Wherever there is a prearranged group of people functioning for the achievement of a common objective, some type of management becomes vital. No organization can be run effectively unless there is somebody to supervise the actions. It is not hard to understand the effects of the situation in which an organizational group has no management in any way. If various people constituting the group are left to themselves, the end result will be utter confusion.

Production function has accepted huge significance as a primal function in every industrial undertaking. All other functions rotate around this function. The production activities are independent of the size of the undertakings. In a small concern one person may be undertaking this function while in big organizations, various individuals or separate teams may carry out this action. The success or failure of an organization depends upon the amount of care and function with rationality, and it will also help an undertaking to achieve its organizational goals.

Production is the creation of goods and utilities. In relation to goods, production is the fabrication of a physical object by making use of men, materials and equipment; whereas with regards to services, production is the discharge of a function, which has some value. This elucidation of production activity is very extensive one, and it does not match up with the commonly utilized practice of affiliating it with built-up process only. There can be many methods of production and the production manager will have to select a suitable technique for his unit. The different production methods are job production, batch production and flow production.