What Is Early Decision?

Production management decision-making refers to the production process organization, production technology preparation, production planning, raw material supply, and production control, which are closely related to product production. Its purpose is to effectively combine various production factors, improve the labor productivity and various economic and technical indicators of enterprises in accordance with the best methods, produce products that meet social needs, and increase economic benefits. ^[1]

Production management decision

Right!

Production management decision-making refers to the production process organization, production technology preparation, production planning, raw material supply, and production control, which are closely related to product production. Its purpose is to effectively combine various production factors, improve the labor productivity and various economic and technical indicators of enterprises in accordance with the best methods, produce products that meet social needs, and increase economic benefits. ^[1]

Whether the decision is correct or not determines whether the company's production process can economically and efficiently complete its intended goal. At any time, the company's profit target and market constraints on the company must be considered first. In the early days of the factory system, production and technology were relatively simple, and the scale of the enterprise was small. Production management decisions were made by the factory owner based on experience. With the advancement of science and technology and productivity, the scale of enterprises continues to expand, the production process and market are becoming more and more complex, and personal experience is far from being able to meet the requirements of decision-making. Decision-making has developed into a science. Scientific decision making process. Modern decision-making procedures are usually shown in the figure: First of all, it is necessary to understand what the problem is, which requires learning to hold a large amount of information and data. Second, draw up multiple plans based on goals and issues. Then it is to evaluate each plan. The evaluation plan needs to choose the criteria for judging the pros and cons of the plan, clarify the relevant variables of each plan, and analyze, calculate, and experiment to judge the pros and cons of the plan. The last is to choose a plan and execute it. The entire decision-making process requires constant feedback and rigorous scientific analysis. Modern science and electronic computers are widely used in management to make decision-making have more scientific methods and tools. Compared with organizational design, personnel management, and marketing, the problems in production management are easier to carry out quantitative analysis. Therefore, quantitative analysis is used more in production management decisions. For various problems to be solved, establish various models for process analysis, statistical analysis, system analysis, linear programming, and cost analysis. Because the company aims to make profits, all kinds of analysis are in the final analysis to reduce costs and improve efficiency. The break-even analysis and incremental cost analysis (incremental cost refers to the additional costs due to a decision) in cost analysis are decisions. The most commonly used method in analysis. ^[2]

The problems faced by production management decisions can be divided into two categories: ^[2]

The scope of production management decisions is wide, including the choice of data, forecast content, forecast direction, when to forecast, length of forecast time; material management, selection of material procurement, decision of storage location, order time and order quantity; production What, in what way, when, how much; what kind of difficult skills, how to allocate, when needed, how many people are needed; equipment types and specifications, capacity, how to arrange, when to use, how to allocate , Where, when, how much, etc. ^[3]