Product planning
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Production economy is the applied, interdisciplinary theory of production management. Galt originally as a special management economics to study the planning, organization, coordination and financial control of the production, as well as the upstream and downstream business functions, was therefore created as a function of teaching, so we will follow this definition, the development of business administration to a doctrine of management of social institutions. In addition to the general management three management functions can be distinguished:
- Marketing Management,
- Financial management and finally
- Production management.
Production economy is often reduced unspoken in the production industry and then divided into mechanical and technological industry ( manufacturing industry ) and the process industry ( process industry ). The production economy then addressing with urgency to management of technology, production and logistics processes in companies.
The manufacturing industry is characterized by discrete production units, ie share -based manufacturing and assembly processes dominated.
The process industry is characterized by continuous or discontinuous ( batch-oriented, for example) processes whose outputs are measured by weight or volume units. It is referred to in the literature as basic material processing industry. For process industry, among other industries ( petro) chemical, mining and steel production, food, cleaning agents and detergents, cosmetics, pharmaceuticals as well as in the broader sense the energy industry are counted.
Is produced in manufacturing plants that are part of company -wide production networks in general. The individual production units are interconnected by logistics networks, which include the storage and transport capacities. Logistics provides the time and quantity -oriented subcontracting and the transport of intermediates for downstream products and the end products to customers.
History
The resultant from the 19th to the 20th century in the turning of Business Administration was initially mainly institutionally structured in Banking, Industrial Management, Commercial Management and more. All of these special operating doctrines concerned with the production in the general sense, the creation of material goods and services that the company sells. With the production in the strict sense, the creation solely of material goods, only the industrial management, whose findings formed the basis of later production economy, was therefore initially strongly focused on economic aspects of industrial production of material goods employed.
Erich Gutenberg was one of the first to understand the production company as the main function, which is reflected in the title of his 1951 published book ' Production '. Gutenberg developed the well-known from the economics of production theory further so that it can describe the in-house production better, such as the eponymous Gutenberg production function. Is known mainly going back to him classification of the factors of production in labor, materials and equipment, in contrast to the economic division in labor, capital and land.
While Gutenberg was interested with his factor theoretical approach to the mathematical description of the relationships between input and output, Edmund Heinen founded in the 60s the decision -oriented business administration. It deals with the preparation, making, implementing and controlling decisions in companies. Thus, the production economy to a social component has been enhanced and design challenges come to the fore, such as the design of products or production methods.
Hans Ulrich turned to knowledge of systems theory and cybernetics on economic issues and created the system- theoretical approach. Depression has his approach in the concept of production system, which can be similar to control and regulate a technical system.
Production systems
From system theory point of view, in a production system to the sub-system of a company that is responsible for production. Among the most important properties of production systems are capacity and flexibility. Under Capacity is defined as the performance in a given period. Flexibility is the ability to adapt to changing conditions. The main elements of production systems are Input, Throughput and Output. When input is called factors of production, in short, factors - especially human labor, machine labor and materials. The Througput represents the actual production process, such as parts production or assembly. When output is to be sold finished products. Output of a production system can be all kinds of goods, such as consumer or capital goods, services or information.
Production program design
The production program includes the totality of a company's products in the type and amount. A company must decide strategically how many different products would offer it, or on how many product areas it wants to be active, so how wide should be the production program and how much to the proportion of business value (depth of the production program ). In addition, it must be decided which strategy the company wants erziehlen profit. It can try to offer the best product on the market, but it must also have the lowest unit cost by producing high volumes efficiently. Or it tries to erziehlen a high price by as accurately as possible the products meet the expectations of each customer, including high-quality products are produced in small numbers in the rule. A company can, for example, be active in the product areas of " Cars " and "Trucks", in each case only a few models offer that consist of a solid and durable steel but have a high degree of vertical by rolled sheets itself and generates the special steel itself.
Before the products can be produced, they must be designed and developed. At very innovative products is given falling even more research is needed. Here, too, offer a variety of possibilities of our own development department, on the award of contracts to engineering firms, to the purchase of patents or licenses. In innovative industries, it is important to bring products quickly to market. Simultanous Engengeering visual impact in order to shorten the development time.
When planning the production program is to consider, among other things, how much is the contribution margin of the products and how much is the existing production capacity.
Potential design
The one company standing for disposal production potentials are mainly manpower, resources (especially machinery) and Raw materials and supplies, also known collectively as man, machine and material mentioned, but also land and rights, such as patents or licenses
Work
Even in " fully automated " factory machines must be planned, serviced and maintained by humans, which is why working from production economic point of view is of interest. With human labor itself is concerned the work of science, with procurement and use of labor human resources management. Workstations should be ergonomically designed, where possible, to enable efficient work. In addition, you can try personnel monetary or non-monetary motivating eg piece rate instead of time wage, with a substantively appealing design of work tasks, social aspects or bonus plans.
Resources
When resources are mainly to machinery such as hydraulic presses, lathes or welding robots, but also for funding such as cranes or conveyors, as well as stock. Equipment must be procured, which often requires an investment account first. Then they have to be maintained during the insert.
Material
The Materials Management has as its object the determination of material requirements and warehousing. The material requirements planning can either start from the production program and based on BOMs calculate how much material is needed for the planned production quantity, or predict future demand based on historical data, such as the annual consumption of a particular commodity. To this end, various forecasting methods are used. In both cases must be decided on the order quantity ie how often, how much ordered. A large order quantity reduces the ordering fixed costs such as truck, but increases storage costs. An extreme form is the just- in-time concept, in which always ordered only as much as is currently Needed to avoid warehousing largely or entirely.
Process design
For process design includes layout planning, scheduling and sequence planning. The layout planning attempts ie the optimal layout to find the optimal arrangement of the means of production. In particular, it examines the question of where that machine should be to reduce the transport costs between these machines. The schedule sets up when what products or production lots should be completed. The sequence planning sets can specify one order. You can choose the order so that the entire missed deadlines is minimized, so that the lead time - the time from the start of production of the first product to completion of the last product - is minimized, or so that the utilization is maximized. Usually it is not possible to optimize all three criteria. This problem has become known as the dilemma of scheduling.
Competitive Positioning
The production program is set in accordance with market needs. Similarly, product and market performance design (product development, product design and product marketing ). Starting from the set for the location of vertical production networks and cooperative relationships through strategic supplier relationships and supply agreements are defined.
Construction of production facilities
After the technology and method choice necessary for production systems are configured and built at the production site. The structure of the production plant at a production site precedes the choice of location. This strategic decision is resource- related factors -, and national or legal factors ( tax legislation - availability and cost of raw materials, energy, qualified staff, proximity to research and development - transportation-induced factors - proximity to consumer markets, transport costs and times, inventory costs free movement of capital, infrastructure, environmental protection, customs regulations, contract security ) influences.
Production
After the construction of the production plant to start production takes place. The production program is coordinated by the production planning and control. The production staff is trained and builds a produktionsspezifsche experience. Ideally, this results in a culturally anchored quality awareness.