Definition of Production Management

This time we will discuss the meaning of production management along with its scope, aspects and functions. Here’s the explanation …


Table of contents :

Definition of Production Management

Scope of Production Management

  1. Decision / Policy Regarding Design
  2. Policies / Decisions Regarding Transformation
  3. Decisions / Policies Regarding Improvement

Production Management Aspects

  1. Production Planning
  2. Production Control / Control
  3. Production Supervision

Production Management Function

  1. Planning
  2. Processing Process
  3. Supporting Services
  4. Control / Supervision

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Definition of Production Management

Production Management arranges the process of converting raw materials into the desired product or service so that they have a sale value.


According to the English website Esays, these productions are categorized into sections based on technique:


Production taken from raw materials is then extracted into the desired product. For example, oil extraction is made into various types of products.

Products are obtained by modifying materials in either chemical or mechanical parameters without changing their physical attributes. For example, it is done by heating raw materials to high temperatures.

Production by assembly, such as computers or cars.

This understanding of the notion of production management is often overlooked. Whereas from here the business can make efficiency because this part requires a lot of funds.


Ideally, the production sector should do several things such as:


Increased productivity

Uses industrial symbiosis

Protection of employees from physical harm

Removal of harmful material

These are the most draining parts. Not to mention applicable laws, labor regulations and other barriers that have a major influence on production budgeting.


Therefore, structuring the parts of production is not only limited to purchasing cheap raw materials, but also building systems and using technology to withstand difficult conditions.


Production management is part of the management field that plays a role in coordinating several activities to achieve goals. Several experts explain the meaning of Production Management, including:


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According to Handoko (1999: 3)


Production and operational management are various efforts to manage optimally the use of all resources (factors of production); labor, machinery, equipment, raw materials, etc., in the process of converting raw materials and labor into various products or services.


According to Sofyan Assauri (2008: 19)


Production management is an activity to organize and coordinate the use of various resources; human resources, equipment resources, financial resources, and materials, effectively and efficiently to make and increase the use of a good or service.


According to Heizer and Reider (2011: 4)


Production Management is a series of activities that produce value in the form of goods and services by converting inputs into outputs.


Scope of Production Management

understanding of production management


Judging from the way of taking major policies and decisions, there are three categories within the scope of production management:


  1. Decision / Policy Regarding Design

This decision is included in long-term decisions, which include; determination of the product design to be made, the location and layout of the factory,


the design of the required input procurement activities, design methods and processing technology, the design of the company organization, and the design job description and job specifications.


  1. Policies / Decisions Regarding Transformation

These operating decisions are short-term, related to tactical and operational decisions.


This policy covers production schedules, shifts, production budgets, schedules for sending inputs to the processing sub-system, and schedules for delivery to customers or product completion.


  1. Decisions / Policies Regarding Improvement

This policy is sustainable, so this policy is carried out regularly. Some of the activities include increasing the quality of output continuously,


effectiveness and efficiency of the system, capacity and competence of workers, maintenance of work facilities or machinery, and continuous improvement of methods of completion or product work.


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Production Management Aspects

To get the expected production results, several important steps need to be taken in the production process. The following are the stages and aspects of Production Management:


  1. Production Planning

The purpose of production planning is to make the production process run systematically. Some of the decisions related to production planning include:


Types of goods

The raw materials used

Quality of goods

The amount of goods

Production control

  1. Production Control / Control

Production control or control is needed so that the production process runs according to the determined plan at optimal cost. Several activities in controlling production:


Make a plan

Set a work schedule

Determine the target market for the product

  1. Production Supervision

The purpose of production control is to ensure that production is in line with what is expected, on time and at optimal cost. Some of the production control activities are:


Determine the quality of the goods

Create standard items

Production schedule according to schedule

Production Management Function

As we know in terms of production management, they do not only carry out the production process, but also do various other things.


According to Sofian Assauri (2004: 22), there are four most important functions in production management, including:


  1. Planning

It is the connection and organization of production activities to be carried out by time or period.


With good planning will minimize production costs so that companies can determine healthy prices and generate large profits.


  1. Processing Process

It is a method or technique used to process input (input). This process is very important for maximum and efficient use of resources.


  1. Supporting Services

Facilities are needed for the determination and methods used so that processing can be carried out effectively and efficiently.


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This is often necessary to help companies compete in a healthy manner by increasing yields and quality.


  1. Control / Supervision

This is a function to ensure the implementation of activities according to the plan, so that the purpose and purpose of using and processing inputs can be carried out.


This process will help companies achieve their vision and mission, enhance the company’s reputation, and simplify the work of other departments such as marketing, finance, or personnel.


They have a responsibility to produce goods that meet market standards so that sales can increase.


The role of production management is of course very large, even in a small business. When production management is carried out properly, it is not impossible that production costs can be reduced.


In addition, it is also important to see if the resources at hand are really effective.


In addition, cooperation between several fields is also very necessary, especially in the field of operations that will deal directly with consumers.

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