The scope of production management is very wide. It comprises all activities right from the design and layout of production facilities till finishing the product for dispatch to warehouse or customers. Production management looks after each and every step in the process of production. It involves the establishment of standards, the choice of equipment and tools, the control of cost and quality and the evaluation of performance. Production management establishes a harmonious relationship between the product, the plant, the conversion process and the people so as to achieve predetermined targets.
In modem industry there is cut-throat competition at every stage. Therefore, efficient production has become a very significant element in the success of business. Production implies creation of utilities in the products through manufacturing process. Production planning and control is necessary for efficient transformation of raw materials into finished products. Effective planning and control of the transformation process is the task of production management. According to Brech,
production management then becomes, the process of effectively planning and regulating the operations of that part of an enterprise which is responsible for the actual transformation of maters into finished products.
In short, production management consists of the following activities
(1) Designing products and packages.
(2) Production engineering.
(3) Production planning and control.
(4) Purchasing and inventory control.
(5) Repairs and maintenance.
(6) Quality assurance and control.
Scope Of Production Management:
The scope of production management can be explained through Production Decisions also. An efficient and successful production manager has to make important decisions in the following areas :
(1) Plant location and layout.
(2) Product design and development.
(3) Plant engineering-equipment and tool design, manufacturing techniques and process design. (4) Industrial engineering-work study, job design, methods engineering, etc.
(5) Capacity management, demand forecasting, delivery schedule, resource allocation.
(6) Production planning and control-input planning, scheduling, dispatching, expediting.
(7) Quality control-Specifications, standards, inspection and testing.
(8) Inventory management-purchasing, store-keeping, recording inventory control
(9) Maintenance repairs, servicing, replacement, preventive checking.