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Advantages of Production Management

Various benefits or advantages of production management are as under

Advantages to Organizations

1. Facilitates achieving the organization’s goals: With the help of production management, an organization can achieve its overall goals by manufacturing goods and services as per the need and desires of customers. This ultimately generates more sales and profits. Hence, production management helps the organization in fulfilling its ultimate goals i.e. revenue or profit generation.
2. Facilitates new product launch: Production management facilitates companies in introducing new products or services in the market. By conducting Research & Development (R&D), it supports the organization in the development of new products of better quality. The success ratio of these products is comparatively high due to proper customer satisfaction.
3. Supports in gaining competitive advantage: Production management helps firms in gaining a competitive advantage over its competitors by manufacturing products of high quality and in the right quantity. It also ensures that products can be available at the right place, right time, and at minimum cost.
4. Supporting hand for other functions: By the support of production management, other departments or functions of an organization such as marketing, HR, IT, finance, etc. perform their tasks in a better way. Like, it is easier for the sales & marketing department to sell products of the right quality. Similarly, more funds can be released to the finance department due to an increase in sales volume. Moreover, if the production department will perform better, then it is easier for the HR department to manage the production staff effectively.
5. Helps in building reputation and goodwill of the firm: With the support of production management, organizations are able to satisfy their customers by providing better quality products at minimum cost; and this ultimately enhances the goodwill and reputation of them.