Nature and Scope of Production Management with Examples

Last updated on May 8th, 2023 at 03:32 am

Looking for the Nature and Scope of Production Management with Examples? AAMcourses got you covered. To say it bluntly, the scope of production management is widespread. There are several things to consider, such as location, procurement, land, etc.

Before we jump onto the scope of production management, let’s take a look at what production management is.

What is Production Management?

Production management is the process of converting raw materials into finished goods. Production management is planning, directing, and controlling the production process. It uses all the 6 M’s of management and integrates them accordingly.

The 6 M of management is – Method, Man, Money, Material, Market, and Machine.

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Now, without interruption, let’s move on to the scope of production management.

Scope of Production Management

Plant Location

First on the list of the scope of production management is the plant location. Planning about where to construct the production plan is extremely important. It is one of those one-time investments. The plan cannot be relocated to the same region again and again as it would require an enormous amount of capital.

Several factors have to be considered before deciding on the plant location. The management has to consider environmental factors such as the weather, type of area, land, soil, etc., whatever can affect the production process.

The management has to ensure that the location is in an optimal place for acquiring resources. The plant location should be close to the market for easier and cheaper supply and drop-off. If the plant is far away in a deserted area, it will be difficult for the business to be profitable.

The cost of supplying and delivering products would increase drastically for no reason.

For example, a vehicle manufacturing company. They would choose their plant location close to the market where they can get vehicle spare parts. They would not set their manufacturing unit at a food market.

Plant Layout

Next one of the scope of production management is the plant layout. The plant layout is another important factor to be considered while establishing a new plant. The layout of the facilities should be in a way that aids the production process.

The machinery should be set up in a way that whenever the work of the first machine is done, the product should be dropped off at the second machine.

Aside from machinery, the water purifier, the washroom facilities, the resting area, lunch area, everything has to be planned so that it reflects no harmful effects. For example, the lunch area should not be near the washroom or painting area.

Product Planning

Another one of the scope of production management includes product planning. Selecting the right product design to satisfy the customer’s needs is a part of planning. The number of variants, the size of the variant, and their prices are all factors that are considered for product planning.

For example, let’s take a wafers company. In product planning, they decide what flavors to make, what size the variants should be in, and what price the variants should be sold at.

Cost Control

Another one of the scope of production management is cost control. In production management, cost control is one of the most effective aspects. The management has to make sure that they make a high-quality product while being cost-effective.

The five R’s are proven to be an effective method for being cost-effective. Being cost-effective and selling products at market price results in increased profits.

For example, a company buying from a vendor in the same city is much more cost-effective than buying from a vendor from a different city. It would cut the transportation cost.

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Production Planning and Control

This is one of the most important in the list of the scope of production management. PPC is a complete department of its own. Every manufacturing company has a PPC department to ensure their production process goes smoothly.

The PPC has to make sure there is enough raw material available to complete the required batch for the day or the target production number. If not, they have to ensure that the supplier delivers it before the production day.

After that, the PPC department is responsible for completing the daily quota the upper management provides. PPC has to check the record of the raw material and product to make sure everything is up to date.

Let’s take an example of a vehicle manufacturing company. The PPC team has to monitor the available stocks a day before production starts.

Maintenance

Next up in the scope of production management is the maintenance department. In maintenance, the department has to make sure that every machine available in the plant is working flawlessly.

The maintenance department has to take preventive measures with regard to the machinery. They have their machine maintenance scheduled from time to time. In case of a sudden machine breakdown, the maintenance department’s job is to handle it and get the machinery back in working condition.

Let’s take an example of a vehicle company. Suppose the sprays in the paint shop stop working. In that case, the maintenance department has to check the sprays, counter the problem, and have the spray back working again to resume the procedure.

Inventory Control

As the name hints, Inventory control is related to inventory management. The inventory must be checked to ensure enough raw material or sufficient stock of products is available. The production manager has to ensure they buy the right amount of raw material, quality, and price from the right supplier.

Inventory control includes 3 types of stock it deals with. These 3 stocks are raw materials, work-in-progress products, and finished goods. The production management team has to keep a record of the stock in store and the stock being used.

Quality Control

Quality control is one of the scope of production management, which applies to internal and external products. Internal products refer to the product that is being manufactured at the company. External product refers to the parts brought in by the company to make the internal product.

In quality control, the team has to check each and every product to make sure the quality is up to the mark. When the products are received from the supplier, the quantity of the products is checked at the gate. After the quantity has been checked, it is sent to the quality control department.

The department checks the quality of the product and approves it if they are up to the standards. If not, they are reported back to the supplier.

Method Study

Method study helps the management to eliminate unnecessary movements. The movements may be in regard to workers, machineries, materials, or anything that would reduce productivity and consume time.

Method study helps the management to analyze each production operation. It would help the management to recognize the areas of problems. Once recognized, the management can use corrective measures to improve productivity.

ALSO READ : 7 Important Types of Decisions in Business

FAQs

Closing Statement 

Production management is a vast field. It has several aspects that are to be managed individually. The scope of production management is mentioned in detail in the above article. Each one builds on itself and helps the next. All of them are interconnected to each other and together make up for a successful production system.

I hope this article answers your question about the scope of production management. If there are any doubts or suggestions, it’s free, so let me know in the comment box.