Production management, also known as operations management, involves planning and controlling industrial processes so that they run smoothly at the required speed. Jaian Cuttari points out that production management is employed in the manufacturing and service industries. The responsibilities are similar to those of marketing, human resource management, and financial management. A production manager is responsible for product and process design, capacity planning, and quality control, as well as employee organization and supervision.
It consists of general principles for facility design, job design, schedule design, quality control, inventory control, work-study, as well as budget and cost control. In this definition, production management is defined as the application of its principles to the areas of an enterprise. It is clear from this definition that production management is not a set of techniques.
Moreover, the production manager must choose the machines and methods of the company, choose the equipment and technology to be used for manufacturing the product or service, then plan and control the processes and procedures for their use. This phase of production management emphasizes the need for a flexible production process and the ability of workers to adapt to equipment and schedules.
Additionally, it is very difficult to formulate a single, adequate definition of Production Management, since Marketing, Finance, and Personnel Management are all a part of it.
Production managers are responsible for the management of flow processes - both physical and informational. The process and product design heavily influence the movement of resources and data.
According to Jaian Cuttari, finance and asset utilization are crucial to most manufacturing companies, which explains the manager's concern for money. Whenever a manager allows excessive inventories to build up, or achieves level production and steady operation by sacrificing customer service and timely delivery, he is at risk of losing any temporary competitive advantage.
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