Production Management Concept
Production management (or operations management) is one of the traditional management functional areas and includes analysis functions, choice and implementation of more efficient technologies and productive processes in the combination and transformation of productive factors (inputs) for achievement of the maximum goods and services (outputs), whether in quantity or in quality. This concept can be applied either to industrial companies, either to commercial and services companies being able, in these last two cases be designated as operation management.
Activities that integrate production management
In this regard, production management includes activities like:
- definition of production goals and the strategy to achieve them, taking into account the organizations’ global goals and strategies;
- choice, specification and implementation of the productive process more adapted to the product to produce and to the defined production strategy;
- definition of the productive capacity to install according with the defined production needs;
- choice of productive equipments and most efficient technologies and that better adapt to the product to produce, to the defined quantities and to the chosen productive process;
- industrial layout conception in which is defined the equipments arrangement, materials and workstations as well as the materials flow during the productive process;
- definition of the production quality control policy, including definition of control points;
- definition and achievement of equipments maintenance policy;
- definition of duties in the production area;
- current management of the whole productive process.
Production management can also include areas with which deals directly like purchases of material and raw materials, materials logistics, finished product and stocks management.
