WHAT IS PRODUCTION AND OPERATIONS MANAGEMENT
INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT
Operations management deals with the production of goods
and services that people buy and use every day. It is the function that enables
organisations to achieve their goals through efficient acquisition and
utilization of resources.
Manufacturers of steel, food, vehicles, computer (i.e.
physical goods) need operations management. So do health care providers, banks,
schools, retailers etc.
Every organisation, whether public or private,
manufacturing or service, has an operations function. To some people, the term
production conjures up images of factories, machines and assembly hires.
Interestingly enough, the field of production management in the past focused
almost exclusively on manufacturing management, with a heavy emphasis on the
methods and techniques used in operating a factory. In recent years, however,
the scope of production management has broadened considerably. Production
concept and technologies are applied to a wide range of activities and
situations; that is, in services such as health care, food service, recreation,
banking, hotel management, retail sales, education, transportation and
government. This broadened scope has given the field the name production/operations
management or more simply operations management – a term that more closely
reflects the diverse nature of activities to which its concepts and techniques
are applied.
Formally stated, therefore, production and operations
management (POM) is the management of an organisation’s production system,
which converts inputs into the organisation’s products and services. (or the
direction and control of the processes that transform inputs into finished
goods and services). This function is essential to systems producing goods and
services in both profit and non-profit organisations.
WHAT IS PRODUCTION AND OPERATIONS MANAGEMENT
Reviewed by Kamaruddin Mahmood
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