Production Management: Scope and Functionality

In the corporate world, it is often known as production management. This term consists of two components, namely management and production that has its own meaning.

Management is a decision-making process related to planning, organizing, directing, and controlling. While production is an activity that adds value to the use of goods or services to meet human needs. 

So, the definition of production management is the company's effort to apply the concept of management to its production process. So that the goods and services produced in accordance with the specifications, amount and time are appropriate, but the costs incurred can be reduced.

The production process itself is categorized into several parts based on its techniques:

• Production process that takes from raw materials is then extracted into the desired product. An example is the extraction of oil to be made into a wide variety of products.
• Process of producing the product obtained by modifying the material either chemically or mechanical parameters without changing its physical attributes. For example it is done by heating raw materials at high temperatures.
• Production by means of assembly, for example the computer or car industry.

Some companies often rule out production process management and consider it less important. Whereas through this management, companies can make efficiencies, because in general the production process requires considerable funds.

Ideally, to increase productivity to employee protection from hazardous materials, it always costs a lot of money. Not to mention labor law issues and labor regulations that have an impact on high production budget spending. 

Therefore, the issue of production is not only on how to buy raw materials as cheaply as possible. But also the formation of systems and the use of technology in order to survive difficult times.

1. Scope of Production Management

The scope of production field management is grouped based on the level of strategic decisions that affect the production system and on the decision of the operating level. 

2. Decisions and Policies Regarding Design

Design is included in long-term decisions. This is because it includes; determination of product design to be made, location / layout of the factory, the design of the necessary input procurement activities. It also includes the design of processing methods and technologies, the design of the company's organization, and the design of job description and job specifications.

3. Policies and Decisions Regarding the Transformation Process

The transformation process includes short-term decisions/ policies, as they relate to tactical and operational decisions. This policy covers production schedule, work grind (Shift), production budget, input delivery schedule to processing subsystem. And do not miss the schedule of delivery of output to customers or product completion.

4. Decisions and Policies Regarding Improvement

Improvement is a decision that is continuous and continuous, so this policy is carried out regularly. Some of the activities included continuous improvement of output quality, effectiveness and efficiency of the system. As well as the capacity and competence of the workers, maintenance of work facilities or machinery, as well as continuous improvement of the method of completion or workmanship of the product.

5. Production Management Functions

Production function is related to accountability in processing and transforming inputs into outputs in the form of goods or services. So that will give the results of opinions for the company.

According to one expert, there are four most important functions in management in the field of production, including:

• Planning
• The function of planning is the association and organizing of production activities that will be carried out on the basis of a certain time or period.
• With good planning, it will minimize production costs. So that the company can determine a healthy price while also making a big profit.
• Processing
• In other words, processing is a technique or method used to process the product.
• This process is very important and needs to be considered by the company systematically. Why is that? So that the utilization of resources can be done maximally and efficiently.
• Support Services
• Supporting services facilities are needed for the determination and method used so that the processing can be done effectively and efficiently. Its function is to help companies compete healthily by increasing production and quality results.
• Control / Supervision
• Control or supervision is a function to ensure the implementation of activities in accordance with the planning. Furthermore, the purpose and purpose in using and processing inputs (inputs) can be implemented.

The Role of Accounting Software in Production Management

In a series of management processes in the field of production is in desperate need of the role of technology. Not only the process of processing raw materials, technology is also needed as a support for management in making targeted decisions. 

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