Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

The Effectiveness of Production Management in the growth of business

By Annphilip Subscribe to RSS | February 7th 2012 | Views:

To streamline the business and to meet targets, business managers should analyze and scrutinize the production procedures on a daily basis. Production management has a key role in planning the production, monitoring the inventory movement and setting the production target. The production management system also provides the necessary tools to check productivity and the actual production target for a certain period. As no business can be operated without being part of a network of firms, production management works on collaborating and sharing information for mutual success.

As the growth and future of a company depends on the product or service offered by it, an efficient production management system works on transforming a range of inputs into the required output that is in line with the quality guidelines. The term ‘production management’ gains its popularity in the early eighteenth century. It was Adam Smith who recognized the economic benefits of dividing labors based on their specialization. Based on his concepts, the companies classified jobs into subtasks and assigned to those workers who are specialized and efficient at it.

Production is a step-by-step process to convert one form of material into another form. This activity should be performed in a controled manner to add value in accordance with the policies communicated by management. Any deviation from this can result in the rejection of the product. Thereby, the company may face a huge loss. In order to avoid this, most companies give ample importance of planning, organizing, directing and controlling the activities of the production function.

What are the objectives of Production Management? The key objective of production management is to produce goods of right quality and right quantity at right time. So, the main objectives can be classified as the Right Quality, the Right Quantity and the Right Time at Right manufacturing cost.

Right Quality – The quality of a product depends on customers’ requirements of the product. The right quality may not be the best quality. The quality of a product depends on the cost of the product, raw materials used for making it and the technical characteristics.

Right Quantity - Most companies take a decision on quantity based on market needs and the customer requirement. Any wrong judgment on this can lead to wastage of men, machine and materials. That means, if a company produces more than what is needed then its capital will block up in the form of inventory. And if the company produces less than what is required, then there comes a shortage of the product and this makes customers to search for an alternative.

Right Time – Time is an important factor in judging the effectiveness of the production department. So it’s the responsibility of the production department to give finished products using minimum resources and costs at the desired time.

Minimize manufacturing costs – In order to tackle with the rising costs of raw materials, each and every company try to minimize their manufacturing costs. Management will calculate manufacturing costs before they start production. Making products at pre-established cost minimizes the variation between the actual and the standard cost.

Today, people digitalized every process. This makes it easy to plan and organize everything in a well mannered way. Internet connection from providers like Verizon FiOS Deals makes it easy to collect data related to production and production management within few seconds. This helps production managers to organize and coordinate each and every function within the provided time frame.

Thus, operations management focuses on how the subtle routines and activities in the production department of a company can be systematically improved day by day. The concept uses logic and practicality to bring more efficiency into production and work related to that. An efficient production manager can give better solutions on how to become more productive while avoiding unnecessary waste.

Annphilip - About Author:
As a freelancer and Ann is interested in writing about new concepts and models that can boost the performance of a company. She gets ideas on this from different television programs and web sites connected to Verizon FiOS Deals.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Management Articles Subscribe to RSS

Why is management training so important
Published by Julia Roger on March 22nd 2012 | Business
Dancing Lion are leading providers of Management Training, Call and Contact Centre Training and Cust...
How important is Reputation management for your Digital Assets
Published by Pgupta on April 5th 2012 | Management
Reputation Management is a novel method to look at the traditional role of public relations, where o...
Agile project management training: for change
Published by Gnan Sunder on March 22nd 2012 | Management
APMG Agile project management certification available in over 20 venues nationwide both onsite and c...
Running qualified bestow info to realize unaffected cost management schemes
Published by Steve Rolling on December 1st 2011 | Management
While a great many agencies pass by the existing hypothesis where 'you be required to spend cash, to...
Some advantages of the fulfilment houses and the stock management companies
Published by Diego Hall on January 9th 2012 | Business
A business can only be successful enough when it is dealt professionally in terms of stock managemen...
The Importance of Letting agents and Residential property management Dublin
Published by Leslie Hoffman on January 14th 2012 | Business
Hiring experienced letting agents and residential property management Dublin is extremely important ...
Advisory business services and the risk management solutions are signed Sodali
Published by Adryana Bygger on April 20th 2012 | Management
Any company needs risk management solutions. Sodali consultancy has a team of professionals with a l...
Strata management solutions by a strata manager
Published by Chris Whelan on March 23rd 2012 | Management
Strata management solution services include day to day managing services that include collaboration ...
Outsource stock management and order fulfillment to make your work easier
Published by Diego Hall on December 15th 2011 | Business
A business has many parts and taking car of each part single handedly is impossible, hence outsource...
Claim management firms find 12 million pound PPI payout
Published by Sam Hopkins on February 14th 2012 | Business
About 12 million pound payable to the customers beneath the protection net for those who have been p...
Zodiac Solutions Inc- Making effective management your criteria for growth
Published by Rahul on July 24th 2012 | Business
To help your organization’s success stay constant even in the times of economic slowdown, there ar...
Supply chain management is incomplete without pick and pack services
Published by Diego Hall on December 15th 2011 | Business
Pick and pack services are integral parts of a business. These services are so crucial that they can...
Make waste management easy with skip bins
Published by Matthew Arthur on August 6th 2012 | Business
Waste, trash or garbage is needed to be disposed in a proper way. There are many reputed companies w...
Mentoring skills: How do young people deal with management roles?
Published by Becky on March 22nd 2012 | Management
Many of us are used to senior staff and managers to be older than us; the older you are, the more ex...
Efficient ship management - the biggest need of shipping business
Published by Saurabh Pandey on December 3rd 2011 | Business
If you are the owner of a ship then you might be looking for someone who can manage it so that you g...
Strata management solution and benefits
Published by Chris Whelan on February 29th 2012 | Business
Previously people didn’t face such difficulties during dividing their property or acquiring their ...
Strategic management of physicians’ day-to-day operational issues
Published by Jacob Thomas on November 29th 2011 | Business
Unlike physician practices of yesteryears, physician practices today have found themselves surrounde...
Arizona property management company excels in offering high standard services within reasonable price
Published by Rajeevdubey on June 20th 2012 | Management
Properties matters should be handled wisely. Be it related to renting your home or sell/purchase of ...
Effective team management – how it is done in a team
Published by C.M.Sundaram on May 31st 2012 | Management
Sometime it’s tough to find how to get the best out of your members, when you are leading a team. ...
The importance of asbestos management
Published by Mary Porter on June 16th 2012 | Management
If you are in need of asbestos management then the fact of the matter is that you need a reputable c...