Functional and Scope of Productions Department

The Activities of production department of an organization are grouped into two broad categories.
1.The activities that convert the available capital to physical resource required for production
2.The activities that convert the physical resource in to sealable goods and services.

In carrying out the above activities, the production department must perform the following activities.

A.Production of goods at the right time and in sufficient quantity to meet the demand
B.Production of goods at minimum possible cost
C.Production of goods a acceptable quality

Thus, the functions of production personnel are :

- Forecasting the demand for the products and using the forecast to determine the requirement of various factors of production.
- Arranging for the procurement of required factors of production
- Arranging for the procurement of required factors of production.
- Arranging for the services such as maintenance, store keeping material handling inspection and quality control etc that would be required to attain the targeted level of production.
- Utilising effectively the factors of production and service factilities available to produce the products.