2. 1. production
2. Meaning of Production Management
3. In modern times production management has to
perform a variety of functions, namely
4. Scope of Production Management
5. Objective of Production Management
6.1 Right Quality
6.2 Right Quantity
6.2 Right Time
6.3 Right Manufacturing Cost
3. Production is a process of transforming
(converting) inputs (raw-materials) into
outputs (finished goods). So, production means
the creation of goods and services. It is done to
satisfy human wants. Thus, production is a
process of transformation.
"Production is the process of transforming raw
materials or purchased components into
finished products for sale."
4. Production
Management refers to
the application of
management principles
to the production
function in a factory. In
other words, production
management involves
application of planning,
organizing, directing
and controlling the
production process.
5. Design and development of production
process.
Production planning and control.
Implementation of the plan and related
activities to produce the desired output.
Administration and co-ordination of the
activities of various components and
departments responsible for producing the
necessary goods and services.
6. The scope of production management is indeed
vast. Commencing with the selection of
location, production management covers such
activities as acquisition of land, constructing
building, procuring and installing machinery,
purchasing and storing raw materials and
converting them into saleable products. Added
to the above are other related topics such as
quality management, maintenance
management, production planning and control,
methods improvement and work simplification
and other related areas.
7. RIGHT QUALITY :- The quality of product is
established based upon the customer’s needs. The
right quality is not necessarily best quality. It is
determined by the cost of the product and the
technical characteristics as suited to the specific
requirements.
RIGHT QUANTITY :- The manufacturing
organization should produce the products in right
number. If they are produced in excess of demand
the capital will block up in the form of inventory
and if the quantity is produced in short of demand,
leads to shortage of products.
8. RIGHT TIME :- Timeliness of delivery is one of the
important parameter to judge the effectiveness of
production department. So, the production department
has to make the optimal utilization of input resources
to achieve its objective.
RIGHT MANUFACTURING COST :- Manufacturing
costs are established before the product is actually
manufactured. Hence, all attempts should be made to
produce the products at pre-established cost, so as to
reduce the variation between actual and the standard
(pre-established) cost.