1. Production as a system
A system can be defined as a set of interrelated parts existing to achieve a certain objective. Where each part of the system can be a department, an organism or a subsystem. In this way a company can be seen as a system with its departments as subsystems.
Types of operations subsystem
Subsystems referring to basic functions: Commercial subsystem, which according to some authors is what really differentiates companies from other types of organizations. Production (or operations) subsystem that is the one that produces or obtains goods and services to satisfy demand. Investment / financing subsystem, which deals with providing and managing the capital resources necessary for investments in fixed assets as well as in working capital.
Direction and management subsystem, which penetrates the previous ones at a strategic, tactical and operational level. Human resources subsystem, which provides the necessary personnel to the entire company system. Information subsystem, which is like a nervous tissue that links all areas to each other and to the environment.
The production subsystem
The production subsystem (or operations, in another terminology) has the mission of obtaining the goods and services that must satisfy the needs detected by the commercial subsystem and / or generated by the research and development department.
2. Parts and functions of the trading system
The operations function exists since people have produced goods and services. Although the origin of the operations goes back to the first civilizations, most of their development has occurred in the last 200 years.
Two levels are recognized: a strategic level, which refers to the long-term objectives for which the subsystem is designed. And a tactical and operational level, linked to the medium, cut and very short term.
Here we must have the agencies and functions that allow us to carry out: Production and capacity planning (medium term). Scheduling of production and capacity (short term). The execution of production (very short term).
3. The control system
Control can be defined as the process of monitoring activities to ensure that they are carried out as planned and correcting any significant deviations.
Production control is often also defined as the function of directing or regulating the methodical movement of products throughout the manufacturing cycle, from the requisition from raw materials to the delivery of the finished product.
The general objectives of production control
The experience of different products, markets and factories gives the different nuances to the meaning of the objectives. The minimum requirements that the production control objectives must cover are: The coordination of the production facilities so that they obtain a product as scheduled and at an optimal cost.
Scope of production control
Receive and register orders from the sales department. Estimate the cost of new jobs. Serve as liaison between the factory and the sales department or the customer. Estimate sales. Send purchase requisitions. Maintain control over raw materials and finished products. Determine inventory levels. Control the inventories of the labor and machinery warehouses to comply with the programs.
Schedule and maintain the production of the entire plant. Assign tasks to men and machines. Make detailed drawings of a product. Send production orders. Evaluate performance. Design and redesign data processing systems. Install data processing systems. Computer programming.
4. The field of production management
This encompasses the essential and complementary functions that are required to ensure the harmony of the production system: Forecasting.- Provides the basic data in terms of the conception and administration of operations. Planning.- It consists of establishing manufacturing calendars that serve for the control of productive activities. Control.- Includes: two activities: Control of production quantitative aspect: includes productivity, delays and costs. Quality control (company credit criteria and buyer-consumer loyalty conditions).
Scientific organization of work: It is an increasingly decisive factor for any production system. It has some particular connotations such as the organization for maintenance, safety at work and information technology as an organization tool. The organization of maintenance. It affects in part the quality of the product, because this activity consists of keeping machinery, equipment and premises in good condition. The organization of safety at work. It consists of identifying and controlling the circumstances that can cause work accidents. Informatics (Cybernetic Theory of the Organization). It allows the administrator to better address the new situations that the administrator must face.
5. Functions of production management
The mission of a Production Administration refers to the planning, design, implementation, execution and control of the production and control systems of a company.
The fundamental strategic objectives are always the same: Cost reduction through greater efficiency and productivity. Compliance in time and form of deadlines, deliveries, etc. The improvement of quality (or what is the same, the decrease of non-quality costs). Increased flexibility in supplies, processes, products, equipment, labor. Improving customer service (quality of service).
The fundamental strategic objectives are always the same: Cost reduction through greater efficiency and productivity. Compliance in time and form of deadlines, deliveries, etc. The improvement of quality (or what is the same, the decrease of non-quality costs). Increased flexibility in supplies, processes, products, equipment, labor. Improving customer service (quality of service).
6. Location in business organizations
The administration of production, some authors such as Domingo Machuca, place it within companies as the subsystem of operations or production as responsible for carrying out the production of products or services.
7. Interrelation with other functions of the company
It is related to the marketing area since it is responsible for creating demand and generating sales, therefore the operations function is the one that creates the offer through its products since without this, it would not be necessary to sell. It is also related to the finance area since it is responsible for the acquisition and distribution of capital to obtain resources. With the purchasing area, it acquires the raw material used to make the products. With the personnel area because it contributes qualified labor for each type of job.
With accounting because the production results are reflected in the accounting studies and then make a decision about any failure or improvement within the system. With the sales area because this is that it distributes the merchandise in the market for consumption. As well as it is supported by methodologies of basic discipline areas such as: quantitative analysis, concept of systems, organizational behavior, economics, general principles of administration and business laws.
