Importance of production management:
Importance of Product Management for Business Entity:
Fulfilling company objectives: Production management helps the business to achieve all its objectives. It produces products that meet the needs and wants of customers. Therefore, the company will increase its sales. This will help it achieve its objectives.
Reputation, Goodwill and Image: Production Management helps the company to satisfy its customers. It enhances the reputation, goodwill, and image of companies. A good image helps the company to expand and grow.
Helps to introduce new products: Production management helps to introduce new products to the market. It conducts research and development (R&D). This helps the company to create new and better quality products. These products are successful in the market because they give customers complete satisfaction.
Supports functional areas: Production management supports other functional areas in an organization such as marketing, finance, and personnel. Selling good quality products will be easier for the marketing department, and with the increase in sales, the financial sector will get more funding. It will get more loans and equity capital for expansion and modernization. Due to the excellent performance of the manufacturing sector, the personnel department can effectively manage human resources.
Helps to face competition: It helps the production management company to face competition in the market. This is because product management produces the right quantity, the right quality, the right price and the right time. These products are delivered to customers according to their needs.
Optimal utilization of resources: Production management helps to optimize the use of resources such as manpower and machinery. Therefore, the company can meet its capacity utilization objective. This will bring more revenue to the company.
Reduces production cost: Product management helps to reduce the cost of production. It tries to increase output and reduce inputs. This helps the company achieve its cost reduction and performance objective.
Company expansion: Production management helps the company to expand and grow. This is because it tries to improve the quality of products and services and reduce costs. This helps the company to make more profit. These profits help the company to expand and grow.
Importance of product management for customers and society:
High quality of life: Production management conducts continuous research and development (R&D). So they produce new and better types of products. People use these products and enjoy a high standard of living.
Creating employment: Production activities create various employment opportunities, either directly or indirectly, in the country. Direct employment is created in the manufacturing area, and indirect employment is created in sub-areas such as marketing finance and customer support.
Improves quality and reduces cost: Improves the quality of product management products due to research and development. Due to large scale production, there are large economies of scale that reduces the cost of production. Therefore, consumer prices also fall.
Diversification Effect: Due to production, other sectors are expanding. Spare parts manufacturers will expand. Expanding the service sector such as banking, communications, insurance, PPOs, this spreading effect will provide more jobs and boost the economy.
Creating an utility: Creating a production form application. Consumers can get the form application in the form, size, and design of the product. The product also makes time use because the product is available to the consumer whenever they need it.
Improving the economy: Product management ensures optimum utilization of resources and effective production of goods and services. This leads to rapid economic growth and the well-being of the nation.