What are Production Strategies? Meaning
Production strategies are broad long-term action plans. They are made for achieving the main objectives of organisation. Production strategies tell us what the production department must do to achieve the top aims of the organisation. It provides a road map for the production department.
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So, production strategies are long-term action plans of the organisation, for the production of goods and services.
Production strategies decide about the investment to be made for production, the technology to be used for production, the training to be given to the production staff, the production schedule to be followed, etc. It also decides about the goods and services to be produced and when to introduce them in the market.
It is the top level of management that first fixes the main objectives of the organisation. Then top-level managers make strategies for achieving these objectives.
Generally, there are two types of strategies, viz.,
- Business Strategies are strategies made for the entire organisation. It covers all departments of the organisation. These are made by the top-level management.
- Functional or Departmental Strategies are strategies made for a particular department. Each department has its own strategy such as production and marketing strategy. These strategies support the business strategy to achieve the main objectives of the organisation. They are made by middle-level management, i.e. by Departmental Heads. So, production strategy is a functional strategy.