Production operation management meaning, objectives

What is production operation management?

 Production  Operations Management is defined as the process which transforms the inputs/resources of an organization into final goods (or services) through a set of defined, controlled and repeatable policies.

Objectives of ProductionOperations Management:

(i)  Maximum customer satisfaction through quality, reliability, cost and delivery time.

(ii)  Minimum scrap/rework resulting in better product quality.

(iii) Minimum possible inventory levels (i.e.,optimum inventory levels).

(iv  Maximum utilisation of all kinds of resources needed.

(v) Minimum cash outflow.

(vi) Maximum employee satisfaction.

(vii) Maximum possible production (i.e., outputs).

(viii) Higher operating efficiency.

(ix)Minimum production cycle time.

(x) Maximum possible profit or return on investment.

(xi) Concern for protection of environment.

(xii) Maximum possible productivity.

Definition of Production Management

When the principles of management are applied to the production function of the organisation, it is known as production management. It is a process of planning, scheduling, supervising and controlling the activities involved in the production of goods and services, i.e. the transformation of various resources into the value-added product, in an efficient manner.

In this process, the decision regarding the quality, quantity, price, packaging, design, etc. are taken by the production manager, so as to ensure that the output produced confirms the specifications.

Difference between Production and Operations Management 

Production and operations management are more similar than different: if manufacturing products is a prime concern then it is called production management, whereas management of services is somewhat broader in scope and called operations management. The line between products-based and services-based organizations is blurring rapidly as well— car manufactures need to service their cars and the retailers manufacture their own brand labels.We will be referring to them jointly as POM from here on in this article, for the benefit and convenience of all the parties involved.