Production department definition

What is the Production Department?

A production department is a group of functions within a business that is responsible for the manufacture of goods. This can include just a few specialized functions with all other work outsourced, or a fully functioning department that converts raw materials, assembles components into finished goods, and packages them.

The production department can be the largest organization within a business. It may employ mechanics, machine setup specialists, maintenance personnel, and machine operators.

A key focus of the production department is efficiency. To that end, the bottleneck operation within the facility is closely monitored and supported so that throughput (revenue minus variable costs) is maximized. While it is generally profitable to reduce costs where possible in this department, that is not the case with the bottleneck operation, which should be fully supported at all times.

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