What Are The Meaning Nature Scope And Major Decision Areas Of Production Management?


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Ellie Hoe answered
The major concern of production management is to determine when to produce and how much to produce. It involves all the processes such as how much to procure, forecasting of materials, management of resources, equipment utilization, facility utilization, distribution mechanisms, utilizing the layout in best optimal manner, achieving labor productivity by maintaining effective employee schedules and safe work environment etc. Production manager has to be proactive on his part to keep pace with the changing technology in the market. He has to make decisions such as replacement of old equipment with new equipment, outsourcing of resources in the peak demand, maintaining healthy relationships with the suppliers and to ensure uninterrupted supply of finished goods to the distributors. The production management has to re-think strategies to achieve higher efficiency while incurring lesser costs.

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