Production management and operations management are management jargon that needs to be simplified for those who are sitting on the fence or those inside an organization unable to comprehend them clearly. Sometimes it becomes confusing to be talking about production management inside operations management but they are separate and distinct entities in the study of management as ultimately, production is a part of the whole cycle of operations. Read on to clarify the doubts. Show
Operations Management The study of set of activities comprising supervision, planning and designing of business operations in the field of manufacturing of goods and services is termed as operations management. The purpose of operations management is to make certain that the operations of a business are efficient and effective and result in minimum of wastage. Operations management tries to cut down resources involved in operations while at the same time making operations more effective and productive. In fact operations management is more concerned on processes than people or products. Operations management in a nutshell is using physical resources in an optimum manner, converting input into output, so as to supply to the market the desired and finished product. Production Management Production management on the other hand focuses specifically on the production of goods and services and is concentrated upon churning output from input. It is a broad sum of activities that go into turning raw material into final, finished product. One may feel that production management is a subset of operations management, but production management in itself is a broad subject that comprises production planning and control, inventory management, and operations control. Production management includes all management activities spanning selection. Designing, operating, controlling and updating production system.
Firstly, the main objective of production and operation management is to manage the resources of the firm. The main difference between production and operation management is that production management focuses on the production of goods and services. On the other hand, operation management includes activities like comprising supervisions, planning and designing of business operations. It can also be said that the production management is also a part of operation management. Production management and operations management are management jargon that needs to be simplified for those who are sitting on the fence or those inside an organization unable to comprehend them clearly. Lastly, both are part of business activities and both are required to run the business smoothly. Comparison Chart
What is Production Management?Production management performs many tasks regarding the production of goods and services. It is a process of planning, scheduling, supervising and controlling the activities involved in the production of goods and services. The main objective of product management is to produce the right quality at the right time and at the cheapest price. Basically, production management is found in enterprises where production is found. The Production Management alludes to the utilization of administration requirements to the technology work in an industrial facility. Production administration is the process of viable arranging and controlling the operations of that space of an enterprise which oversees the real change of supplies into accomplished objects. In this process of production management the decision regarding the quality, quantity, price, packaging, design, etc. are taken by the production manager. What is Operation Management?Operation management gives the insurance of smoothness and effectiveness of the operation in the organization. Basically, deals with designing, implementing and controlling system of the management. The main objective of the operation management is to make sure that that the operation of business runs effectively and result in the minimum of wastage. Operations administration handles totally different very important points together with deciding the span of assembling crops and enterprise administration strategies and actualizing the construction of information innovation techniques. It ensures the supplies and work, or another data is utilized as a part of the very best and productive route conceivable inside an affiliation – alongside these strains amplifying the yield. The operations chief wants to consider the common key methods, structural materials arranging, assembling and creation frameworks, and their examination. Operations Management is all about the optimum utilization of the company’s resources. Key Differences between Production Management and Operations Management
Comparison VideoConclusionThus, production and operation management are related to each other. Sometimes people found difficulty in differentiating them. Production management involves in all the activities which are related to the production of goods and services. On the other hand, Operation management is related to all the activities regarding management like production of the good, delivery of services, the quantity of product, quality of product and also meet the customer demands. In conclusion, both are the most important management activity.
Production and operations management mainly focus on the effective management and use of organizational resources that are needed for producing goods and services. In this regard, production management pertains to the management of those activities that are carried out while producing goods. Operations management, on the other hand, is actually a step further than productions management as it pertains to the administration of business operations carried out during the production of goods and services. Production management may be considered as a subset of operations management. The definition of the two terms is discussed below, followed by the differences between them. Definitions and explanationsProduction managementProduction management is the field in which the principles of management are applied to the production function. It involves different tasks, such as planning, supervision, scheduling and regulating the activities related to the production of products. In other words, it is the efficient use of resources to convert raw materials into value-added products. Production management involves decisions pertaining to raw materials, quality, quantity, design, packaging, pricing, etc. that are made by the production manager, who makes certain that the final product conforms to the required specifications. Production management plays an important part in the success of a business. It enables companies to attain their objectives by creating products and services that fulfill customer requirements. It increases the reputation of the business by ensuring that high quality products are consistently produced. In addition, it ensures efficient use of resource, without deteriorating the quality of the final product.. This decreases the production cost, because of which customers can obtain the product at a reasonable cost. Some of the key functions of production management are:
Operations managementOperations management involves managing the routine business activities so as to make sure that the organization is able to operate in a smooth and effective manner. It includes the planning, designing and supervising activities carried out while developing goods and services of an organization. Its objective is to ensure that there is optimal use of resources in an organization, so as to decrease wastage during and following the production process. It seeks to provide the required products and services to the customers, while making sure that all those involved in the production process are working in accordance with the policies determined by the management of the organization. Operations management is important for any business as it makes certain that customers always have access to products and services. It ensures that there is effective conversion of raw materials into final products. It brings about an improvement in the overall efficiency of the organization by ensuring optimal use of resources. Operations management involves the following functions:
Differences between production management and operations managementThe main differences between production management and operations management are discussed below: 1. MeaningProduction management refers to the management of those activities of the business that are related to the production of goods, or to the conversion of raw materials into finished products. On the other hand, operations management refers managing the business activities of an organization that are carried out while producing goods or services. 2. ScopeProduction management involves taking decisions with respect to the quality, quantity, design and pricing of the product being created by the organization, i.e. its scope is limited to the production of goods. Operations management, however, has a wider scope compared to production management in that it pertains to the management of routine business activities, such as product quality, design, quantity, location, process, workforce requirement, storage, maintenance, inventory management, logistics, waste disposal, etc. 3. FocusProduction management essentially focuses on offering the right quality of products at the right time, in the right quantity and at the right price. Operations management, however, focuses on using the organization’s resources in the most efficient and effective manner, so as to meet the requirements of customers. 4. Organizations where it is prevalentProduction management is prevalent in only those organizations where products are manufactured. On the other hand, operations management may be prevalent in all types of organizations, for example, banks, manufacturing firms, service-oriented firms, hospitals, etc. Production management vs operations management – tabular comparisonA tabular comparison of production management and operations management is given below:
Conclusion – production management vs operations managementProduction management and operations management are both very important for organizations as they ensure that the products are generated in an efficient and effective manner, with optimal use of resources and minimal wastage. Hence, organizations should focus on both the management practices if they wish to satisfy their customers and grow their business. |