Production management involves the processes of planning, organising, controlling, and optimising resources and operations to produce products efficiently and in accordance with quality requirements. It is a key element in the life cycle of products, especially in sectors such as industry, automotive, electronics, and medicine. Manufacturing management software (MES, ERP) supports companies in automating and optimising production processes, increasing productivity and minimising waste of raw materials and time.
Production Management
Type of technology
Description of the technology
Basic elements
- Production planning: Creating production schedules and allocating resources to meet time and quality requirements.
- Resource management: Monitoring and managing materials, tools, personnel, and equipment used in the production process.
- Quality control: Processes to monitor the quality of manufactured products at various stages of production to meet industry standards and norms.
- Process automation: Implementing software and technology to automate production, which enables optimisation of operations and reduction of errors.
- Analysis and reporting: Collecting and analysing production data to monitor performance and identify areas for improvement.
Industry usage
- Automotive industry: Production management in car factories, including monitoring assembly lines and optimising production processes.
- Electronics: Manufacturing electronic devices, with automated systems monitoring and controlling every step of component assembly and testing.
- Heavy industry: Production management in steel mills and industrial plants, with automation and IoT systems controlling and optimising energy and raw material consumption.
- Medicine: Production management in pharmaceutical companies that require rigorous quality control and regulatory compliance.
- Food industry: Automation of food production processes, resource monitoring, quality control, and supply chain management.
Importance for the economy
Production management plays a key role in optimising enterprise performance and minimising operating costs. With advanced software and automation, companies can increase productivity, improve the quality of their products, and reduce time-to-market. In sectors such as automotive, electronics, and heavy industry, effective production management helps maintain competitiveness in the global market and reduce production costs and material losses.
Related technologies
Artificial Intelligence
AI supports production management by automatically generating schedules, analysing data, and identifying areas for improvement.
Cloud Computing
The use of the cloud enables production and data management from anywhere, facilitating remote control and performance monitoring.
Big Data
Analysing the data collected during the production process enables optimisation of operations, increase in productivity, and reduction of waste.
Internet of Things
Integration with sensors and IoT devices enables real-time monitoring of machines, tools, and resources.
Robotisation
Production management is often combined with automation using industrial robots and control systems to manage production operations.
Automation
Production management is often combined with automation using industrial robots and control systems to manage production operations.
Mechanism of action
- Production management involves effective combination of resources, machinery, tools, and employees in a way that minimises downtime and operating costs. The process begins with production planning based on orders and available resources. Then, production schedules are put in place to coordinate machines, tools, and personnel. Automated systems monitor production in real time, which enables immediate response to problems, while analysis of data collected during the process enables further optimisation.
Advantages
- Improved efficiency: Production management software automates many tasks, enabling more efficient use of resources and reduced downtime.
- Better quality control: Monitoring production processes in real time enables quick response to errors, improving the quality of final products.
- Reducing operating costs: Automation and optimisation of production processes contribute to cost reduction, including energy and material consumption.
- Increasing flexibility: Production management systems enable faster adaptation to changes in orders or supply chain issues.
- Increased transparency: Production management software enables monitoring of all operations, increasing transparency and enabling better decision-making.
Disadvantages
- Cost of implementation: Implementing advanced production management and automation software can be expensive, especially for small companies.
- Scalability: Small manufacturing plants can find it more difficult to scale advanced production management systems.
- Technological complexity: Implementing advanced production management systems requires specialised knowledge and a lack of appropriate skills can delay the implementation process.
- Cybersecurity: The use of remote production management systems comes with the risk of cyber attacks, which can lead to production disruptions or data leaks.
- Infrastructure limitations: Effective production management requires an adequate technical infrastructure, including networks and equipment with high reliability.
Implementation of the technology
Required resources
- ERP/MES software: Production planning and management systems, such as SAP, Oracle NetSuite, and Microsoft Dynamics, that support the management of resources, schedules, and processes.
- IT infrastructure: Servers and cloud computing to store and process production data and monitor operations in real time.
- Production team: Manufacturing engineers, automation specialists, programmers, and experts in human and material resource management.
- Machinery and equipment: Automated manufacturing machines, IoT systems, and industrial robots that support manufacturing processes.
- Network and equipment: Stable and efficient network for monitoring and managing production processes remotely and mobile devices for production monitoring.
Required competences
- Knowledge of ERP/MES systems: Ability to operate production management, resource planning, and real-time operations monitoring software, such as SAP, Oracle NetSuite, and Microsoft Dynamics.
- Resource management: Competence in effective management of production resources, including personnel, machinery, materials, and production schedules.
- Production data analysis: Ability to collect, process, and analyse production data to optimise operations, eliminate waste, and increase productivity.
- Automation of production processes: Knowledge of automation systems, robotisation, and integration of manufacturing processes with modern technologies (e.g. IoT, Big Data).
- Quality control: Ability to implement and monitor control processes that ensure high-quality products and compliance with standards and regulations.
Environmental aspects
- Energy consumption: Automated production management systems can lead to increased energy consumption, especially in large manufacturing plants where intensive production requires considerable energy resources.
- Raw material consumption: Efficient production management minimises material losses, but large-scale production can involve high consumption of raw materials.
- Waste generation: Manufacturing processes can generate waste, which must be properly managed, recycled, or disposed of to minimise its impact on the environment.
- Emissions of pollutants: Depending on the type of production, the processes can lead to emissions of air, water, and soil pollutants, which need to be monitored and minimised in compliance with environmental regulations.
- Recycling: Introducing recycling systems inside production facilities enables production waste to be reused, reducing the environmental impact.
Legal conditions
- Legislation governing production management such as ISO 9001 (example: standards for quality management systems that must be met to ensure quality and regulatory compliance).
- Environmental standards: Environmental regulations that govern how production waste, emissions, and raw material consumption are managed (example: ISO 14001 on environmental management).
- Occupational safety: Applicable regulations for worker safety in manufacturing plants (example: health and safety directives and ISO 45001).
- Intellectual property: Protection of production technologies and innovative processes used in production that can be covered by patents (example: patent law on manufacturing innovations).
- Export regulations: Regulations for the export of products that may require certification and compliance with certain manufacturing standards (example: export regulations for medical or technological products).