PRODUCTION MANAGEMENT

It is the management of the conversion process, which converts land, labor, capital and management inputs in the desired outputs of goals & services.

Production is the conversion of raw materials into semi-finished and finished products with the help of certain production process. In order to achieve this aim, it is essential to plan, organize, direct and control the production system and these activities comprise production management.

Production management deals with decision-making related to production process, so that resulting goods or service is produced according to the specifications in the amount and by the schedule demanded and at minimum cost.

1. ADVANCE PRODUCT PLANNING: The need identification follow the product planning. It includes:

· Preliminary market analysis.

· Creating alternative concepts for the product.

· Clarifying operational requirements.

· Establishing the design criteria.

· Estimating logistics requirements for producing.

· Distributing and maintaining the product in market. At this stage, product specifications like weight, size, color, form, etc, are finalized.

2. ADVANCE DESIGN: Basic and applied researchers investigate technical feasibilities and identify in greater detail the tradeoffs in product design.
3. PRODUCTION PROCES DESIGN: Working with the detailed product design, engineers and manufacturing specialists prepare plans for:
1. Materials acquisitions.
2. Inventory control.
3. Production.
4. Warehousing.
5. Transportation and distribution.
4. PRODUCTION PLANNING AND CONTROL: It deals with the determination and regulation of production processes. Production planning deals with organizing, staffing, leading and controlling as a framework for organizing managerial knowledge. Production control is a process by which actual performance is compared with the predetermined standards. The production manager has to apply control in these important areas:
1. Control of inventories.
2. Control of flow of material into the plant.
3. Control of work in process.
5. SELECTION OF LOCATION: The plant should be located at such a place where production and distribution costs are minimum, taking in view:
1. Cost of land.
2. Rental value.
3. Transportation costs.
4. Labor costs.
5. Cost of water.
6. Cost of power, etc. Other influences are:

· Process inputs.

· Process outputs.

· Process requirements.

· Government policy.

· Availability of site.

· Personal preferences.

6. LAYOUT OF PLANT: It deals with arrangement of machines and facilities. The plant layout should be efficient to achieve economy and efficiency in operations of the production department. An efficient layout is one that allows materials to move through the necessary operations rapidly and in the most direct way possible.
7. SELECTION OF PLANT AND EQUIPMENT: The choice of plant and equipment depends upon technological feasibility constraints and cost constraints. The quality of output, life of the machine, capacity of machines and adaptability of the facilities are also important considerations.
8. RESEARCH AND DEVELOPMENT: Research means critical investigation in order to acquire knowledge Development comes after applied research. Field performance and failure data, technical breakthroughs in materials and equipment and formal research all are used to monitor, analyze and redesign the product.
9. THE COMMUNICATION, EXTERNAL VARIABLES: Efficient communication is crucial for successful achievement of objectives of an enterprise. Receiving of external stimuli, then planning against them and communicating it to the internal process is an important managerial job.