Production Management System

What Is Production Management System?

By Team TranZact | Published on May 29, 2023

A production management system includes planning, coordination, and control of all aspects of the production process, right from the processing of raw materials to testing the finished products.

Production and operations management ensures completion of various activities to streamline the production process of a company, in order to produce goods in an efficient and timely manner. Therefore, the role of production management is to ensure that the production process runs smoothly and efficiently, with the least possible bottlenecks.

Production managers can rely on a production management system to ensure production runs smoothly, 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.

TranZact - Best Inventory Management Software

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.

The adoption of production management enables businesses to strike a balance between the right quantity, quality, costs, and time factors within their procurement and production processes.

Manufacturing process management helps SMEs to organize production processes and optimize daily operations with 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.

Let's define the production management system, and understand how a production management system works, along with the types of production management.

Read Also - What Is Material Requirements Planning (MRP)?

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 is 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:

Let's look at the following modules, that provide important production-related data for smooth production cycles:

Read Also - Production Planning and Control Explained

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 the 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.

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Types of Production Management

There are several types of production management techniques, which can help businesses to deploy the best production cycles. These techniques optimize production management, reduce costs and lead to an increase in production outputs. We've listed the different types of production management techniques as follows:

We've listed them as follows:

The job shop manufacturing environment is characterized by low volume, wide variety, and customer involvement in the production process. In a job shop production system, 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 in the management production system 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 waste of resources and time.

Read Also - Warehouse Receiving: Process and Procedure for Optimization

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.

Inventory Control

A production system in production management connects with the inventory functions, to track and manage inventory movements. This ensures that the team has all the required materials to produce finished goods.

Quality Control

It provides quality monitoring and control throughout production to maintain the business reputation and ensure customer satisfaction.

Cost Control

An important feature of a management production 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.

Scheduling and Planning

The production and operations management system should help managers plan and schedule production in an efficient manner.

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Benefits of Production Management System

A production management system provides the tools and resources to track production progress and data consistently. This allows the company to identify bottlenecks and areas for improvement with ease.

The following are some noteworthy benefits of a production management system:

  • A production management system automates routine tasks, improving cross-functional collaboration. It provides real-time production analytics and drives growth and scalability for a business.
  • It enhances the delivery quality and cost management, as a result of improved decision-making.
  • Ultimately, streamlined processes lead to the elimination of duplicate orders and unnecessary execution tasks. This equips 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. They can also better contribute to organizational growth.
  • A production management system also helps SME manufacturing businesses to improve internal integration and manage complex production priorities. It identifies errors and increases customer satisfaction.

Read Also - What Is Sales and Inventory Management System?

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, and how much has passed.

It also enables stage-wise production planning and testing tools for easy monitoring of goods 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. TranZact software is built specifically for SME manufacturers. it comes with a team of experienced professionals well-versed in the Indian manufacturing and distribution sector. They provide you with top-notch customer support for production operations.

In addition to a production management system, TranZact also offers a comprehensive suite of cloud-based tools and services for SMEs. These solutions help 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 are the types of production management systems?

Production management systems can be categorized into various types based on their specific functionalities and applications. These systems encompass a range of approaches, including lean manufacturing, just-in-time production, and computer-integrated manufacturing, among others.

2. What is a production information management system?

A production information management system is a framework that includes end-to-end data pertaining to planning, collaboration, and tracking of all activities involved in the manufacturing process. It aims to optimize resource utilization, ensure quality standards, and streamline operations to achieve smooth and cost-effective production processes.

3. What is a production system in production management?

In the context of production management, a production system refers to the overall arrangement of resources, processes, and technology used to transform inputs into desired outputs. It encompasses the physical infrastructure, workflows, and strategies that govern the manufacturing process and dictate the flow of materials and information.

4. What are the 4 types of production systems?

The four types of production systems commonly recognized in manufacturing are intermittent production, continuous production, mass production, and batch production. Each of these production system types is designed to cater to unique production requirements.

5. What is an example of a production management system?

An example of a production management system is Enterprise Resource Planning (ERP) software. An ERP integrates various functions such as production planning, inventory management, and scheduling into a centralized system. Another example is Manufacturing Execution Systems (MES), which provide real-time monitoring and control of production processes on the shop floor, facilitating data collection, analysis, and decision-making.

6. What are the 5 types of production management?

The five types of production management commonly recognized are project management, process management, inventory management, quality management, and maintenance management.

7. 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.

8. 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.

9. What is a production system in operation management?

A production system in operations management refers to the organized set of activities, processes, and resources involved in transforming inputs into finished goods or services. It encompasses planning, scheduling, inventory management, quality control, and other operations-related functions to efficiently produce and deliver products or services to meet customer demand.


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TranZact is a team of IIT & IIM graduates who have developed a GST compliant, cloud-based, inventory management software for SME manufacturers. It digitizes your entire business operations, right from customer inquiry to dispatch. This also streamlines your Inventory, Purchase, Sales & Quotation management processes in a hassle-free user-friendly manner. The software is free to signup and gets implemented within a week.