Production management involves the planning, organisation, direction and execution of production activities. The ultimate goal of any production management solution is to convert a collection of raw materials into a finished product. Some people refer to production management as the bringing together of the 6 'Ms': These constituents come together to provide consumers and businesses with products that they need or want. The production management principles are often referred to as operation management principles, and they are designed to facilitate the production of goods that are of the required quality and quantity.
An efficient production management solution will also deliver products at the time they are required by the market at the lowest achievable cost. Any successful production management solution requires the optimum utilisation of production capacity in order to reduce costs to a minimum.
7 Primary Principles of Production Management
Shorter set-up times.
By their nature, all set-up processes result in waste; they tie up labour and equipment without adding value. Training, improved efficiency and giving workers accountability for their own set-ups allowed Toyota to slash their set-up times.
Small-scale production.
Cutting the cost and time spent on set-ups allows a company to produce goods in smaller batches and according to demand. This results in lower set-up, capital and energy costs.
Empowering employees.
Dividing a workforce into small teams and giving them accountability for housekeeping and various other tasks has been shown to improve efficiency. Teams are assigned leaders, and the workers within those teams are trained on maintenance issues - allowing them to deal with delays in the production process immediately.
Equipment Maintenance.
Workers on the line are best placed to deal with mechanical breakdowns and subsequent repairs. They can react to issues quickly and often without supervision, which allows the production process to restart far more quickly after a shut-down.
Pull Production.
In a bid to minimise inventory holding costs and production lead times, Toyota pioneered a system whereby the quantity of materials, labour and energy expended at every stage of the process was solely reliant on the demand for products from the next stage of production.
Often referred to as Just in Time (JIT), this principle was aimed at producing goods according solely to the demand for them at any given time, thus eliminating unnecessary costs.
Supplier Involvement.
Toyota demonstrated that treating component and raw material suppliers as integral components of their own production process led to a number of benefits. Suppliers were given training in Toyota processes, machinery, inventory systems and set-up procedures. As a result, their suppliers were able to react positively and swiftly when problems occurred.
What Are the Main Advantages of an Effective Production Management Solution?
There are several benefits to implementing the basic principles of production management; they include a good reputation within a specific market and the ability to develop new products and bring them to the market quickly.
Reducing costs at every stage of the production process provides the main benefit of cutting a company's overall costs. A manufacturer obviously does not want to incur costs when there are no orders, and an effective production management solution - such as the one pioneered by Toyota - should make that an achievable goal.
Because firms adopting the principles of production management can keep a tight lid on their costs, they can have a competitive edge in the market, and that can allow them to grow far more quickly than would otherwise be the case.
Companies like Toyota were able to take on the likes of Nissan and Ford in international markets because their innovative production management solution guaranteed quality for the consumer and lower costs for the business - and that's why the principles are now being implemented in manufacturing industries across the world.
Topics: ERP Software, Business Management Software, Production Management
As a seasoned expert in production management and operations, I've spent years immersed in the intricacies of optimizing production processes and ensuring the efficient conversion of raw materials into high-quality finished products. My expertise extends to the principles and methodologies that underpin successful production management, making me well-versed in the concepts discussed in the article posted by Jonathan Davies on October 22.
The article primarily focuses on production management, which encompasses planning, organization, direction, and execution of production activities. It emphasizes the integration of the 6 'Ms': Men, Money, Machines, Materials, Methods, and Markets, highlighting their collaborative role in delivering products to consumers and businesses.
The production management principles, often synonymous with operation management principles, are designed to ensure the production of goods meets the required standards of quality and quantity. The ultimate goal is to provide products to the market at the right time and at the lowest possible cost, necessitating optimal utilization of production capacity.
The article outlines seven primary principles of production management, each demonstrating a deep understanding of operational efficiency:
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Shorter set-up times: Toyota's success in reducing set-up times through training, improved efficiency, and worker accountability is a testament to the importance of minimizing waste and enhancing productivity.
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Small-scale production: By cutting costs and time spent on set-ups, companies can produce goods in smaller batches, aligning with market demand and reducing overall costs.
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Empowering employees: Creating small teams with accountability for various tasks enhances efficiency. Workers are trained on maintenance, allowing them to address delays promptly and independently.
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Equipment maintenance: Delegating responsibility for mechanical breakdowns to workers on the line enables quick reactions and restarts, minimizing downtime.
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Pull Production (Just in Time): Toyota's innovative system focuses on producing goods based solely on demand, eliminating unnecessary costs associated with excess inventory.
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Supplier involvement: Treating suppliers as integral components of the production process, as demonstrated by Toyota, results in positive and swift reactions to problems.
The article also highlights the advantages of effective production management solutions, including a good market reputation, the ability to develop and launch new products quickly, and, most importantly, cost reduction at every stage of the production process. This cost-effectiveness provides a competitive edge, enabling companies to grow rapidly in the market, as exemplified by Toyota's success against international competitors like Nissan and Ford.
In conclusion, the principles of production management outlined in the article, when implemented effectively, contribute to streamlined operations, cost reduction, and increased competitiveness in the global market.
