is the supervisors responsibility to avoid delay of all goods in process because this will cause
tremendous problem with respect to the operation through each final destination
Work In Process Control
Benefits
a. Reduction of manufacturing cost.
1. Increasing the utilization of labor and facilities through elimination of idle time caused by
shortage of goods to be issued
 2. Promote steady production at high output by maintaining rapid processing.
3. Minimizing the needs of overtime and rush orders.

3. Quantification of Cost Related to WIP (Savings on Delay) Procedures:

a. Know the cost per unit volume of your area.
b. Know the volume of your goods.
4. Procedures on How to Establish Inventory Control
a. Prepare a flow process chart of the operation.
b. Determine and define each operation.
c. Set-up an inventory record and control system.
d. Formulate form to be used in maintaining the system.
e. Assign responsible people who will do the job.
f. Conduct physical inventory to check if youre main training the correct record.
Five Basic Elements of WIP Control
1. Production Planning
This initial step involves planning for what is to be produced during a particular season. It is
based on forecast information as received from the marketing function.
2. Supply Control
Typical items include thread, yarn packaging material, labels, and others. Perpetual inventories
must be maintained and automatic signals for reordering which reflect the required purchasing load
times must be generated by the supply control system.
3. Loading Control
After the two elements are in effect, you will be dealing with day-to-day operating decisions. By
being control, what is meant are the procedures uses schedule or load work into degree of control
required in loading which varies directly with the product mix. The golden rule of plant loading is that
they should equal plant capacity.
PLANT LOADING = PLANT CAPACITY
4. Balancing Control
No matter how well a factory is loaded, situations will arise where certain jobs will become
unbalanced and work will pile up. This may result due to faulty loading versus plant capacity,
absenteeism, turnover and many other causes.
a. Operator transfer
b. Use of facilities
c. Work overtime or undertime
a. Meet production schedule
b. Avoid waiting schedule
c. Minimize overtime
d. Protect operators earning
5. Progress Control
The final element of WIP control is progress control. This deals with ensuring that each yarn
progresses through the factory on schedule.
Production Planning and Control in Intermittent Manufacturing

Production Planning

Area of Production Planning

Importance of Production Planning

The Need for Production Planning and Control System

1. Make equitable commitments to customers
2. Better customer relations since promised delivery dates can be more readily met
3. Less time is spent by owner-managers in detail work
4. Expediting is unnecessary
5. Broadens out strategy of management
6. Order out of chaos
7. Saves money
Intermittent Production
Production is performed on a start-and-stop basis, such as for the manufacture of made-to-order
products.
Factors in Manufacturing
1. Design
2. Simplified
3. Standardized
4. Mechanized
1.Design deals with the creating of the form and function of a product.
2. Simplified a company reduces the number of types of its products so that inventories of raw
materials and costs of manufacturing will reduce and increase efficiency in the manufacturing
process.
3. Standardized setting up of standards or type as to size, quantity, form, measure, weight, or other
similar feature.
4. Mechanized supplementing or replacing man skills with machines to perform much of the
manufacturing processes.