THE ROLE OF PRODUCTION ORGANIZATIONHARI HARAN.KM.E(C.I.M)2009206028*

INTRODUCTIONModern manufacturing can assume many technology and organizational formThis would seem to exclude a classification based on clear cutHowever, many ideas have been put forward to integrate the various recognizable typologies within systematic frame work*

PRODUCT LIFE CYCLEEach product may have a different life cyclePLC determines revenue earnedContributes to strategic marketing planningMay help the firm to identify when a product needs support, redesign, reinvigorating, withdrawal, etc.May help in new product development planningMay help in forecasting and managing cash flow

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PRODUCT LIFE CYCLES GRAPHSalesTimeDevelopmentIntroductionGrowthMaturitySaturationDecline*

STAGES OF PLCINTRODUCTION/LAUNCHGROWTHMATURITYSATURATIONDECLINE OR WITHDRAWAL

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INTRODUCTION/LAUNCH:

Advertising and promotion campaignsTarget campaign at specific audience? Monitor initial salesMaximise publicityHigh cost/low salesLength of time type of product

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GROWTH

Increased consumer awarenessSales riseRevenues increaseCosts - fixed costs/variable costs, profits may be madeMonitor market competitors reaction?

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MATURITY

Sales reach peakCost of supporting the product declinesRatio of revenue to cost highSales growth likely to be lowMarket share may be highCompetition likely to be greaterPrice elasticity of demand?Monitor market changes/amendments/new strategies?

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SATURATION

New entrants likely to mean market is floodedNecessity to develop new strategies becomes more pressing:Searching out new markets:Linking to changing fashionsSeeking new or exploiting market segmentsLinking to joint ventures media/music, etc.Developing new usesFocus on adapting the productRe-packaging or formatImproving the standard or qualityDeveloping the product range

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DECLINE OR WITHDRAWALProduct outlives/outgrows its usefulness/valueFashions changeTechnology changesSales declineCost of supporting starts to rise too farDecision to withdraw may be dependent on availability of new products and whether fashions/trends will come around again?

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OPERATION CONTROLIn order to play their roles effectively, the procedural functions must be able to monitor the production process It should guide along its way with timely micro adjustmentWe can group these functions together in two specialized software moduleInventory and order management(IOM)Shop floor control(SFC) *

FROM mrp to MRP master production schedule(mps) +Material requirement planning(mrp) +Capacity requirement planning(crp) =MANUFACTURING RESOURSE PLANNING(MRP)*

PRODUCTION FACILITYA manufacturing company attempts to organize its facilities in the most effective way to serve the particular mission of each plantOne of the most important factor that determine the type of manufacturing is the type of products that are made some product have different shape, sizes, and different performance and they are intend to different markets to indicate high product variety*

TYPES OF PRODUCTION FACILITYLow production: quantities in the range of 1 to 100 units Medium production: quantities in the range of 100 to 10,000 unitsHigh production: quantities in the range of 10,000 to million of units*

LOW PRODUCTIONThe type of production facility usually associated with quantity range from 1 to 100 unitsThis are mainly for job shop type of organizationThis kind of facility is used in space capsules, air craft and special machineryThis type of production is referred to fixed position layout*

MEDIUM PRODUCTIONThe type of production facility usually associated with quantity range from 100 to 10,000 unitThis are mainly for batch production type of organizationThis type of production is referred to cellular layout

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HIGH PRODUCTIONThe type of production facility usually associated with quantity range from 10,000 to million of unitsThis are mainly for mass production type of organizationThis type of production is referred to product layout

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TYPES OF PRODUCTION ORGANIZATIONThe construction-site type organizationThe job shop type organizationThe repetitive-production type organizationThe continuous-process type organization*

THE CONSTRUCTION-SITE TYPE

Standards in the construction, ship building and aerospace industriesThis type of manufacturing is based on a single product, generally of large sizeThe same site can often make several product but each one keeps it busy for month or even yearsThis kind of manufacturing process becomes more manageable if more expressed as a PERT network *

THE JOB SHOP TYPE

Medium volumes and a wide range of products characterize the factories that belong to this category, common above all in the mechanical engineering industryThe product flow is composed of short runs of identical itemsBecause of the lack of repetitiveness in the task involved, robots and AI can successfully make a cost effective contribution only in a limited number of cases*

THE REPETITIVE-PRODUCTION TYPEWhen the volume exceed certain limits, a fixed assignment of resources, which would otherwise be risky, may be considered justifiedEach piece of machinery is dedicated to a well defined phase of the processSpecial department are disappear and their role is taken by production line itselfMany Japanese firm have developed these to improve their production *

THE CONTINUOUS-PROCESS TYPEWhen volumes are high, the basic products are few and the main units of measure used in the process are tons or feet The product flow is typically continuous in this type and most obvious example is power plant Among the manufacturing industries that fall within this category we can mention as the most typical chemical, iron, steel and textile *

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