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MEANING OF PRODUCTION MANAGEMENT
Production management, alternatively referred to as manufacturing management, is required for
transforming raw materials and partly, fabricated materials into finished products. Production
management does not imply management of productive process alone, but it covers all there activities
which go into the making of production. To make production a concrete reality, one ,must pay heed to
the factors of production like land, labour, capital and organization, or to speak in the language of
business, materials, men, money, machines and methods. Production management thus calls for the
work of planning and control pertaining to each of these factors of production.
Production management does not involve a mechanical assemblage of relevant factors. In contrast to
mere transformation of raw materials into finished products, it aims at transmuting and permuting
resources of higher productivity so that the greatest outputs are obtained from the least inputs. With
its end in views, production management embraces the productive process too and involves planning,
directing and controlling operations till their successful completion. Quality, quantity, cost and time of
production have an important bearing on productivity of the manufacturing enterprise. Accordingly, it
is the task of production management to see that effective utilization of resources is made, time is
shortened, wastes and scrapings are avoided, and harmonious working is made to prevail in the
plant.
For effective managerial performance, the work of production department is required to be organized
on sound lines. All the principles and practices of organizing are to be applied in building a sound
structure for improving the result of production management. Successful production management is
not practicable without the existence of an appropriate organization structure. Consequently,
managerial efforts are to be directed in designing an organization structure that conforms to the needs
of the product, size of the enterprise and availability of production facilities. Organizing for production
may be conceived in broader sense to include some aspects of works engineering or works
organization like plant layout and factory building.
The problems of production management differ form case to case and are mainly related to the
system of production. There are several systems of production which determine the magnitude of
production work and the problems to be tackled in manufacturing operations. Hence, a familiarity with
the different systems of production is required for understanding the intricacies of production
management. Of course, the system of production is dictated in a particular case by the volume of
sales and the nature of product. The quantity to be produced is nothing but an answer to the question
of 'what can be sold”. In the ultimate analysis, therefore, sales are the regulator of a system of
production.
The management of transformation process of inputs into output is the essence of production
management. In present competitive world the production process in every enterprise needs some
effective and scientific planning as well as proper control. Thus production management can be
defined as “Management which by scientific planning and regulation sets into motion the part of an
enterprise to which it has been entrusted the task of actual transformation of inputs into output”. In
the words of Mr. E.L. Brech, “Production Management then becomes the process of effectively
planning and regulating the operations of that part of an enterprise which is responsible for the actual
transformation of materials into finished products”.
This definition appears to be incomplete as it does not include the human factors involved in a
production process. It lays stress only on the materialistic features.
In broader sense, production management actually deals with decision making related to production

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processes, so that the resulting goods and services are produced in accordance with the quantitative
specifications and demand schedule with minimum cost. To attain these objectives the two main
activities of Production Management are the Design and Control of production systems.
In production management effective planning and control are essential. In the absence of effective
planning and regulation of any production activity the goals cannot be achieved, the customers may
not be satisfied and ultimately certain activities may be closed which may lead to social evils.
MEASUREMENT OF WORK
In an engineering sense efficiency can be simply stated as the ratio of useful energy obtained to
energy applied. We can all understand that. Put succinctly, that is what is really meant by efficiency of
production, but the difficulty is to see the relationship between input and output of production, or to
measure performance. Which brings us right to the heart of the problem of efficiency of production:
how to measure performances.
There is usually some difficulty about measuring the comparative performance of several departments
in a Company or different companies. If two factories are turning out the same product which is
measured in tons or feet, then overall cost per ton or per foot is a measure of performance which can
be obtained readily and used for comparison. But how does one compare the costs or efficiency of two
factories or department s making dissimilar products ? Cost per ton or unit is no good. As between two
different firms, only the percentage net profit is any measure, and that is affected by the type of
market and selling cost which are not production costs. And between different departments in the
same firm there would seem to be, at first sight, no measure of efficiency on a common and therefore
comparable basis.
If, however, the amount of “effort” (or cost-material, labour and overhead services) which should
have been sued to make a given quantity of a product is known and also the amount actually used,
then surely the correct amount as a proportion of the actual amount is a measure of performance of
efficiency. It is in reality an efficiency formula again, output over input. The real value of output, in
effort, hours or s.d., is the amount of cost which goes out of the factory or department in a useful
form, i.e., it does not include all wastage and excess costs, avoidable, and of no benefit to customer
or company. And input is the total of all effort and costs absorbed. Including excess costs.
ORGANIZATION OF PRODUCTION PLANNING DEPARTMENT
The work of a Production Planning Department generally falls into three sections, dealing with three
stages of the sequence of operations. They are:
i) Compiling and recording facts.
ii) Developing plans.
iii) Putting plans into operation and controlling results.
In the first stage and section, information is gathered together, recorded and filed in a way which is
suitable for use by planners, and so that reference to it is easy and rapid. The information is of three
kinds, relating to:
a) Customers' orders and requirements;
b) Stocks of materials and components;
c) Plant available, capacities, operations and times.
Unless the organization is of such a size that each kind of information is dealt with in a separate

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MEANING OF PRODUCTION MANAGEMENT Production management, alternatively referred to as manufacturing management, is required for transforming raw materials and partly, fabricated materials into finished products. Production management does not imply management of productive process alone, but it covers all there activities which go into the making of production. To make production a concrete reality, one ,must pay heed to the factors of production like land, labour, capital and organization, or to speak in the language of business, materials, men, money, machines and methods. Production management thus calls for the work of planning and control pertaining to each of these factors of production.  Production management does not involve a mechanical assemblage of relevant factors. In contrast to mere transformation of raw materials into finished products, it aims at transmuting and permu ...
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