Here is my take on PubWorx LLC, the joint venture to combine circulation, procurement and production functions by Condé Nast and Hearst Magazines. Distilled down to their lowest common denominator production departments are about great efficiency and superior quality, probably in that order, but variable depending on the particular organization. The skills include shrewd procurement and a great proficiency in manufacturing and distribution. On the other hand, circulation is still less a science and more akin to alchemy, but many circulator's will no doubt dispute that concept.
The conjoining of the two companies makes perfect efficient sense to me. Again with a probable dispute by some professionals who read this, production departments just make interchangeable widgets. We put ink or pixels in the exact right place and fling them hither and yon around the globe. It doesn't really matter if we are making one widget or a hundred. Our job is to coordinate at the most reasonable price with the best possible quality in that price range, and "ship" on time and with great regularity.
The production process is agnostic to content. We don't really care what it is and so can combine and ship an unlimited number of disparate titles from unlimited companies.
As Archimedes sort of said, Give me a production staff smart enough and a fulcrum on which to place it, and I shall move the world.