Production Management

“We need principles of production which enasble us to know how to put together individual operations into individual jobs, and individual job into production.”

Peter F. Drucker

Here are mentioned management methods and analytical techniques, whose subject is production, products and organizing the production process. The essence of production is a gradual process of transformation of inputs (resources) into outputs (products, i.e. tangible goods or intangible services) - the production process. The production process is typical to the secondary sector of the market - manufacturing and industry. Production is closely related to planning, logistics and quality management.

Production management usually solves following areas:

• Operations and Production management (production process)
• Production Planning
• Production organization
• Production portfolio and its structure (see Marketing and Sales)
• Product strategy (see Marketing and Sales)
• New products introduction into production

Production management and planning methods:

• ABC-D
• BOA (Belastungorientiere Auftragsfreigabe)
• CIM (Computer Integrated Management)
• CRP (Capacity Resource Planning)
• DBR
• JIT (Just-in-time)
• MRP
• MRP II
• ERP
• KANBAN
• FIFO (First In First Out)
• FEFO
• HIFO
• LIFO
• Lean Production

Analytical techniques used in production management:

• BCG Matrix
• Pareto Principle
• VRIO Analysis

Standards and frameworks in production management:

• ISO 9001
• ISO 14000

Key terms in production management:

• CAP (Computer Aided Planning)
• CAD (Computer Aided Design)
• CAM (Computer Aided Manufacturing)
• CAQ (Computer Aided Quality)
• Production Process
• Technology
• Inputs (resources)
• Outputs – goods and services
• Product (service) Lifecycle