The concept of Production Management and its functionsConcept Of Production management refers to the application of management and principles to the production function in a factory. In simple words production management involves planning, organizing, directing and controlling in the production process. Show
Definition of Production Management“It is also called operations management, planning, and control of industrial processes to ensure that they move smoothly at the required level. Production “Management deals with decision–making related to the production process. So that the resulting goods and services are produced in accordance with the quantitative specifications and demand schedule with minimum cost”. The main activities of production management can be listed as:(i) procurement of input resources namely material, and land, labor, equipment, and capital. (ii) Product design and development to determine the production process for transforming the input factors into the output of goods and services. (iii) Supervision and control of the transformation processfor the efficient production of goods and services. characteristics of production management1. Production Management is the process of effective planningIt helps in regulating the operations of that section of an enterprise which is responsible for the actual transformation of materials into finished products. 2. Related to the production process.goods and services are produced in accordance with the quantitative specifications and demand schedule with minimum cost. 3. Production Management is a set of general principles for productionProduction management has a set of certain principles like economies, facility design, job design, schedule design, quality control, inventory control, work-study and cost, and budgetary control. Functions of Production ManagementIn modern times production management has to perform a variety of functions. (i) Design and development of the production process. (ii) Production planning and control. (iii) Implementation of the plan and related activities to produce the desired output. (iv) Administration and coordination of the activities of various components and departments responsible for producing the necessary goods and services. v) Get real-time insight into the production. vi)Improve performance with flexible routing. vii)Monitor production costs with ease.
Manufacturing can be a complex undertaking regardless of the size of a company. Managing the production process involves taking into account many variables such as the workforce, equipment, raw materials, workflow, and more. Production management aims to optimize production and find a balancing point between the quality and capacity of produced goods, as well as the time and resources spent on producing them. What is Production Management?Production management is the process of managing the conversion of production inputs (raw materials, human resources, and capital) into production outputs (the goods that a company produces). It is an integral part of overall business management and encompasses overseeing both the planning as well as the execution of the manufacturing process. As such, production management involves managing physical materials and inventories, as well as adherence to design specifications, equipment utilization, performance, and labor in order to implement the company’s production strategy. The role of production management is to harmonize all key aspects related to production. Sometimes also referred to as the 5 Ms of production, these include: 1) men (workforce and labor), 2) machines (equipment), 3) methods (production processes, workstations and routings), 4) materials (raw materials, components and/or sub-assemblies), and 5) money (financing and asset utilization). Effectively and continuously managing production is key in realizing efficiency gains and keeping the production process up to date. A well-designed and executed manufacturing operation translates directly into increased profits, controlled costs, and an improved bottom line. As production management requires the coordination and supervision of both people, materials, and equipment, managers need to continually make decisions in four key areas: Production PlanningProduction planning is the stage where the master schedule is produced. It requires managers to decide where production will begin. For example which machines or which facility. It also requires deciding upon when production will start. Different products run at different speeds and require numerous inputs to complete, so the decision of when is based on the overall product mix. Production ControlProduction control is the floor level application of design specifications. Here, much like a traffic officer in a busy intersection, managers direct staff and equipment to conduct the steps to complete their part of a finished good. This also involves active management against quality standards as well as close monitoring of production speeds against established measured run times. Process ImprovementAll production managers are responsible for monitoring and driving continuous improvement. Many companies may use methodologies such as Lean or Six Sigma to formalize the efforts, but even without such methodologies, no process is static and production management requires reliance on honing and approving floor level process activities of equipment and labor. Equipment MaintenanceJust as production managers need to monitor and coach staff to perform tasks using efficient steps, so too does the equipment need to be managed to keep it in optimal running condition. Maintenance costs are usually rolled into the fully costed finished goods, especially for manufacturers using a cost-plus system to determine costs and set prices. Because of this, overall equipment effectiveness (OEE) is vital. Why is Production Management Important?Without effective floor-level management of production processes, error and inefficiency would be more common within a factory. There are other reasons that production management is important to business operations:
Production and Operations ManagementWhile integrally linked, there is a difference between production and operations management. In any factory, the production manager applies management principals specifically to the production process. On the other hand, the role of operations management is broader as it relates to business activities outside of manufacturing. Operations managers apply business management principals to ensure that the entire organization, and not just production, runs smoothly and efficiently. This not only involves direct input into the production process. It also includes responsibility for services that may accompany production such as customer service or field service. Operations management also encompasses inventory, warehousing, and supply chain. This may include purchasing and delivery systems. And they may manage quality departments and quality initiatives as well. Other functions involved in operations management include:
While the distinction may be somewhat blurred in small and medium-sized businesses (SMB) where managers wear many hats, operations management and production management are different in meaning, scope, focus, and organizational structure. Benefits of Production Management in ManufacturingEffective production management is critical in today’s manufacturing environments. Without it, operations cannot meet commitments or profit targets. But with sound production management, companies can realize several benefits regardless of their size. These benefits include:
Production Management Software SolutionsWhile the concept of systemized production management is not new, with the arrival of the digital age companies have tools available to them that were not possible before. Production management software can take the system described above to the next level, further homing in to improve all areas through the identification of deeper levels of data that can be turned into improvements. It also automates many functions reducing both time and human error. Here are some of the benefits that production management software can deliver:
For manufacturing, production management is the systemized deployment of techniques and methods that allow managers to control production and deliver the lowest cost, highest quality finished goods in pursuit of business objectives. It can be implemented in any size factory and enhanced through the use of production management software.
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What is the principle of production management?Production management involves the planning, organisation, direction and execution of production activities. The ultimate goal of any production management solution is to convert a collection of raw materials into a finished product.
What is production function in operations management?Production Function: Any process which involves conversion of raw material into finished product for satisfaction of human wants is called as production. Production function refers to creation of goods and services in order to satisfy human needs by converting resources into outputs.
What are the 4 functions of production?Importance & Functions of Production Management. Selection of product and design.. Production planning and control.. Machine maintenance and replacement.. What is the branch of management which is related to the production function?Operations Management is that branch of management, that deals with designing, implementing and controlling the production process, i.e. converting inputs into the output, using resources, in order to provide desired goods and services to customers while adhering to the policies stated by the management of the ...
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