The importance of production management

In manufacturing enterprises, production management in general and production output management in particular play a very important role - it directly determines the company's revenue, profitability and reputation. there. Usually, production managers have to take on a relatively large amount of work with a high sense of responsibility, so new entrants to this field encounter certain obstacles. Let's explore and imagine about the goals and jobs of production management.

1. The goal of production management

Any job, the first thing before you do it, is to set goals. For production management, re-targeting is extremely necessary and important because it is the destination that the production managers must lead the production apparatus to achieve. General goals will usually be:

• General management of production lines from raw materials, raw materials to output products,
• Ensuring that the production process is not interrupted and is wasteful,
• Checking the quality of raw materials, input materials and the quality of finished products.
• Ensuring the norm of raw materials and timely supply of raw materials,
• Limiting defective and damaged products and promptly correcting and repairing them,
• Minimize costs,
• Combining with departments to have product development strategies, increase revenue – profit
• Create value and increase competitive advantage for the company …

The importance of production management

2. The work of a production manager. A manager, grasping the process to guide the smooth operation of the production apparatus, requires not only technical expertise but also forecasting skills, observation and evaluation skills…. Typically, a production process will have the following stages:

2.1. Research and define the market, evaluate the ability of the plant:

Before going into production, it’s important to have a clear understanding of the product you want to target. From there, the company should focus on what product lines, the level of competition in the current market and what is expected of the future, whether the company’s potential is strong enough to compete and run long-distance. … This initial job is a directional step and will have a great impact on the business for a long time in production and business activities, so it requires managers to define them clearly and carefully.

2.2. Planning for materials supply for production:

Managers must carefully calculate the minimum and maximum inventory levels to ensure continuous production, but also not waste or shortage of raw materials, causing loss of construction time and affecting production and business activities of the whole factory.

2.3. Capture and manage each stage

Understanding and monitoring the production stages gives the manager a basis to take the next steps. At the same time, there are also grounds to carry out production to ensure the seriousness and correctness of the process.

2.4. Manage output and product quality

The product is what determines all production stages, the thing that will be shipped to the customer, determining the company’s reputation and value. Therefore, production management and product quality control play a very important role and task.

2.5. Product pricing

The price of a product is based on cost factors, amortization of fixed assets or tools also based on the prices of competitors in the market. Therefore, managers need to study carefully the product pricing steps, market segment targets before announcing products or signing business cooperation contracts.

2.6. Management after production

After the product is completed – completing orders, contracts, businesses will still have to receive feedback or recommendations from customers. The stated warranty and giving objective responses are also the decisive factor to increase the value of production enterprises.

Currently, there is a useful tool for production management – an important factor in production management, the Andon system – a solution that is gradually being implemented in manufacturing plants. . The system not only helps users to control the management of production output but also integrates a lot of other software so that administrators can make the right decisions for the development of the business in time.