Production and Operation Management deals with the creation of goods and services through the application of the business concept.
They are also vital in both service and manufacturing firms. This post highlights the definitions, importance, and function of both management concepts.
Every organization has management principles. Production Management involves using resources judiciously, to create acceptable products. In this case, raw materials are being transformed into value-added products efficiently.
The production manager is also in charge of this area of the business. In other words, decisions such as quantity, quality, price, design, packaging style and material for the product, among others, are made by the production manager. He also ensures that the output matches the specifications.
Every successful organization has a line function as well as a support function that must be efficient. But the production comes under the line function category which has a direct impact on the customers.
Hence it dictates customer experience. Customer experience is critical for the survival of any organization. Therefore line function to a large extent determines the future of the company in question.
The goal of the production function is to add value.
Be it product or services; the idea is to create something that will strengthen the relationship between the organization and customers. But this cannot only be made possible by the production department. The marketing people also have a huge role to play in this. They are the ones that will distribute the product to potential buyers and should have the capacity to inform the production department of what customers or consumers would prefer.
The role of Production Management is quite elaborate. But the sole aim is to ensure the business produces quality products that can satisfy the needs of customers on a regular basis. Below are the functions of production management. Used efficiently, it can lead to numerous accomplishments which will take the business to a great height. Below is the importance of production management. Production management helps the firm to achieve its sales and business objectives by producing goods and services that meet the need of consumers.
A satisfied customer will undoubtedly want to repeat patronage. Making sure that your customers are always happy can also boost business reputation. Production management ensures that resources are used judiciously, without compromising on quality.
Functions of Management – Planning, Organizing, Staffing and More
In other words, the business will continue to deliver quality products and sell at a convenient price to customers. But this can only be possible in a situation where the input and output are maximized.
Operation Management is in charge of managing the conversion process. This unit handles the day-to-day running of the business to ensure operations within the organization are carried out smoothly. It is also in charge of production administration, manufacturing and other processes like the rendering of services. In short, everything regarding production processes such as designing, implementation, and control is the duty of operation management.
And the sole aim is to deliver the desired products and services to clients while also ensuring that all parties involved are adhering to the policies presented by the management of the company.Operations Management PPT and PDF Free: A space of management having an active role in designing the process of production and also in controlling the production process is known as operations management, it also redesigns the operations of business in the generation of goods and services.
In the term operations management, operations relate to the process of generating outputs from required inputs and management works in a controlled manner and according to rules of a firm or a company. A transformation from production management to operations management extended the fields of firms to service organizations or firms.
The parameters concerned with operations management and in other words, the objectives of operations management are as follows:. Operations management also manages the process of converting raw materials, energy, and labor into services or finished goods. It studied about manufacturing process and also about services; programs of it are as follows:. A production system is a part of a firm which manufactures products of a firm.
In this system, operations are done on resources to add value to it and all these are done as per the policies of management.
Key Functions of Operations Management
The below figure explains about the system of production:. Generally, operations in a firm are of two types and those are:. Few examples of operations systems are bus services, taxi services, hospitals, tailors, and buildings. The below figure explains about the operations system for department stores. Fig2: System of Operations for Department Stores. The process of transformation includes random fluctuations like late delivery and labor turnover.
A framework of managing operations includes organizing, planning and controlling the complete activities of an organization and these affect human behavior through models. The activities that come under scheduling conversion system are as follows:. Activities which come under material control are as follows:. The activities which come under managing for world class competition are as below:. The below diagram shows the framework for managing operations and it is as below:.
Fig3: A Model for Managing Operations. The important responsibility of operations managers is about processing inputs and makes outputs by controlling required parameters.
The primary keywords contained in definition of operations management are resources, systems and transformation and value addition activities. The activities which are under production functions and operations management functions are as follows:. All you need to do is just click on the download link and get it. If you liked it then please share it or if you want to ask anything then please hit comment button. Your email address will not be published.
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Patrica Castaneda I am really happy with the car I got at auction. What a great deal. Thanks for your service and for your help. Show More. V Kumar. No Downloads. Views Total views. Actions Shares. Embeds 0 No embeds.It is a process of planning, organizing, and supervising the operations of the business for better productivity.
Operation management aims at reducing the cost to business by avoiding any wastage of resources. Managing each and every aspect of organisation operations efficiently is key role of operation management. It focuses on raising the profit of organisations by maintain a proper balance between cost and revenue.
This process ensures that all resources like raw materials and labours are efficiently utilised by organisation for production of its goods or services. Operation management monitors and controls the entire production system of organisations.
Operation managers are responsible for fulfilling all requirements of customers by delivering them products as per their needs. They take all crucial decisions relating to production process like product and process design, production planning, inventory control, quality control, capacity etc. All these decisions are taken by them by doing research and analysing properly the prevailing situations. They work towards strengthening and enhancing the production system to minimize the wastage and maximize the output.
The whole activities of operational management revolve around the conversion of inputs into outputs that is various products that every organisation manufactures. Table of Contents.
Functions of Operations Management. Importance of Operations Management. Scope of Operations Management. Nature of Operation Management. Add CommerceMates to your Homescreen!By PlanetTogether.
In the past, operations had a much more challenging time with boosting efficiency within their production facility. This was due to a lack of thorough insight and hindrances that included a lack of collaboration throughout the organization. As production facilities came across this problem frequently, operations management became a viable solution.
Operations management pertains to managing the operation and process within an organization. With effective operations management, there is much more accountability and accuracy for successful delivery of a product or project.
Within the process, operations management performs various functions that are apart of aiding the increase within production. Therefore, here are the key functions of operations management. A software that is becoming extremely common among manufacturing operations includes advanced planning and scheduling software. Advanced planning and scheduling software can provide thorough insight within a production operation and take the facility to next level in terms of optimization and efficiency.
Advanced Planning and Scheduling APS software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. Advanced Planning and Scheduling APS helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans. Implementation of Advanced Planning and Scheduling APS software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.
Topics: operations management. Functions of Operations Management. Key Functions within Operations Management Key functions of operations management include the following: Finance - Finance is a crucial component within operations management.
It is essential to make sure that all finances have been utilized to their fullest extent and are being properly carried out to ensure for optimized creation of goods and services. Proper utilization of finances will allow for a product or service to be created that will satisfy overall consumer needs.
Strategy - When utilizing strategy within operations management, this refers to planning tactics that can aid through optimized resources and development of a competitive edge over other businesses. Many business strategies include supply chain configuration, sales, capacity to hold money, and optimum utilization of human resources. Operation - This function of operations management is concerned with planning, organizing, directing, and overall control of all activities within the organization.
This is the primary function of operations management and will effectively aid in converting raw materials and human efforts into a durable good and service that consumers will be able to utilize. Product Design - With new technology becoming available, the selling of a product become much more simple. One of the main duties of operations management is to ensure that a product is designed properly and caters to market trends and needs of consumers.
Modern-day consumers are concerned about quality instead of quantity, which is why it is so crucial to develop a durable and top-notch quality product. Forecasting - Forecasting is the process in which software makes an estimate of certain events that may occur in the future.
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I personally used lots of times and remain highly satisfied. My friend sent me a link to to tis site.Operations Management is a branch that deals with managing operations and processes within the organisation. Efficacious management of operations ensures successful delivery of the project. The operation managers optimises the operations by making judicious use of resources and capital. They manage all the aspects related to the operations that take place in businesses.
They are required to perform various functions as a part of their job responsibilities. Finance plays a chief role in operations management. This function in operation management is mainly concerned with planning, organising, directing and controlling all the activities of an organisation which helps in converting the raw materials and human efforts into valuable goods and services for satisfying customer needs.
Strategy in operation management refers to planning tactics that could help them to optimise the resources and have a competitive edge over others. Business strategies imply to supply chain configuration, sales, capacity to hold money, optimum utilisation of human resources and many more. Incorporating innovative technologies play a crucial role in the selling of a product.
Functions of Management
Thus it is the duty of operations manager to ensure that the product is designed catering to the market trends and needs of the customers. The modern-day customers are more concerned about the quality of the product than its quantity. So, the operation managers focus on producing top-notch quality products. Forecasting refers to the process of making an estimation regarding certain events that might occur in the future.
The main motive of Supply Chain Configuration is to ensure effective management, monitoring and controlling of all the main activities that are held in a firm. The supply chain configuration starts from the supply of the raw materials and continues till the production of the final product and then their selling to the customers which will satisfy their needs and wants. Quality management plays an imperative role in selling a product. The operation managers allocate the task of quality management to a team and then supervise their task.
The managers identify project defects and rectify them to ensure quality. For this, certain systems are used that measure and maintain the quality of the product. Proper skills and know-how ensure that all these roles are fulfilled efficaciously. The course provides conceptual learning to the candidates and prepares them to face all the field challenges. It is a correspondence course, so you can pursue the course from anywhere and plan your own study schedule.
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Operation This function in operation management is mainly concerned with planning, organising, directing and controlling all the activities of an organisation which helps in converting the raw materials and human efforts into valuable goods and services for satisfying customer needs.