What is production management?
Production management refers to the process of managing business activities to deliver the desired results of products and services. It involves planning, executing, and directing operations to transform raw materials into finished products and services.
Therefore, it can be said that product management is concerned with (a) procuring resources in the form of management inputs, raw materials, labor, capital, equipment, etc. to develop or produce finished products;
The entire process between these two checkpoints is essentially what we call production management. Supervising and executing the process of turning materials into products is called ‘production management.’
Origin and development
Production management uses a variety of functions and responsibilities to achieve its goals. The transition from simple one-person shops to multinational corporations and factories required that previously simple processes be scaled up to accommodate the changes and expansion of production organizations that have become more complex over the years. New concepts such as scheduling, process management, quality control, and machine maintenance emerge, requiring detailed planning and execution. Certain skills and strategies have become important for the activities carried out in organizations. Automation has changed the landscape of factory systems and production management, which has continued to evolve to encompass more and more areas and domains.
Production management function
Production management attempts to utilize the 6Ms – Men, Machines, Money, Methods, Materials and Markets – to better serve consumer demands. The basic goal is to produce products and services in appropriate quantity, quality, schedule and at optimal cost. Production management makes it easy to introduce different technologies and innovative changes in the workplace. Production management is responsible for supervising and controlling all employees involved in the company’s production process to ensure that the target production volume is achieved.
Let’s discuss the functions of production management.
1. Selection of product and design
Production management helps an organization select suitable products for production and select designs associated with the products. This makes it essential for an organization’s survival to understand its consumers well in order to create products that fully meet their needs. Products must undergo detailed evaluation to ensure they meet customer requirements while remaining cost-effective.
2. Production planning and management
Choosing the right production process for a specific product is also important. Decisions must be made to choose the right type of machinery and technology, the necessary capital investment, etc. Planning precedes production. Decisions such as production quantities, process flows, etc. are all made as planned. Routing is a term used to diagram the order of tasks for a smooth workflow.
Production management is supervised by a production manager. By comparing and contrasting the actual process with the blueprint, you can plan any necessary diversions from the original plan and find and fix any loopholes in the original plan.
Establish schedules to establish benchmarks for when specific production activities will begin and be completed. You also need to manage inventory and cost management. The allocation of materials, labor and other processes is called production schedule.
3. Machine maintenance and replacement
Production management manages the maintenance and replacement of machinery and equipment to ensure the efficient and smooth operation of the production process. This is handled by production managers and teams to avoid speed disruptions and production disruptions.
Importance of production management
1. Efficient use of capital and resources
Production management minimizes production costs and maximizes resource utilization. A concise blueprint ensures appropriate use of resources and time and minimizes gaps between production processes and outputs. Assessing production processes and maintenance downtime allows you to manage processes efficiently to optimize workforce efficiency. A well-planned production function results in higher quality products, faster production speeds, and lower costs per unit.
2. Competitive advantage
Production management can be a great tool for organizations facing market competition. Smoother process flows increase efficiency while allowing companies to deliver high-quality products and services. Production management technology plays an important role in the effective innovation of new products and promotes research for the development of new and high-quality products. Less time spent on the production process means more resources can be freed up for other areas that may need more attention, which can help your organization emerge as a market leader.
3. Minimize the risk of product failure
Preparing a clear roadmap and comparing information and assumptions will help you evaluate the market and reduce your chances of failure. Knowing the wants and needs of the market will help reduce the chances of your product failing. Ultimately, product management, like everything else, cannot guarantee success, but rather reduces it.
To learn more about product management, sign up for our free product management course.
