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.

Also read: Concept of Production Management, Concept of Entrepreneurship, Types of EntrepreneurProcess of EntrepreneurshipNeed of EntrepreneursBarriers to Entrepreneurship


Sagar kashyap · December 9, 2019 at 12:58 pm

Thank you for this post it really helped me in my exam today

    Vikash Kumar · December 9, 2019 at 8:25 pm

    I’m feeling happy and blessed that this article helped you in your exam.
    All the best for rest of your exams.
    Keep visiting!

Samuel · January 16, 2020 at 3:33 pm

The best thing is that this post has explained each and everything in simple words which is easy to understand to everyone.

Yachana · January 18, 2020 at 5:11 am

Thanks for the amazing post. I liked the clarity of the post and is just amazing.

Adam · January 18, 2020 at 7:36 am

Amazing article and the clarity in the post is simply excellent.
Thanks a million.

Zubin · January 18, 2020 at 6:44 pm

It is amazingly explained

Yachana · January 19, 2020 at 4:02 pm

Very helpful article. Presents a very clear picture. Thanks

Annie Sharma · January 25, 2020 at 2:36 pm

Thank you so much for putting me through, I really appreciate.

Yash Pradhan · January 26, 2020 at 3:08 pm

Thanks a lot for making it so easy to understand.

Maambo Joachim · January 26, 2020 at 3:51 pm

I have enjoyed reading your material which is very hand and easy to understand. Congratulations.

George · January 28, 2020 at 1:06 am

Really helpful and interesting material.

Jessica · January 28, 2020 at 2:04 pm

An excellent and simple format for understanding

Samaira · January 29, 2020 at 7:28 am

Very useful information.

lusoon · January 30, 2020 at 2:26 pm

Thank you, keep it up. It is very useful

Siman Yilkang · January 30, 2020 at 3:08 pm

Quite efficient and helpful. You are doing a good job there.

Osman Omar · February 4, 2020 at 12:31 pm

Thank you very much for the good Information.

Elvin · February 4, 2020 at 4:43 pm

Thanks for sharing valuable information.

Hanady · February 5, 2020 at 6:05 am

This study matter helped me so much. Thank you so much to whosoever uploaded this!

Atul · February 7, 2020 at 11:26 am

This clarification is very lucid. Thanks.

Robiul Islam · February 7, 2020 at 11:51 pm

Thanks for your fantastic approach to clarify!

Wilmot N. Daniel · February 10, 2020 at 5:08 am

Please keep sharing such a type of article. I am a student and it makes me more confident in my studies.

Ramit Verma · February 10, 2020 at 5:50 am

I really appreciate your work. You provide amazing information on this site.
Thank you so much.

Lettie Chauncy · February 12, 2020 at 11:54 pm

It is very helpful for learning, I advise to all use this site for your study.

Leave a Reply

Your email address will not be published. Required fields are marked *