PRODUCTION MANAGEMENT

also called operations management, planning and control of industrial processes to ensure that they move smoothly at the required level. Techniques of production management are employed in service as well as in manufacturing industries. It is a responsibility similar in level and scope to other specialties such as marketing or human resource and financial management. In manufacturing operations, production management includes responsibility for product and process design, planning and control issues involving capacity and quality, and organization and supervision of the workforce. William K. Holstein also called Operations Management, the planning and control of industrial production processes to ensure that they move smoothly at the required level. Techniques of production management are employed in service industries as well as in manufacturing industries. The responsibilities of production management are called the five M's: men, machines, methods, materials, and money. The management of men, machines, and methods involves maintaining a flexible production process with a work force that can readily adapt to new equipment and schedules. Responsibilities for materials include the management of both physical (raw) materials and information materials (paperwork). Money management, including such areas as inventory, plant capacity, and customer service, is a major responsibility and can determine the competitiveness of an entire operation. The production cycle requires that various departments interact. Sales, financial, engineering, and planning departments exchange informationsuch as sales forecasts, production schedules, inventory levels, and budgetsuntil, finally, detailed production orders are dispatched by the production-control division. Control is a chief function of production management. The manager must ensure that operations produce at planned output levels while meeting cost and quality objectives. The production plan must be monitored regularly, and adjustments must be made to meet fluctuating market demands. Inventory control oversees raw materials, component parts, work in process, finished goods, packing and packaging materials, and general supplies and determines when to replenish inventory and by what amount. The control of labour involves using industrial-engineering tools, such as time-study measurements, to design efficient work methods. Workers must be hired, trained, and assigned in synchronization with changing production processes and schedules. Production managers often use techniques developed in the fields of industrial engineering, operations research, and systems engineering. Additional reading Two handbooks contain a wealth of general information on industrial production systems, methods, problems, and management techniques: Gordon B. Carson, Harold A. Bolz, and Hewitt H. Young (eds.), Production Handbook, 3rd ed. (1972); and H.B. Maynard (ed.), Industrial Engineering Handbook, 3rd ed. (1971). See also Franklin G. Moore and Thomas E. Hendrick, Production/Operations Management, 8th ed. (1980), a classic textbook covering a wide range of topics in nontechnical language; and Harwood F. Merrill (ed.), Classics in Management, rev. ed. (1970), an excellent collection of excerpts from the writings of several pioneers in industrial production, including Frederick W. Taylor, Henri Fayol, and Frank B. and Lillian M. Gilbreth. Two general texts that cover many aspects of the general field treated in this article are Elwood S. Buffa, Modern Production/Operations Management, 7th ed. (1983); and Richard B. Chase and Nicholas Acquilano, Production and Operations Management: A Life Cycle Approach, 4th ed. (1985).General references with broad coverage include Everett E. Adam, Jr., and Ronald J. Evert, Production and Operations Management: Concepts, Models, and Behavior, 2nd ed. (1982); and Roy D. Harris and Richard F. Gonzalez, The Operations Manager: Role, Problems, Techniques (1981). An analytical approach to production control is Samuel Eilon, Elements of Production Planning and Control (1962). The use of operational research models is covered in Edward H. Bowman and Robert B. Fetter, Analysis for Production and Operations Management, 3rd ed. (1967); Elwood S. Buffa and Jeffrey G. Miller, Production-Inventory Systems: Planning and Control, 3rd ed. (1979); and Martin K. Starr, Production Management: Systems and Synthesis, 2nd ed. (1972). More specialized works are Martin K. Starr and David W. Miller, Inventory Control: Theory and Practice (1962); John F. Muth and Gerald L. Thompson (eds.), Industrial Scheduling (1963). More general references dealing with strategic issues include William J. Abernathy, Kim B. Clark, and Alan M. Kantrow, Industrial Renaissance: Producing a Competitive Future for America (1983); James O'Toole, Making America Work: Productivity and Responsibility (1981); and a collection of articles from the Harvard Business Review, Survival Strategies for American Industry, ed. by Alan M. Kantrow (1983).