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Production Management: An Overview

  • Yamini
  • Dec 25, 2021
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Production management encompasses the procedure of planning and regulating those operations of an organization that contribute to the conversion of sources into ready-to-use products.


According to Elwood S. Buffa, production management involves making well-informed decisions regarding the production process to produce the finished goods or services according to the required specifications, in the required amounts, and at the right time, making sure that the budget is kept in mind. -Production Management


Production management encompasses a broad array of a number of specific tasks. A few of them are listed below:


  • Handling the entire inventory of input resources such as labor, management, Machine, and the required capital

  • Organizing the entire conversion procedure so that smooth transformation of input into a productive output can be effortlessly carried out.

  • Monitoring the entire production process throughout its life cycle to produce the goods and services as scheduled according to the specifications.

  • Ensuring the justified utilization of human resources, using emerging technologies, and satisfying the end-users. 


Evolution of Production Management 


The concept of manufacturing and factory system of production. People in charge of a business were themselves unaware of the intricacies of applying management to the field of production.


Growth and development of a large corporation with multiple owners and a large number of professionals who play an integral role in the shaping of the entire framework of the production process. 


The individuals who were involved with innovating breakthrough technologies and techniques. Production management depends to a great extent on sound marketing, financial, and personnel management.


(Must read: Phases of Project Life Cycle)


Roles and Functions of Production Management 


Production management is constituted by production planning and its control. Proper planning and production management can only lead to the company's objectives being fulfilled at the right time.


The rise of production companies such as factory systems and large corporations has been witnessed at an exponential rate leading to the growth of some related problems like location, layout, monitoring inventory, quality control, and keeping the entire production process on the scheduled track. 


These problems have given birth to the incorporation of production management in factory management. Now, with production management, all the crucial procedures such as product designing, inventory management & regulation, location and layout, transportation monitoring, etc. have become increasingly easier.


The top functions of production management have been listed below:


  1. Designing and developing the entire production process

  2. Planning and controlling production right from the accumulation of raw materials to the transportation of finished products.

  3. Executing the plans to get the desired goods and services as scheduled 

  4. Coordinating between multiple departments for smooth communication and easy administration


(Suggested blog: Best Project Managing Software)



Scope of Production Management


Production management is indeed a broad spectrum of functions, covering wide areas.


Right from selecting the plant location and layout to the land acquisition, accumulating all the resources needed as inputs such as machinery, raw materials, and labor constitute production management. Quality control, maintaining improvement and smooth workflow also come under the banner of production management.


However, two distinct elements do not come under production management. These are arriving at the output characteristics and strategizing distribution procedures such as pricing and selling solutions. These processes are usually kept outside the scope of production management. 


Activities that fall under the category of production management can be classified broadly as 


  1. Selecting and designing the product

  2. The production manager and his staff need to be technically proficient in selecting the right plant location and layout. The design and development of equipment and other tools needed also need to be kept in mind. 

  3. Time study and motion study helps in eliminating unnecessary movements that might increase the burden of expenses.  

  4. For reducing the cost of material allocation, factory and technique layout needs to be planned well. 

  5. Capacity planning or the procurement of productive resources needs to be fixed and taken care of in an organized manner. Tools for capacity planning are marginal costing (Break-Even Analysis), learning curves, linear programming, and decision trees.


We can see that production management involves production planning both in terms of short-term and long-term production schedules. The inventory of raw materials, finished products, and services need to be maintained well. 


Once the planning is done, the next step in managerial production management is controlling the production by reconsidering the production plans.


According to Soriebal and Lansburgh “Production control is the process of planning production of operations; establishing the exact route of each item, part or assembly; setting, starting and finishing dates for each important item, assembly and the finished products; and releasing the necessary orders as well as initiating the required follow-up to affect the smooth functioning of the enterprise.”


Controlling raw materials and supplies, tools along with work-in-progress is also included in production management as a part of inventory control. Purchasing raw materials and supplies at the right time and according to the desired quality matters, a lot for keeping the entire production process well-aligned throughout. 


(Must read: Cost of Production)



Ending Note 


The blog ends here. While concluding the blog, it can be successfully stated that production management forms an extremely crucial part of the entire lifecycle of a product. 


Sound production management ensures the easy transformation of input into the desired output, not only at the right time but also without bearing the burden of extra expenses. 

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