Production challenges refer to the difficulties that arise during the manufacturing process. These can include issues like equipment malfunctions, supply chain disruptions, and labor shortages. Such challenges can lead to delays, increased costs, and reduced product quality, impacting overall efficiency. Another common production challenge is managing inventory levels. Companies must balance having enough materials to meet demand without overstocking, which can tie up capital and increase storage costs. Effective planning and communication are essential to navigate these challenges and ensure smooth production operations.