Production management is a branch of management which is related to the reduction function. Production management is the management by which scientific planning and regulation sets into motion the part of an enterprise to which it has been entrusted the task of actual transformation of inputs into outputs.
Production management is concerned with the decision making regarding the production of goods and services at a minimum cost according to the customers through the management process of planning organizing and controlling.
According to E.F.L.Brech: ‘’ Production management then becomes the process of effectively planning and regulating the operations of that part of an enterprise which is responsible for actual transformation of materials into finished products,
According to Elwood S. Buffa: ‘’ Production management deals with decision making related to production process so that the resulting goods or services are produced according to specification in amounts and by the schedules demanded, and at a minimum cost’’.
According to H.A. Harding: “Production management is concerned with those processes which convert the inputs into the outputs. The inputs are various resources like raw materials, men, machines, methods,etc. And the outputs are goods and services”.
Meaning and Definition of Operations Management
Operations management is an area of business concerned with the production of goods and service, and involves the responsibility of ensuring that business operations are efficient in terms of using as little resource as needed, and effective in terms of meeting customers requirements. It is concerned with managing the process that converts inputs (in the forms of materials, labour and energy) into outputs (in the form of goods and services).
APICS, The Associations for Operations Management: Also defines operations management as ‘’the field of study that focuses on the effectively planning, scheduling, use, and control of a manufacturing or service organisation through the study of concepts from design engineering industrial engineering, management information systems, quality management, production management , inventory management , accounting, and other functions as they affect the organisation’’.
More generally, Operations management aims to increase the content of valve-added activities in any given process. Fundamentally, these valve-adding creative activities should be aligned with market opportunity for optimal enterprise performance.
Difference between Production Management and Operations Management:
|1)It is concern with the production or manufacturing of goods.||It is concerned with providing services.|
|2) In this system, make-to-stock system is followed.||In this, make-to-order system is followed.|
|3) In this, the output is tangible.||In this, the output is intangible.|
|4) there is less consumer contact.||There is more consumer contact.|
|5 ) In this, good are consumed after along period of time.||Services are consumed immediately on the same time.|
|6) In this, capacity is defined in terms of output.||In this, capacity is defined in terms of input.|
|7) There is easiness is quality control.||In this, quality control is difficult.|
|8) In this, we more focus on inventory control.||In this, inventory do not arise in case of operations management.|
|9) Capacity planning is easily possible.||Capacity planning is difficult,|
|10) Ease of access to market is one of important factor.||Ease of access to market is most important factor.|
Nature of Production and Operation Management
1. Transformational Process: The production management is concerned with the conversion of raw material.
2. System Itself: It is a complete step-wise process, i.e., a proper well-defined sequence is followed in production management.
3. Interrelationship among the system: No system can ever work in isolation and depends on other for certain help. So there exists an interrelationship among different system.
4. Specialisation of Function: As different functions are performed separately, due to this they are repetitively performed by same people and there is specialization of functions.