Understanding of Production Management, Its Functions & Importance
Production Management deals with the creation of goods and services through the application of the business concept. They are also vital in both service and manufacturing firms. Production has a primary objective, which is to employ the company’s resources to produce goods and services fit for the market. This post highlights the definitions, importance, and function of both management concepts.
Meaning of Production Management
Every organization has management principles. And the application of that principle to production function is the term “production management.” This management concept involves planning, scheduling, supervising and control of the activities that concern the production of goods to meet the needs of consumers and also generate profit for the business.
Production Management involves using resources judiciously, to create acceptable products. In this case, raw materials are being transformed into value-added products efficiently. The production manager is also in charge of this area of the business. In other words, decisions such as quantity, quality, price, design, packaging style and material for the product, among others, are made by the production manager. He also ensures that the output matches the specifications.
Importance of Production Function and Production Management
Every successful organization has a line function as well as a support function that must be efficient. But production comes under the line function category which has a direct impact on the customers. Hence it dictates customer experience. Customer experience is critical for the survival of any organization. Therefore line function to a large extent determines the future of the company in question.
What’s the Aim of Production Function?
The goal of production function is to add value. Be it product or services; the idea is to create something that will strengthen the relationship between the organization and customers. But this cannot only be made possible by the production department.
The marketing people also have a huge role to play in this. They are the ones that will distribute the product to potential buyers and should have the capacity to inform the production department of what customers or consumers would prefer.
The Function of Production Management
The role of Production Management is quite elaborate. But the sole aim is to ensure the business produces quality products that can satisfy the needs of customers on a regular basis. Below are functions of production management.
- Production Control – Here the manager supervises and directs the production process. He or she also must find out and ensure the right production plan is followed during the production process. If there are deviations, the production manager has to take the right steps to correct them.
- Scheduling – This function is critical in every organization. It has to do with planning when the actual production would begin and ends.
- Cost and Quality Control – Every company knows how essential quality control and price are. Customers are not just looking for the best products. But they also want to have them at the lowest possible price. Quality control is an essential duty the production manager has to perform. It entails multiple checks performed on the product to ensure quality is intact.
- Maintenance of Machines – Production management also entails making sure that instruments used are in good working condition. And that means replacing the ones that are underperforming or changing damaged parts to enable the machine to function optimally.
Why Production Management is so Important
Production management is relevant to the firm’s success in many ways. Used efficiently, it can lead to numerous accomplishments which will take the business to a great height. Below is the importance of production management.
- Helps the Firm to Accomplish its Objectives
Production management helps the firm to achieve its sales and business objectives by producing goods and services that meet the need of consumers. Sales and profit will increase if the product produced satisfies the customers’ needs.
- Boost Business Reputation and Goodwill
A satisfied customer will undoubtedly want to repeat patronage. That’s why businesses should ensure that quality products are delivered continuously. Making sure that your customers are always happy can also boost business reputation.
- Reduces the Cost of Production
Production management ensures that resources are used judiciously, without compromising on quality. In other words, the business will continue to deliver quality products and sell at a convenient price to customers. But this can only be possible in a situation where the input and output are maximized.