Production Management is a process which involves managing and
controlling production activities of business.
It involves the application of management principles to the production function
of the business to increase productivity.
Production management applies planning, directing, organising and
controlling for managing production operations. This process is concerned
with the conversion of raw materials into business finished products efficiently
without any wastage of resources.
Production management involves framing of various production strategies and
ensures the successful implementation of these strategies in business
operations. These strategies are formed and implemented by production
management for achievement of different pre-set goals in terms of unit costs,
quality, production mix and capacity of production.
Production management aims at proper integration and utilisation of 6M’s:
Men, Machine, Money, Methods, Materials and Market to satisfy the customer
needs in a better way. Its main objective is to manufacture products and
services in the right quantity, of the right quality, at the right time and at a
lower cost. Various technological and innovation changes are easily
implemented in business using Production management. Production
management supervises and controls all persons associated with production
operations of the business and ensure the desired output. The functions of the
production function are described below:
Functions of Production Management
Functions of Production
Management
Selection Of Products And Its Design
Production management helps the firm in selection of proper products and
design. Selection of the right product and its proper design is important for the
survival of every business in the market. It performs several research
programs to understand the wants of customers. Proper knowledge of
customer requirements helps the firm in deciding the right product. After
choosing a product, its proper design is selected to ensure that customer
needs are fully satisfied at a lower cost.
Production Planning And Control
Planning and monitor production activities are quite important for every
business. Production management keeps an eye on each and every activities
and element associated with production operations. It decides in advance
what to produce and in how much quantity, then decides process for
production, sets the starting and completion dates for production activities. It
designs an exact plan route in advance and implements that in operations to
ensure timely delivery of orders. Production managers monitor all production
activities and take all necessary activities as and when required.
Location Of Facilities
Selection of proper location for setting production facilities is a must for
ensuring smooth functioning. It is a long term capital decision which affects
the business organisation in the long run. Production management properly
analyse the area before setting up production plants and other facilities of
business. It takes into account various geographical and other factors to
ensure the availability of raw materials, enough employees and various
infrastructural facilities.
Machines Maintenance And Replacement
Production management plays a significant role in the maintenance of
machinery and plant. Proper functioning of machinery is important for
uninterrupted production. Production management process focuses on
continuous routine inspection of machines, performs regular cleaning and
oiling, removal and replacement of any obsolete and damaged equipment’s.
All these steps taken by production management prevent any machinery
breakdown and avoid any production halts.
Enhances Goodwill And Reputation Of Business
Goodwill and image of a business is a key element in attracting and retaining
customers. Production management helps the business in improving its
goodwill by properly satisfying customer needs. Production management
ensures that the right quality products at the right cost are delivered to
customers at the right Time. This increase the overall confidence and
satisfaction level of customers.
Helps In Facing Competition
Production management helps the business is facing stiff competition in the
market. It properly analyzes the market requirements and competitors
activities before planning for production activities. All strategies are framed
and implemented in accordance with the situations of the market. It ensures
that a firm produces the right product in the right quantity, at the right time and
provides it to the customer at the right cost. Customers’ needs are given prime
importance by production management. This will helps in facing the
competition easily.
Helps In Expansion And Growth
Expansion and growth are the ultimate aims of every business. Production
management supports the business in its expansion and growth. It aims at
increasing the profitability of the business by decreasing the overall operating
cost. This process ensures optimum utilisation of all resources. Production
monitors operations of every department of business and takes all corrective
measures as and when required. High-profit earnings by business help in
expanding its operations and growing its size.
