What is Production Management? Meaning
Production management agency planning, organising, directing together with controlling of production activities.
Production management deals alongside converting raw materials into finished goods or products. It brings together the 6M's i.e. men, money, machines, materials, methods together with markets to satisfy the wants of the people.
business management. It is besides called "Production Function." Production management is slow existence replaced yesteryear operations management.
The primary objective of production management is to hit goods together with services of the correct quality, correct quantity, at the correct fourth dimension together with at minimum cost. It besides tries to improve the efficiency. An efficient arrangement tin flame confront contest effectively. Production management ensures total or optimum utilisation of available production capacity.
Definition of Production Management
According to Elwood Spencer Buffa,
"Production management deals alongside decision-making related to production processes together with therefore that the resulting goods or service is produced according to specification, inward the amount together with yesteryear the schedule demanded together with at minimum cost."
Importance of Production Management
The importance of production management to the trouble organisation firm:
- Accomplishment of firm's objectives : Production management helps the trouble organisation theatre to attain all its objectives. It produces products, which satisfy the customers' needs together with wants. So, the theatre volition increment its sales. This volition tending it to attain its objectives.
- Reputation, Goodwill together with Image : Production management helps the theatre to satisfy its customers. This increases the firms reputation, goodwill together with image. H5N1 adept picture helps the theatre to expand together with grow.
- Helps to innovate novel products : Production management helps to innovate novel products inward the market. It conducts Research together with evolution (R&D). This helps the theatre to educate newer together with improve character products. These products are successful inward the marketplace position because they plough over total satisfaction to the customers.
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- Supports other functional areas : Production management supports other functional areas inward an organisation, such every bit marketing, finance, together with personnel. The marketing subdivision volition uncovering it easier to sell good-quality products, together with the finance subdivision volition larn to a greater extent than funds due to increment inward sales. It volition besides larn to a greater extent than loans together with portion working capital missive of the alphabet for expansion together with modernisation. The personnel subdivision volition endure able to care the human resources effectively due to the improve performance of the production department.
- Helps to confront competition : Production management helps the theatre to confront contest inward the market. This is because production management produces products of correct quantity, correct quality, correct cost together with at the correct time. These products are delivered to the customers every bit per their requirements.
- Optimum utilisation of resources : Production management facilitates optimum utilisation of resources such every bit manpower, machines, etc. So, the theatre tin flame run into its capacity utilisation objective. This volition convey higher returns to the organisation.
- Minimises cost of production : Production management helps to minimise the cost of production. It tries to maximise the output together with minimise the inputs. This helps the theatre to attain its cost reduction together with efficiency objective.
- Expansion of the firm : The Production management helps the theatre to expand together with grow. This is because it tries to improve character together with trim down costs. This helps the theatre to earn higher profits. These profits tending the theatre to expand together with grow.
The importance of production management to customers together with society:
- Higher measure of living : Production management conducts continuous query together with evolution (R&D). So they hit novel together with improve varieties of products. People usage these products together with taste a higher measure of living.
- Generates employment : Production activities exercise many dissimilar undertaking opportunities inward the country, either straight or indirectly. Direct work is generated inward the production area, together with indirect work is generated inward the supporting areas such every bit marketing, finance, client support, etc.
- Improves character together with reduces cost : Production management improves the character of the products because of query together with development. Because of large-scale production, at that spot are economies of large scale. This brings downwards the cost of production. So, consumer prices besides reduce.
- Spread effect : Because of production, other sectors besides expand. Companies making spare parts volition expand. The service sector such every bit banking, transport, communication, insurance, BPO, etc. besides expand. This spread number offers to a greater extent than undertaking opportunities together with boosts economy.
- Creates utility : Production creates Form Utility. Consumers tin flame larn shape utility inward the shape, size together with designs of the product. Production besides creates fourth dimension utility, because goods are available whenever consumers demand it.
- Boosts economy : Production management ensures optimum utilisation of resources together with effective production of goods together with services. This leads to speedy economical growth together with well-being of the nation.