Production Management – Objectives, Methods, Principles

It’s worth starting with the basics. What exactly is production management? This term primarily involves planning, organizing, directing, and controlling all production activities. Those responsible for production management bear a great deal of responsibility. Their decisions will form the basis for implementing steps aimed at producing goods or services according to specifications, in the right quantity, on schedule, and at the lowest possible cost.

All production processes should be systematized and managed to minimize the risk of errors that directly translate into losses for the organization. The primary goal of production and service management is to answer the questions – what, when, where, how much, and how to produce.

Production Management Methods: An Overview of Techniques and Strategies

Seamless operation and greater innovation are ensured by systems for managing production processes. Modern enterprises have many production management methods to choose from. The method your company chooses should primarily depend on the specifics of your production type. Check out the most commonly chosen production management methods by owners of production facilities or plants.

Lean Manufacturing

Lean Manufacturing, also known as lean production, is a production management method focusing on minimizing waste and maximizing efficiency. The core values are continuous improvement, employee engagement, and process optimization aimed at delivering high-quality products and services in the most economical way possible.

Kanban

The Kanban production management method is based on a visual control system that enables tracking and controlling the workflow. It involves using a Kanban board, where tasks to be done, their status, and resource availability are recorded. This allows every employee to see the entire production process, ensuring smoothness, minimizing delays, and achieving high efficiency in actions.

Benchmarking

The production management method known as Benchmarking involves comparing the performance and results of a specific company with the best industry practices. Benchmarking analyzes processes, work methods, and achievements of competitors, then identifies areas for improvement and better results based on this analysis. The goal of benchmarking is continuous improvement and striving for higher quality, efficiency, and competitiveness in production management.

Introduction to Production Management Systems

Methods determine how employees perform their duties. However, production management systems enable continuous monitoring and analysis of company results. Based on this data, leaders or managers make crucial decisions regarding company development.

Production management systems are known by the acronym MES (Manufacturing Execution System). Their operation is based on information technology that allows efficient real-time data collection from each production station. The information is then directed to the company’s business systems.

The IPLAS system allows data presentation in a manner preferred by the specific company. Charts, gauges, or tables – you decide which visualization to choose. Remember, the final data presentation method will be the basis for implementing significant changes in your company. Our experts are happy to advise on the best solution tailored to the individual needs of your plant.

The Role of Technology in Production Management

Technology plays a key role in modern production management by enabling revolutionary changes and dynamic adaptation to changing market conditions. For example, production management software (ERP) integrates various production areas, such as planning, purchasing, warehousing, and quality control. This ensures a smooth flow of information and coordination of activities in production and other company departments.

Industrial robots can perform repetitive and time-consuming tasks with high precision, increasing efficiency and minimizing errors. Additionally, technologies such as the Internet of Things (IoT) allow real-time collection and analysis of production-related data, enabling quick response to problems, resource optimization, and process improvement.

Artificial Intelligence (AI) is also significant in production management. Using advanced AI algorithms, large amounts of data can be analyzed, patterns identified, demand forecasted, production planning optimized, and strategic decisions made. AI systems can also predict machine failures, allowing entrepreneurs to plan maintenance actions in advance and minimize production downtime.

Standards and Principles in Production Management

When a company decides to modernize its entire production process, it is crucial for all employees to adhere to key standards and principles that make production management more efficient. Below is a list of the most important practices to follow when running a production facility.

Quality Standards

Ensuring the highest quality of products is an integral part of production management. Quality standards, such as ISO 9001, define the requirements and procedures that must be met to ensure the desired quality in production processes.

Kaizen

The philosophy of continuous improvement, known as Kaizen, assumes that every employee should be involved in enhancing processes. By identifying and eliminating waste and introducing system improvements, the company strives for continuous improvement and higher efficiency.

The 5S Principle

The 5S technique focuses on organizing and maintaining order in the workplace. The five stages – Sort, Set in Order, Shine, Standardize, and Sustain – help maintain cleanliness, order, and an ergonomic work environment, which translates into increased efficiency and safety.

Just-in-Time (JIT)

This principle involves delivering the necessary materials, parts, and resources exactly when they are needed in the production process. JIT minimizes inventory, reduces storage costs, and eliminates waste.

Total Productive Maintenance (TPM)

Managing the maintenance of machines and equipment is a crucial element in ensuring production continuity. TPM aims to minimize machine downtime, increase efficiency, and engage employees in maintaining the optimal performance of equipment.