The concept of Production Management and its functions

Concept Of Production management refers to the application of management and principles to the production function in a factory. In simple words production management involves planning, organizing, directing and controlling in the production process.

Definition of Production Management

“It is also called operations management, planning, and control of industrial processes to ensure that they move smoothly at the required level. 

 Production “Management deals with decisionmaking related to the production process. So that the resulting goods and services are produced in accordance with the quantitative specifications and demand schedule with minimum cost”.

The main activities of production management can be listed as:

(i) procurement of input resources namely material, and land, labor, equipment, and capital.

(ii) Product design and development to determine the production process for transforming the input factors into the output of goods and services.

(iii) Supervision and control of the transformation process for the efficient production of goods and services.

 characteristics of production management

1. Production Management is the process of effective planning

It helps in regulating the operations of that section of an enterprise which is responsible for the actual transformation of materials into finished products.

2. Related to the production process.

goods and services are produced in accordance with the quantitative specifications and demand schedule with minimum cost.

3. Production Management is a set of general principles for production

Production management has a set of certain principles like economies, facility design, job design, schedule design, quality control, inventory control, work study and cost, and budgetary control.

Functions of Production Management


In modern times production management has to perform a variety of functions.

(i) Design and development of the production process.

(ii)  Production planning and control.

(iii) Implementation of the plan and related activities to produce the desired output.

(iv) Administration and coordination of the activities of various components and departments responsible for producing the necessary goods and services.

v) Get real-time insight into the production.

vi)Improve performance with flexible routing.

vii)Monitor production costs with ease.


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