Production Management
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Production Management ensures the smooth flow of raw materials, labor, machines, and information to transform inputs into finished goods effectively and efficiently. It balances planning, execution, quality, and cost control in a manufacturing environment. Below are the core features of an effective Production Management System :
Production Planning
Production planning is the backbone of manufacturing. It determines what to produce, how much, and when, based on sales orders, inventory status, and capacity.
Includes:
Production Schedule : Breaks down overall demand into a time-phased plan.
Demand Forecasting: Uses past trends to predict future demand.
Capacity Planning : Checks machine and labor availability.
Production Calendar : Allocates jobs by date and shift.
Ensures resource optimization, minimizes idle time, and prevents bottlenecks.
Bill of Materials (BOM) Management
A Bill of Materials is a comprehensive list of materials, components, and assemblies required to manufacture a finished product.
Includes:
Multi-level BOMs : For complex assemblies and subassemblies
Costing details : Material costs, labor cost estimates
Version control : To track design changes over time
Provides clarity on required inputs, supports accurate costing, and helps plan purchases.
Material Requirement Planning (MRP)
MRP determines the materials needed to meet production plans and ensures timely availability of raw materials.
Features:
Calculates required quantities based on BOM and production orders
Generates purchase requisitions or internal transfer requests
Considers lead time, current inventory, and safety stock
Avoids material shortages, excess stock, and delays.
Production Order Management
A Production Order (also known as a work order or job card) is issued to start manufacturing a specific quantity of a product.
Features:
Order creation with linked BOM and routing
Priority levels (urgent, normal)
Real-time order tracking: Pending, In-progress, Completed
Batch/Lot number generation
Provides complete control and visibility over each job or batch.
Shop Floor Control
Shop floor control enables real-time monitoring of activities on the manufacturing floor.
Tracks:
Work-in-progress (WIP)
Machine usage and downtime
Operator performance
Output vs. expected productivity
Improves throughput, identifies process inefficiencies, and tracks real-time performance.
Quality Control (QC)
Quality control ensures that products meet specifications at every production stage.
Includes:
In-process and final inspection
Checklists and testing parameters
Non-conformance reporting (NCR)
Rework and rejection tracking
Ensures consistency, reduces defect rates, and builds customer trust.
Costing & Waste Management
Tracks actual production costs and compares them to planned budgets, including material, labor, and overheads.
Features:
Job costing and cost breakdown
Scrap and rework analysis
Yield calculation
Supports cost control and helps identify sources of wastage.
Production Reports & Analytics
Reporting tools give a clear picture of production performance, efficiency, and output trends.
Common Reports:
Daily Production Summary
Operator Performance
Order-wise Efficiency
Machine Utilization
OEE (Overall Equipment Effectiveness) reports
Helps decision-makers with real-time data and performance benchmarking.
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