Production Management, also called operations management, refers to the application of management principles to the production function in a factory. In other words, it involves application of planning, organizing, directing and controlling the production process. Its techniques are employed in service as well as in manufacturing industries. It is a responsibility similar in level and scope to other specialties such as marketing or human resource and financial management. In manufacturing operations, production management includes responsibility for product and process design, planning and control issues involving capacity and quality, and organization and supervision of the workforce.
In modern times, production management has to perform a variety of functions, namely: (i) Design and development of production process; (ii) Production planning and control; (iii) Implementation of the plan and related activities to produce the desired output; (iv) Administration and co-ordination of the activities of various components and departments responsible for producing the necessary goods and services.
The scope of production management is indeed vast. Commencing with the selection of location, it 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.
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