What Are Some Key Concepts in the Field of Production Management?
Production management consists of several processes, including quality assurance, budgeting and expense control. It may also take into account inventory control, production planning and product conceptualization. This article discusses the major aspects of production management. Read on for further information.
Production Management Overview and Key Concepts
Production management is often referred to as operations management or manufacturing management. It can be defined as the administration of all processes, materials and personnel involved in the creation of manufactured goods. Production management techniques are used in the assembly and distribution of items from clothing to automobiles. Professionals in the field can look to organizations such as the Product Development and Management Association, www.pdma.org, for resources and development seminars.
Important Facts About Production Management
| Median Salary (2021) | $103,150 |
| Job Outlook (2021-2031) | 3% growth |
| Key Skills | Leadership, problem-solving, and time-management skills |
| Required Education | Typically a bachelor's degree and related experience |
Source: United States Bureau of Labor Statistics
Production Quality Control
Quality control generally refers to the process by which manufactured goods meet acceptable company standards for distribution. Quality assurance tests and inspections are conducted on machinery and products to ensure that these standards are met.
Labor Management
The production management process includes ensuring that employees work productively in a cost-effective, timely manner. Personnel management also entails the general supervision of employees to make certain that they effectively adapt to changing work environments.
Expense Control
An element of production management is budgeting. Costs of tools, materials, labor, equipment maintenance and distribution must be well-managed.
Inventory Control
Inventory control involves the ability to account for all production and distribution components, from packing supplies to finished goods. Batch traceability is a term often associated with inventory control measures.
Production Planning
Production planning takes into account market trends, buyer demand, production capabilities and stock. Upon reviewing supply and demand information, production managers decide on the quantity of manufactured goods to produce.