Production and Operation Management

Production and operation management was initially known as Production management. But as we know that operation is related to design, working and improvement of entire system.

Every business in every country runs through three major functions

  1. Finance
  2. Marketing
  3. Operations

The rest of the departments other than finance, marketing and operations Like Human resource, Accounting exist to support these basic area. In the early time Production and operation management was called as Production management. But the term “Production Management” was misleading because it refers only to manufacturing. Services nowadays also are major basic area. In some industries like semi-conductor manufacturing use the term fabrication instead of manufacture.

Operation Management is defined as the design, operation and the improvement of system that create the firm’s primary product and services. Organizations are broadly divided into two categories i.e. manufacturing and services.

Manufacturing products are physical and tangible products that can be included in the inventory before its stored needed. As compared to manufacturing products Service products are intangible products that cannot be produce ahead of time. Secondly Manufacturing organizations are Capital intensive or capital oriented. They usually don’t have direct customer contact. But the service organization is labor intensive or labor oriented and they have direct contact with the customers and customers are present during the delivery of the service.

Production and operation management is concerned with the management of entire system that produces a good or delivers a service. Input used in the production of the goods can be raw material, labor, technology, facilities. Output can be a product or service. Transformation process is used in the conversion of Input into outputs. Transformation process is used in all the business, in this process input are used and converted into desired output.

operations management

November 24, 2018