By Dr. Olaniyi Opanuga, CPMP, CPM, COMP, COM, FNIPM

NIPM CPMP and CPM Certification Exams typically cover this topic and more. Preparing for exams or in need of practice tips? Production Managers and supervisors who need to advance their careers to management level need to keep learning and upskilling themselves. 

Professional development is critical to career success. Now let’s start:

What is Production Management?

 Production Management is the effective, efficient and sustainable transformation of inputs (resources) into outputs (goods and services) to satisfy customer requirements in order to achieve the goals and objectives of an organization. These goals and objectives may include profit, growth and expansion, great customer experience, market leadership and so on for a business organization while a non-profit organization or government agency and department may focus on public welfare, maintaining infrastructure, providing security, protecting the environment, community health, religion, recreation and arts, education etc.

The Differences Between production and Manufacturing?

It should be noted that while manufacturing involves tangible or physical products as final outputs, production involves in both the creation of physical products and delivery of services.

Importance of Production Management

The entire world depends on production for continued existence, growth and development.

Production management is pivotal to the success of every organization. It is the force of creation that fuels a nation’s economic growth. It is critical to the generation of a nation’s gross domestic product (GDP) and sustainability of balance of payment. Owing its value creation and productivity maximizing potential, production management is a strong weapon of competitive advantage. Organizations exists and compete on the strength of its production management capability and capacity.

Production management helps to sets standards for ensuring operational efficiency, improved utilization of productive resources such as investment capital, labour and machines, utilizing better methods, reducing risks of products failures, quality of manufacturing output, lowering costs, improving customer service delivery and increasing a company’s profit margin.

How a company fares in the marketplace in relation to its competitors, the competitiveness of its products and/or services, its profitability and shareholder value depend largely on the professional competencies of its production managers.