Production management includes various activities to streamline the production process of a company, in order to produce goods in an efficient and timely manner. It includes planning, coordination, and control of all aspects of the production process, from the processing of raw materials to testing the finished products.
Therefore, the role of production management is to ensure that the production process runs smoothly and efficiently.
Production managers can rely on a production management system to ensure this happens, by digitally collaborating with other departments within the company. This includes collaborating with departments such as purchases, inventory, material planning and sales, to ensure that the production process is aligned with the company's overall objectives.
What Is Production Management?
Production management is a system that ensures all production processes and production cycles within a company are running efficiently, without interruptions, so that the finished goods meet customers' quality expectations.
By adopting production management, businesses aim to strike a balance between the right quantity, quality, costs and time factors within their procurement and production processes.
It helps to organize production processes and optimize daily operations at increased productivity. Production management techniques include the use of adequate materials, manpower and resources at the required time to produce goods, for utmost customer satisfaction. Apart from handling production processes and coordinating with order management and inventory modules, functions of production management also involve the management of certain administrative and factory-level activities.
What Is a Production Management System?
A production management system is a computerized system used to optimize the production line with automated and data-driven manufacturing processes. This system is used to track production data, such as Bill of Material, production scheduling, production forecasting, strategy, and production costs.
The production management system is also responsible to monitor and control production planning and other activities. By auto-tracking the progress of production operations, the system can identify potential manufacturing issues and correct them in a timely manner. Additionally, the system can also ensure that the correct amount of materials are available for the production process, by connecting with inventory and Material Requirements Planning (MRP) modules.
Monitoring such cross-functional data helps to deliver orders with high quality while reducing waste, for improved manufacturing process management.
How Does the Production Management System Work?
In order to optimize production management effectively, the production management system relies on integrating with the following functions on a real-time basis.
Let’s look at the following modules, that provide important production-related data for smooth production cycles:
This module helps production managers to monitor inventory levels and keep track of raw materials and finished goods movement, in real time. It can also generate live reports for stock turnover, and inventory valuation.
This module helps production managers plan and schedule production operations. It can generate production schedules based on customer demand, production capacity, and available raw materials.
It helps production managers to monitor and control the quality of finished products at various stages of production. It can track quality based on metrics such as defect and yield rates, and generate reports on quality patterns.
Shipping and logistics:
It helps production managers to coordinate the delivery, shipping and logistics of finished products. It supports the generation of shipping manifest, shipment tracking, and reports on shipping and logistic analysis.
Importance of Production Management
The process of production management is a key factor in the manufacturing, testing and distribution of goods.
It is responsible for ensuring that the production process is efficient, free of errors and is utilizing the production capacity of an organization to the fullest, to meet the demands of the customers.
We have listed additional factors that draw light on the importance of production management, in the following section:
Production management plays an important role in ensuring that the organization's resources are used optimally to produce goods as per the demand.
It ensures that production managers have all the information and resources required to plan, organize, and control production cycles on a day-to-day basis for seamless delivery.
It also provides the production team with abilities required to adapt to evolving changes in the marketplace. And to respond to changes in customer demand or new technology developments quickly.
Thereby, effective production management empowers organizations to stay ahead of the competition by building flexibility and agility.
Production management techniques strive to achieve the organization's growth objectives while ensuring health and safety regulatory compliance for employees.
Types of Production Management
There are several types of production management techniques, which can help businesses to deploy the best production cycles, reduce costs and lead to increase in production outputs.
We’ve listed them as follows:
1. Job Shop Production
The job shop manufacturing environment is characterized by low volume, wide variety, and customer involvement in the production process. In a job shop, each product is produced one at a time, and the job shop must be flexible enough to accommodate the unique production requirements of each product.
2. Batch Production
Batch production is the process of manufacturing products in small, discrete batches. This type of production is often used in the food and beverage industry, where products are made in large quantities and then packaged and sold in smaller batches.
Batch production can also be leveraged to manufacture other products in industries such as pharmaceuticals, chemicals, and electronics.
3. Mass Production
The assembly line is the most commonly known form of mass production. It is a process in which a product is assembled by moving it from one workstation to another. This type of production is often used when products need to be mass-produced to meet customer demand.
4. Continuous Production
Continuous production is a technique wherein products are produced without interruption. The main advantage of continuous production is that it is very efficient, and there is no need to set up and break down production equipment for each batch of products.
Hence, this type of production can be carried out more quickly and with less wastage of resources and time.
Key Features of Production Management System
There are various features of the production management system, which are as follows:
Planning and Scheduling:
The system generates production plans and schedules based on customer orders and available resources.
A production management system, connects with the inventory functions, to track and manage inventory movements to ensure that the team has all required materials to produce finished goods.
It offers functions to monitor and control quality at each stage of production, so that the reputation of the business remains unaffected and customers are always happy.
An important feature of the production management system is to optimize production operations in a way that costs are in control and profitability is maximized.
Reporting and Analytics:
The system should provide accurate reporting and analytics tools to help managers make informed decisions about production.
Benefits of Production Management System
A production management system provides the tools and resources to track production progress and data consistently, allowing the company to identify bottlenecks and areas for improvement.
Following are some noteworthy benefits of a production management system:
By automating routine tasks, improving cross-functional collaboration and providing real-time production analytics, a production management system drives growth and scalability for a business.
A production management system enhances the delivery quality and cost management, as a result of improved decision-making.
Streamlined processes lead to the elimination of duplicate orders and unnecessary execution tasks, equipping managers to focus more on strategizing for growth.
When managers are reasonably free from time-intensive administration work, they can focus on achieving their key performance growth indicators and better contribute to organizational growth.
A production management system also helps SME manufacturing businesses to improve internal integration, manage complex production priorities, rectify errors and increase customer satisfaction.
Automate Your Production Management With TranZact
TranZact offers an extraordinary production module to address all production pain points for SME manufacturing businesses.
With its easy production management functions, multilevel Bill of Material (BOM), and expert routing functionalities, you can effortlessly convert raw materials to finished goods.
Every production stage allows you to oversee multilevel BOM progress with clear identification of how much material has already been used, how much has been tested, how much has passed. It also enables stage-wise production planning and testing tools for easy monitoring of goods between across planned, pending and work in progress stages!
Why It's Crucial to Invest in a Production Management System?
SME businesses can transform their production processes by using a production management system to plan, execute, and track their everyday production operations.
By automating and integrating production data, organizations improve efficiency and optimize resources. Additionally, a production management system can help to track and monitor production progress and quality. Since TranZact is built specifically for SME manufacturers, it comes with a team of experienced professionals who are well-versed in the Indian manufacturing and distribution sector, to provide you with top-notch customer support for production operations.
In addition to production management, TranZact also offers a comprehensive suite of cloud-based tools and services for SMEs to manage their quotations, inventory, MRP, accounting and other core functions. The platform is accessible from anywhere, at any time to accelerate manufacturing operations for Indian SMEs!
FAQs on Production Management System
1. What is operations management?
Operations management is a process used to describe all the internal activities required to fulfill a production cycle as per customer demands. This includes product development, logistics, and customer service.
2. What is the difference between production and operations management systems?
While the terms production management and operations management are sometimes used synonymously, the key difference between both is their scope.
Production management is the process of end-to-end monitoring of all product manufacturing processes. Operations management is the process of monitoring day-to-day operations to ensure the product can be manufactured on a timely basis.