Production & operation Management
MEANING:
Product is the primary factor for all consumers in a market.
Product means want satisfying capacity of an element. If a
consumer is not satisfied with the product it becomes
meaningless for the producer who produces the product. So
product should have want satisfaction capacity in a market for the
consumers otherwise the marketing procedure will be
meaningless. The production function of a business is concerned
with creation of either a product or a service required to satisfy a
consumer need in the market. It is impossible to have a product
for the consumers without its production. So production
management is a separate branch of management which deals
with the production of goods and services for the effective
utilisation of consumers in the market.
Production management is called upon to develop and establish
relationship between market demand and production capability of
an enterprise. It ensures accomplishment of twin organisational
objectives of production and satisfaction. Both these objectives
can be fulfilled with planning, organising, directing, and controlling
and inventory management. Production management is the
process of effectively coordinating and controlling the factors of
production such as man, machine, material, money and
management in order to get satisfaction out of the product.
SCOPE OF PRODUCTION MANAGEMENT:
1) Production Planning and Development: It is related to the
activity of evolution of new product and design it according to
the specification of department in order to satisfy large
number of consumers in the market.
2) Production Administration: It deals with basic three activities
that is
(A) Production planning,
(B) Production engineering,
(C) Production control.
All the above functions under production management
have its own value and importance. Production management
system directly depends on this scope.
3) Implementation Function: It refers to the activity of execution
of plan, policies and decisions. It is a continuous activity in
production management system which requires motivation of
employees who are in charge of production so that the
things can be produced in time.
4) Other Allied Activity: These are some of the other activity
related to standardisation, simplification, specialization,
quality control, inventory control, research and development.
TYPES OF PRODUCTION MANAGEMENT:
1. Flow Production: This is a type of production which is
otherwise known as mass production. Under this category
production is running in a sequence. There will be no gap in
between two production processes. Time taken in each
operation can be maintained by utilizing update and more
machines in order to have steady flow of operation. This type
of production is more suitable for high demand products. The
merit of this production is in each production operation there
can be strict check and measure in input and output too.
Maximum attention can be made towards supply of raw
material, machine capacity and quality standards so that any
defect in production process can be identified easily to have
qualitative production in each process. Example: Motor Car.
2. Batch Production: Where there is less scope of flow
production that is sequence of production is not available in
those production organizations batch production is more
suitable type of production. In this category each production
is divided into small components. This is called batch
production. Under this type of production process the entire
production system is divided into various batch or
components according to the need of the specification of the
product. In order to smooth the production process different
machines can be used for each batch and the quality in each
batch can be measured properly. On the other hand a
product can be available in different functional areas.
Example: Pressing in one area, milling in other area, color in
other area etc.
3. Unit Production: This is a type of production where there is
a specific order from the customer. Generally this type of
production is for a specific period and not repetitive in
character. This type of production undertaken by the
organization considering the demand of the customers for
that product. This type of production has specific standard,
quality, specification in size, color, weight as well as packing
also. Most of the production organization does not prefer unit
production due to its cost and in most of the cases it is not a
regular production process. Example: Designed ornament,
size foot wears etc.
OPERATIONS MANAGEMENT:
Operations management is the process that generally plans,
controls and supervises manufacturing and production processes
and service delivery. Operations management is important in a
business organization because it helps effectively manage,
control and supervise goods, services and people.
Operations management cuts across every sector and industry as
it may concern. OM finds use in every business though some
might not be obvious. In health sector, operations management
ensure there is proper health delivery with the right instruments at
the right time. It also helps people like nurses, doctors, surgeons,
and other health officers deliver timely service. When something
goes missing, a technical and savvy individual knows what is at
fault.
1. Product Quality: The first unit in a typical firm that checks
durability and reliability in a product is the operations
management. Operations management sees to quality of
products or goods which would suit customers on and after
delivery. When a product is of quality, it gives you an edge
compared to your competitors.
2. Productivity: Productivity is defined as the ratio of input to
output and it is the only way to verify employees input. Operations
management ensures appropriate staffing of employees to
resources so as to get maximum result. The only way to ensure
productivity is through an effective operations management.
3. Customer Satisfaction: There is no feeling for a manager or
an employee as a customer getting the utmost satisfaction ever.
Operations management rightly ensures this coupled with quality
product. Customers make organization thrive and they must be
treated well in every way necessary and possible.
4. Reduced Operating Cost: Through productivity, quality
products and customer satisfaction, cost incurred on products
servicing is maximally reduced. This simultaneously leads to
increased revenue. Only operations management can make this
possible. In reducing operating cost, there is also waste reduction.
Exact number/size of products is produced as requested via a
proper operations management.
1. Capacity planning: This type of planning involves
determining the number of products or services that a company
can distribute or sell in a specific period. The operations
manager may evaluate the raw materials needed to produce the
inventory, the human resources to make the product, the market
demand for the product, and the production planning to meet
these goals promptly.
2. Inventory management: Inventory management, also known
as supply chain management or inventory control, involves
instituting an efficient manufacturing system to produce,
process, store, and distribute a company’s products for sale. An
operations manager will develop an operations strategy to make,
track, and manage inventory that prevents bottlenecks and
meets customer demands.
3. Product design: Product design or service design involves
creating a product or service that will give the company
a competitive advantage in the marketplace. An operations
manager is often involved in product design because they
understand how the production systems make the end product.
These managers need to consider the cost-efficiency of a
product and whether it meets customers’ needs. They might
oversee the design of new products to ensure that the finished
goods will be compatible with the assembly line or other systems
already in place.
4. Project management: An operations manager will oversee
any projects related to a company’s manufacturing processes
and inventory management. They may devise schedules, source
third-party service providers, and manage the employees
responsible for executing particular projects.
5. Quality control: Quality control, also called quality assurance
or quality management, involves monitoring products and
services with a company to ensure high-quality products and
satisfied customers. Quality control may involve checking each
step in the production process or service operations for errors or
potential problems in finished products.
6. Service design: Service design relates to how the company
interacts with service providers and customers. An operations
manager will need to consider how a company attracts
customers, meets their needs, and retains business.
