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Production, Forecasting Inventory Management and Quality Control

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Production, Forecasting Inventory Management and Quality Control
Production, Forecasting
Inventory Management
& Quality Control

1

Types of Production:
1- Piece production (≈ 20 parts)
2- Lot (batch) production (≈ 500 parts)
3- Mass production (> 1000 parts)
4- Continuous production (oil, gas… chemicals)

2

r

3

Inputs: They represent the required resources for production, and are known as the 5 basic M’s of production system. They include Money,

Materials,

Manpower,

Methods

and

Machines. They can be extended to Market, Management and Maintenance.
Transformation Processes: they represent the main source of fixed cost (equipment, machines), and Add Value to the system input.
Output could be goods like houses, cars, clothing, computers or service like health care, banking, and communication. The system is constrained and influenced by:
Surroundings external environment: Out of organization control like social, political, economic and weather factors.
Internal

work

environment:

Planning-

Organizing-

Controlling- Leadership. Also it includes heat- lightingnoise- vibration.

4

5

The Operation Manager Main Responsibilities:
1)

To create the goods or service regardless of what are being created.

2)

To coordinate the use of resources through practicing the
Management Process.

The Management Process Involves In:
1. Planning: Determining future action of what is desired and how to accomplish it. Examples: Capacity, Location.
2. Organizing: Administrative structure, decision regarding who, what,

where,

when

and

how.

Examples:

Subcontracting.
3. Staffing: Training the personnel. Examples: Hiring, Lay off, use of Overtime.
4. Directing: Issuing Commands and orders, motivation.
5. Controlling: Measuring results and implementing actions.
Examples: Inventory Control, Quality Control.

Competitiveness: Comparison of the organizations with one another depends on
1. Price: By lowering production cost
6

2. Quality:

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