Production work is ‘the piece of an association, which is worried about the change of a scope of contributions to the required yields (items) having the essential quality level’. Production is characterized as ‘the well-ordered transformation of one type of material into another form through substance or mechanical procedure to make or upgrade the utility of the item to the user’. Subsequently creation is an esteem expansion process. At each phase of handling, there will be value addition.
Planning is the action that builds up a strategy and guide future basic leadership. Before items can stream into a market, somebody must plan and put resources into the offices and organization to create them. The main tagline and need of every business is profit basically. Managers can plan better if they knew that they are planning for long term or short term.
Production System Framework
This system is ‘that piece of an association, which produces results of an organization. It is that action whereby assets, streaming inside a characterized framework, are joined and transformed in a controlled way to include an incentive as per the approaches conveyed by administration’.
Production Framework Characteristics
The production framework has the accompanying characteristics:
1. Creation is a composed action, so every generation framework has an objective.
2. The framework changes the different contributions to valuable outputs.
3. It doesn’t work in separation from the other association system.
4. There exists an input about the exercises, which is fundamental to control and enhance system
Produce Specific Goods
Using this method, manufacture products as per customer’s specifications. It could have many advantages such as- company can produce low volume and high variety of products with in efficient amount and save time and money as well. Full potential of operators can also be utilized, and workers will become more competent and skilled with such jobs and more innovative and creative methods can be included.
This is also a method of manufacturing in which a product is made step by step at different workstations. In this kind of production, a limited number of products are made at specific interval of time and stocked for sale. Its cost will be lower as compared to job order production and manufacturing of such products lead time. It provides flexibility to accommodate and process number of products. Batch production provides job satisfaction to its operators and customers as well which is the main motive and promotes functional specialization.
In this kind, large number of products are manufactured. So that manufacture rate per unit can be reduced and less skilled workers can be hired for cheap labor. But if one machine is broken whole work may be interrupted or stopped, that could be risky. Also, high investment is needed for such production that small companies can not afford and burden of loan for such a risky event may not be worthy unless there is surety of huge profit at the dead end.
It does not matter what kind of business company is running, 4 R is important i.e. Right Quality, Right Quantity, Right Time and Right Cost. Quality of each product is based on what the customer wants? What are there needs? How much they willing to spend? How long they are going to use this product? In which kind of stuff, the product should be packaged? And so on. Right quality does not mean that the product should be top class, otherwise it is based on the specific requirements and the cost. As a matter of notice these 4 R’s are connected to each other directly or indirectly. Right quantity is a necessity because if products are manufacture less than demand then there will be shortage of products and if they are manufactured more than demand than this situation can lead to blockage of inventory in capital. Right time of delivery and manufacture is required to create alliances and tie ups in business fields. Attempts should be made to make every product at standard cost to reduce variation between actual and standard cost.
Labor and Place
Finding cheap labor is an asset. One can hire part time labors at cheap rate because they need the job and are willing to work at minimum wage and can be trained easily unless of any special demands. Exporting of raw materials can cost much more than expected and to save this money, companies try to develop workstations nearby raw materials to get them easily and at cheap rate. So, choosing a place to establish a business should be easy as it needs to be near crude product.
Environment also plays an important role in any kind of production, because sometimes it depend on season whether the raw material will be produced or not. For example- grains for flour can only be produced in winters and if you choose a hot region to set up industry, it does not make any sense because wheat can not grow in such area and if you are willing to produce wheat there. Company has to spend a high budget to grow such a crop and that is not worth it.