Production function is ‗the part of an organisation, which is concerned with the transformation of a range of inputs into the required outputs (products) having the requisite quality level‘.
Production is defined as ‗the step-by-step conversion of one form of material into another form through chemical or mechanical process to create or enhance the utility of the product to the user‘. Thus production is a value addition process. At each stage of processing, there will be value addition.
Production is a process whereby raw material is converted into semi-finished products and thereby adds to the value of utility of products, which can be measured as the difference between the value of inputs and value of outputs.
Production management is ‗a process of planning, organising, directing and controlling the activities of the production function. It combines and transforms various resources used in the production subsystem of the organization into value added product in a controlled manner as per the policies of the organization‘. E.S.Buffa defines production management as follows:
‗Production management deals with decision-making related to production processes so that the resulting goods or services are produced according to specifications, in the amount and by the schedule demanded and out of minimum cost‘.
