Production Management

Production Management

Facility Planning and Layout

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Production Management

Production management is a process of planning, organising, directing and controlling the activities of the production function. It combines and transforms various resources used in the production subsystem of the organisation into value added product in a controlled manner as per the policies of the organisation.

Objectives of Production ManagementImage result for Production Management

The objective of the production management is ‘to produce goods services of right quality and quantity at the right time and right manufacturing cost’.
Right Quality: The quality of the product is established based upon the customer’s needs. The right quality is not necessarily best quality. It is determined by the cost of the product and the technical characteristics as suited to the specific requirements.
Right Quantity: The manufacturing organisation should produce the products in the right number. If they are produced in excess of demand the capital will block up in the form of inventory and if the quantity is produced in short of demand, leads to a shortage of products.
Right Time: Timeliness of delivery is one of the important parameters to judge the effectiveness of production department. So, the production department has to make the optimal utilisation of input resources to achieve its objective.
Right Manufacturing Cost: Manufacturing costs are established before the product is actually manufactured. Hence, all attempts should be made to produce the products at pre-established cost, so as to reduce the variation between actual and the standard (pre-established) cost.