5 P’s of Production Management – Explained!

The division of production management functions into 5 P's (product, plant, programme, processes and people) will provide a useful conceptual framework for the various activities performed by production or operations manager.

The Five P’s:

1. The Product:

The product is the link between production and marketing. It is not enough that a customer requires product but the organisation must be capable of producing the product.

As per the product policy of the organisation, an agreement is reached between the various functions on the following aspects of the product,

1. Performance

2. Quality and reliability

3. Aesthetics and ergonomics

4. Quantity and selling price

5. Delivery schedule

To arrive at the above, the external and the internal factors which affect the various aspects such as market needs, existing culture and legal constraints and the environmental demands should be given due consideration. Thus the major policy decisions regarding variety of product mix is going to affect the producing system.

2. The Plant:

The plant accounts for major investment (fixed assets)

The plant should match the needs of the product; market, the worker and the organisation.

The plant is concerned with;

1. Design and layout of building and offices

2. Reliability, perfect, maintenance of equipment’s

3. Safety of operations

4. The financial constraint