Activities Of Productions And Manufacturing

Introduction & Definition 

                  Production is the action of making or manufacturing of products from raw materials and consumables by applying various processes ( Welding, Painting, Forming, Drilling, Etc.). Production means to convert the raw materials into finished goods to satisfied consumer need. 

                  Production is the process of combining various materials inputs and immaterial inputs (Plans, Know - How) in order to make something for consumption (Output). It is the act of creating an output, a good or service which has value and contributes to the utility of individuals. The production process and output directly result from productively utilizing the original inputs. known as primary producer goods or services, land, labor and capital are deemed the three fundamental production factors. Production is the organized activity of transforming resources into finished products in the form of goods and services, the objective of production is to satisfy the demand for such transformed resources. 

                   Manufacturing is the production of goods through through the use of labor, machines, tools, and chemical or biological processing or formulation. The manufacturing process starts with the product design, and materials specification from which the product is made. These materials are then modified through manufacturing process to become the required part. The manufacturing sector is closely connected with the engineering and industrial design. 

                   Manufacturing is the making of goods by hand or by machines that that upon completion the business sell to a customer. Items used in manufacture may be raw materials or component parts of a large product. The manufacturing usually happens on a large scale production line of machinery as skilled labor. 

Affecting Factors Of Production

                      Production factors means, that things which is used to produce the goods or conversion of raw materials into final or finished goods. There are four basic factors which is affecting the production -

 

1) Land OR Natural Resources

                           Land is the very important factor of production and can take various forms from agricultural land to commercial real estate to the resources available from a particular piece of land. Natural Resources , such as oil and gold, can be extracted and refined for human consumption from the land. Cultivation of crops on land by farmers increases its value and utility. 

                  Land refers to all natural resources. These resources are gifts that are given by nature. The natural resources are water, oil, copper, metals, natural gas, coal and forests. Natural resources can be divided into Renewable Resources and Non Renewable Resources.

Renewable Resources are resources that can be replenished such as water, wind energy and solar energy. 

Non Renewable Resources consist of resources that can be depleted in supply, such as oil, coal and natural gas. 

2) Capital 

                In economics, capital typically refers to money. Capital is not directly involved in producing a goods or services. It facilitates the processes used in production by enabling company owners to purchase capital goods, raw materials, consumable items, land and pay wages. Capital is also a factor that that can last a long time, but it depreciates in value over time. Capital goods include computer, machines, properties, equipment and commercial building. 

3) Labor

               Labor refers to the effort expanded by an individual to bring a product or service to the market. Production workers are paid for their time and effort in wages that depends on their skill and training. Skilled and trained workers are referred to as human capital and are paid higher wages because they bring more than their physical capacity to the work or job. 

           The labor is considered to be heterogeneous, which refers to the idea of how the efficiency and quality of work are different for each person. It differs because it depends on an individual's unique skills, knowledge, motivation, work environment and work satisfaction. The labor is that, it is strongly associated with human efforts. It means that there are factors that play an important role in labor, such as the flexibility of work schedules, fair treatment of employees, and safe working conditions.

4) Entrepreneurship

                              Entrepreneurship is the factor under which all other factors of production into a product or services are worked. It means it is a combination of the other three factors. It is used land, labor and capital in order to produce a goods or services for consumer. It is involved with establishing innovative ideas and putting that into action by planning and organizing production. It is very important because they are the ones taking the risk of the business and identifying potential opportunities. The Entrepreneurship is a factor of production, who is responsible for doing the business in profit or loss as per their capabilities, plans and available resources. 

Production Planning And Control (PPC)

                                  Production Planning And Control Department plays a major role during products order booking. They decide how much order they should accept according to their production capacity. PPC department is may be defined as the direction and coordination of the firm's material and physical facilities towards the attainment of pre-specified production goals in the most efficient available way. PPC involve planning, routing, scheduling, dispatching and expediting to coordinate movements of materials, machines and manpower as to the quantity, quality, time and place. 

Production Manager

                               Production Manager is the person who is responsible for entire production process, co - ordinating all production activities and operations. The production manager is responsible for below activities - 

a) Plan and draw up a production plan.

b) Set the quality standards.

c)  Organize the repair of any damaged equipment.

d) Ensure customer orders are completed on time and to budget and that quality standards and targets are met. 

e) Work with managers to implement the company's policies and goals.

f) Review work performance and identify training needs.

g) Collect and analyze data, putting together production reports for both factory manager and customers.

Documents Of Production Department

                                   For operating production activity the production department has to maintain below documents for audit purpose and effective production.

1) Bill Of Materials (BOM)

                                  A bill of materials is a document, in which sub parts of final products are mentioned. It is a comprehensive inventory of the raw materials, assemblies, subassemblies, parts and components, as well as the quantities of each need to manufacture a product. 

2) Production Process Sheet

                                   Production process sheet is document in which all the operations of products are mentioned from which raw material passed to find final product. The production manager should maintained and update the records as per standards. The process sheet is maintained to conducting operations which are helps to maintain and improvement of product quality. 

3) Product OR Final Parts Drawing

                                  Product drawing is a document of product design. In which products or components detailed dimensions are mentioned. The production manager must read the instructions of final products dimensions to form the final product as per standards. Product drawings are complete set of drawings that detail the manufacturing and assembly of products.           

                                        

4) Test Report

                        Production department must keep the test certificate of raw materials and calibration certificate of tools and gauges for forming the quality products.    

Conclusion

                     Production Department is the very important department of any type of manufacturing industries. Who is responsible for producing the goods or products as per standard of clients requirement. The production department produce the quantity of goods as per clients requirement. He is responsible for utilize the available resources such as raw materials and consumable to produce the final product or components.