Production Management: Key Concepts and Practices
Critical Path: Definition and Interpretation
The critical path is determined by observing the activities where the earliest time and latest time are equal, i.e., where there is no leeway for carrying out the activity. Therefore, it is called critical since it must be controlled to avoid problems in the productive system. In other words, the duration of the critical path is the minimum duration of the project.
Early Time vs. Latest Time
The early time of a situation indicates the minimum time required to perform an activity. The latest time, however, determines the maximum time in which an activity must be performed. The time of completion of a project, therefore, should always be placed between these two indicators.
Production Function and its Objectives
The production function is in charge of the production of goods and services, transforming and combining a series of productive factors in an orderly manner to achieve a final product. The basic goal of the production function is to contribute, through the management and organization of production, to achieving the fundamental objective of the company and maximizing profits, with criteria of economic efficiency and effectiveness.
Efficiency vs. Effectiveness: Examples
Maximum efficiency is achieved with the least possible cost, while effectiveness means achieving the expected levels of production within the deadlines and quality determined.
(Examples are open…)
Importance of Quality Management in Production
Quality management is very important because it determines and adapts the activity to produce the good or service provided with the technical and practical utility that enables the company to achieve its aims.
Positive Externalities of Production: Examples
It is possible that the productive system of a company can generate positive effects in the form of benefits not accounted for by society. For example, a company that grows trees produces oxygen and absorbs CO2, which benefits everyone.
Quality Costs: Prevention, Assessment, and Errors
The costs of quality are:
- Prevention costs (planning and determining the quality manual and the training and staff motivation)
- Assessment costs (observation and study of results)
- Costs of errors (retrieval, analysis, and resolution of internal quality problems, guarantees provided, and the activities of care and service to customers affected by a lack of quality)
Production Planning System: Elements
A production planning system enables the management of the productive activity of the company to carry out decisive operations, organizing the various production processes and taking strategic decisions. This is done by observing a series of elements or phases: strategic plan, sales forecast, master production plan, production schedule, and control of operational activities and economic production.
PERT Method: Ideal Project Types
The PERT method is used to outline and plan production, comprising a set of situations and activities that must be controlled in time and in the coordination of concurrent activities and other situations.
Objectives of Production Management
The objectives of production management are controlling the production and managing the production activities of the company with criteria of efficiency and effectiveness.
Quality Manual: Usefulness in Management
The quality manual is a compilation of rules, procedures, and measures that indicate how to achieve the objective for the company. Its usefulness lies in the fact that it explains how, with what instruments, and with what resources.
Process Reengineering: Definition
Process reengineering is the adaptation and improvement of production processes so that they can create products that meet the quality specifications of the company.
Stages of Implementation for the Company
The steps of a process for the implementation of quality in the company are:
- Identifying and defining the goal of quality products
- Using a system to measure these variables that define the quality system
- Implementing a quality control
- Controlling the process, identifying potential problems or deviations from quality
Environmental Industry: Two Main Types of Companies
The environmental industry can be classified into two generic groups of business activities: companies that try to reduce the ecological impact of production, and companies that reorganize production processes to be more environmentally friendly.