The Production Management is an operational process, which commercially operates and controls all the available resources i.e., manpower, machinery, money, materials, markets and methods to convert raw materials into products. It is used in the operational areas for quality products, planning, direction, execution of production activities and control of industrial processes. Executing this process allows the product to be produced in a specified amount and at a minimum cost.
In fact, it controls a conversion process, as it includes all the processes involved in converting resources into products by using them properly.
It is observed that one cannot demarcate the start and end points of production management in an establishment. The reason is that it is linked with many other functional areas of business, viz., marketing, finance, industrial relations policies, etc.
Alternatively, production management is not independent of marketing, financial and personnel management, due to which it is very difficult to formulate some single suitable definition of production management.
Differences: Operation Management & Production Management
Production Management can be the “Product Center”, Operations Management can be the “Service Center”.
- Production management can be defined as the administration of a set of activities related to the manufacture of goods or the transformation of raw materials into finished goods. In contrast, operations management is used to refer to the branch of management that deals with the administration of both the production of goods and the provision of services to customers.
- Operation is the method by which a device performs its function, while management is administration; The process or practice of management.
- Production management is the field of study that deals with planning, organizing, controlling and directing the production activities of an organization. Operations management is the field of study that deals with the supervision, design and planning of business operations. The main objective of operations management is to enhance the quality of business operations.
- Production management is only about managing activities related to production. Operations Management is about managing overall business operations which includes production and post-production phases
- The basic objective of production management is to make available goods of right quality in right quantity at the right time and at the best price. In contrast, operations management aims to make the best possible use of the organization’s resources to satisfy customer wants.
The main role of production management is quite broad, but in general it can be said that through production management, it can be ensured that the business is producing quality products, and can satisfy the needs of the customers on a regular basis. And also ensure that the correct production plan is being followed during the production process or not.
Functions of production management
The components or functions of production management are as follows:
Product and composition selection
In any production manufacturing unit – production management first of all makes sure which product is going to be manufactured first. After that it makes sure that which design will be suitable for that product. Care should be taken while selecting the product and design as the survival and success of the organization depends on it. Its product should be select only after a details evaluation of all other alternative products. After selecting the right product, the right design has to be select. And the design should be such that it complements the needs of the customers. So that it can present the product of maximum value to the customers at minimum cost. Therefore, production management should use techniques such as value engineering and value analysis.
Selection of production process
It is natural that the basis of the quality and performance of any product depends on its production processes. Therefore, the production management should choose the right production process. So that the product can meet the need of the customers and dominate the market. It is possible only when the product meets all the parameters, and can give complete satisfaction to the customers. When you are selecting the production processes. Then each process and all the materials related to it should also be determine. A decision has to be taken about the type of technology, machines, material handling system, etc.
Choosing the Right Production Capacity
By the way, the selection of production capacity depends on the demand of the product, so everyone is also selecting the production capacity. Then it is very important to know the demand for it, and accordingly the production capacity should be select. It has been observed that the right measurement of production capacity leads to the manufacture of the right product too little or too much capacity can cause problems.
Therefore, the production manager should plan the capacity of production for both short and long term. He should use break-even analysis for capacity planning.
Production plan
Operates and manages all the processes of production, so it is natural that production planning is supporting in it. In which the production manager also takes decisions for routine and scheduling.
Routine means setting the course of action and order of operations. The main purpose of routine is to find out the best and most economical sequence of operations to be follow in the manufacturing process. Routing ensures a smooth flow of work.
Scheduling means deciding when to start and complete a particular production activity.
Production control
It is an important process in all the processes of production. Which can affect the quality of the product and its cost. The manager is required to supervise and control the production, gets accurate information. Whether the actual production has been completing according to the plans or not. It has to compare the actual production with the plans and find out the deviations. Then takes necessary steps to correct these deviations.
Quality and cost control
It is a process directly affecting the planets, thereby controlling the quality costs of the product. It is natural that nowadays a lot of importance is given to quality and cost control. Because it is from this process that the right price of the product is determining, which affects both the market and the customer. Customers all over the world want good quality products at affordable prices. To meet this demand of the consumers, the production manager must continuously improve the quality of his products.
Along with this, it should also take necessary steps to reduce the cost of its products. Those who meet the quality standards of international quality and are able to provide products to the customers at the right prices.
Maintenance and replacement of machines
Machinery and equipment – being central to production processes. It is essential to ensure their proper maintenance and replacement. The production manager should have an efficient system for continuous inspection (regular check), cleaning, oiling, maintenance of machines and equipment, replacement etc. It avoids breakdown of machines and slows down the pace of production. It require to ensures proper maintenance and replacement of machines and equipment.
Inventory control
Manufacturing management also includes inventory control. The production manager must monitor the level of inventories. There should be neither over stocking nor under stocking of inventories. If there is any overstocking, the working capital will get block. And materials may get spoils, wasted or misused. If there is any sense, production will not happen as per schedule, and deliveries will be affects.
Extra input
In production processes – It is concern with the inputs to the factors of production in the production of factor materials. Basically, capital and labor are the most important of the inputs, although more details and complex production operations may include other variables such as land or natural resources.
We can enumerate three major aspects of production management:
- Management, materials, and land, labor, equipment, and capital namely. The specification and purchase of input resources.
- Product design and development to determine the production process for changing the input factors in the production of goods and services.
- Supervise and control the change process for the efficient production of goods and services.
This management concept includes planning, scheduling, supervision and control of activities that concern the production of goods to satisfy the needs of the consumers and also generate profits for the business.
The important role of production management in business management
It is always an important link for the healthy development of business. And its importance to business management is not only reflects in its important components. It can promote the development of business management, can expand the role of business management, etc., but also has other importance.
Therefore, with the title of “The Important Role of Manufacturing Management in Business Management”. The author starts from the analysis of the relevant concepts of manufacturing management and business management. Conducts an in-depth analysis of the current status of production management in the current process of business management. Finally comprehensively and deeply discusses the important role of management in business management. It is hoped that it will play a certain value in promoting the role of production management in business management.
[A] The concept analysis of production management and business management
(1) Analysis of relevant concepts of production management
Which can also be calls operation management or production control. Mainly refers to the effective management of the goods it produces or the direct resources requires to provide services. In other words, production management is a general term for the various management work of the setting and operation of the production system of the business.
From the perspective of content, production management mainly includes three major sections, namely:
Production planning management, production organization management and production control management. The ultimate goal of production management is to achieve high efficiency, low consumption, flexibility, punctuality, and provide customers with satisfactory services.
With the continuous development of the current network information technology, the application of network information technology to the process of business production management, the significant improvement of the production management level of the business has important value significance, which can not only effectively grasp the production link, production speed and production quality of the business, but also clearly know the work performance of production workers, not only that, information network production management also has an important value role in improving the production efficiency of the business, reducing the production cost and ensuring the quality of the product.
(2) Analysis of relevant concepts of business management
Business management, as the name implies, is the process of effectively managing everything inside and outside the business. Specifically, business management mainly refers to the planning, organization, coordination and control of all the contents of the business development process, so that it can improve the production efficiency of the business, reduce the cost of the business, and promote the realization of the set goals of the business.
The content of business management has different divisions from different levels, for example, from the perspective of management objects, the content of business management mainly includes:
Human resource management, capital management, information management, equipment management, etc.
Business management has an irreplaceable and important role in the development and growth of business. It can not only clarify the development direction of business. Enhance the operational efficiency of business, promote the potential of business employees in the process of business management to be effectively play. But also promote the reasonable capital structure of business.
So that the financial clarity of business, most importantly. It can provide customers with satisfactory products and services, promote business to establish a good corporate image. Make them more competitive in the competitive socialist market environment.
[B] The current situation of production management in the current process of business management
(1) Unreasonable organizational structure.
As an internal element of a business, organizational structure is an important influencing factor affecting the overall operation of a business. From the current status of business production management, the business organizational structure generally adopts the form of pyramid organizational structure, this organizational structure is relatively simple, with a single command and command system, responsibilities and authority are more clear.
It is easy for superiors to make decisions, employees in the business to accept orders, to whom to report are very clear, this organizational structure between people conflicts and frictions will be much less than other organizational structures, and easy to manage and coordinate. But there are also greater disadvantages, because the pyramid structure hierarchy is more, so whether it is the transmission of information or decision-making decisions its speed is slower, less efficient, and there will be distortion in the transmission process, resulting in greatly reduced production efficiency, at the same time, employees working under the pyramid organizational structure, will feel more boring and boring, so that employees lose their decision-making ability, but also stifle the vitality and creativity of employees.
(2) On-site management that is not in place.
As an important part of business management, on-site management plays a pivotal role in the process of business production management. On-site management mainly refers to the dynamic process of business applying scientific management ideas and methods to optimize and combine various elements required in the production process of business and rational allocation. If a business wants to maintain normal operation, it must put the resources in the business, such as human, material, and financial resources, in a coordinated and balanced state.
The site is a microcosm of business management activities, it is the starting point of business management activities, but also the endpoint of business management activities, strengthen the on-site management of business, and help promote the realization of maximum efficiency of business. From the current situation of business production management, on-site management is not in place, which will eventually affect the future development of business.
(3) Imperfect performance appraisal.
Performance appraisal can be said to be an important link in business production management, about performance appraisal, academic researchers have different meanings to define it, some researchers believe that performance appraisal is a formal discussion between superiors and subordinates, the purpose is to facilitate superiors to better understand the work status of subordinates, find problems, solve problems in the process.
So as to promote the common benefit of business, superiors and subordinates, comprehensive development. Perfect performance appraisal is conducive to stimulating employees’ enthusiasm for work, enhancing employees’ enthusiasm for work, and promoting the improvement of work efficiency, so that the production efficiency of business can be greatly improved, therefore, performance appraisal has an important value role in business production management. However, from the current status of business production management, performance appraisal has its imperfection, which hinders the development of business to a certain extent.
[C] A brief analysis of the important role of production management in business management
In addition to market demand, the profitability of a business is also related to the production capacity of the business, and the number of products produced by a business is closely related to the ability of production management.
The management mode of business is similar, but they all depend on the normal progress of production management. The efficient operation of production management is the basic premise for business to be profitable, and it is difficult for business without output to occupy a place in the market competition.
The effective implementation of production management is one of the reuses guarantees for qualified products, which plays an irreplaceable role in the production process.
Business is generally composed of three major parts of the operation process: procurement, production, sales. Production management plays a role as a branch of business management.
Production management can exist as a value-added link of a business, and it is also the cornerstone and basic guarantee for the long-term development of a business. Therefore, it can be said that without production management, then business management is deformed, unhealthy and incomplete. The important role of production management in business management can be explained from the following aspects:
(1) Production management is an important part of business management
An effective production management mode is the basis for the normal implementation of business management. A business can produce normally and efficiently, provided that it is planned, organized and purposeful. In the production process, each production link is interlinked, and any problem in any link will cause the loss of product output or the reduction of product quality. Whatever the consequences, it will lead to a decrease in corporate profits. Being able to produce qualified products normally is the premise for business to be able to operate. Production management is an important part of business management.
For most production business, many times do not put production management in a very prominent position, such an attitude leads to the production management mode of the business is very backward, and this backward production management will make the business management very chaotic, the final result of these factors makes the business suffer huge losses. With the transformation and development of the economic model of the market, it is no longer feasible for business to simply rely on quality to improve their market competitiveness, and it is difficult to gain a foothold in the market without quantitative guarantees.
This requires business to attach importance to production management as an important part of business management, move towards the direction of comprehensive development, give full play to the huge potential of production management in business management, and improve market competitiveness.
(2) Promote the efficient operation of business management
Generally speaking, production management is the management of all activities related to the production of products or the ability to provide production services. With the changes in the domestic and foreign markets, the content of production management has undergone tremendous changes, and the changes in its content reflect the production changes in the industry.
Business management is a “big project”. If you want this project to be completed with high quality and efficiency. You must make every part that has an impact on it not have a “short board”. Production management as one of its components, its efficient operation can promote the operation of business management.
If you can make full use of business management, then you can improve the operational efficiency of the business, and the improvement of operational efficiency can be converted into the profit of the business. Business management can enable business to have clear development goals and enable business to develop healthily. The ultimate purpose of production management is to serve business management, and business management is for business to win economic benefits.
In the highly competitive market economy model, every business wants to obtain the greatest economic benefits with the least cost output, so production management has become the top priority. This requires business to establish a sound relevant management system suitable for their own business, which is comprehensively called business management. In short, production management can drive business management forward, and this can drive the entire business forward.
(3) Expand the role of business management
Production management is the core of business management. Which can expand the role of business management. This is because production management can fully mobilize the work efficiency of employees. Thereby improving the overall production efficiency of the business and enabling the business management to operate better. Business management has a certain binding effect on every employee and various organizational activities of the business.
It is a series of clear management regulations formulating in order to adapt to the business itself. It can be continuously improve in the process of business development to adapt to different stages of development of the business. The premise of continuous development of business is to have a healthy and long-term development plan, must have a systematic, scientific and orderly series of management systems, and also enable business and employees to strictly implement and truly implement.
If a business does not have a perfect management system, it is likely to fall into chaos when facing problems such as planning, decision-making, organization, and coordination, and it is difficult for the business to survive and develop well. Business management must be adjust accordingly as the market changes. Business should be more based on the basic idea of management optimization, and constantly update and improve new management concepts and management models.
Consistent management model
The “consistent” management model can no longer adapt to the unpredictable market pattern. So it is necessary to re-treat the update and iteration of the management model. To this end, it is necessary to improve the thinking of business management. Establish a modern business management concept. And its management system should be more in line with the trend of the times.
Jump out of the traditional management model circle, use unique and agile insight to explore the external environment of the business. And strive to achieve the best quality at the lowest cost. Strengthen and improve the management links of the business, and finally transform into huge economic benefits.
That is to say, production management is always an important link for the healthy development of business. Its importance to business management is not only reflect in its important components. It can promote the development of business management. Can expand the role of business management, etc., but also has other importance.
If business management wants to obtain long-term prospects in the fiercely competitive market economy. It must formulate a scientific, effective and innovative production management system suitable for itself. This can not only enable the internal management of the business to be scientific. But also maximize the market competitiveness of the business, and truly exchange the lowest cost for the maximum profit. So as to be invincible in the market, effectively promote the development of business in a healthy, efficient, scientific and stable direction.