Production management — the forgotten factor in the industrialization policy in developing countries

The failure or the slow progress of industrialization programmes in developing countries is often attributed to the reluctance of developed countries to ‘transfer technology’ to them. It is indeed true that in many cases developed countries are reluctant to part with the technological know-how gained over the years to a potential competitor; however, it would be unfair to blame lack of transfer of technology totally for the failure of industrialization aims of developing countries. In most cases the types of technology employed in developing countries are well established. However, the performance of these industries falls well below expectations, even though the technological know-how is fully available. The success of any industry once the technology has been mastered depends largely on efficient production management, which attempts to utilize resources in the most efficient way. Studies in developing countries have shown that production management is given little prominence in the industrial sector. As a result, numerous problems are encountered which lead to inefficiencies and low productivity. The significance of production management is neglected due to the shortage of qualified production management personnel. It is shown that of 32 universities in a sample of 18 developing countries, only one university offered a course in production management. In developed countries, one would typically find 15 such courses in a similar number of universities. The paper argues that without first having personnel qualified to perform the production management function, any industrialization programme has little chance of success. Developing countries and international agencies have been preoccupied with the problem of transfer of technology; it is time serious thought is given to the problems of production management following the technology transfer.