Production is a line activity in any business organization. It is, as matter of fact, gateway to the road of progress, not only for a firm but to the nation and the whole world as a whole. In the words of W.C. Zinck,
The material, the machine, and the man- all meet to make or produce the product of reasonable quality at a competitive price.
The production management department of a manufacturing organization makes it possible outlining the latest techniques of production of a new product, improvement in the existing product line, catching up newer techniques, improving the quality of goods and controlling the costs of production. Good quality and reasonable price are the twin blades of one scissor making the growth and expansion of the business possible.
Production Management deals with decision-making related to production process so that the resulting goods or services are produced according to the specifications, in the amount and by the schedule demanded and at a minimum cost. —Elwood Spencer Buffa
The basic philosophy of production management is to launch a frontal attack on costs and effectively use the available manpower weaving new techniques into the whole to keep the production going and the progress of the concern feasible. It is only an efficient production manager who is able to channelize the production process in a manner which ensures most efficient use of the resources to the best advantage of the enterprise.
Importance Of Production Management to the business firm
An efficient production management ensures the following advantages
(i) Production of good quality products at a reasonable cost of production,
(it) Maintains optimum inventory level
(iii) Betters and improves productivity of all inputs,
(iv) provides uninterrupted supply of goods and services
(v) Improves the profitability of the organization,
(vi) Provides better customer services
(vii) Stabilizes employment and removes poverty from masses.