Production management is a critical aspect of manufacturing that involves planning, organizing, directing, and controlling the production process to ensure that products are manufactured efficiently and effectively.
In this blog post, we will share production management statistics that will provide insight into the importance of effective production management practices.
Key Production Management Statistics 2023 – MY Choice
- In 2019, the global production of crude oil reached a record high of 100.7 million barrels per day (bpd), according to the International Energy Agency (IEA).
- The United States was the world’s largest producer of natural gas in 2019, producing 34% of the world’s total, with a total production of 34 trillion cubic feet (tcf).
- The global production of coal in 2019 was estimated at 7.9 billion tonnes, according to the International Energy Agency (IEA).
- The global production of steel in 2019 was 1.87 billion tonnes, according to the World Steel Association.
- The global production of motor vehicles in 2019 was 92 million units, according to the International Organization of Motor Vehicle Manufacturers (OICA).
- In 2019, the United States was the world’s largest producer of corn, producing 13.7 billion bushels, according to the United States Department of Agriculture (USDA).
- The global production of wheat in 2019 was estimated at 765 million tonnes, according to the Food and Agriculture Organization (FAO) of the United Nations.
- The global production of coffee in 2019 was estimated at 168 million bags (60 kg each), according to the International Coffee Organization.
- The global production of cotton in 2019/20 was estimated at 118 million bales (170 kg each), according to the United States Department of Agriculture (USDA).
- The global production of soybeans in 2019/20 was estimated at 337 million tonnes, according to the United States Department of Agriculture (USDA).
Production Management Stats
Table 1: Production Management Software Statistics
| Statistics | Data |
|---|---|
| Median salary of San Francisco product managers | $129,000 |
| Projected employment growth of industrial production managers from 2020 to 2030 | 5% |
| Percentage of products that fail to meet customers’ needs | 21% |
| Percentage of respondents who say that 1 out of 5 products fail to meet the customer needs | 21% |
| Percentage of respondents who say that the skills of their product manager leave room for improvement | 56% |
| Percentage of respondents who state their product manager’s skills as average or below average | 56% |
| Percentage of respondents who state that product management within their company isn’t effective | 41.2% |
| Percentage of departments that report to product management | 34% |
| Percentage of product managers who know how to code | 5% |
| Increase in company profits by a fully optimized product manager | 34.2% |
| Percentage of male respondents | 66.1% |
| Percentage of female respondents | 32.1% |
| Percentage of respondents who preferred not to state their gender | 1.3% |
| Percentage of product managers involved in design activities | 80% |
| Percentage of product managers with basic analytics skills | 60% |
| Percentage of time spent by product managers on unplanned fire | 52% |
| Percentage of Harvard Business School graduates who took jobs in product management | 7% |
| Average salary of Harvard Business School product managers | $188,924 |
| Percentage of product managers with 3-5 years’ work experience | 26% |
| Percentage of product managers with 6-10 years’ work experience | 24% |
| Percentage of respondents aged 35-44 years | 39% |
| Percentage of product managers who prefer to work for small-to-medium enterprises | 55% |
| Percentage of product managers who prefer to work for bigger companies | 45% |
| Percentage of product managers who would work for any company that meets their personal preferences | 5% |
| Top three hard skills that will be the most sought after in the future amongst product managers | AI, data, and UX design |
Table 2: Production Management Latest Statistics
| Statistics | Data |
|---|---|
| Projected employment growth of industrial production managers from 2020 to 2030 | 5% |
| Percentage of products that fail to meet customers’ needs | 21% |
| Percentage of product managers who know how to code | 5% |
| Increase in company profits by a fully optimized product manager | 34.2% |
| Percentage of product managers who think that more technical training would help them be more successful | 60% |
| Percentage of product managers who feel that a manageable backlog is one of their main priorities | Almost 40% |
| Percentage of product managers who cite internal politics as their biggest challenge | 30% |
| Percentage of time spent by product managers on tactics and execution | 72% |
| Percentage of product managers who spend time on strategy | 28% |
| Percentage of product managers who agree that they wish they could spend more time on strategy and that this would almost certainly impact the success of a project | 61% |
Table 3: Product Management Demographics
| Demographics | Data |
|---|---|
| Percentage of product managers aged 30-39 years | 41% |
| Percentage of White product managers | 59% |
| Percentage of product managers with an advanced degree | 45% |
| Percentage of male product managers | 60% |
- In the manufacturing industry, 80% of downtime is caused by unplanned equipment failure, while the remaining 20% is caused by planned maintenance. (Source: Plant Engineering)
- The global production management software market is projected to reach $14.5 billion by 2025, growing at a CAGR of 8.2% from 2020 to 2025. (Source: MarketsandMarkets)
- 74% of manufacturers believe that increasing productivity is the most important driver for implementing Industry 4.0 technologies. (Source: The Manufacturer)
- By 2022, it is estimated that 35% of leading organizations will have deployed digital twins of their operations, resulting in a 10% improvement in effectiveness. (Source: Gartner)
- 67% of manufacturing executives believe that a lack of real-time production information is preventing them from making better decisions. (Source: Forbes)
- In a survey of manufacturers, 65% reported that they were investing in automation technologies to improve production efficiency. (Source: BDO)
- Only 16% of manufacturers are currently using predictive maintenance technologies, despite their potential to improve equipment uptime and reduce maintenance costs. (Source: Deloitte)
- 53% of manufacturers are currently using or planning to use artificial intelligence and machine learning in their production processes. (Source: The Manufacturer)
- 80% of manufacturers are planning to implement smart factory initiatives by 2025. (Source: Capgemini)
- The global market for predictive maintenance is projected to reach $23.5 billion by 2024, growing at a CAGR of 30.7% from 2019 to 2024. (Source: MarketsandMarkets)
Production Planning Statistics
Production planning is the process of preparing a production schedule and ensuring that all resources are available to complete the production process efficiently. The following statistics provide insight into the importance of production planning:
- The global production planning software market is projected to grow at a CAGR of 7.5% from 2021 to 2028.
- The average lead time for production planning is 2-4 weeks.
- The use of a digital planning system can increase production efficiency by up to 20%.
- The top benefits of production planning include improved customer service, better inventory management, and increased productivity.
Resource Planning Statistics
Resource planning involves identifying and allocating resources required to produce goods and services. The following statistics provide insight into the importance of resource planning:
- The global resource planning software market is projected to grow at a CAGR of 10.4% from 2021 to 2028.
- 50% of manufacturers experience problems with resource allocation.
- The use of a digital resource planning system can improve resource utilization by up to 50%.
- The top benefits of resource planning include improved productivity, reduced downtime, and better utilization of resources.
Inventory Management Statistics
Inventory management involves managing the flow of goods from manufacturers to warehouses and retailers. The following statistics provide insight into the importance of inventory management:
- The global inventory management software market is projected to grow at a CAGR of 8.5% from 2021 to 2028.
- Inventory holding costs can range from 20% to 30% of the total inventory value.
- 46% of small businesses don’t track their inventory or use a manual method to do so.
- The top benefits of inventory management include improved cash flow, better customer service, and reduced waste.
Quality Management Statistics
Quality management involves ensuring that goods and services meet or exceed customer expectations. The following statistics provide insight into the importance of quality management:
- The global quality management software market is projected to grow at a CAGR of 10.2% from 2021 to 2028.
- The cost of poor quality is estimated to be 15%-20% of a company’s revenue.
- The use of a digital quality management system can reduce defects by up to 20%.
- The top benefits of quality management include increased customer satisfaction, improved brand reputation, and reduced costs.
Production Control Statistics
Production control involves monitoring and controlling the production process to ensure that goods are produced efficiently and effectively. The following statistics provide insight into the importance of production control:
- The global production control software market is projected to grow at a CAGR of 9.2% from 2021 to 2028.
- The average machine downtime is 5%-20% of total production time.
- The use of a digital production control system can reduce machine downtime by up to 50%.
- The top benefits of production control include increased productivity, reduced waste, and improved on-time delivery.
Benefits of Production Management
Managing a production line can be a complex process, but the benefits of effective production management are numerous. Here are some key benefits:
Increased Efficiency
Effective production management can lead to increased efficiency in the production line. This can be achieved through various methods such as optimizing production workflows, reducing waste, improving equipment maintenance and utilization, and more. By streamlining the production process, organizations can increase output while reducing costs.
Better Quality Control
Production management plays a critical role in maintaining quality control throughout the production process. With effective production management techniques, organizations can identify and address quality issues early on, resulting in fewer defects and higher customer satisfaction. This can also lead to cost savings by reducing the need for rework or product recalls.
Improved Resource Management
Effective production management involves careful planning and optimization of resources such as labor, materials, and equipment. By optimizing resource utilization, organizations can reduce waste and minimize production costs. This can result in improved profitability and competitive advantage.
Enhanced Collaboration
Production management involves coordination and collaboration across various teams and departments. By fostering effective collaboration, organizations can improve communication and decision-making, resulting in more streamlined and efficient production processes.
- In the manufacturing industry, 80% of downtime is caused by unplanned equipment failure, while the remaining 20% is caused by planned maintenance. (Source: Plant Engineering)
- The global production management software market is projected to reach $14.5 billion by 2025, growing at a CAGR of 8.2% from 2020 to 2025. (Source: MarketsandMarkets)
- 74% of manufacturers believe that increasing productivity is the most important driver for implementing Industry 4.0 technologies. (Source: The Manufacturer)
- By 2022, it is estimated that 35% of leading organizations will have deployed digital twins of their operations, resulting in a 10% improvement in effectiveness. (Source: Gartner)
- 67% of manufacturing executives believe that a lack of real-time production information is preventing them from making better decisions. (Source: Forbes)
- In a survey of manufacturers, 65% reported that they were investing in automation technologies to improve production efficiency. (Source: BDO)
- Only 16% of manufacturers are currently using predictive maintenance technologies, despite their potential to improve equipment uptime and reduce maintenance costs. (Source: Deloitte)
- 53% of manufacturers are currently using or planning to use artificial intelligence and machine learning in their production processes. (Source: The Manufacturer)
- 80% of manufacturers are planning to implement smart factory initiatives by 2025. (Source: Capgemini)
- The global market for predictive maintenance is projected to reach $23.5 billion by 2024, growing at a CAGR of 30.7% from 2019 to 2024. (Source: MarketsandMarkets)
Production Management Challenges
While production management can bring many benefits to an organization, there are also several challenges that need to be addressed. Here are some key challenges that organizations face in production management:
Capacity Planning
One of the key challenges in production management is effective capacity planning. Organizations need to balance production capacity with demand, while also taking into account factors such as equipment downtime, maintenance, and other constraints. Effective capacity planning can help organizations avoid stockouts or excess inventory, which can have a significant impact on profitability.
