Concept of Production Management:

The concept of production management refers to the application of management and principles to the production process in a factory. In simple words, production management involves planning, organizing and controlling the production process. The set of interrelated management activities involved in producing certain products is called product management.

Definition of Production Management:

“This ensures that operational management, planning, and control of industrial processes move smoothly to the required level.
“Production management concerned with the decision-making process related to the production process. The resulting products and services are manufactured according to the demand schedule with quantity specifications and at minimum costs.”

The main activities can be listed as follows:
i. Procurement of material and input resources such as land, labor, equipment, and capital.
ii. Product design and development to determine the manufacturing process for changing input factors in the output of goods and services.
iii. Supervision and control of the transformation process for the efficient production of goods and services.


Production management is an effective planning process: It helps to regulate the functions of that section of a company, which is responsible for turning the products into real products.
The production process relates to: Products and services that are manufactured in accordance with quantity specifications and request schedule with minimum details.
Product management is a set of general principles of production: Production management encompasses a set of principles, such as economics, facility design, job design, schedule design, quality control, inventory control, work review and cost, and budget control.


The role of production management is very extensive. But the sole purpose is to ensure that the business produces quality products that meet the needs of customers on a regular basis. Below are the functions of production management.
Production Control – Here the manager oversees the production process. He or she must find and ensure the correct production plan, that is, followed during the production process. If there are deviations, the Product Manager should take corrective measures.
Planning – This function is important in every organization. It should plan for when the actual production will begin and end.
Cost and Quality Control – Every company knows how essential quality control and cost is. Customers are not just looking for the best products. But they want to keep them very cheap. Quality control is an important task that a production manager must perform. It involves a number of checks made on the product to ensure the quality remains intact.
Maintenance of Machinery – Production management ensures that the equipment used is in good working condition. That is, the engine replaces the non-functioning or damaged parts to make it work optimally.
Selection of Product and Design: First selects the right product for production. Then selects the right design for the product. You have to be careful when selecting the product and design because the life and success of the company depend on it. The product should be selected only after a thorough review of all other alternative products. After selecting the right product, you need to choose the right design. The design should be tailored to the needs of the customers. It should provide maximum value for customers at lower prices. Therefore, product management should use techniques such as value engineering and value analysis.

Also read: Concept of Entrepreneurship, Types of Entrepreneur, Process of Entrepreneurship, Need of Entrepreneurs, Barriers to Entrepreneurship



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