9 Functions and Importance of Production Management

production management
production management

Production management’s responsibility is to develop new goods and services according to predetermined specifications. They are also important in the manufacturing and service sectors of the economy. Production management is the term given to the process by which management principles and ideas are applied to the production process within an industrial setting.

Planning, coordinating, directing, and regulating the manufacturing process are the primary responsibilities included in the production management scope. This is at the core of an organization and is responsible for striking a balance between the requirement to provide value to the company (usually in the form of profit), the desires of customers, and what is technically and operationally viable. The purpose of this essay is to concentrate on the significance of production management and its functions.

Aim of the Production Function in Production Management–

The addition of value is the purpose of the production function. Whether it’s a good or a service, the objective is to develop something that will improve an organization’s relationship with its clients. On the other hand, the production department won’t be able to handle all of this on its own.

The marketing department will be responsible for a substantial portion of this. They are the ones who would be responsible for distributing the products to potential customers, and it is expected of them that they would be able to communicate with the production department regarding the requirements of the customers or consumers.

The Production Management department is responsible for a wide variety of tasks. However, the overarching objective is to ensure that the organization consistently provides high-quality products tailored to the target market’s requirements.

Functions of Production Management –

The following are some of the functional components that are involved in production management:

  • Selection of products and designing
  • Selection of production process
  • Estimation of the suitable production capacity
  • Production planning
  • Production control
  • Quality and cost control
  • Inventory Control
  • Maintenance and replacement of machines
  • Scheduling

1. Selection of Product and Design —

When starting a new business, one of the most important decisions is what things to sell and how those products will be designed. It is essential for the company to approach the market with reasonably priced and beneficial products regularly; doing so will ensure the success and advancement of the organization.

The company is required to perform value analysis and value engineering to pick and design a product that it will manufacture. The product should be chosen after a comprehensive analysis and review; once that step has been completed, selecting the design should be the next logical step.

2. Selection of Production Process —

Planning for the production process must to take place well in advance of when it really begins. The choice of production method occurs next, following the completion of the product selection and the conclusion of the design process, respectively. Production management includes it as one of its most significant functions.

The appropriate production method must be chosen, the number of labor that will be required to create the same must be estimated and recruited, the kind of technology that will be utilized, and the quantity of capital that will be necessary must each be agreed upon. The machinery that would be put into work, the engineering, and the material handling system, all of which shall be selected and prepared for a smooth and successful work function, are to be put into work.

3. Estimation of Right Production Capacity—

When it comes to production management, one of the most important decisions to make is choosing the appropriate production capacity. First, an accurate estimation of the product’s demand must be made, and then this demand must be brought into line with the available production capacity.

Inaccurate assessment may affect the production of the product since problems may arise from having either less or more capacity than is really required. There is a possibility that the break-even analysis for planning the production capacity will be important. The team in charge of production management needs to be ready with a layout plan for both long-term and short-term production.

4. Production Planning —

The planning of the production process is an important part of the production management function. Therefore, production management is responsible for making the routing and scheduling decisions.

Scheduling is the means by which the entire production process can be planned, including when it shall be started and when the production activity shall come to an end. Routing, on the other hand, is primarily responsible for determining the path the production process will take and the sequential operations that will be carried out.

5. Production Control —

The next job that the production manager is responsible for is one that is of the utmost importance and involves exercising control over the production process. The production planning and the actual process are going to be compared to one another, and if there are any deviations from the actual planning, they are going to have to be dealt with by taking the necessary steps to correct them.

6. Quality and Cost Control—

The management of both quality and costs plays a significant part in the growth of the company. Customers want products that are of the highest possible quality at prices that are both reasonable and affordable. Therefore, it is the responsibility of the production manager to work toward preserving the product’s quality while also reducing production costs, since this will, in turn, bring down the product’s price.

7. Inventory Control—

Controlling inventory is an integral part of production management as well. The production manager is responsible for keeping track of the level of inventory. Both overstocking and understocking of inventories are inappropriate. Neither one should be done.

In the event that there is an excessive amount of materials, the working capital will be constrained, and the excess materials have the potential to go bad, be wasted, or be put to inappropriate use. If there is a shortage of inventory, the manufacturing process and delivery of the product will be slowed down. Therefore, the production manager is responsible for exercising proper control over the inventories.

8. Maintenance and replacement of Machines —

The production manager is responsible for ensuring that the machinery and equipment are maintained appropriately and replaced when necessary. Before starting the actual production process, every piece of machinery that will be used in the making of the product must first be inspected.

In addition to other duties, the production manager is responsible for ensuring that there is a system in place for the routine inspection, oiling, washing, replacement, and repair of machines, machinery, and spare parts. This helps to prevent unanticipated technological breakdowns as well as halts in production.

9. Scheduling— 

Production scheduling is of the utmost importance when it comes to progressing to subsequent stages of a manufacturing process. The production schedule is a plan that specifies the order in which raw materials, labor, and processes will be allocated in order to produce goods for customers.

Production scheduling aims to ensure that the manufacturing process goes off without a hitch by coordinating the production requirements with the readily available resources in the most efficient and economical manner possible.

It is necessary to have strong management and the appropriate production planning, and a scheduling method to achieve the best production. Even the most straightforward enterprise is susceptible to failure without a comprehensive plan to control and organize the exhibition.

Importance of Production Management–

The company is able to accomplish all of its objectives with the assistance of its production management. It does this by producing goods that satisfy the requirements and preferences of customers. As a direct consequence of this, the company’s revenue will go up.

This will help it get closer to accomplishing its goals. The management of production contributes to the overall satisfaction of the company’s clients. It enhances a company’s image, as well as its credibility and goodwill in the community. The expansion and growth of the company are both helped by having a positive image. Production management lends a hand in bringing new products to market and is therefore essential to this process.

The company has a research and development team that is comprised of its production management staff. Because of this, the company is able to create cutting-edge products of a higher quality and sell them at more competitive prices. The fact that these goods completely fulfill their customers’ needs has contributed to their widespread adoption in the market.


The most basic definition of production management describes it as the central pillar supporting the expansion of a business. Production management is able to provide effective support for the enterprise’s other major functional areas, such as marketing, finance, and staffing.

As a direct result of the increased profits, the marketing department will have an easier time selling high-quality goods, and the financial sector will receive additional funding due to increased profits. It will receive additional loans and equity capital so that it can expand and modernize its operations. Because of the manufacturing sector’s tremendous success, the personnel department is in a position to manage the company’s human resources effectively.

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