Glossary of terms used in production

25 December 2008 - 16:50

Next we see the concept of some of the used terms more in which to the production area or operations of a company one talks about:

Area of production

The production area, also call area or department of operations, manufactures or of engineering, it is the area or department of a business that has like main function the transformation of consumptions or resources (energy, raw material, manpower, capital, information) in end items (goods or services).

Capacity of production (installed Capacity)

Capacity of theoretical production, shows the maximum production rate that can be obtained from a process, is moderate in units of exit by time unit, for example:

• an electrical article plant can produce a number of computers per year.
• a company of credit cards can process an amount of invoices per hour.
• a surgical center I could take care of a determined number of interventions per year.
• a bakery can produce an amount of breads per day.

Idle capacity

Capacity of production that is not being used, for example, a company can have a capacity to produce 1 000 000 computers to the year (production capacity), but only produces 900 000 (used capacity), then its idle capacity will be of 100 000 computers.

To read the rest of this note”

Labels: Glossaries, Production

Compártelo

Published in Management of businesses | 2 Commentaries”

Control and analysis of the production

25 December 2008 - 15:40

The control and analysis of the production consist of the measurement of the performance of the management of the productive processes, with the purpose of to know if this one is the adapted one and to know what so close we are of the proposed objectives, so that, in case of having deviation, power to take the corrective measures.

In order to measure the management of the production, they are made use of indicators, of which most important they are:

• Capacity available.
• Efficiency.
• Defective product or defective Percentage.
• Global efficiency of equipment.

We see next the concept of each of them and some of examples of how to apply them:

To read the rest of this note”

Labels: Management of businesses, Production

Compártelo

Published in Management of businesses | 6 Commentaries”

Control and measurement of the productivity

24 December 2008 - 17:17

The productivity consists of the resulting quotient to divide to the production (obtained results) between the resources or used consumptions. While greater it is the production and smaller the resources used in her, greater it will be the productivity.

All company or productive process, must look for the greater possible productivity, that is to say, must obtain the greater possible production, with the smaller amount of used resources.

In order to improve the productivity we can, for example, to reduce costs, to diminish the defective product, to diminish the waste, to optimize the use of manpower, etc. and for it we must take good decisions with respect to machinery, equipment, capacity of plant, materials and products, processes or methods of work, and manpower.

How to find the productivity

In order to find the productivity of a certain aspect, use is made of the following formula:

To read the rest of this note”

Labels: Management of businesses, Production

Compártelo

Published in Management of businesses | 2 Commentaries”

The program of purchases

24 December 2008 - 16:20

The program or policy of purchases of a company makes reference to the programming of the purchases that we are going to him to do to our suppliers, for a period of determined time, of the consumptions or products that we are going to need for the production or commercialization our products (goods or services).

The program of purchases must take into account, besides the amount of products that we are going to produce or to commercialize, our financial standing, administrative, logistic, and of disposition or physical conditioning of the warehouses.

In order to determine the program of purchases, we can make use of the following methods:

Economic lot

The purchases in agreement with this policy are based on establishing a lot of order that diminishes the cost of administration of the inventories.

In order to find the economic lot we used the following formula:

Xopt = √ (2DCp/pCm)

Where:

To read the rest of this note”

Labels: Management of businesses, Production

Compártelo

Published in Management of businesses | 2 Commentaries”

The production area

24 December 2008 - 12:50

The production area, also call area or department of operations, manufactures or of engineering, it is the area or department of a business that it has like main function, the transformation of consumptions or resources (energy, raw material, manpower, capital, information) in end items (goods or services).

Not only the producing or industrial companies count on the function or the area of production, but also, all company of services, reason why nowadays, usually it is used the more the term operations before the one of production, since the term production only seems to imply tangible goods, and not to the intangible goods or services.

For example, a bank that is a company of services, counts on lines of production in debits and credits, counting on products such as savings, salaries (line of debits), or products like leasing, factoring, hypothecating advances of account, credits, letter of guarantee, endorsement, credit cards (line of credit).

A bank being a company of services, uses tangible goods, which would come to be their products, being each of them a product different from the others, reason why like happens in a producing company, each product also has a different process.

To read the rest of this note”

Labels: Management of businesses, Production

Compártelo

Published in Management of businesses | 9 Commentaries”