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THE “FIVE M’S”
1. Production management’s responsibilities are summarized by the “five M’s”: men, machines, methods, materials, and money. “Men” refers to the human element in operating systems. Since the vast majority of manufacturing personnel work in the physical production of goods, “people management” is one of the production manager’s most important responsibilities.
2. The production manager must choose the machines and methods of the company, first selecting the equipment and technology to be used in the manufacture of the product or service and then planning and controlling the methods and procedures for their use. The flexibility of the production process and the ability of workers to adapt to equipment and schedules are important issues in this phase of production management.
3. The production manager’s responsibility for materials includes the management of flow processes—both physical (raw materials) and information (paperwork). The smoothness of resource movement and data flow is determined largely by the fundamental choices made in the design of the product and in the process to be used.
4. The manager’s concern for money is explained by the importance of financing and asset utilization to most manufacturing organizations. A manager who allows excessive inventories to build up or who achieves level production and steady operation by sacrificing good customer service and timely delivery runs the risk that overinvestment or high current costs will wipe out any temporary competitive advantage. Although the five M’s capture the essence of the major tasks of production management, control summarizes its single most important issue. The production manager must plan and control the process of production so that it moves smoothly and meets cost and quality objectives. Process control has two purposes: first, to ensure that operations are performed according to plan, and second, to monitor and evaluate the production plan to see if it can be modified.
‘Production management’, Encyclopaedia Britannica Deluxe Edition, 2004 CD-ROM
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The design of the product and the process to be used determines the efficiency of resource movement and data flow.
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