The production function in a business is associated with converting inputs into outputs manufactured by the enterprise. The quality of the output depends largely on the functioning of the production department. The inputs that are utilized in the production function are called factors of production. Production operations play an integral role in a company’s success, especially in small- to medium-sized businesses that depend exclusively on producing goods to remain in business.
The production department works closely with other divisions like sales and marketing, human resources, and finance. Key functions of the production department are:
Production planning involves estimation of input/output, planning production operations, and the location of production sites. Production planning is the first step in the production cycle.
monitoring and controlling of the production function is essential to measure its performance. Timely delivery of quality products or services depends on the production function. The management controls the schedules, quality, and costs of the production function for optimal performance.
the key performance indicators of the production function help the management identify key improvement areas. The management analyzes production data and devises new and efficient ways for continuous improvement of the production function.