What Is Production Management? Definition, Careers, and More

Production management aims to monitor and improve the efficiency of activities, materials, staff resources, and budgets to produce goods. Production outcomes vary according to the industry. A production manager ensures that manufacturing stays on schedule, within budget, and achieves the desired output goals. 

Salaries for production management roles in the US are much higher than average, with the median annual earnings at $116,970, rising to $190,480 for the top 10 percent [1]. Learn more about the field of production management, the skills you need, and how you can start a career in production management.

What is production management?

Production management is the process of managing production inputs (raw materials, capital, and labor) to produce outputs (finished products). For companies that manufacture products, production management is necessary to ensure the operations and logistics (supply chain) run smoothly. Production management goes hand in hand with operations management.

Read more: Operations Management: What Is It and Why Does It Matter?

Why is production management important?

Production management is important because it lowers costs when done efficiently, meaning the processes maximize resources to improve a business' competitiveness in the market. This, in turn, helps companies produce high quality products that are delivered on time to achieve business objectives, and therefore improves the company's reputation.

What are the 5 M's?

The 5 M's of production management are men, machines, methods, money, and materials. Managing "men" (the better word for this is "people") is a core of production management, who work the machines that produce goods. Production managers strategize how to use machines and certain methods (strategies) to optimize resources, money, and materials.

What does a production manager do?

Production management job descriptions vary by each industry and level of the role, but in general, someone working in production management has the following responsibilities:

• Managing manufacturing processes and looking at inputs to achieve outputs

• Creating and maintaining work schedules and budgets

• Monitoring production to find ways to improve efficiency and operations

• Communicating effectively with staff, stakeholders, suppliers, and customers

• Manage safety and quality control

• Manage a production team 

• Identify, evaluate, and resolve any problems with manufacturing or staffing

Skills needed in production management 

To work in production management, you'll need both technical and workplace skills.

Technical skills:

• Competency with technical equipment and maintenance

• Six Sigma

• Business acumen

• Financial and industry knowledge

• Knowledge of industry regulations, such as EPA (Environmental Protection Agency) and OSHA (Occupational Safety and Health Administration)

• Ability to use Microsoft Office and email

Workplace skills:

• Teamwork

• Problem-solving

• Leadership and management

• Organization

• Ability to multitask

• Attention to detail

• Critical thinking

• Strategic planning 

Industries that need production management

These industries commonly rely on production management to turn raw materials into finished products.

• Automotive 

• Chemical

• Food

• Machinery

• Metal and fabricated products 

• Computers and technology

Careers in production management

Production management jobs, titles, and salaries vary and have different responsibilities. According to the US Bureau of Labor Statistics (BLS) the projected growth from 2023 to 2033 for industrial production managers is 3 percent [2].  Explore some product management jobs and their average annual salaries: 

Production manager

Average annual salary (US): $83,054 [3]

A production manager manages the production process and ensures the company's manufacturing goals are met (outputs) by successfully overseeing inputs such as time, staffing, efficiency, materials, and costs. 

Manufacturing manager

Average annual salary (US): $102,695 [4]

A manufacturing manager looks after the day-to-day manufacturing operations. You organize schedules, manage staff, and set budgets. The role is very similar to a production manager, except the production manager is responsible for the entire production process, while a manufacturing manager looks after the equipment and those that use it. 

Assistant production manager

Average annual salary (US): $57,825 [5] 

An assistant production manager supports the production manager with their duties. Your tasks are similar but at a junior level.

Industrial production manager

Average annual salary (US): $78,086 [6]

An industrial production manager oversees production and manufacturing in an industrial plant. Your role includes scheduling production and managing budgets, staff, and processes. 

Plant manager 

Average annual salary (US): $105,336 [7]

A plant manager supervises operations and manufacturing and is responsible for making strategic decisions, managing staff, ensuring safety, and working to achieve production goals.

Operations manager

Average annual salary (US): $77,983 [8]

An operations manager is responsible for the production and daily operations, making business decisions, and working as a senior management team member. You look to improve production processes and may recruit and train staff. 

How to become a production manager 

To become a production manager, you'll want to make sure you have the right skills, education, experience, and certifications. 

1. Earn a degree.

A bachelor’s degree is typically the minimum educational requirement to become a production manager, with 62 percent of managers holding one and 18 percent holding an associate degree [9]. However, it’s possible to qualify for a position if you have a high school diploma and gained an impressive amount of experience. 

Useful bachelor’s degree subjects include business, engineering, industrial management, manufacturing, or similar. Depending on the company and level of responsibilities, some positions may require an MBA. Some schools offer options to complete a production management degree.

2. Receive some training.

On-the-job training tends to be the best way to learn. A new employee will often spend the first months learning about the company and job responsibilities, and then putting those methods into action.

Completing an internship in manufacturing or production is helpful in learning industry processes.

3. Gain experience.

Experience is necessary in most cases to work in production management, especially if you want to advance into a leadership role. You'll need to first land an entry-level position to gain a few years of experience before pursuing more responsibilities.

4. Consider getting certified.

Given the competition for jobs, having relevant certifications can boost your resume. Some common ones to know include:

• Certified Planning and Inventory Management (CPIM)

• Certified Manager of Quality/Organizational Excellence (CMQ/OE)

• Certified Lean Six Sigma Green Belt (ICGB)

• Master Project Manager (MPM)

• Certified Product Manager (CPM)

The AI product development life cycle can differ from the standard. Building AI skills can be an excellent way to set yourself apart from other candidates and stay current with the evolving tech landscape. With IBM's AI Product Manager Professional Certificate, you can learn to apply your leadership skills to the AI product management lifecycle. You'll examine real-world case studies of successful AI integration and develop or strengthen your knowledge of Agile concepts and methodologies. By the end, you'll have earned a Professional Certificate from an industry leader in technology.

Getting started with production management on Coursera

Production management is a career that monitors the efficiency and cost of production operations, with different career opportunities available. If you want to enter this career field, a great place to start is by learning more about the manufacturing management process by taking the Advanced Manufacturing Enterprise course offered by the State University of New York. You can also brush up on your leadership skills with the Leading People and Teams Specialization delivered by the University of Michigan.