Aspects of production Function

1.    Manufacturing Function

This function is connected with the production of goods or making of products. Manufacturing function includes decisions such as selection of factory, its location, design and layout, type of products to e produced; research, development and design of the product.

2.    Ancillary Function

This function includes all those activities which support or smoothen production function. Ancillary function is related to production planning and control, maintenance, purchasing, store-keeping ad materials handling.

3.    Advisory Function

It helps in improving production function. It includes work study, method study, operational research, inspection and quality control.

There are four recognized factors of production
(a)    Nature (land and other natural resources)
(b)    Labour (human efforts)
(c)    Capital (factory building, machinery, tools, raw materials, etc.)
(d)    Enterprise (activity that organizes other factors of production into an operating unit).

Related to production, an always difficult managerial decision is regarding the selection of plant site and then plant layout. Plant location should be such that production and distribution costs are minimum but the profit is maximum. After locating the site, the facilities (equipments etc.) have to be laid out. A good plant layout permits the materials to move at the desired speed and at minimum cost.

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