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PRODUCTION MANAGEMENT SYSTEMS

doc. Ing. Naqib Daneshjo, PhD. Definition of production management. It may be

Čapajevova 14, 040 11 Košice defined as:
e-mail: [email protected]
• The performance of the management
Abstract activities with regards to selecting,
designing, operating, Controlling and
Production management deals with
updating production system.
decision-making related to production processes so
that the resulting goods or service is produced • It is the processes of effectively planning,
according to specification, in the amount and by the coordinating and controlling the
schedule demanded and at minimum cost. production, that is the operations of that
Production management also deals with decision- part of an enterprise, it means to say that
making regarding the quality, quantity, cost, etc., of production and operations Management is
production. It applies management principles to responsible for the actual transformation of
production. raw materials into finished products.
Key words: Production Management System • Production management is a function of
(PMS), Importance of Production Management, Management, related to planning,
basic tables, coordinating and controlling the resources
required for production to produce
specified product by specified methods, by
INTRODUCTION optimal utilization of resources.

Production management means planning, • Production management is defined as

organising, directing and controlling of production management function which plans,
activities. Production management deals with organizes, coordinates, directs and controls
converting raw materials into finished goods or the material supply and Processing
products. Production management also deals with activities of an enterprise, so that specified
decision-making regarding the quality, quantity, products are produced by specified
cost, etc., of production. It applies management methods to meet an approved sales
principles to production. program. These activities are being carried
out in such a manner that Labour, Plant
Production management is a part of
and Capital available are used to the best
business management. It is also called "Production
advantage of the organization
Function." Production management is slowly being
replaced by operations management.
The main objective of production Material Capacity
planing planing Personnel
management is to produce goods and services of the
right quality, right quantity, at the right time and at
minimum cost. It also tries to improve the
efficiency. An efficient organization can face
Production Print manufacturing
competition effectively. Production management order documents
ensures full or optimum utilization of available
production capacity. Equipment
Production management, also called Material
operations management, planning and control of shipment
Operation
industrial processes to ensure that they move
smoothly at the required level. Techniques of
Work order Equipment
production management are employed in service as
well as in manufacturing industries. It is a Performance
responsibility similar in level and scope to other evaluation
specialties such as marketing or human resource
and financial management. In manufacturing Data Production Order
operations, production management includes capture report status
responsibility for product and process design,
planning and control issues involving capacity and
quality, and organization and supervision of the
Figure 1 Production Management – Basic Tables
workforce.

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PRODUCTION AND OPERATIONS The importance of production management

MANAGEMENT to the business firm:
1. Accomplishment of firm's objectives:
The Subject of Production Management is
studied under different Headings-such as Production management helps the business firm
Production Planning and control, Production and to achieve all its objectives. It produces
Inventory control, production and operations products, which satisfy the customers' needs and
control and many more. What ever may be the title wants. So, the firm will increase its sales. This
of the subject, the contents of the subject are more will help it to achieve its objectives.
or less one and the same. Before we discuss about
production management, let us discuss about 2. Reputation, Goodwill and Image:
product, production and management. This will Production management helps the firm to satisfy
give us a rough idea about production Management its customers. This increases the firms
and with what a production manager has to deal reputation, goodwill and image. A good image
with. helps the firm to expand and grow.
Product is the combination of various
surfaces and processes (or operations). This is 3. Helps to introduce new products:
because the production Manager is solely Production management helps to introduce new
responsible for producing the product. He has to products in the market. It conducts Research
think of the various surfaces by which the product and development (R&D). This helps the firm to
is made of, so that he can plan for processes by develop newer and better quality products.
which a particular surface can be made and plan for These products are successful in the market
required capacity of the facility by which the because they give full satisfaction to the
surface is produced. While planning he has to see customers.
that the required surface is produced by the best and
cheapest method (optimally), so as to make the 4. Supports other functional areas:
product to face competition in the market. Production management supports other
functional areas in an organisation, such as
Management can be explained as an art or marketing, finance, and personnel. The
science, (in fact it is a combination of art and marketing department will find it easier to sell
science) of getting things done by the people, by good-quality products, and the finance
planning, coordinating, organizing, directing and department will get more funds due to increase
controlling the activities to meet specified goals, in sales. It will also get more loans and share
with in the frame work of agreed policies. The capital for expansion and modernisation. The
above explanation put emphasis on getting things personnel department will be able to manage the
done, Planning, Organizing, Coordinating, and human resources effectively due to the better
controlling and specific objectives and agreed performance of the production department.
policies. Today’s manager needs scientific base as
well as personal tactics to manage the people under 5. Helps to face competition:
him to achieve the desired goals. Above discussion Production management helps the firm to face
about product, production and management will competition in the market. This is because
help us to understand what exactly the Production production management produces products of
Management or Production, and Operations right quantity, right quality, right price and at
Management is. the right time. These products are delivered to
the customers as per their requirements.
IMPORTANCE OF PRODUCTION 6. Optimum utilisation of resources:
MANAGEMENT
Production management facilitates optimum
The importance of production management
utilisation of resources such as manpower,
in a business is that it will spearhead the process
machines, etc. So, the firm can meet its capacity
which will ultimately bring in profit to the business.
utilisation objective. This will bring higher
There are several responsibilities and tasks that a
returns to the organisation.
production management team is responsible for and
it is a very stressful job because a product manager 7. Minimises cost of production:
needs to make sure they are constantly making
Production management helps to minimise the
profit from the manufactured services that they are
cost of production. It tries to maximise the
selling. It is also stated that it is very important for
output and minimise the inputs. This helps the
the management to form good relations with the
firm to achieve its cost reduction and efficiency
various teams within the organization as well.
objective.

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8. Expansion of the firm: CONCLUSION

The Production management helps the firm to Production/operations management is the
expand and grow. This is because it tries to process, which combines and transforms various
improve quality and reduce costs. This helps the resources used in the production/operations
firm to earn higher profits. These profits help subsystem of the organization into value added
the firm to expand and grow. product/services in a controlled manner as per the
policies of the organization. Therefore, it is that part
The importance of production management to
of an organization, which is concerned with the
customers and society:
transformation of a range of inputs into the required
1. Higher standard of living: (products/services) having the requisite quality
level. The set of interrelated management activities,
Production management conducts continuous
which are involved in manufacturing certain
research and development (R&D). So they
products, is called as production management. If
produce new and better varieties of products.
the same concept is extended to services
People use these products and enjoy a higher
management, then the corresponding set of
standard of living.
management activities is called as operations
2. Generates employment: management.
Production management refers to
Production activities create many different job operations and control of industrial processes in
opportunities in the country, either directly or order to certify that there is smooth movement to
indirectly. Direct employment is generated in the necessary level. Production management is
the production area, and indirect employment is applicable in a number of fields. Financial
generated in the supporting areas such as management and manufacturing operations are
marketing, finance, customer support, etc. some of the two processes where you can apply
3. Improves quality and reduces cost: production management theory.
Production management improves the quality of References
the products because of research and
development. Because of large-scale [1] Daneshjo Naqib - Cristian Dan Stratyinski -
production, there are economies of large scale. Mohamed Ali M. Eldojali: Business logistics.
This brings down the cost of production. So, In: International journal of interdisciplinarity in
consumer prices also reduce. theory and practice (itpb) – nr.: 2, yar: 2013 –
4. Spread effect: ISSN 2344-2409.
Because of production, other sectors also [2] http://kalyan-city.blogspot.com/2011/12/what-
is-production-management-meaning.html
expand. Companies making spare parts will
expand. The service sector such as banking, [3] http://www.sbctc.ctc.edu/college/_i-pms.aspx
transport, communication, insurance, BPO, etc. [4] http://www.newagepublishers.com/samplechapt
also expand. This spread effect offers more job er/000975.pdf
opportunities and boosts economy.
5. Creates utility:
Production creates Form Utility. Consumers can
get form utility in the shape, size and designs of
the product. Production also creates time utility,
because goods are available whenever
consumers need it.
6. Boosts economy:
Production management ensures optimum
utilisation of resources and effective production
of goods and services. This leads to speedy
economic growth and well-being of the nation.

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