Organization in lines

6. Optimum use of available resources: Firms can utilize their available resources i.e. machines, manpower, materials, etc. in an optimum way with the help of production management. This leads to better returns to the firm.

Advantages to Society and Customers

1. Helps in generating employment: Production management involves different production activities or tasks and, adequate manpower is required to perform such tasks. So, it helps in creating various job openings in society in a direct or indirect way. The production area initiates direct employment, wherein, supporting departments such as marketing, sales, accounts, customer service, etc. generates indirect employment.
2. Facilitates expansion of other related sectors: Production management supports society by providing expansion opportunities to different other sectors like transport, banking, spare parts, BPO, communication, etc. This ultimately helps in generating more employment and acts as an economy booster.
3. Quality improvement and cost reduction: Improvement in product quality is also one of the significant benefits of production management as it focuses more on R&D activities. Due to mass production, an economy of scale is achieved through production management that minimizes the production cost and leads to low prices to customers.
4. Economy Booster: Fast economy growth can be achieved by production management as it ensures the effective manufacturing of products or services and appropriate use of resources.

Integrated Production Management System

In today’s time organizations are focusing on using the advanced technology of manufacturing products and services such as TQM (Total quality management), JIT (Just-in-time), robotics system, automation processes, etc. The use of these advanced technologies in production is termed as Integrated Production.
So, Integrated Production Management System is those computer-based systems that are used in manufacturing and facilitate providing the correct information at the correct time. It also provides directions to the production manager on the optimization of current manufacturing conditions for improving the output of production.

Productivity in Production Management

The production system’s efficiency is termed as productivity. This concept provides guidance in the production management system. It indicates whether the utilization of production factors such as capital, land, energy, and labor, etc. are being consumed in a proper way or not. Productivity is defined as the ratio (relation in quantitative terms) between the finished products that an organization produces and resources that are used as an input to produce finished products in the production process.