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PRINCIPLES OF PRODUCTION
PRESENTATION UNDER THE SUPERVISION OF Muhammad Ali Ather Rehman Adil Aslam Jabbar Serwer Umer Farooq Anique Naeem 2009-EE-51 2009-EE-13 2008-EE-37 2009-EE-17 2009-EE-11 2009-EE-48

Ather

Presentation On

Principles Of Production

Principles Of Production
PRODUCTION CYCLE DEMAND SCHEDULE SUPPLY SCHEDULE MARGINALITY STRATEGY AND TACTICS

Planning

Time: 1/3 Requirement Specifications; goals, audience... Contracts Design(prototyping) Roles

Production

Time: 1/6 Develop specifications- file naming Structure ; vertical pass, horizontal pass Coding Time: 1/4 for component Testing, 1/4 for system-wide Testing Test the system based on the specifications Revisions Validation

Testing

Publishing

To launch the project Performance monitoring

Evaluation
To evaluate the process Documentation

Planning Principle
production plan defines the material (what)
and the moves (when and where).
FACTORS

consultation between the planner(s) a team approach strategic objectives of the organization document existing methods and problems

Planning
Good Planning?
Achievable timelines
Clearly defined workflow Clear roles and responsibilities

Decision-making framework

Standardization
Means less variety and customization in the
methods and equipment employed.

Increased adapting methods and adapting

equipments

Product Design

Standardization Reliability Maintainability Servicing Reproducibility Sustainability Product simplification Quality Commensuration with cost Product value Consumer quality Needs and tastes of consumers.

Types of production
Continuous production Job or unit production Intermittent production

Continuous Production
also known as mass flow production or
assembly line production Production of standard products By using standard principles In the anticipation of demand.

Contd
involves large investment in machinery and
equipment. The system is suitable in plants involving large volume and small variety of output e.g. oil refineries reform cement manufacturing etc.

Job Or Unit Production

Production as per customer's specification System requires comparatively smaller
investment in machines and equipment. Flexible and adaptable. More suitable for heterogenous products produced against specific orders

Intermittent Production
goods are produced partly for inventory and
partly for customers E.g. components are made for inventory but they are combined differently for different customers. . Automobile plants, printing presses, electrical goods plant are examples of this type of manufacturing.mer's orders

umer

Demand Schedule
Relationship b/w market price and quantity
bought is called demand schedule and its graphical presentation is called demand curve. Higher the price buying power become low Production of concrened good become low vice versa

Demand Schedule For Cornfalkes

Item Price ($) of corn flakes Quantity demanded of corn flakes 4

10

12

20

Law Of Downward Slopping

When the price of commodity is raised,

buyers tend to buy less of commodity vice versa.

Factors Affecting The Curve Demand

Average income Population Prices of related Goods Tastes Special influences

jabbar

SUPPLY SCHEDULE
Relationship between market price and the
amount of a commodity a producers are willing to produce and sell, keeping others things constant is called supply schedule and its graphical representation is called supply curve.

Supply Schedule for cornflakes

Item Price ($) of corn flakes Quantity supplied of corn flakes

A B C D E

5 4 3 2 1

4 9 10 12 20

Law of upward slopping

Also called the law of diminishing returns/
law of diminishing marginal utility and defined ; Latter in the presentation

Factors affecting supply curve

Techonology Input prices Prices of relted goods Government policy Special influence

Marginal Product
The increase in total product when one
more unit of a variable resource is employed holding the use of all other resources constant.

i.e
In our farmers case, she is holding land
constant and increasing labor. The marginal product of labor is the increase in wheat production as each successive worker is employed.

# of workers employed

total product, Q

marginal product of labor 1000 1500 1000 500

1 2 3 4

1000 2500 3500 4000

5 6 7 8

4400 4700 4800 4850

400 300 100 50

Important Result
Notice for our farmer in the short run,
marginal product eventually declines as more and more workers are employed (never to rise again The farmer has a fixed amount of land and is cramming more and more workers onto it. It will be more and more difficult to increase wheat output, since the land is being strained.

Cont;
This resultdiminishing marginal product-is so important that it is known as, The Law of Diminishing Returns.

Short Run Production

The short run is a period of time too short
for the firm to vary the use of at least one of its resources. Short Run Production: Consider a wheat farmer who only needs two resourcesland and laborto produce wheat. In the short run her use of land is fixed.

Strategy and Tactics

Strategy in General Corporate strategy competitive strategy

Strategy in General
relationships between ends and means, between
the results we seek and the resources at our disposal. Strategy and tactics are both concerned with conceiving and then carrying out courses of action intended to attain particular objectives. strategy is concerned with how you deploy or allocate the resources at your disposal whereas tactics is concerned with how you employ or make use of them.

Corporate strategy
Corporate strategy defines the markets and the businesses
in which a company will operate. Corporate strategy is typically decided in the context of defining the companys mission (what the company does) companys vision (why it exists, and what it is intended to become).

Competitive or business strategy

defines for a given business the basis on
which it will compete. Competitive strategy hinges on a companys capabilities, strengths, and weaknesses in relation to market characteristics and the corresponding capabilities, strengths, and weaknesses of its competitors.

Cont;
five basic factors effecting the competitive
strategy: 1. Threat of new entrants. 2. Threat of substitute products or services. 3. Bargaining power of suppliers. 4. Bargaining power of buyers. 5. Rivalry among existing firms.

overview

anique

Some techniques

Small-Lot Production Reduced Setup Times Employee Involvement and Empowerment Supplier Involvement Equipment Maintenance Pull Production Quality at the Source