With reasonable production management and effective production management methods, enterprises will be more proactive in business production activities. Thereby, minimizing risks and limiting costs incurred in the manufacturing process. So what is business management? How is the process conducted? And what are the most effective production management methods? All these questions will be answered by Navigos Search in the article below.
1. What is production management?
Production management is an important stage of production and business activities associated with factories and workshops in enterprises. This activity is directly involved in planning and monitoring the implementation progress of the production process to ensure the delivery of products on time, meeting the required quantity and quality standards as planned. Some specific jobs include: assessing production capacity, managing production stages and product quality.
Production management is an important activity in manufacturing plants
2. What does production management require?
Depending on each industry and the specific characteristics of production and business activities of each enterprise, the production management requirements will differ. Here are the most basic necessities:
- Analyze, plan and manage production activities according to the requirements of customers and businesses.
- Monitor, supervise, evaluate the progress of production activities and set quality goals for the production department.
- Ensure employee performance and compliance with occupational safety requirements.
- Manage machinery, raw materials, production equipment and repair, maintain and purchase new equipment when necessary as assigned by superiors.
- Recruit, manage and train new staff.
- Report periodically to the production director.
3. Production management process in the enterprise
Normally, businesses must conduct production management according to the process below:
Assess production capacity
One of the first important manufacturing steps is assessing your own production capacity. Production capacity is the same as learning capacity. You cannot get into the desired university without having enough background knowledge. Therefore, enterprises cannot produce quality finished products if they do not have sufficient financial, human, and material capacity,…
In order for the production process to be done quickly and smoothly, it is imperative that managers accurately assess the production capacity of their enterprises. As a result, managers will determine the right potential market for the products they supply. Does that market demand more or less? Can your business meet the need and to what extent?
Plan on raw material needs
It is certain that production is always indispensable for raw materials and that no product is created on its own without the participation of other components. After the enterprise has identified the market demand and assessed the production capacity, the manager must plan the required material needs. Having enough raw materials is one of the basic steps that must be taken to produce efficiently and in accordance with the set goals.
The most standardized production management process
Manage production stages
A production process will include many different stages. Each stage will have its own characteristics and tasks to be completed. Therefore, it is the manager's duty to monitor to ensure that those steps are carried out correctly and run smoothly.
For every stage of production to always be done quickly and scientifically, managers need to define each stage in the production process clearly. And this requires rigor with detailed calculations to avoid errors and unnecessary losses in the production process.
Control product quality
Products are considered a bridge connecting businesses with customers. Suitable products can retain customers for a long time and companies can develop sustainably. Not only that, the product also shows how your business and production facilities are operating, whether there is quality control.
Therefore, product quality management is one of the indispensable steps in the production management process. This stage requires the accuracy of the quantity, product characteristics and classification of each product type. Through that, your business can determine the price of products sold to the market and have a plan to handle damaged and defective items.
Identify products pricing
Pricing is a significant step in the production management process. Because pricing involves costs, it determines how much the business can recover and shows the expected revenue after the sale. However, the quality of the product will determine the pricing. The better the quality, the higher the price and the competitive factor with other competitors in the market. The cost of the product must be based on the cost of raw materials, loss of machinery and human resources required to complete the manufacturing process.
Sales management
A sales manager is in charge of checking the difference between products sold compared to products produced. In this step, managers need to determine the needs of the market and the specific price of each product. From there, the manager must report the sales daily to ensure the sales process goes smoothly.
However, effectively managing sales activities is not a simple matter. No matter how capable a sales manager is, how well they can remember and control, they still need a management tool. That's why production management software was created to help manage inventory, employees and customer service effectively. This is considered a valuable tool to help manage production processes effectively and optimize business costs.
Sales management is an important step in the production management process
4. Effective production management methods
The above section has helped businesses define the essential steps to successfully build a complete production process. However, companies must also be equipped with the most reasonable organizational method to maximize production productivity and help manage operations more effectively. The following are the most effective production management methods.
4.1. Flow production method
This is a suitable method for a stage production. In this method, the business will use a line to transport the product during assembly. In each production location, each stage will have certain specific tasks. So through that, the distribution of labor and machinery also becomes more accessible. The flow production organization should ensure the following requirements:
- The efficiency of work
- Suitable for product design
- Ideal for the weight of the product
- Reasonable for production environment
Organizing production lines helps create productivity, high quality, fast production speed and make the most use of resources. From there, save costs and improve everyone's work efficiency.
4.2. Batch production method
The method of organizing production in batches is often used for the model of mass production of items produced on the same system. This method does not arrange machines for each type of product, but for the whole group based on the selected products for implementation. The characteristics of the batch production method are:
- Standardize products into specialized groups
- Have a detailed process for the group
- Set quota, design tools, layout machines
- Reduce the volume and time of technical preparation, creating conditions to improve workers' qualifications
The most common production management methods
4.3. Job production method
With the job production method, many products can be produced in small quantities, sometimes only once, and with a deficient level of specialization.
To conduct production, enterprises do not need to set up a meticulous technological process for each product detail, but only specify general production steps. Tasks will be assigned to each department following the detailed plan, schedule and implementation based on technical documents.
This method provides tight control over the production process arranged according to each workplace and ensures better order fulfillment.
5. Notices in the production management process
- Make plans, assign a reasonable number of tasks and deadlines.
- Cover the entire production process, regularly check and assess the quality and reflect on production methods to minimize risks and unnecessary troubles.
- Regularly report and make statistics on the quantity and quality achieved to verify the efficiency of the enterprise's production process promptly. From there, promptly come up with the optimal strategy to help businesses develop in the long run and sustainably.
- Use optimal and modern management tools to cut costs and save effort for managers. Especially in the 4.0 era, the technology boom will bring many production opportunities, but it also comes with countless challenges for businesses.
Refer to the tips for an effective production management process
In short, to implement an effective, standardized and productive production management process, managers need to understand effective production management methods, basic principles to develop sustainable development strategies for businesses. At the same time, it is necessary to constantly update, apply scientific and technical advances to develop the production process continuously.
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