Table of Contents
Production Department
The Production Department is the functional unit whose activities are based on developing an organization’s products; it manages the set of duties associated with a company production of goods or services. These responsibilities include, among other things, the transformation of raw materials, quality control, and the selection of suitable operating methods.
The individuals assigned to operate in this department must have previous knowledge and specific capacities to carry out this work because the final production results of the organization depend on them. In this way, said the department has an established hierarchy in which superiors must give detailed instructions to their subordinates for the precise execution of production processes.
Functions of the Production Department
The main functions of the production department are mentioned below:
- Treatment of raw materials: it is responsible for carrying out, through the execution of operations, the treatment of raw materials for the production of finished, semi-finished goods or services that the company will subsequently use for commercial activities. The different raw materials pass through various fundamental techniques for the final product.
- Quality control: constant performance of rules to offer and guarantee quality standards regarding its products.
- Inventory registration: this function is performed to control expenses, the number of resources used and production costs. Therefore, the role of this department is essential in an organization to be clear about the values related to production levels and other inherent.
- Hygiene and safety: this function includes the set of protocols to execute production operations that must be followed precisely and clearly to offer adequate hygiene standards. This function also covers the protocols aimed at protecting and preserving the lives of the employees in charge of carrying out the production processes in the organization.
Objectives of the Production Department
The main objectives of the production department are mentioned below:
- Offer and guarantee adequate quality standards.
- Identify errors and weak points in your products, infrastructure, processes and strategies.
- Keep a timely control and record of the number of units produced, raw material used and expenses related to production.
- Control the general operations of the entire production process.
- Constantly innovate with new techniques, strategies, products and production methods.
- Importance of the production department
- The importance of the production department lies in the fact that it is in charge of the elaboration of products in an organization; therefore, many determining factors depend on it in subsequent marketing processes, such as product quality, prices, expenses, and customer satisfaction, among others.
- Without proper management of this department, an organization would not be able to compete in the markets since its goods would not be suitable enough to satisfy the needs of consumers.
Examples of the Production Department
Some examples of processes carried out by the production department are mentioned below:
Computer Assembly Company
- Organize and manage the resources necessary to carry out its operations, for example, processors, motherboards, tin, tools, etc.
- Establish the methodology to follow according to the type of computer to assemble.
- Carry out the previously established operations to execute the assembly.
- Carry out their respective quality controls to ensure an optimal product for the consumer.
- Keep a record of the inputs used in the production of products, final inventory, etc.
Manufacturer of beauty products:
- Organize and manage the necessary resources to carry out its operations, such as Vaseline, wax, dyes, flavorings’, lead, etc.
- Carry out the operations established to execute the production.
- Carry out their respective quality controls to ensure an optimal product for different consumers.
- Establish the methodology to follow according to the type of products produced.
- Identify effective and modern methods to execute operations most efficiently.
- Keep a record of the inputs used in the production of products, final inventory, etc.
Technical And Production Department, Its Main Characteristics
Technical and production department, its main characteristics – Materials, Electrical, Electricity, Boards, Rosario
The technical department and the production department, by definition, should establish as two separate departments in a company. Still, the economic factor is often determining, and they usually found structure as a single unit.
Next, we will see that each department has functions that, although complementary, are different.
The production department is in charge of manufacturing the product, but in addition to producing, it deals with other tasks, such as:
- Analyze products or services
- Measure execution times
- Safety and Hygiene
- Ways to run jobs
- QA
- Inventory control
But the problem is that all this must did with optimum quality and in the shortest possible time. This is where the technical department becomes relevant.
Today companies reward if they meet specific requirements, such as caring for the environment, monitoring by the staff of all regulations and legislation relating to safety and hygiene, compliance by certain companies with customer orders, as extravagant as they, what is known as production to order. However, all this adds extra costs to display, so the technical department must be in charge of balancing this difficult balance.
The technical department is responsible for providing the production department with the necessary technology to lower production costs.
The technical department is responsible, among other functions:
To analyze and improve production tools
To analyze and enhance external technical applications
Study new investments that will enhance technology and make better use of space.
The technical department is in charge of knowing the costs and, based on this, giving the best solutions to the production department so that these reflect in sales.
Among the costs that the production department must face are:
- Direct costs: those that can attribute directly to the product. For example, if tables make, it will be the nails, wood, labour, etc
- Indirect costs: those that intervene indirectly in the product’s manufacture but cannot fully allocate; administrative expenses, electricity, and cleaning, among others.
- Fixed costs: those that, whether one unit or a thousand, manufacture, will always be there, such as machinery, social security, rent, etc.
- Variable costs: The higher the production, the higher, for example, over time.
Once fixed and variable costs identify, the sum of both results in the total cost. This divide by the number of products produced, resulting in the unit cost.
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