Functions of production management

From CEOpedia | Management online

Functions of production management - the most important functions of production management are: planning (forecasting), organizing (shaping), managing (by the leader) and controlling (verifying)[1]. A concept closely related to the production process, specifies the rules that are necessary to produce goods in accordance with specific goals and assumptions.

Basic and most important functions:

  • Planning (function from which begins the production process. Specifies the tasks which shall be fulfilled to create a product or service. Should be analysed the current conditions and predict any changes, assign tasks and determine the goals which we want to achieve, estimate human and technical resources, but above all, financial resources, determine the time of the implementation plan)
  • Organizing (function which consists of sorting out tasks to perform, assigning them to employees that way to avoid possible interruptions in the production process, making sure that the space to perform tasks is appropriate - good positioning of devices and machines, establishing of a production manager who will manage employees, ensuring an efficient and understandable way of providing information)
  • Managing (function performed by the manager or production director, who must demonstrate appropriate features and competences, for example, gain the authority and recognition of employees, be confident and resistant to stress, motivate their employees and be an example for them[2])
  • Controlling (function which rely on verifying a specific tasks and checking that were properly performed and were achieved an intended goals and detection of possible errors to improve the production process in the future)

Management of production

Management of production is:

  • Developing the project of the future product (creating a concept for introducing a new product to the market through the use of appropriate technologies[3])
  • Constructing of product (selection of material for a new product, development of its appearance and shape)
  • Choosing the relevant technology (it is important to choose the relevant equipment and devices necessary to create a new product from raw materials to save time and energy costs)
  • Organizing of production (deploying of machines and equipment, selection of employees who will be responsible for the tasks entrusted to them)
  • Choosing the suppliers (searching for suppliers who will provide in accordance to plan high-quality raw materials at a low price)


Production is the basic element of functioning the company but also the whole economy, through a series of activities aimed to producing good quality products which meet the needs of society. There are three types of production:

  • The unit production (type of production in which are produced only special and unique products for which there are not much requirement on the market. Its generates high cost of production because their production requires a lot of time and machines and devices are used in a small way)
  • The series production (type of production which characterized by manufacture the products in the same way. At a specific time a series of products are produced and after a completion this, production is stopped until the next order. This kind of production is used in companies that know what is the size of the order and know how many products they must produce. This type of production helps to save a time and minimizes costs of production)
  • The mass production (it characterized by repeatability and continuity of work. After complete processing product, the next product immediately move on the workstations because it must be always transferred and adjusted between next workstations. When its located close together, this help and accelerates transport. Mass production characterized by a large size of production on the product concerned, inalterability of product, special machines and devices so a large number of employees are not necessary)

Examples of Functions of production management

  1. Planning: Production planning involves setting goals and objectives, identifying resources and materials, and scheduling work to meet production goals. This requires forecasting future demand, analyzing inventory levels, determining production capacities, and planning production schedules.
  2. Organizing: Production organizing involves coordinating activities, assigning tasks, and developing efficient workflows. This includes understanding how to effectively utilize resources, optimize workflow, and develop effective systems for controlling production costs.
  3. Managing: Production management includes managing production operations and personnel. This includes overseeing production processes, maintaining quality control, training and supervising personnel, and ensuring that production targets are met.
  4. Controlling: Production control involves overseeing the production process to ensure it is efficient and effective. This includes monitoring production costs, ensuring quality standards are met, and implementing corrective action when necessary.
  5. Evaluating: Production evaluation involves assessing the effectiveness of production processes, identifying areas of improvement, and implementing changes to improve efficiency. This includes analyzing production data, conducting audits, and resolving any issues that arise.

Advantages of Functions of production management

The most important functions of production management provide several advantages that are essential for a business. These include:

  • Planning: The production management plan allows businesses to anticipate potential problems and develop solutions before they arise. It also helps to ensure that resources are allocated in the most effective way and that deadlines are met.
  • Organizing: Production management helps to coordinate activities, identify tasks, and allocate resources. This allows for the most efficient use of resources and helps to ensure that operations run smoothly.
  • Managing: Production management provides an effective system of control, allowing managers to monitor and adjust activities as needed. This helps to ensure that operations are running as smoothly as possible.
  • Controlling: Production management helps to ensure that quality standards and safety guidelines are being met. It also allows managers to identify and rectify any potential issues that could arise in the production process.

Limitations of Functions of production management

The Functions of production management are critical to the successful production of goods and services, however, there are some limitations to these functions. These limitations include:

  • Planning: While planning is essential to ensure that the production process is efficient, there can be unforeseen issues that arise and may not be accounted for in the planning phase.
  • Organizing: There is an inherent limitation in the ability to organize a production process due to the limited resources available.
  • Managing: The manager may not be able to effectively manage the production process if they lack the necessary knowledge or experience.
  • Controlling: Controlling the production process can be difficult due to the complexity of the production process, as well as the need to account for multiple variables.

Other approaches related to Functions of production management

The following are some additional approaches related to production management:

  • Scheduling - Scheduling is the process of determining when to start and finish tasks to meet desired goals. It includes the development of detailed plans for each step of production and the coordination of resources to complete tasks.
  • Cost Control - Cost control is the process of managing costs to maximize profits and minimize waste. It involves setting and tracking budgets and other financial objectives, tracking expenses, and making adjustments as needed.
  • Quality Control - Quality control is the process of ensuring that products meet or exceed quality standards. It involves inspecting, testing, and measuring products to ensure they meet the required specifications.
  • Risk Management - Risk management is the process of identifying, assessing, and mitigating risks associated with production activities. It involves assessing the potential risks associated with each production activity and taking steps to reduce or eliminate them.

In summary, production management involves a wide range of activities, including planning, organizing, managing, controlling, scheduling, cost control, quality control, and risk management. These activities are essential for effective production management and ensuring the production of high-quality products.

Functions of production managementrecommended articles
Departmental planningOperational controlPlanning and controlManagement by the numbersOn site managementProduction planning and schedulingAllocation of resourcesManagement systemResource plan



  1. Wren D. A., Bedeian A. G. (2008)
  2. Cosse T. J., Swan J. E. (1983)
  3. Koskela L. (2000)

Author: Justyna Chłopek