Essay on Introduction to Production Management
Number of words: 2376
In an organizational performance, there exist designs and structures that are keenly followed to ensure effective performance. The designs comprise of activities that are conclusive to production activities of the stated organization. Stakeholders, the board of management and personnel design the form in which the events are to occur in a particular manner following specific procedures and routine. The methods differ from one industry to another depending on the nature of the business or production organization at disposal. For instance, activities around a service industry completely vary from activities around product based industry. However, there exists a common uniform set of practices that apply to all sectors of both services based and outcome based. These include communication channels and network, leadership roles and skills, and Marketing practices within an organization. The paper aims at describing the management practices involved in planning, organizing, directing and controlling all production activities and whether the activities have relevance to the organization.
Production management involves all the activities manipulated during the process of converting raw materials into finished goods. According to Spenser, production management incorporates together all the six “M” that is Men, Money, Machines, Material, Methods and Market to satisfy human wants. Human wants infinity in nature hence the M’s are a scarce resource intending to satisfy the desires. Moreover, production management aims to enhance decision making regarding the quality, volume, value (cost) of production. It incorporates management principles to production.
Keywords: production management, Human wants stakeholders, organizational performance, communication, leadership, industry “M”.
Introduction to Production Management
During Business management, production is a crucial element in the organization. It is the production function of the organization hence the sole purpose of the business idea towards providing solutions to real-world problems while making profits in return. The main aim of production management is to enhance timely production of both goods and services, the right quality delivered to the target population at a suitable quantity in the right price (minimum cost). It also works towards improving efficiency which enables competition in the industry. Therefore, to ensure optimum utilization of available production capacities, it is vital to enhance steady production capacity.
Production management has adverse meanings according to different sources. According to Elwood Spencer, it handles decision making related to production processes so as the resulting goods or service is produced according to the specialties in the target quantity by the stipulated duration schedule of demand at the minimum cost.
Overview of Production Management
Intensive research is found in journals, textbooks, websites and scholarly publications on production management definition, the role of production management and the importance to the organization. It emerged from World War II and found its roots and entrance in the 1950s as a manufacturing subject as supported by the scientific innovations and basis at the stated period (Gao & Low, 2014). Hence the management of manufacturing is referred to as production management (Naqib, Stratyinski & Mohamed, 2013). On the other hand, the functions and roles (set of activities and practices) handling the operation of services as well as manufacturing and organizations are made under operations management which tends to be a comprehensive study reference as the focus is on production management.
During the error of manual production processes, human labor was the critical factor in the production activities. Production management deals with the direct production of the firm’s resources. The resources as classified into the class of five ‘P’ as people, plants, products, process, and planning and control (Gao & Low, 2014). That is, the people as the primary labor providers, the plants include the machinery and equipment that aid in the manufacturing of the goods and services (Naqib, Stratyinski & Mohamed, 2013). Products are the actual results of the production process where the input is converted into output. The method includes the activities carried around during the manipulation and conversion of goods and services into the complete desired product (Dr. Pattnaik & Mishra, 2016). Lastly, planning and control are the managerial and technical skills applied during the operations and the whole activities. Plan and power is the actual office work that involves around designing, planning, Budgeting for the process and the human resource role related like evaluation and accountability
Production principles and Functions
As defined by most scholars, production management comprises two significant functions. Production functions consist of the primary characters and requirements of the production process. The first principle is production; which is the actual manufacturing of goods at the desire and price of a willing consumer (Naqib, Stratyinski & Mohamed, 2013). Output as a process is governed by policies and principles as stated below.
First, converting designs into products at the lowest labor budget possible. Mostly, a production unit incorporates inputs- that is the raw materials required to be transformed into finished goods. The owners’ equity as referred to as capital which is the share of investment by the stakeholders that fund the business regarding labor and bills. The return of capital is profits to the shareholders. Information resources that provide marketing strategies, company overview and legal documentation that can be used for legal representation (Dr. Pattnaik & Mishra, 2016). Information may consist of the organizational address, mode of operation and other legal entities of the organization that can be used for reference (Gao & Low, 2014). Time as a factor enables the production to limit its activities to a target to avail consumer goods and services to the market on timely delivery (Naqib, Stratyinski & Mohamed, 2013). All of the stated factors of production enable organizations to transform them into the desired output that meets the needs of consumers. The products are of a higher quality that helps certify the needs of the consumers that the inputs were initially. Therefore, the conversion principle is a value-adding process.
The second principle is the operation nature of processes by people. As stated in the early 1950s, human labor was on surplus demand hence primary methods relied on the human operations to manipulate machinery. Up to today, despite the automation of services by robotics and software, human labor is still on high demand as the machine operators, programmers and machinery controllers still utilized (Naqib, Stratyinski & Mohamed, 2013). However, the rise of technology has competed for human work in productions and operations. Systems are automated to manipulate activities and create projects within the shortest time possible.
The last principle is the billing of manufactured goods. Following immediate production from the powerhouse in the factory, all the manufactured goods are recorded, billed and warehoused before distribution to various regions.
The other function consists of production managers as referred to as managers who take responsibility for ensuring safety, evaluation and assign duties to employees. As defined earlier, management includes processes of planning, scheduling, commanding, coordinating and controlling business activities (Dr. Pattnaik & Mishra, 2016). The managers’ main concern to the organization is related to the activities of the conversion processes or production. It can be noted that production is the way of imposing tools to materials (associating the means to perform tasks on content) but rather, enhancing logic to actual process to increase production (Dr. Pattnaik & Mishra, 2016). The management is oriented and understands every aspect of production processes and every resource employed to perform specific tasks during production. It is the responsibility of the management personnel to evaluate, motivate and appraise factors of production.
Importance of production management
Precisely, production management is the process that merges and transforms various resources used in the production channels of the organization into value addition activities in a controlled manner as per the organizational framework.
First, production management enables accomplishments and achievement of firms’ objectives. A well-managed production organization enjoys the merit of achieving all its stated goals — the quality of products produced to meet high standards and satisfies the consumers (Naqib, Stratyinski & Mohamed, 2013). Timely delivery and stock supply are maintained throughout the season hence more yields to the organization (Dr. Pattnaik & Mishra, 2016). This assists the company to increase the sales volume thus achieving its goals of sales and profitability.
Second, brand power is achieved. A well-satisfied customer creates referrals to other clients increasing the customers’ ratios. After sale service and high-quality products creates a good image, goodwill, and reputation between customers and the firm (Naqib, Stratyinski & Mohamed, 2013). The firm stands high chances of growth and development due to its supportive contented customers.
Third, assists in the creativity and innovation of new products in the market. Production management’s knowledge and skills research new products related to the produced goods. For example, a toothpaste producing company can capitalize on designing toothbrushes on the same brand (Dr. Pattnaik & Mishra, 2016). Therefore, customers who cherish the brand will end up purchasing similar products from the company (Naqib, Stratyinski & Mohamed, 2013). That buys toothpaste and brush of the same brand. These help the company grow its productions and expand brand size. Satisfaction with customers is achieved.
Fourth, production management supports other functional regions in the organization such as marketing, finance, and resource. For instance, when the marketing department sells good quality goods and services to clients’, revenue is received in the finance department as a result of sales increase and profits are achieved to pay for employees (Naqib, Stratyinski & Mohamed, 2013). When the resource department is well compensated, performance is enhanced in the organization (Dr. Pattnaik & Mishra, 2016). Improved productions, timely supply, and frequent marketing are a vital role of the personnel in the organization which as a result of incorporation, are supported.
Fifth enables face stiff competition in the industry. The trick behind timely productions and deliveries, marketing strategies and customer relations comes as a package from a competent management team that understands the competition design and nature of the industry (Dr. Pattnaik & Mishra, 2016). The role of the management is to analyze and strategize on the weaknesses exhibited by the competitors in the market industry to capitalize on the flaws to become strengths.
Sixth enables optimum utilization of resources. Due to the evaluation and accountability role of the production management, human resources, types of machinery, finances are thoroughly utilized to enhance minimal loss cases and maximize utility (Naqib, Stratyinski & Mohamed, 2013). The capacity standards of the organization are met where there is no overloading of stuff or machinery and vice versa to underworking. The firm enjoys high yields due to reduced cost of production and utilization.
Seventh, the costs of productions are minimized. The act of production management to reduce the cost of production is tentatively beneficial to the firm. This is achieved through input decreases and output maximizing (Dr. Pattnaik & Mishra, 2016). Efficiency is performed with the loss of reduction.
Lastly, the growth and expansion of the firm. Outsourcing and innovative methods of the management team scale the firm to higher standards in the market position. This enables the firm to reach out to higher levels in the market. This is due to improvement in quality and reduced production costs. Therefore, firm yields much profit hence growth.
Importance of production management to the customers and society
Perhaps, the production management may have several merits to customers — first, higher standards of living. From the many research and innovations, the team produces high quality of goods and services to the market improving the livelihood of the consumers.
PM Generates employment and opportunities for the community. An existing firm attracts personnel and creates employment opportunities for the dwellers of the region. Both direct and indirect employment is created as in production and marketing or outsourcing respectively.
Third, quality improvement and budget reduction. With continuous research and analysis, the firm produces high-quality products at a lower rate on pricing due to improved technology (Dr. Pattnaik & Mishra, 2016).
Fourth, the spread effect and growth of other sectors. Related companies or companies that depend on the firm also rise. For instance, scrap metal or firms that rely on the waste product or outsource companies also rise.
Creates a utility bill while boosting the economy. The form utility can be achieved in the desired shape, size and designs according to the product (Dr. Pattnaik & Mishra, 2016). Time utility is also created since consumers get the goods whenever on demand. On the other hand, optimum utilization of resources is enhanced.
Production management (PM) is a vital department to every organization. Each organization needs to employ a team of personnel that manages the resources of the firm. The team minimizes inputs while maximizing outputs. PM enables positive customer relations, improved performance, yield increase, reduce or outdo competition among other benefits. It assists the community to increase the standards of living through the production of high-quality goods and services at minimal budget while created both direct and indirect employment. The research conducted by the PM team assists the firm to strategize on the market and for future expansion and growth.
Every company or organization that aspires to expand and grow its operations, there concisely invests in the PM. A competent PM will design the production framework, avail goods on the market at the right time and minimize production inputs while increasing outputs and yields. Research and innovation on the production design and layout is a crucial element in every production management. The PM understands the goals and objectives of the firm hence every decision or strategy executed amounts to value addition to the firm. With intensive analysis of the firm structure, steady growth and development are realized to firms that employ production management.
Dr. Pattnaik, S. & Dr. Mishra, S. (2016). Production and Operations Management. Lecture Notes on Production management. Department of Mechanical Engineering. VSSUT Burla
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