Production Management: it’s Meaning and Important Aspects

Production Management: it’s Meaning and Important Aspects!
The function of production has assumed great significance as a Key function in almost all industrial/manufacturing undertakings.All other activities in such undertakings revolve around this key function. The activities of production are independent of the size of the enterprise.

In a small concern one person may be undertaking this function, whereas in large organisations this activity may be performed by many individuals or separate groups. The success or failure of an enterprise depends very much upon the extent of care and accuracy with which the production function is managed. Management of production function of an enterprise on scientific and rationalised lines is sure to help to achieve its objectives most successfully.

Meaning:

Production is the creation of goods and services. It is concerned with transforming the inputs in the form of raw materials, labour, machines, men and money into output i.e. goods and services with the help of certain production processes.
Production function is the most important function in an organisation around which other activities of an enterprise (viz., marketing, financing, purchasing and personnel etc.) revolve. It is pertinent to note that production function should be managed in an efficient and effective manner for the achievement of the organisational goals.
In a departmental type of organisation, production management is concerned with carrying out the production function. Production management becomes the process of effectively planning and regulating the operations of that part of an enterprise which is responsible for actual transformation of raw materials into finished products.
Simply stated, production management is concerned with decision making relating to processes for producing goods and services in accordance with the pre­determined specifications and standards by incurring minimum costs.

Important Aspects of production function:

Production function may be studied under the following headings:

1. Manufacturing function:

This function is concerned with the production of goods or making of products. Decisions such as selection of factory site, its location, design and layout, type of products to be produced, research, development and design of the product are included in manufacturing function.

2. Ancilliary function:

This function includes all the activities which support or smoothen production function. Ancilliary function is related to production planning and control, maintenance, purchasing, store-keeping and materials handling.

3. Advisory function:

This function helps in improving production function. It includes work study, method study, operational research, inspection and quality control.