Production management

Management is a distinct process consisting of activities of planning, organizing, actuating, and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources.

Production Management can be defined as the management of the conversion process, which converts land, labor, capital, and management inputs into desired outputs of goods and services. It is focus on managing production operations and resources throughout the production system.

It is also concerned with the design and the operation of systems for manufacture, transport, supply or service. When the word ‘production’ is mentioned, it brings in the things like factories, machines, equipments, assembly lines. This is nothing but things related to manufacturing.

Production Management deals with decision making related to production processes, so that the resulting goods and services are produced in accordance with the quantitative specifications and demand schedule with minimum cost.

What are the characteristics features of production system?
*Production is an organized activity.
*The system transforms the various inputs into useful outputs.
*Production system does not operate in isolation from the other organizational systems.
*There exists a feedback about the activities which is essential to control and improve system performance.
Production management     

Concept of demand

Demand refers to the quantities of a commodity that the consumers are able and willing to buy at each possible price during a given period of time, other things being equal.

In supply chain, the demand meaning having the capacity to fulfill that commitment on a huge scale, without exposing the company to massive liability in the event of a sudden economic downturn.

Demand management is one of the most difficult elements of supply chain management to get operating well. Demand management has been defined as the process that balances customer requirements with supply chain capabilities and those activities that range from determining or estimating the demand from customers, through converting specific customer orders into promised delivery dates, to helping balance demand with supply.

There are significant classifications of demands:
*Demand for consumers’ goods and producers’ goods.
*Demand for perishable and durable goods
*Autonomous (direct) and derived (indirect) demand
*Individual buyer’s demand and all buyers’ (aggregate/market) demand
*From an industry demand
*Demand by market segments and by total market

Demand for a good depends in several factors and varies as any one or more of these factors change. Some of the most important factors determining demand for a commodity of an individual household are its own price, prices of other goods, consumers’’ income, tastes and preferences.
Concept of demand

Supply chain management

Supply chain management has emerged as one of the most powerful business improvement tools available nowadays.

Suppliers, manufacturers, distributors, retailers and a host of service organizations have discovered that they must either transform their operations and tactics or be beaten by competitors with more innovative and aggressive supply networks.

What is supply chain management? Supply chain management is the coordination of production, inventory, location, and transportation among the participants in a supply chain to achieve the best mix responsiveness and efficiency for the market being served.

The focus of supply chain management is on co-operation and trust and their recognition that properly managed.
Supply chain management

Logistics management

Logistics is the organization, planning and realization of the forward and reverse flow and storage of goods, data and control along the entire product life cycle.

Logistics also includes receiving and processing orders, releasing goods from inventory, transporting finished goods to ultimate consumers while trying to achieve maximum customer satisfaction within the distribution channel.

For many companies, the ability to efficiently match demand and supply is the key to their success. Failure to do so could lead to loss of revenue, reduced service level, impacted reputation, and decline in the company’s market share.

Therefore, many companies are looking for effective strategies to respond to market change without significantly increasing cost, inventory or response time. This has motivated a continuous revolution of the management of logistics system.

 Logistics management is the efficient and effective management of logistics activities to meet customer’s requirements. It is unique and to some degree represents a paradox because it is concerned with one of the oldest and also newest activities of business and government.
Logistics management

Supply management system

Management is an organizational process including strategic planning, goals determination, resources management, organizational of human resources, technical, and financial sources which are necessary for the achievement of goals and for the measurement of result.

Supply management is often seen as a comprehensive management concept. It describes all tasks related to the identification, acquisition, access, positioning and management of resources the organization needs or potentially needs in the attainment of its strategic objectives.

It is the dynamic vision of the practices performed by a strategic purchasing function generating maximum value for the company. It is a strategic approach to planning for and acquiring the organization’s current and future needs through effectively managing the supply base, utilizing a process orientation in conjunction with cross-functional teams to achieve the organization mission.

Supply management requires pursuing strategic responsibilities, which are those activities that have a major impact on the long-term performance of the organization.
Supply management system

The meaning of supply chain management

Supply chain management is one of the major strategic building blocks to develop an effective and efficient verticalised supply chain.

What is supply chain management? Supply chain management is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers.

Thus supply chain management covers all the necessary movement and storage of raw materials, work in process inventory and finished goods from the point-of consumption.

Harrison and Van Hoek define supply chain management as: The alignment of upstream and downstream capabilities of supply chain partners to delivers superior value to the end customer at less cost to the supply chain as a whole.

Supply chain is about relationship management. A supply chain is managed link-by-link, relationship-by-relationship, and the organizations that manage these relationship best will win.

It is important to recognize that one of the most important prerequisites for successful supply chain management is the integration of information flows, material flows and all the business processes within a supply chain network.

Supply chain risk appears as an event which effects the movement of material in a supply chain and disrupts the planned flow of material and money startling from initial suppliers to the end consumer.
The meaning of supply chain management