The conversion of raw materials into finished goods involves various production processes and techniques. The value addition in the process determines how effective the mechanism is. The cost element constitutes a basic factor in value addition. Conventional production management takes care of the conversion process with reference to value addition and the cost element. Modern production management, on the contrary, considers another element - physical assets comprising of machines and equipment, buildings and sheds, infrastructure as well as systems and procedures in the place. The author considers physical assets a major contributor in production processes, enabling business operations to flourish with distinction. Physical assets, when rightly chosen, maintained and operated, lead to greater profitability, keeping the organization ahead of the competitors. Hence management of physical assets has been integrated in production processes. In progressive organizations, there is interlinking of production processes with management of physical assets through extensive computer networking.