Production Area of ​​a Company: Production Department, Functions and Objectives

He production area of ​​a company , also called area of ​​operations, is the part of an organization that is dedicated to transforming resources or inputs into the final product that will reach the customer. This department is not only found in industrial companies or producers of goods, but also in services.

Since the beginning of the industrial era, the production area was in charge of managing the entire production line: from raw materials to its transformation into final goods. However, now companies are much more varied, with multiple types of goods and services both tangible and intangible.

That is why there are organizations that do not produce tangible goods but services; in these cases, this area is usually called operations. To simplify we will unite all the goods and services, both tangible and intangible, in the word"product". Thus, when talking about product we talk about the products or services that exist in the business world.

The production department

The production department in a company is responsible for the creation or manufacture of the final goods or services, so its function is essential for the product to arrive in optimal conditions for the consumer.

Therefore, it has to take into account different fronts, such as production planning, minimizing production costs, assuring optimum quality or designing products and processes, among other elements.

Depending on the type of company and its products, the production or operations department may vary. However, even if the functions change, the objectives are always the same.

Functions

The functions of this department are as varied as the different types of products and services on the market. However, we will analyze the most common functions in all companies:

Identify the necessary inputs in the production process

The production department is responsible for determining the amount of inputs necessary to achieve the target of production. For this you can collaborate with other departments, such as purchasing, so that the materials that are needed in each stage of production are never lacking.

Plan production

Once the supplies are ready, the department has to plan all the tasks and processes necessary to reach the target of product in the established time.

To achieve this, it has to perform tasks such as assigning tasks to workers, their incentive system or the capacity of inventories, if any.

Minimize production costs

Another important function within this area is to find effective ways to reduce the unit cost of production, in order to maximize the benefits of the organization.

In case of existing machinery, one of the simplest ways to achieve this goal is to keep it in good condition so as not to have to incur repair costs.

Other ways could be to review the entire production process, in order to find more efficient alternatives in any of the stages.

Innovate and improve

Being the one who supervises each stage of the production process, it is very possible that this department detects improvable processes. You could also think of innovations that minimize time and, with it, costs.

If this happens, the production department must work with the design, technical and purchasing areas to implement these improvements as soon as possible.

Ensure product quality

A production department is responsible for the finished products reaching the consumer with the minimum quality standards.

For this, this area must be continuously looking for errors and failures in the different phases of production of the product. Carrying out continuous evaluations and controls of the processes is essential for the final product to be manufactured under optimal conditions.

goals

The objectives of the production area are very varied and go hand in hand with their functions. The main objective is to coordinate and execute the different processes of the production process, in order to get the final product to the consumer with all the minimum quality standards. This great objective can be broken down into the following:

- Achieve the necessary infrastructure to carry out production in good conditions.

- Discover innovations for greater efficiency in the different stages of the production process.

- Supervar and manage the entire production process, from the inputs to the final product.

- Determine the quantity of product to be produced taking into account the inventory and available inputs.

- Achieve an optimal quality of the final product.

Examples

Let's take the example of two completely different businesses: that of a company that makes airplane wings and another that is dedicated to designing web solutions.

In the case of the wings company, the area would probably be called production and would be responsible for the following functions:

- Coordinate the necessary supplies (for example, aluminum) necessary for the production of the final pieces (wings).

- Ensure quality throughout the process so that the final good reaches the customer in optimal conditions.

- Planning of the whole process, from the raw materials to its transformation in the wings.

- Search for more efficient ways to produce wings with the same quality standard.

- Management of the necessary infrastructure to carry out all the production.

- Inventory management.

In the case of the web solutions company, the department would be the operations department. The functions would be similar but adapted to a more intangible business:

- Coordinate the design and programming of the different web solutions.

- Ensure that solutions are adapted to the needs of users.

- Planning of the process of creation of the different solutions.

- Search for improvements in usability and simplicity of use.

As we can see, there are some similarities but, in general, the functions are completely different. However, the objectives are the same.

References

1. Drucker, Peter; Hesselbein, Francs (January 18, 2016). The 5 keys of Peter Drucker: The leadership that makes the difference (Spanish Edition)
2. Arango Ángel, Daniel (2016). «Modern times of productivity». Agreements Magazine
3. Telsang, Martand (2006). Industrial engineering and production management. S. Chand,
4. Fargher, Hugh E., and Richard A. Smith. "Method and system for production planning."
5. Herrmann, Jeffrey W."A history of production scheduling Archived 2014-11-29 at the Wayback Machine.."Handbook of Production Scheduling. Springer US