What is a production department


Term for the creation of company services, regardless of whether they are in kind or services. In the operational manufacturing process, production is to be located between the procurement and sales phases of goods and production factors.

Production is the generation (manufacture, manufacture) of material goods, energies and services.

Production is the conversion of inputs (production factors) with the help of a certain technique into outputs (quantitative yields), in short

Production = production process.

In addition, production also stands for the result of the production process, the production yield, both in terms of quantity and value.

Value creation process in which the use of input goods and the combination of production factors result in output goods of the highest possible value. Due to production processes, work objects experience a status change (transformation) and an increase in value (conversion into products to satisfy customer demand).

The concept of production is represented in different understandings. The broadest version of the concept of production sees any creation of value in production in the economic sense. This term encompasses all phases of the operational sales process from procurement to sales. Another view sees production as a special phase of the operational sales process that lies between procurement and sales. Both in-kind companies and service companies have such a production phase. However, it is often difficult to determine a production phase for the latter. A third view, which is often encountered, is based on the definition of production in the technical sense. Both the purely technical processes of service provision and all related economic issues are recorded as production. According to this, production is the combination and transformation of production factors for the purpose of creating goods and services.

Production is understood to mean the efficient manufacture of goods and services through the combination of production factors. Depending on the definition of the goods or services used (raw materials and products as tangible goods, services as immaterial goods) and the type and quantity of the combined production factors, different delimitations are possible.
In a very broad interpretation of the concept of production, any combination of productive factors for economic purposes is called production. This then includes all forms of production such as the initial extraction of raw materials in mining, agriculture and forestry, the treatment and processing of materials in craft and industry, and the transport and services of trade and service companies. A narrow interpretation only includes the production of material goods. In production economics, the term production is used in the sense of operational performance. This makes it possible to distinguish between the utilization of services and the financial sphere. The provision of services includes, in addition to the causal provision of goods and services, the operational functions of procurement, storage, transport and the functions of administration, insofar as these are important for the initiation and maintenance of the service provision process (production process).
With this creation-oriented delimitation, the production process with all upstream, secondary and downstream processes within the company is the focus of production-theoretical considerations (production theory). Decision problems concern input / output analyzes of single and multi-product companies. In multi-product companies, a distinction is made between unconnected (joint, but isolated production of several products that are technically unconnected in terms of production) and connected (connected or joint production, technically connected products with fixed or variable quantity input ratio) production.
Further basic considerations concern the production process as a combination process of productive factors with the elementary factors (object-related human work performance, operating resources, materials) and the dispositive factor (business or operations management, organization, planning) as production input, with the information-induced combination of factors and the goods created as production output. The various output-related production factors and assigned input-related cost functions are based on production situations in economic reality. The production processes used are essential features of production. It can be systematized according to function-related criteria, according to production-related individual functions, the organizational function summary (integral and division of labor) as well as factor-related criteria (type of formation and combination of production units, see organizational type of production). The real production systems have i. d. Usually this is so complex that within production a strong division of labor between the actual production as a service creation process, production planning and production control (production control) is necessary.
Decisions about the design and interaction of these areas have thus become a central problem in production companies and require a tendency to shift from production-theoretical efficiency considerations to integrated efficiency considerations including available production planning and production control systems.

In socialist economics: In political economy production means the overall process of the production of material goods by people within the framework of certain social conditions, in craft, manufacture and industry.

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(Manufacturing) Use and combination of material and immaterial goods for the production and utilization of other goods. It represents a significant sub-function of economic processes. In a narrow version, only the production of material products is included in it. Then the term production is equated with manufacturing. In many cases, however, one also counts the processes of production in a broader sense, in which intangible goods such as transport and services, the provision and sale of goods, etc. "to be created. Then production as a service also includes facts that belong to procurement and sales. In reality one can observe a very large number of different forms of production. In order to describe the different manifestations of production, production types have been worked out. They can be used to organize the variety of production processes according to individual and combined characteristics. On the one hand, it is seen as the task of economics to explain and forecast the production processes that occur in reality. On the other hand, they should develop models and instruments with which one can plan, control and monitor production processes. Accordingly, one can distinguish between production theory and production planning as important sub-areas for the scientific analysis of production. In production theory, statements about legal or regular relationships in production are drawn up and checked. If one knows such regularities for types of production processes, their processes can be explained and the effects on relevant goals can be predicted. Among these, the profit target i. d. R. an outstanding meaning. In addition to the production theory, the cost theory has therefore been developed, which examines the relationships between the costs of the use of goods and their determinants. Production planning comprises the set of all sub-plans that are geared towards the design of production processes in companies. In practice, the specific subtasks for planning, controlling and monitoring the production processes are i. d. Usually carried out by work preparation. They include the activities that usually arise when carrying out manufacturing processes. Some of them concern the organizational design of the production process and thus belong to the process organization at the same time. The options for structuring work are also closely related to this. New forms have been found, especially for the production area, e.g. through the establishment of semi-autonomous groups. The company would like to solve work preparation tasks as efficiently as possible. Since the effects of manufacturing processes on the company's overall goals (e.g. profitability, liquidity, etc.) are often not immediately ascertainable, a number of manufacturing goals are known. They affect the direct consequences of manufacturing processes such as costs, lead times and adherence to deadlines. That is why internal changes can be used to evaluate work preparation and process organization and to select optimal solutions. Literature: Corsten, H., Production Management. Introduction to industrial production management, Munich, among others. 1990. Gutenberg, E., Fundamentals of Business Administration, Vol. 1: Die Produktion, 24th edition, Berlin and others. 1983. Kern, W. (Hrsg.), Concise Dictionary of Production Management, Stuttgart 1979.

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