Site icon Information Technology Media

What is the Production Department

Production Department

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:

Objectives of the Production Department

The main objectives of the production department are mentioned below:

Examples of the Production Department

Some examples of processes carried out by the production department are mentioned below:

Computer Assembly Company

Manufacturer of beauty products:

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:

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:

  1. Direct costs: those that can attribute directly to the product. For example, if tables make, it will be the nails, wood, labour, etc
  2. Indirect costs: those that intervene indirectly in the product’s manufacture but cannot fully allocate; administrative expenses, electricity, and cleaning, among others.
  3. Fixed costs: those that, whether one unit or a thousand,  manufacture, will always be there, such as machinery, social security, rent, etc.
  4. 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.

Also Read: What is a Social Engineering Attack

 

Exit mobile version