5 Pʼs of Production Management – Explained!

08/09/2019, 2)29 PM

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5 P’s of Production Management –

Explained!
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The division of production management functions in to 5 p’s (product, plant,

programme, processes and people) will provide useful conceptual framework for the
various activities performed by production or operations manager.

The Five P’s:

1. The Product:

Product is the link between production and marketing. It is not enough that a customer
requires product but the organisation must be capable of producing the product.

As per the product policy of the organisation an agreement is reached between the
various functions on the following aspects of the product,
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1. Performance

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5 Pʼs of Production Management – Explained! 08/09/2019, 2)29 PM

2. Quality and reliability

3. Aesthetics and ergonomics

4. Quantity and selling price

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To arrive at the above, the external and the internal factors which affect the various
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aspects such as market needs, existing culture and legal constraints and the
environmental demands should be given due consideration. Thus the major policy
decisions regarding variety of product mix is going to affect the producing system.

2. The Plant:

The plant accounts for major investment (fixed assets)

The plant should match the needs of the product; market, the worker and the
organisation.

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The plant is concerned with;

1. Design and layout of building and offices

2. Reliability, perfect, maintenance of equipment’s

3. Safety of operations

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5 Pʼs of Production Management – Explained! 08/09/2019, 2)29 PM

4. The financial constraint

Plant layout deals with physical arrangement of plants and machineries within the
selected site. The layout should be such that it should allow for smooth movement of
men and materials with minimum back tracking. The type of the layout is dependent
on production type, volume of demand, etc.

3. The Process:

There are always number of alternative methods of creating a product. But it is

required to select the one best method, which attains the objectives.

In deciding about the process it is necessary to examine the following

factors:

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5 Pʼs of Production Management – Explained! 08/09/2019, 2)29 PM

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1. Available capacity

2. Manpower skills available

3. Type of production

4. Layout of plant

5. Safety

6. Maintenance required

7. Manufacturing costs

4. The Programme:

The programme here refers to the timetable of production.

Thus, the programme prepares schedules for:

1. Purchasing

2. Transforming

3. Maintenance

4. Cash

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5 Pʼs of Production Management – Explained! 08/09/2019, 2)29 PM

5. Storage and transport

5. The People:
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Production depends upon people. The people vary in their attitudes, skill and
expectations from the work. Thus, to make best use of available human resource, it is
required to have a good match between people and jobs which may lead to job
satisfaction.

The production manager should be involved in issues like:

1. Wages/salary administration

2. Conditions of work/safety

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3. Motivation

4. Training of employees

Thus, production management encompasses these 5 Ps.

The areas of 5 Ps are overlapping.

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5 Pʼs of Production Management – Explained! 08/09/2019, 2)29 PM

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