Production and Operation Management

Production

The key to every business is to satisfy the needs of the client or consumer by offering deserving services and products, and in the process, it produces value for the client or consumer and addresses their issues. Hence The application of business organization and management principles to the design, development, and production of goods and services is the subject of production and operations management.

Production is essentially a scientific process that entails converting raw materials (inputs) into the intended product or service (outputs), as well as enhancing the product's economic worth. Based on technique, production can be broadly divided into the following categories:

• Production through separation:
  • Production by separation entails separating or extracting the desired product from the raw ingredients. An illustration of the production of several fuel products by the extraction or separation of oil.
• Production by enhancement or modification:
  • Production through modification or improvement involves the process of changing the raw material's chemical and mechanical properties. Additionally, the procedure entails maintaining the raw material's physical properties. Example: The best illustration of production through modification or improvement is the annealing process, which involves heating to high temperatures and then cooling.
• Produced by assembly:
  • The process of assembling various parts into a single component is known as production through assembly. Example: Manufacturer of car and computer production are an example of production by the assembly.

Importance of Production Function and Production Management

Every successful business and organization has a well-organized and effective support function line. Production is a line function that, whether intentionally or accidentally, has a direct impact on both the customer experience and the organization's future.

The goal of the production function is to enhance the value of the good or service in order to build a solid and enduring relationship with the customer.

The goal of the production function is to increase the value of the product as well as the services; this can be done by fostering a positive working relationship between marketing and production personnel. People in the marketing department serve as the company's front-line managers and offer insights into the actual product needs of customers. Production management is the efficient planning and administration of production processes to attain or create value for consumers.

Operations Management

In order to provide clients with valuable products and services, it is crucial for the business to take the following actions:

• Determine the demands of the customer, then translate those needs into a specific good or service (numbers of products required for specific period of time)
• Determine the raw material requirements by working backwards from the product requirements.
• Create a supply chain between the vendor, the production facility, and the customers by involving internal and external vendors.

Operations management includes the three criteria mentioned above.

Production Management v/s Operations Management

The following qualities can be compared at a high level of separate production and operations management:

• Output: Operations management includes both products and services, as opposed to production management, which deals with the production of items like computers, cars, and other goods.
• Utilization of Output: Products like computers and cars are used over time, whereas services must be consumed right away.
• Classification of Work: While services demand more personnel and less capital equipment, producing goods like computers and cars requires more capital equipment.
• Customer Communication: While customers are not involved in the production process, they must be in continual contact in order to receive services.

In order to achieve an organization's goal, production management and operations management are both crucial.

Reference:

• managementstudyguide.com/production-and-operations-management.htm. 2 8 2016.