Accounting technicians scheme west africa


B.4 Functions of Production Management



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B.4
Functions of Production Management
In large organisations production management involves the following major functions ab Deciding on type of Production System to use:
Production systems are broadly classified into three, namely intermittent/job, continuous/flow and repetitive manufacturing/batch. The production department often decides on the right production system to use to meet the objectives of the organisation and the needs of its customers. b)
Planning the location of the organisation’s facilities: Location refers to the geographical area or site where the business is based. Location is important because of three basic reasons In the first place, it affects the cost of production. Secondly, it influences the organisation’s access to market. Thirdly, it could influence the production system and arrangement of machines and facilities selected. c)
Planning the plant layout and design of organisation’s facilities: Plant layout refers to


222 the arrangement of machines and facilities to facilitate the transformation of inputs into good and services. Machines, stores, maintenance facilities, washrooms, waste disposal sites, restrooms, inspection bays and sickbays etc. must be located at convenient and accessible points in the organisation. A good plant layout facilitates movement of all resources used by the organisation (labour, equipment, raw materials, and visitors to the premises, improves safety, security and supervision of the production process. db Planning and Controlling the Production Process:
Before production takes off, the production department has to decide what to produce, whereto produce, and the sequence and timetable for processing customers orders. This activity is called production planning. Production control monitors the production process from the input to the finished stage. Key activities involved here include monitoring the use of machines, inventory, cost of production and quality management. e)

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