4.Production managemetn systems Flashcards
Covering week 5
what is product management ?
A process that allows the business to monitor and control production processes to ensure** Efficiency and quality**.
What is the overaching purpose of Product management ?
Efficiency and quality
also to monitor and control production.
Efficiency is more about decreasing expenses while quality is more about increasing sales and revenue
Production management systems
They are how businesses can balance efficiency and quality to ensure sales success
The Production Process
also known as the ‘transformation process’. It takes raw materials, skills, knowledge and technology and transforms them into a finished product for sale.
The Production process
l
rember this image its of significant importance
what function does the production management system work to ensure
to monitor and control the production process to ensure:
- the inputs are organised
- production processes are operating effectively and efficiently, and
- the output meet quality standards and client needs.
What are Production management systems (PDS) linked to
sales,(** inventory**) finished and unfinished goods)and customer systems to help a business plan production schedules and materials purchasing.
What is the Goal of Production management (PD)
** to produce goods and services: at the right quality, right quantity, at the right time and at minimum cost. **
Going back to efficiency
a business can compete effectively in the marketplace. A production management system ensures that a business gets the most out of their production capability.
Key Areas in the Production Process that can be managed.
1.Research & Development: Research involves investigating the unknown, such as new products or processes. Development refers to using research findings to create products that might be commercialised.
2.Inputs to Production: Refers to the factors of production such as people, raw materials, energy, information, or finance that are put into a system (such as an economy, manufacturing plant, or computer system) to obtain the desired output.
»> Land, Labour, Capital, Enterprise. (Reduce wastage and enhance efficiency).
3.Production: The process and methods used to convert tangible and intangible inputs into output in the form of goods and services. (Transforming and converting)
4.Distribution: The movement of goods and services through distribution channels from production to the end consumer(s). Logistics is the management of a supply chain. (Delivery and transportation).
Benefitss of having a good production management system
It helps a business to attain the following:
1) Achieve business goals
Production management helps a business to produce products that meet customer needs at an affordable price at minimised costs.
This will increase its sales and generate profit.
2) Build a positive public image
If customers are receiving high quality products that are not faulty, on demand at an affordable price they will be happy.
Happy customers tell other people about the business and come back to the business to buy again.
Building reputation and public image that results in long-term success.
3) Support other business functions
A production management system collects information from range of functions, inventory, production, purchasing and sales.
By centralising the information, managers can make informed decisions and see how a change in one area will have an impact on other areas.
Better decisions can be made about the whole business.
4) Be competitive
Meeting customer needs and keeping them happy, minimising costs and increasing sales will increase profit.
More income in the business can be used for advertising, promotion and market research.
These factor
important to note down
overall message for production management
production management systems allow a business to effectively manage its resources to produce low cost, high-quality products. Where this is done affectively, a business is able to benefit from achieving its marketing and financial goals, building a positive public image,** minimising wastage and inefficiency and achieving and maintaining a** competitive advantage.
features of Product Development
Product development outlines the stages from the stage from when a product is conceived as a raw idea to when it is finally brought to market.
Types of Product Development
- Incremental Innovation:Improving product features bit by bit ,it adds on an existing product ,also makes improvements to existing process,products or services to prolong product life cycle or maintain **COMPETITIVE ADVANTAGE **
- Disruptive innovation:Results in a totally new product that will be sold to a new or niche market.
Creating new process, service or product in response to a market need or opportunity to create a new market.
product development involves …..
investing time, money and skills and involves a high level of risk. After this substantial investment, customers may not respond to the product. However, business embark in product development helps to **create new opportunities, increase profits and increase the satisfaction levels of consumers.
How to be Succesful in Product Development(PD)
Planning product development and making informed decisions increases the likelihood of success. It is important that any product development is based on:
- Clear plan
- Market research
- Business environment research
- Skills and expertise of staff
- Intellectual property protection
Use ACRONYM :Clear Market Business skills interlink
Examples of Product development can Include
Developing touch screens and tablets to increase the portability of computers
Creating eBooks and distributing them online
Hybrid cars
Product Development FEATURES
Ideation:Coming up with product ideas
Research and Development:Evaluating the ideas
**
Prototyping:Prototype Testing**
Testing :**Market Testing
**
Commerialiasation; **Launch The Product ** **Marketing Strategy **
A plannned Process will increase the likehood of sucess when developing a new product or improvements to existing products
Overall (PD)
is necessary for business innovation. This can help businesses to secure a competitive advantage in the market and to boost revenue and profitability. However, product innovation is risky and can fail without the adequate preparation and planning. The stages that a business undertakes in product development **include ideation, research and development, prototyping, testing and commercialisation. **
Features of Quality Management
Control
Assurance
Improvement
Define Quality
A product or service characteristics such as durabiltity,reliability,aesthetics and Perfomance
Benefits Of Quality Management
They build customer trust and loyalty, differentiate themselves from competitors, and ensure long-term profitability through positive brand reputation and reduced returns or complaints.
Quality Management Process
Product quality does not happen by accident .It is the result of a set of clear processes referred to as “quality management” processes .
what does the quality management process involve
- setting quality standards,
- continuous monitoring and assessment, and
- implementing improvements based on feedback and data
Benefits of managing quality for a business
- By systematically managing quality, businesses can minimise errors,
- ensure consistency, and
- meet or exceed customer expectations, ultimately driving success and sustainability.
Features Of Quality Manageement (control)
Quality control focuses on identifying and addressing defects in products before they reach the consumer.
- Actions and Processes:
1.Inspecting and testing products during or after production.
2.pling finished goods to check for defects.
3.nitoring production lines to ensure compliance with standards.
4.plementing corrective actions for identified issues.
Features Of Quality Manageement(Assurance)
Quality assurance emphasizes preventting defects by improving processes throughout The production cycle
Actions and Processes:
* Developing and enforcing quality standards, such as ISO9000*.
- Conducting regular internal audits to ensure process adherence.
- Implementing process-oriented best practices to prevent errors.
- Engaging external auditors for compliance checks.
Features Of Quality Manageement (Improvement)
Continuous improvement focuses on enhancing product quality and operational efficiency by constantly refining processes.
*Actions and Processes: *
Encouraging employee suggestions for incremental improvements.
Conducting collaborative problem-solving sessions.
Identifying inefficiencies and implementing cost-effective changes.
Monitoring and evaluating the impact of improvements on quality and costs.
Overall Control ,Quality Assurance and improvements are key processes in ensuring what?
Ensure that a company’s products and services meet high standards.Companies implement these processes to maintain Customer satisfaction ,ADHERE to regulatory requirements ,and achieve long-term success through consistent product excelllence
Inventory control techniques
Inventory management that encompases the control of three types of inventory
Materials: raw materials and other supplies for manufacturing
Work in process: partially completed goods
Finished goods: completed products ready for sale to customers
Two techniques business use for inventory controls.
Just in Time
and
Just in Case
Just in Time Inventory control techique
JIT inventory control minimises inventory costs by ordering materials and products only when customer orders are placed, ensuring efficient, just-in-time delivery.
Key points in Just in Time (JIT) Technique
Orders placed only after customer orders.
Minimises need for large storage spaces.
Relies on highly efficient production processes.
Requires reliable suppliers and tight coordination.
Reduces overhead costs like warehouse staff.
No bulk purchasing, but lower upfront costs.
High risk of delays, impacting customer satisfaction.
Define Just in Case (JIT) Inventory control technique
: JIC inventory control involves maintaining large amounts of stock to ensure product availability and avoid delays in delivering on orders
Key Points of Just in Case (JIC) Inventory control technique
Maintains high inventory levels in stock.
Reduces risk of stockouts and delays.
Involves higher initial inventory costs.
Lowers dependency on suppliers for prompt delivery.
Ensures quick order fulfilment and customer satisfaction.
Increased costs for storage and overhead.
Ideal for seasonal demand fluctuations.
Which Inventory control technique between (JIT) & (JIC) should a business use?
A business may choose Just-in-Time (JIT) inventory management to minimise storage costs, reduce waste, and maintain a lean operation, especially if they have reliable suppliers and a highly efficient production process. This method is ideal for businesses with unpredictable demand or those that produce custom products.
Which Inventory control technique between (JIT) & (JIC) should a business use?
However, they might opt for Just-in-Case (JIC) inventory management to avoid delays in delivery to customers or running out of stock, especially if they face supply chain uncertainties, seasonal demand spikes, or want to ensure immediate product availability. JIC is more suitable for businesses with stable demand patterns or those that prioritise customer service and quick delivery. The choice depends on factors like the nature of the product, supply chain reliability, and the company’s financial and operational strategy.
