What is production management?
Production management is considered as a stage of production and business organization activities, associated with factories and workshops in enterprises. The person in charge of production management will directly participate in planning and monitoring the production progress to ensure the delivery of products and goods on time, meeting the quantity requirements, and complying with the standards. planned quality standards.
Why is production management important to company?
Production management is closely related to the success of the companies. Done effectively, it can bring huge achievements, helping a business get ahead of its competitors and take it to the next level. Here are the meanings of production management to companies:
Helping companies achieve their goals
Production management helps a company achieve its sales and business goals by producing products and services that meet consumer needs. The revenue and profit of the business will increase if the goods are produced to meet the needs and tastes of customers.
Improve business reputation
A satisfied consumer will definitely want to return. That is why companies should ensure that quality products are delivered continuously. Ensuring your customers are always satisfied will strengthen and enhance the reputation of your company.
Reduce production costs
Production management ensures that the company's resources are used judiciously. In other words, companies will continue to produce and provide quality products to customers, obsolete and unsuitable products will be replaced.
What does a production manager do?
There are quite a few people who often wonder "What should a production manager do?". Depending on the field and characteristics of separate production and business activities of each enterprise, the work of production management will be different.
Analysis, planning and management of production operations
- Coordinate with enterprise sales department to analyze customer orders.
- Work directly with customers to negotiate and close issues related to budget, production time and product quality standards based on machine capacity and available materials.
- Plan and schedule production to meet customer and company requirements.
- Assign specific tasks to each production department.
- Planning the materials, personnel, and equipment needed for each order to ensure continuous production.
- Ensure production plans are implemented on schedule, products comply with quality standards and are within the allowable budget of the company.
- Consider the backlog of work and make production plans for new orders.
Monitor and supervise production activities
- Directing order fulfillment and adjusting production plans as needed; Assign work to the department, the production supervisor.
- Develop, amend and supplement production instructions, product quality inspection procedures.
- Supervise the production process, the working process of employees to ensure the rational use of raw materials, and the goods are manufactured according to instructions.
- Timely detection of defective products. Investigate problems related to product quality, analyze causes, and provide prompt remedial action.
- Regularly check to ensure safety requirements in daily production activities.
- Identify new machines needed for the job; arrange suitable personnel for each job.
- Monitor the progress of production activities; Set quality goals for the production department and promptly conduct evaluation and monitoring.
Management of machinery, raw materials, production equipment
- Organize periodic repair and maintenance of machinery and production equipment.
- Make a plan to purchase new equipment and machines to serve the production needs of the business and submit it to superiors for approval.
- Organization of technical handover, instructions on the use of new machines for employees and factory workers.
Recruitment and training management
- Arrange positions, positions and jobs for subordinates and organize skills testing sessions.
- Based on the production situation of the enterprise and actual needs, plan and coordinate with the human resources department to recruit more necessary personnel to serve the production activities of the enterprise.
- Participate in the interview process to select candidates who are able to meet the job requirements.
- Develop and implement new personnel training plans; Evaluate and train potential employees.
- Organize the monitoring and evaluation of the working efficiency of production workers, propose appropriate reward regimes to motivate and promote work productivity.
Production management process in the enterprise
Production capacity assessment
Periodic assessment of production capacity will help enterprises determine which potential market needs the level of demand. From there, the enterprise will have an assessment and balance with its production capacity, can it be met and to what extent?
Planning raw material requirements
Based on the assessment of potential market needs and practical experience in production, managers need to make a plan about the demand for materials needed to carry out the planned production.
Based on production needs, enterprises need to calculate:
- Amount of ingredients needed
– Compare available inventory
- Calculate the amount of missing raw materials and materials that need to be added.
The result of the above 3 steps is to calculate the demand for semi-finished products that each stage needs to use, the inventory of ready-made semi-finished products from which to calculate the amount of semi-finished products at each stage to be produced.
Production phase management
Managers need to outline a detailed process when manufacturing and follow to ensure the most rigor and reasonableness, thereby minimizing any errors arising.
Product Quality Management
Products and goods are the face of an enterprise's brand, so the role of product quality management is extremely necessary. The management and inspection of goods and products must have reports on the quantity, quality, and classification characteristics of each product according to the initially set standards. This stage is required to report information on the number and feedback of customers to have an adjustment plan. Product quality is the factor that makes up the brand of the company.
Product pricing
Product pricing is one of the required production management steps. The cost of the product must be calculated based on the cost of raw materials, machine wear and tear and labor cost of employees and based on market demand. The price of the product is based on the above costs and must also be based on the competitor's price. Therefore, managers need to research carefully before launching products on the market or before signing contracts.
Post-production management
After completing orders and contracts, managers will still have to receive customer feedback. The prompt and correct warranty, giving objective feedback is also a decisive factor to raise the value of the company.
Through the content of this article, you must have understood what production management is? This is considered a complex stage and plays a particularly important role, directly affecting the long-term development of an enterprise.
Replies to This Discussion