The use of production management concepts in the design of production management systems

Much planning and control in production is ‘action oriented’, that is, action is preferred to the application of insight and understanding. Despite the fact that almost every section and department of an industrial enterprise is involved, production management has become a specialized function closely attached to the computer department. In order to benefit from the potential combined effects (synergy) of modern technology we need to include many aspects and disciplines. This has called for a new, situational approach to production management which accepts the complexity of reality and strives for insight, which focuses attention on the mutual interplay between involved sections, and which considers production management as an integral part of the industrial enterprise. The result of adopting this new approach is presented in this and a subsequent paper. The present paper first discusses how to define the role of production in a corporate context. It includes a comparison of actual performance with the production mission. And a problem matrix is introduced as a method to disclose the actual interplay between individuals and sections in an industrial enterprise. This paper also introduces the notion of a Production Management Concept which is defined as an overall, coherent picture of the way in which the production management role is to be carried out. Three examples of a production management concept are discussed, illustrating three different production modes. It is shown how a concept may simulate the development of mutual agreements among interested parties and serve as a framework for discussing various planning methods and principles. In a subsequent issue, a second paper will address the planning of implementation of production management systems design, including organizational and behavioural aspects as well as project management theory and practice.