2. WHAT IS PRODUCTION PROCESS?
• Production process or “production line” means
those industrial activities beginning when raw
materials are delivered to the new or expanding
business’ fixed location and generally ending
when the items of tangible personal property
have been packaged for sale, or are in saleable
form if packaging is not done.
3. WHY PRODUCTION IS IMPORTANT TO
BUSINESS?
• 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.
4. Four types of production
• 1) Unit or Job type of production
• 2) Batch type of Production
• 3) Mass Production or Flow
production
• 4) Continuous production or Process
production.
5. 1) Unit or Job type of production
• This type of production is most commonly
observed when you produce one single
unit of a product. A typical example of the
same will be tailored outfits which are
made just for you or a cake which is made
just like you want it.
6. 2) Batch type of Production
• It is one of the types of production
most commonly used in consumer
durables, FMCG or other such
industries where there are large
variety of products with variable
demands. Batch production takes
place in batches.
7. 3) Mass Production or Flow production
• One of the best examples of mass production
is the manufacturing process adopted by
Ford. Mass production is also known as flow
production or assembly line production. It is
one of the most common types of products
used in the automobile industry and is also
used in industries where continuous
production is required.
8. 4) Continuous production or Process production
• There is a lot of confusion between
mass production and continuous
production. It can be differentiated by
a single element. The amount of
mechanical work involved. In Mass
production, both machines and
humans work in tandem.
9. 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
the functions of production management.
10. 1. 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.
11. 2. Scheduling
• This function is critical in every
organization. It has to do with planning
when the actual production would begin
and ends.
12. 3. 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.
13. 4. 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.
14. 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.
15. 1. 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.
16. 2. 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.
17. 3. 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.