1-800-918-3597
Production management in the supply chain can be defined as the production planning and control process that oversees the transformation of inputs (raw-material, inventories, work-in-process) into outputs (finished goods). This operations management function includes production planning, operations scheduling, capacity planning, material requirements planning (MRP), and enterprise resource planning (ERP).
Production management can also be defined as the guiding principles governing specific aspects of production such as inventory control, quality control, facility design, schedule design, production economies, and budgetary control.
The main role of production management is to plan and control production processes by procuring and making decisions on various production inputs such as capital, labor, land, raw materials, equipment, etc. The process also involves designing products and other processes like supervision and control needed for efficient production.
Today a variety of production management systems including ERP software, MES systems, MRP systems, and Advanced Planning and Scheduling software are integral to the production process. For this reason, IT operations management is an important part of production management too.
One of the important operations management principles is that types of production work for different types of products. Quantity can also dictate production methods. Production managers are tasked with the work of selecting the best production management method to use. Production methods fall into three main types namely;
Job production focuses on producing as per the specifics of an order. Job production is common when producing non-standardized products. Book printing is a typical example since every book is unique in its own way.
Batch production is repetitive in nature. It involves repetitive production of goods under a batch system with the quantities known in advance. Production involves many operations, with each being done at a given time. After completion of one operation, the next one is started. This process is repeated until production is complete.
A typical example would be an engine production process where the first operation on all engines (such as casting the engine blocks) is done in the first batch before the engines move to the next operation.
Mass, flow, continuous, or on-line mass production is a large-scale process whose aim is ensuring continuous supply. Production is divided into separate operations, and all products go through a succeeding operation quickly and automatically with no time gaps between work being done between one process and another.
Large production facilities have complicated problems revolving around quality control, inventory control, routing & scheduling, etc. Production management was developed to solve such problems. The importance of production management can be explored in the resulting benefits that include, but aren't limited to:
Production management ensures the best use of capital, labor, and equipment. With the help of advanced production management software such as Optessa, wastage is minimized to unprecedented levels. Optessa creates accurate production plans and schedules in seconds regardless of the type of production management method in question.
By optimizing the use of resources, outputs are maximized while minimizing inputs. Reducing manufacturing costs can translate to lower prices for customers and/or higher margins for manufacturers.
Production management ensures the production of high-quality goods that are priced competitively. Products are also available on time and delivered on time. This gives manufacturers the much-needed competitive advantage to stay in business.
In today's global supply chain, this competitive advantage often takes the form of powerful control system software that augments the existing digital business management and enables the entire ecosystem to be even more efficient.
Take for example Optessa's production planning and scheduling software, which currently runs in hundreds of Fortune 100 facilities around the globe. The software integrates with existing manufacturing systems and augments their planning and scheduling functionality with advanced Fast Optimization algorithms. The result is:
This software costs a tiny fraction of the millions of dollars per year per facility that it delivers in savings. Contact us for a Free Demo today!
