The success of production management is linked with proper forecasting, production planning and control. Scientific planning of production function will result in enhanced productivity. Increase in productivity will benefit all parties connected with business.
1. Advantages to consumers:
A well planned production function will lead to good quality products, higher rate of production and lower cost per unit. The consumers will be benefitted from prices of goods and will get good quality products. The availability of goods will also be satisfactory and the consumers will be saved from a lot of botheration which may otherwise be caused by scarcity of products.
2. Advantages to Investors:
An enhancement in productivity will increase profitability of the business. The investors will get higher returns on investment if profitability is better. This will also result in appreciation of assets values and ultimately the prices of shares will go up which will also benefit investors.
3. Advantages to employees:
Higher productivity will benefit employees in the form of better remuneration, stability in employment, good working conditions, etc. Better productivity to a worker will give him job satisfaction and improve his morale.
4. Advantages to suppliers:
Every enterprise depends upon supplies of raw materials, finished goods, spare parts etc. The suppliers will always like to deal with a concern having sound financial position. The company and its suppliers will have an enduring relationship only if both are satisfied with each other’s dealings.
5. Advantages to the community:
The economic and social stability of a- community is linked with growth and development of its industrial structure. An overall improvement in productivity will improve economic welfare of the society.
6. Advantages to the nation:
The advantages of various segments of society improve welfare of a nation. Better production management will result in proper and economical use of natural resources and elimination of wastages. An improved industrial climate will bring all round development and prosperity.
