What is production management?
Production management is a process that includes management and control of the production activities of a business. This involves applying management principles to the production function of the business to improve productivity. Production management applies planning, directing, organizing, and controlling to manage manufacturing operations. This process is related to the effective transformation of raw materials into finished products without loss of resources.
Production management involves the development of various production strategies and ensures the successful implementation of these strategies in business operations. These strategies are formed and implemented by production management to achieve various goals in terms of specific costs, quality, product composition and production capacity.
Production management aims at the proper integration and use of 6 components: people, machines, money, methods, materials and market to better meet customer needs. Its main goal is to produce products and services in the right quantity, at the right quality, at the right time, and at the lowest cost. Various technological and innovative changes are easily implemented in the business with the help of production management. Production management controls all persons related to the production activities of the enterprise and ensures the desired result.
Goals of production management:
Production management formulates and implements various production strategies to ensure that products are produced in the required quantity. Producing products in the right quantity is important for every organization to ensure profitability. A surplus or deficit in production will have adverse consequences. Excessive production of products will lead to the blocking of funds in the inventory.
Timely completion of production activities is important for achieving the goal. Production management develops schedules for various types of production activities of the business. Production management oversees all production operations and ensures that all operations are completed according to planned schedules. In case of any deviation in the production activity, the production manager takes all necessary corrective measures to eliminate these deviations. This helps to minimize the total time spent on production activities.
Production management ensures that the organization produces quality products. Production management is aimed at ensuring that the product meets customer expectations. Attempts are made to translate customer needs into a production specification for product development. Certain standards are established in the production management process, and efforts are made to meet these standards.
Cost reduction is the main focus of every business. Production management is aimed at minimizing the costs of business activity. This involves using reliable supply chain management during production planning, minimizing the total cost of production and supply. Production management estimates the true cost of a product before it is produced and tries to keep its production cost within the pre-estimated cost parameter.
Production management helps to maintain an optimal stock of goods in the organization. Production management keeps complete records of all materials needed for various types of production activities. Keeping records makes it easy to identify shortages of any raw material. This helps ensure that all raw materials are always available in the right quantity so that production activities are not disrupted.
Production management fully analyzes market situations, how to develop production strategies. Production management recognizes and takes into account various technological and innovative changes as early as possible. All these changes are implemented in the production activity of the organization under conditions of market competition.
The correct use of all resources should bring the desired profit and achieve the desired goals. Production management issues rules and guidelines for all persons involved in production activities. Production management monitors their activities and helps them improve efficiency. Production managers check the general activity and productivity of all units of organizations. No wastage of resources is guaranteed and all resources are used efficiently.