Production:

The Production department undertakes the activities necessary to provide the organizations products or services. The main responsibilities are:

1. 1. Production planning and scheduling
2. 2. Control and supervision of the production workforce
3. 3. Managing product quality (including process control and monitoring
4. 4. Maintenance of plant and equipment
5. 5. Control of inventory
6. 6. Deciding the best production methods and factory layout

Collaboration between production and other functions within the organization

1. Research and Development - concerns the implications of product design for production methods and cost
2. Marketing - concerns desired product functionality, appearance, quality, durability and so on
3. Finance - concerns the availability of funds for purchase of new equipment and the acceptability of inventory levels.
4. Human Resource Management - concern staff motivation implications of job design and production methods.

Purchasing:

The Purchasing department is concerned with acquiring goods and services for use by the organization. These include raw materials, components for manufacturing, production equipment and the like. The responsibilities of this function usually extend to buying goods and services for the entire organization and not just limited to the production function.
While buying goods and services, purchasing managers must take into account a number of factors collectively referred to as the Purchasing Mix, namely, Quantity, Quality, Price and Delivery.

1. Quantity: Buying in large quantities can attract price discounts and prevent inventory running out. On the other hand, there are substantial costs involved in carrying a high level of inventory.


2. Quality: There will usually be a trade-off between price and quality in acquiring goods and services. In order to determine an acceptable level og quality, the production, R&D and marketing functions have to be consulted with.


3. Price: The purchasing manager will look for the best price deal when procuring goods and services. Price must be considered in conjunction with quality and supplier reliability, in order to achieve best value, rather than lowest price only.


4. Delivery: The time between placing an order and receiving the goods or services is called as the lead time. It can be critical for production planning and scheduling. It also has implications for inventory control. Hence, suppliers must be evaluated in terms of their reliability and capability for on time delivery.

Human Resources:

1. Recruitment and selection: Ensuring that the right people are recruited to the right jobs.


2. Training and development: Enabling employees to carry out their responsibilities effectively and make use of their potential.


3. Employee relations: Including negotiations over pay and conditions.


4. Grievance procedures and disciplinary matters: Dealing with complaints from employees or from the employer.


5. Health and Safety matters: Making sure employees work in a healthy and safe environment.


6. Redundancy procedures: Administering a proper system that is seen to be fair to all concerned when deciding on redundancies and agreeing redundancy payments.