Scope of Operation Management at micro level
Scope of Operation Management at micro level
Or
Responsibilities of production manager
Or
Activities of production management department
Production manager has to perform variety of tasks in a firm. Apart from short term/ day-to-day decisions, in some organizations he might also have to play important role in taking long term decisions related to production.
Basically the decisions to be taken by a production manager are divided into two types
A) Strategic
or Long term decisions
B) Operational or short term decisions
A) Strategic
or Long term decisions
Some of the long term decisions duties that a production manager has to take are
1) Product Selection and Design
Choosing the right product, keeping in mind mission and overall objectives is the key to success. Apart product selection, design of product is also very important.The design of product should be such that all the features are provided with optimum use of parts and at minimum cost.
2) Process Selection and Planning
Selection of process involves taking decisions about technology, machines and equipment. That process should be selected which can help achieve desired level of output with optimum utilization of resources.
3) Plant Site Selection
The location for a plant is one time- long term- irreversible decision. Any mistake in selection of location can prove disastrous. Hence, a production manager has to make this decision very carefully after considering and looking at all the factors affecting the location decision.
4) Plant Layout and Material Handling
Plant layout deals with arrangements of machines and other plant facilities. The machines should be so arranged that the flow of production remains smooth. There should not be overlapping, duplication or interruption in production flow.
5) Capacity Planning
This deals with procurement of resources like machines and equipments required for producing the output. Capacity planning can be done for long term as well as short term.Future scope of expansion should be kept in mind while selecting and buying the machines and equipment.
6) To do various HR Functions
In big organizations, a dedicated HR department is available that looks after recruitment, selection, training & development, performance appraisal, etc. aspects of human resource. However, in small firms, duties are to be executed by production manager for the employees in his department.
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B) Operational
or short term decision
Apart from long term decision the production manager has to look after the following short terms decisions as well
1) To understand demand forecast of finished goods
Production Manager has to get demand forecast of various products to be manufactured. For big organizations, this forecast can be obtained from sales plan of marketing Department. In small companies, this estimate can be made by analysis of market. The job is slightly more complicated for a multi product company. In this case, it is essential to know priorities of Marketing Department i.e. which products are needed first & while can be delayed.
2) To prepare production plan
After understanding demand forecasts from marketing or by analyzing market, it is necessary to decide quantities of various in production plan. This is done after considering current and expected stocks or inventory levels of various products.
3) Material requirement planning ( M R P)
After knowing production plan, production manager should check whether the available material is adequate to meet the production plan. If it is not adequate enough than he has to plan for purchase of row material.
4) Labor requirement planning (L R P)
It is about assessing need of man-power of various skilled levels. For some categories like unskilled workers, increase in man-power requires activities like recruitment and selection. This man-power planning can be done estimating growth in business volumes and in production activities.
5) Capacity requirement planning (C R M)
Apart from material and labor, a production manager should also that the machinery set-up has the capacity to manufacturing desired volumes of various products. This capacity is usually measured in number of machine hours available in various departments and on various machines.
6) Production control
Production manager should also maintain proper controlling techniques to ensure the proper functioning of production process. Maintaining actual and planned production reports,
Ensuring successful working of M R P and C R P, etc. should be taken care of by production manager.
7) Quality assurance
In major organizations now a days there is a separate department called Quality Assurance Department. They are the supreme authorities as far as quality matters are concerned. Still, major responsibility remains with the production department. Quality of row materials, semi-finished goods and finished products should be duly handled.
8) Maintenance planning
Machinery experience wear and tear and hence they need servicing. Proper way is to go for periodic maintenance at regular intervals. This period is decided by usage of machines, type of operation, etc.
9) To see the safety aspects
Safety of employees, visitors and people staying in surrounding areas is the most important responsibility of production manager.
10) To interact with heads of other departments
For the successful execution of production process, production manager has to be in continuous interaction with heads of other departments.
Apart from long term decision the production manager has to look after the following short terms decisions as well
1) To understand demand forecast of finished goods
Production Manager has to get demand forecast of various products to be manufactured. For big organizations, this forecast can be obtained from sales plan of marketing Department. In small companies, this estimate can be made by analysis of market. The job is slightly more complicated for a multi product company. In this case, it is essential to know priorities of Marketing Department i.e. which products are needed first & while can be delayed.
2) To prepare production plan
After understanding demand forecasts from marketing or by analyzing market, it is necessary to decide quantities of various in production plan. This is done after considering current and expected stocks or inventory levels of various products.
3) Material requirement planning ( M R P)
After knowing production plan, production manager should check whether the available material is adequate to meet the production plan. If it is not adequate enough than he has to plan for purchase of row material.
4) Labor requirement planning (L R P)
It is about assessing need of man-power of various skilled levels. For some categories like unskilled workers, increase in man-power requires activities like recruitment and selection. This man-power planning can be done estimating growth in business volumes and in production activities.
5) Capacity requirement planning (C R M)
Apart from material and labor, a production manager should also that the machinery set-up has the capacity to manufacturing desired volumes of various products. This capacity is usually measured in number of machine hours available in various departments and on various machines.
6) Production control
Production manager should also maintain proper controlling techniques to ensure the proper functioning of production process. Maintaining actual and planned production reports,
Ensuring successful working of M R P and C R P, etc. should be taken care of by production manager.
7) Quality assurance
In major organizations now a days there is a separate department called Quality Assurance Department. They are the supreme authorities as far as quality matters are concerned. Still, major responsibility remains with the production department. Quality of row materials, semi-finished goods and finished products should be duly handled.
8) Maintenance planning
Machinery experience wear and tear and hence they need servicing. Proper way is to go for periodic maintenance at regular intervals. This period is decided by usage of machines, type of operation, etc.
9) To see the safety aspects
Safety of employees, visitors and people staying in surrounding areas is the most important responsibility of production manager.
10) To interact with heads of other departments
For the successful execution of production process, production manager has to be in continuous interaction with heads of other departments.
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