Functions of Production Management

What is Production Management

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
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 cost. 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.


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