Employees Training.
Automation.
Equipments Used by Employees-
polishing tangs.
diamond wheels.
Quality and Availability of Raw Diamonds.
Standard of Diamonds Produced by firms.
Management Policies.
Comparison of Two Firms-
Company A Company B
Rate of Production 200 units per day 175 units per day
Polishing tangs Fully geared Semi geared
Diamond wheels Latest Latest
Automation Automation in all phases Automation in later phases
Wastage level Less More
Workload on work force Less More
No. of working days in a 28 28
month
No. of Employees 10 12
Employees Training Level same same
No. of labor hours per days 10 10
Analysis of Cost Pattern of Two Firms-
Cost per Unit Company A Company B
Labor Cost- Rs 70 Rs 80
Electricity Cost Rs 10 Rs 15
Capital Cost Rs 40 Rs 35
Packaging Cost Rs 05 Rs 05
Management Cost Rs 20 Rs 20
Other Cost Rs 05 Rs 05
Company B
Company A
• Batch production
• Mass production
• Continuous production
Functions of production management
• Production planning
• Production control
• Factory building
• Provision of plant services
• Plant layout
• Physical Environment
• Method study
• Inventory control
• Quality control
• Product department
How is production different from
productivity ?