![]() 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. The scope of production management is indeed vast. 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. (iv) Administration and co-ordination of the activities of various components and departments responsible for producing the necessary goods and services. (iii) Implementation of the plan and related activities to produce the desired output. In the beginning the main function of production management was to control labour costs which at that time constituted the major proportion of costs associated with production. This resulted in the development of production management in the area of factory management. came into existence which required more detailed analysis and study of the whole phenomenon. Earlier these organizations were mostly in the form of one man shops having insignificant problems of managing the productions.īut with development and expansion of production organizations in the shape of factories more complicated problems like location and lay out, inventory control, quality control, routing and scheduling of the production process etc. The definitions discussed above clearly shows that the concept of production management is related mainly to the organizations engaged in production of goods and services. (iii) Supervision and control of transformation process for efficient production of goods and services. This definition clearly points out that production management is not a set of techniques. This definition explains the main areas of an enterprise where the principles of production management can be applied. (iii) Production Management is a set of general principles for production economies, facility design, job design, schedule design, quality control, inventory control, work study and cost and budgetary control. So that the resulting goods and services are produced in accordance with the quantitative specifications and demand schedule with minimum cost.Īccording to this definition design and control of the production system are two main functions of production management. (ii) Production Management deals with decision-making related to production process. It lays stress on materialistic features only. & the definition does not include the human factors involved in a production process. “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.” This definition limits the scope of production management to those activities of an enterprise which are associated with the transformation process of inputs into outputs. ![]()
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