Production and operations management is an umbrella term which surrounds a spectrum of ideas within the managerial circles. The core of any business is to provide the requirements of the customer by providing apt services and goods and also create value for customers and help in solving the problems of the customers.
Production and operations management is about implementing business organizational and management concepts in the creation of goods and services.
Let’s have a precise look at what is production and operations management.
Production and operations management is defined as the process which revamps the inputs and resources of an organization into final products through a set of defined and controlled rules that adds value to the final output of an organization.
In short, we can say that the Production and Operations Management (POM) is all about the metamorphosis of the production and operational inputs into the final outputs when shared can meet the requirements of the customers.
Production is termed as a scientific process that includes the complete change of raw materials (input) into the coveted product or services (output) by adding the value. The production process can be categorized into the following technique:
Production through separation process: The desired output is achieved through the separation or the extraction process from the raw materials. The primary example of this technique can be the separation of oil into its various fuel products.
Production using the modification process: This process involves the change in chemical and mechanical parameters of the raw material without changing the physical characteristics of the raw material.
Production through Congregation process: The process of getting the final output by assembling or congregating things together is termed as production through congregation process. The best example is of the car and computer assembly.
To deliver the appropriate product to the customers, the following essentials are needed to keep in mind for any organization:
1. Make the product or services after identifying the customers’ needs.
2. Based on product needs, do reverse working to check the available raw materials.
3. Employ internal and external vendors to create a supply chain for raw materials.
Both the processes are more similar than different. When the manufacturing product process is a prime interest, then it is called production management, whereas administration of the services while manufacturing the product is called operation management.
Following are the high-level comparison between the Production and Operations Management:
Production Management handles manufacturing of products while the operations management covers both products and services.
2. Usage of Output
The use of products like computers, cars, etc. can be made over a period whereas the services need to be consumed immediately.
3. Categorization of work
To outturn products like cars or computers more capital and fewer labor services are required while in the operations department, more workers and less money is needed.
4. Customer communication
There is no participation of clients during the production phase, whereas for services the client communication is a must.
Hence, we can say that production and operations management work hand-in-hand and are very significant for meeting the needs and necessities of an organization.