Production Management PDF

13. PRODUCTION The production department is responsible for producing goods for an organization. It is expected to procure the raw material required and convert it into semi-finished or finished goods with the help of labour, machines, and energy sources. Functions of the Production Department 1....

13. PRODUCTION The production department is responsible for producing goods for an organization. It is expected to procure the raw material required and convert it into semi-finished or finished goods with the help of labour, machines, and energy sources. Functions of the Production Department 1. Design of the Product: The product to be produced by a firm is decided by its top management. Once the product is decided, the production department prepares its design (shape, size, appearance, and functions). 2. Production Planning and Control: The department lays down the requirements of materials, machines, manpower, etc., and controls the same. 3. Selection of location & Plant Building: It must select a good location for factories, where the production and distribution costs are minimal. 4. Selection of Plant and Equipment: The department installs required machines and equipment for production. It also makes necessary arrangements for its repair and maintenance. 5. Records and Research: Continuing arrangements for research and development are required to make improvements in products, processes, and equipment. 6. Manufacturing: It refers to converting the raw materials into semi-finished or finished goods in an economical manner i.e. there should not be wastage of resources