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.