Production management involves planning, organizing, and controlling manufacturing activities to produce goods and services. It transforms inputs like raw materials, tools, capital, and human resources into outputs through a production process. The scope of production management includes functions like design, production planning and control, quality control, maintenance, and inventory control. There are different types of production processes and systems based on factors like the industry, scale of production, and nature of transforming inputs into outputs.

1. Production Management : Nature, Scope & Importance
Faculty (BADM)

2. Previous Years’ Questions
• What do you mean by production function?(2012
VS)
• What do you mean by Production? Explain the
different production systems.(2012 ET)
• What is Production Management? Explain the
importance of Production Management. (2011 ET)
• Explain the continuous production system and batch
production system. (2010 S)
• Define ‘Production Management’. Clearly explain the
Scope of Production Management (2009 ET)
• What do you mean by ‘Production Process’? (2006
VS)

3. Production Management
• Production is the act of producing something useful. It implies
the creation of goods and services to satisfy human wants.
• It refers to the application of management principles to the
production function in a factory.
• Production management is the planning, acquisition, use and
control of the physical resources employed in the provision of
goods and services.
• It involves planning, organizing, directing and controlling the
manufacturing activities to produce useful goods and services
in order to satisfy customer wants and generate profits for the
firm.

4. Production Management
• According to Barry Shore, “It is the management
of any operational system which transforms
inputs into outputs.”
• In the words of Roger Schroeder, “Operations
management is the study of decision making in
the operation function.”

5. Characteristics of Production
Management
• Creative Function
• Creates Utility
• Core of Any Business
• Wide Scope
• Goal of Business
• Related with Factory
Management
• Ancillary Function
• Advisory Function
• Also applies to ‘service’
• Decisions
• Functional Area
• Pervasive Function
• Analytical Process
• People Emphasis
• Based on Specialization
• Mechanization
• New Technologies

6. Production Process
Production Process is a process in which raw material is
transformed into a useful product which is needed by people
and organisations.

7. Scope or Function and Responsibilities of
Production Management
• Design of the Product
• Design of the Production System
• Selection of Location
• Plant Buildings
• Layout of Plant
• Installation of Machinery
• Capacity Planning
• Production Planning
• Production Control
• Quality Control

8. Scope or Function and Responsibilities of
Production Management
• Method Analysis
• Inventory Control
• Work Measurement
• Maintenance and Replacement
• Cost Reduction and Control
• Scheduling, Dispatching and Progressing
• Storekeeping
• Purchasing Materials
• Handling of Materials
• Building Good Work Environment
• Research & Development

9. Transformation Process
Means of
Production:
Raw Material,
Tools, Capital,
Human Resource
Creation of
Utility/Value
Creation by
Transformation
Production:
Product/Service
required by
People
Feedback

10. Types of Production Process
1. Extractive Production Process- here material is
extracted from natural resources (earth, water,
forest), e.g. Crude Oil, Gas, Fish, etc.
2. Construction Production Process – (Building,
road, Bridge) (Immovable assets)
3. Service Production Process – Bank, Restaurant,
Transportation

11. 4. Production Process in Manufacturing -
engaged in production of goods by converting
raw material into products – its classification is
as follows
• On the basis of size Production Process
Small Scale Production process or (Job)
production process produces as per the
needs of customer
Large scale or mass production – large no. of
units are manufactured, but it requires huge
investment

12. • On the basis of nature of Production
– Analytical Production Process & Engaged in analysing some basic
material in order to separate different products associated or
mixed in it.
• Crude Oil analyzed into Petrol, Diesel, Kerosene, Lubricants etc.
– Synthetical Production Process & mixing two or more materials
with a view to manufacture a new products.
• Example – Cosmetics, Soaps, Shampoo, Medicine Etc.
– Processing Production Process- Engaged in processing of raw
materials or producer goods through a series of manufacturing
process in order to produce some new product.
– Conditioning Production Process - where the basic form of raw
material changes, e.g. molding of iron
– Assembly Production Process - Assembling of various related
parts or components in order to make a useful product.
• Example – Cars, TV sets, Computer Sets

13. based on Production System
– Job or Unit Production Process: each unit is
created as per directions of customer. Production
is on the basis of individual needs, There is no
standardization in production of product.
– Continuous Production Process(Flow Shop): large
scale production, use of machine.