Importance of Production Management -Why operation management is important for production? There are many importance of production management given below-
Importance of Production Management
Helps to Introduce New Products: Production management helps to introduce new product within the market. It conducts analysis and development. This helps the firm to develop newer and higher quality product. These products are productive within the market as a result of the offer full satisfaction to the purchasers. Business Management
Expansion of the Firm: the production management helps the firm to get bigger and grow. This is often as a result of it tries to enhance quality and cut back prices. This helps the firm to earn higher profits. These profits facilitate the firm to expand and grow.
Minimizes price of Production: Production management helps to reduce the value of production. It tries to maximize the output and minimize the inputs. This helps the firm to attain its price reduction and potency objective.
Accomplishment of Firm’s Objectives: Production management helps the business organization to attain all its objectives. It produces product that satisfy the customer’s wants and needs. So, the firm can increase its sales. This can facilitate it to attain its objectives.
Reputation, Goodwill and Image: Production management helps the firm to satisfy its customers. This will increase the firm’s name, goodwill and image. an honest image helps the firm to expand and grow.
Helps to Face Competition: Production management helps the firm to face competition within the market. This can be as a result of production management produces product of right amount, right quality, and right value and at the correct time. These product are delivered to the purchasers as per their necessities.
Optimum Utilization of Resources: Production management facilitates optimum utilization of resources like work force, machines etc. therefore the firm will meet its capability utilization objective. this may bring higher returns to the organization.
Supports different useful Areas: Production management supports different useful areas in a corporation, like selling, finance and personnel. The marketing department can notice it easier to sell good-quality product and therefore the finance department can get a lot of funds as a result of increase in sales. it’ll conjointly get a lot of loans and share capital for enlargement and modernization. The staff office are going to be ready to manage the human resources effectively because of the higher performance of the production department. There is more information about Types of Decision Making in Management.