Production management: understanding, function, aspect and scope
In the business world, you are certainly no stranger to the name of production management. Yes, this term is indeed very familiar with business people. However, what about beginners who just will learn about business?
No need to worry, because this time will be discussed complete information for those of you who want to know about production management. Starting from understanding, function, aspects to the scope will be discussed in full here.
Understanding of production management
Based on its understanding, production management is a setup of the process of changing raw materials into a product or service that has a selling value.
Production management is also a bag of management that has a role to coordinate various activities so that business goals can be achieved. To regulate production, there is a need for decisions that have to do with Suaha achieve the goal. So, the goods and services produced are in accordance with the planned ones.
Production management is strongly related to the decision regarding the production process so that the objectives of the organization can be achieved. In addition, there are two factors that affect production management. DIARAI, Division of Labor, which is a correct distribution factor. So, the products produced are of quality and can be well received on the market. The division of labor will help the production process more effective and efficient.
In addition, there is also an industrial revolution that is like the change of human work using robots or machines in the production process. The industrial revolution will make the target of production be achieved. Also, employees will try to increase expertise in order to compete.
Understanding of production management according to experts
As for some experts also defines the management of the management of the production as below:
According to Sofyan Assauri, the definition of production management is an activity to regulate and coordinate the use of various resources; Human Resources, Tool Resources, Fund Resources, and Materials, effectively and efficiently to create and increase the usefulness of a goods or service.
According to Handoko, the definition of production and operational management is a variety of management efforts optimally the use of all resources (production factors); Labor, machinery, equipment, raw materials, and so on, in the process of transformation of raw materials and labor into various products or services.
According to Irham Fahmi, the definition of production management is a management science that discusses thoroughly how the company’s production management uses science and art that is owned by directing and organizing people to achieve the desired production products.
Heizer and Reider.
According to Heiser and Reider, production management is a series of activities that produce values in the form of goods and services by changing input to output.
Production management function
After knowing what production management is, you also need to know the function of this management in running and developing a business.
In etimologically, production function related to responsibility in processing and transforming input or input into output or output that has a form of goods and services so as to provide income for a company.
The implementation requires a series of activities on the connection and integrated and comprehensive in a system. This activity is related to the production function carried out by several parts in a company.
Well, according to Sofyan Asajauri, there are four important functions in a production management, including the following:
Planning has a connection with the production activities that will be carried out in accordance with time and certain periods. By making good planning, then in this case it can minimize production costs. Thus, the company can determine a healthier price and get a much larger profit.
Supporting services here are a means used to determine what methods will be used in production. So the production process becomes more effective and efficient. This supporting service is often needed with the aim of helping the company to be able to compete in a healthy manner by prioritizing quality results.
It can be said this is a method used to process products. In its implementation, this process is very important, especially to utilize resources effectively and more efficiently.
Control / supervision
This is a function used to ensure the activity process to fit the plan. That way the goal to be achieved can be done well.
Production management scope
When viewed from the main policy of taking and decisions, there are three kinds of scope in this type of management, including:
Scope related to design
This can be said, there are long-term decisions in production management. Why is that? Because, in this decision include many things such as determinants, locations, procurement design, methods, job description design and many others.
Scope related to transformation
This is a short-term decision / this decision related to operational and tactical. In this decision include several things, such as work turns, production schedules, budgets, input submission schedules, input submission schedules on customer processing subsystems and outputs.
Scope related to repairs
This one policy is more in sustainability. Therefore, this policy is done routinely and periodically. As for several activities that are included in this category such as making continuous improvements to the quality of expenditure.
Improvement of efficient and effectiveness of the system, the competence of the workers, capacity, and improvements carried out continuously from the method used in working on a product.
Production management aspects
In order to produce production items according to what is desired, there is a need for several stages made. Aspects that must be considered specifically include the following:
Production Planning of Goods / Services
Production planning has a purpose to systematically launch production processes. As for this case there are several decisions that must be taken as the first step. Among them are kind of goods, goods quality, raw materials used, the quantity of goods and production control itself.
Production Control of Goods / Services
This is the stages of production control used so that the production process is in accordance with planning. As for several activities related to production control including making planning, determining product targets and preparing work schedules. The purpose of production control in order to achieve more maximum results at a cost-like cost as possible.
Supervision of goods / services production
While the last aspect is production supervision. The purpose of this supervision is carried out so that production poses can run according to the desired, the right time, and the operational costs are appropriate.
Well, in its implementation, there are several activities related to production supervision, including determining the quality of goods, carrying out production according to schedule and making goods standards.
By understanding the production management above, you can produce products that have competitiveness on the market. So, the business you wake up can last a long time and produce a double-doubled profit.
Production management is a process of planning, organizing, direction and control of production function activities. It combines and changes the various resources used in the organizational production subsystem into controlled value-added products according to organizational policies.
The purpose of production management is ‘to produce goods services with the right quality and quantity at the right time and production costs’.
Product quality is determined based on customer requirements. The right quality is not necessarily the best quality. This is determined by product costs and technical characteristics that are in accordance with specific requirements.
Manufacturing organizations must produce the right amount of products. If they are produced exceeding demand, capital will be closed in the form of inventory and if the quantity is produced under the demand, causing product shortcomings.
The timeliness of delivery is one of the important parameters to assess the effectiveness of the production department. So, the production department must make the utilization of optimal input resources to achieve its goals.
Production costs are set before the product is completely produced. Therefore, all efforts must be made to produce products with previously established costs, so that it can reduce variations between actual and standard costs.
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