Thank you so much. Types of production system: The types of production system are grouped into two categories, namely: 1. Intermittent production system 2.
Continuous production system 1. Intermittent production system: Intermittent means something that starts and stops at Read more…. The production system is part of a larger organization — the business entity.
The production system can be viewed as a structure or skeleton of value-creating activities. In short, the difference between the value of Read more…. The main purpose of production and operations management is to effectively manage and utilize the resources of the company which is essential for the production of goods and services.
Production management refers to managing the Read more…. Importance of production management: Importance of Product Management for Business Entity: Fulfilling company objectives: Production management helps the business to achieve all its objectives. Tags: Importance of production management Production management Production management importance What is production management. Notify of. Oldest Newest Most Voted. Inline Feedbacks. Sagar kashyap. Thank you for this post it really helped me in my exam today.
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The very essence of any business is to cater needs of customer by providing services and goods, and in process create value for customers and solve their problems. Production and operations management talks about applying business organization and management concepts in creation of goods and services.
Production is a scientific process which involves transformation of raw material input into desired product or service output by adding economic value. Production can broadly categorize into following based on technique:. Production through separation: It involves desired output is achieved through separation or extraction from raw materials.
A classic example of separation or extraction is Oil into various fuel products. Production by modification or improvement: It involves change in chemical and mechanical parameters of the raw material without altering physical attributes of the raw material. Annealing process heating at high temperatures and then cooling , is example of production by modification or improvement. The production also creates time utility, because goods are available whenever consumers need it.
Production management ensures optimum utilization of resources and effective production of goods and services. This leads to speedy economic growth and well-being of the nation. The definitions discussed above clearly show that the concept of production management is related mainly to the organizations engaged in the production of goods and services.
Earlier these organizations were mostly in the form of one-man shops having insignificant problems of managing the productions. But with the development and expansion of production organizations in the shape of factories more complicated problems like location and layout, inventory control, quality control, routing and scheduling of the production process, etc. This resulted in the development of production management in the area of factory management.
In the beginning, the main function of production management was to control labor costs which at that time constituted the major proportion of costs associated with production. But with the development of factory systems towards mechanization and automation, the indirect labor costs increased tremendously in comparison to direct labor costs, e.
In modern times production management has to perform a variety of functions, namely:. However, the responsibility of determining the output characteristics and the distribution strategy followed by an organization including pricing and selling policies are normally outside the scope of Production Management. The scope of production management is indeed vast. Commencing with the selection of location, production management covers such activities as the acquisition of land, constructing a 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. Login to your account using email and password provided during registration. Don't have an account? Sign up. Already have an account?
Sign in. What is Production Management? Meaning Production management means planning, organizing, directing, and controlling of production activities. Meaning of Production Management Production Management refers to the application of management principles to the production function in a factory. The application of management to the field of production has been the result of at least three developments: i First is the development of the factory system of production.
It is true that people operated business of one type or another, but for the most part, these people were owners of the business and did not regard themselves as managers as well, ii Essentially stems from the first, namely, the development of the large corporation with many owners and the necessity to hire people to operate the business, iii Stems from the work of many of the pioneers of scientific management who were able to demonstrate the value, from a performance and profit point of view, of some of the techniques they were developing.
Definition of Production Management : It is observed that one cannot demarcate the beginning and endpoints of Production Management in an establishment. The following definitions try to explain the main characteristics of production management: i In the words of Mr, E.
Brech: Production Management is the process of effective planning and regulating the operations of that section of an enterprise which is responsible for the actual transformation of materials into finished products. Importance of Production Management The importance of production management to the business firm: 1. The accomplishment of firm's objectives : Production management helps the business firm to achieve all its objectives.
Reputation, Goodwill and Image : Production management helps the firm to satisfy its customers. Helps to introduce new products : Production management helps to introduce new products in the market. Supports other functional areas : Production management supports other functional areas in an organization, such as marketing, finance, and personnel.
Helps to face competition : Production management helps the firm to face competition in the market. These products are delivered to the customers as per their requirements. Optimum utilization of resources : Production management facilitates the optimum utilization of resources such as manpower, machines, etc. Minimizes cost of production : Production management helps to minimize the cost of production. Expansion of the firm : The Production management helps the firm to expand and grow.
The importance of production management to customers and society: 1. Generates employment : Production activities create many different job opportunities in the country, either directly or indirectly. Improves quality and reduces cost : Production management improves the quality of the products because of research and development. Spread effect : Because of production, other sectors also expand.
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