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Hitesh Jhanji, Lovely Professional University
Unit 11: Production Management
Unit 11: Production Management Notes
CONTENTS
Objectives
Introduction
11.1 Production and Material Management
11.1.1 Capacity Planning
11.1.2 Inventory Management
11.1.3 ABC Analysis
11.2 Quality Management System
11.3 Break Even Analysis
11.4 Summary
11.5 Keywords
11.6 Review Questions
11.7 Further Readings
Objectives
After studying this unit, you will be able to:
Describe the production and material management
Explain the quality management system
Discuss the break even analysis
Introduction
After drawing the marketing plan the next step is to formulate the production/operation plan.
Production/Operation plan is the blue-print to run the production unit/operational activity of
the business enterprise for optimum utilization of the resources. Like the marketing plan, even
the operation/production should evolve from a strategic plan i.e. overall business plan. For
example, if the strategic plan is expansion and growth the production/operation plan should
also formulate plans for expansion of production/operation unit.
11.1 Production and Material Management
Production Management is the process of converting the input into output through a conversion
process. The inputs are in the form of land, labor, raw material, machinery, capital and information
(information is a new addition to the inputs after the growing importance of the service industry).
Transformation takes place through machinery in manufacturing enterprises and through
employee’s skills in a service enterprise.
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