Understanding Production and Operations Management Understanding Production and Operations Management Introduction The very essence of any business is to cater needs of customer by providing services and goods, and in process create value for customers and solve their problems. Production and operations management talks about applying business organization and management concepts in creation of goods and services. Production Production is a scientific process which involves transformation of raw material input into desired product or service output by adding economic value. Production can broadly categorize into following based on technique:
Definition, Principles, Activities, Trends Since all companies have operations, i. Especially as mastering these basics can directly support your business goals. We will also give you an outlook on some of the recent trends that have an impact on this discipline.
Operations management involves planning, organizing, and supervising processes, and make necessary improvements for higher profitability. Historical background Operations management was previously called production management, clearly showing its origins in manufacturing.
Historically, it all began with the division of production, starting as early as the times Production and operation management ancient craftsmen, but spreading more widely only by adding the concept of interchangeability of parts in the eighteenth century, ultimately sparking the industrial revolution.
As the economies in the developed world were gradually shifting to be service-based, all the corporate functions, including product management, started to integrate them. The service side also began its approach by applying product management principles to the planning and organizing of processes, to the point where it made more sense to call it operations management.
Multidisciplinary nature Operations management is now a multidisciplinary functional area in a company, along with finance and marketing.
It makes sure the materials and labor, or any other input, is used in the most effective and efficient way possible within an organization — thus maximizing the output. Operations management requires being familiar with a wide range of disciplines. It incorporates general management, factory- and equipment maintenance management by tradition.
The operations manager has to know about the common strategic policies, basic material planning, manufacturing and production systems, and their analysis. Production and cost control principles are also of importance. Interested in a deep dive into operations maangement? Read the following slides.
Required skills The skills required to perform such work are as diverse as the function itself.
The most important skills are: Organizing processes in an organization requires a set of skills from planning and prioritizing through execution to monitoring. These abilities together help the manager achieve productivity and efficiency.
The capability to understand processes in your area often includes a broad understanding of other functions, too. An attention to detail is often helpful to go deeper in the analysis.
Once processes are analyzed and understood, they can be optimized for maximum efficiency. Quick decision-making is a real advantage here, as well as a clear focus problem-solving. Flaws in the interactions with employees or member of senior management can seriously harm productivity, so an operation manager has to have people skills to properly navigate the fine lines with their colleagues.
Furthermore, clear communication of the tasks and goals serves as great motivation and to give a purpose for everyone. When they do, creativity helps find new ways to improve corporate performance. Operations managers have to be familiar with the most common technologies used in their industries, and have an even deeper understanding of the specific operation technology at their organizations.
Below you will find two major approaches that are important to understand the driving forces behind the decisions about planning, designing and organizing processes. They are both embracing the idea of focusing on the delivery: The ten principles of OM by Randall Schaeffer Randall Schaeffer is an experienced manufacturing and operations management professional, an industrial philosopher, and regular speaker at conferences organized by APICSthe leading US association of supply chain and operations management.
He presented his list of 10 principles of operations management at an APICS conference insaying the violation of these principles had caused the struggle US manufacturing companies were experiencing.
Operations management should focus on the problem, instead of the techniques, because no tool in itself would present a universal solution. Processes in manufacturing are interconnected.
All elements have to be predictable and consistent, in order to achieve a similar outcome in profits. The Pareto rule is also applicable to operations: Managers are expected to set the rules and the metrics, and define responsibilities of their subordinates, as well as regularly check if the goals are met.
Only this way would the workers put in the necessary efforts. Variance of processes has to be encouraged, because if managed well, they can be sources of creativity.
Unless the causes are attacked, the same problems will appear again. The passion of employees can be a major driver of company growth, and it can be instilled by the managers if not coming naturally.
What is considered success will change over time, but always consider the interest of the customer.Production and operations management talks about applying business organization and management concepts in creation of goods and services.
Production. Production is a scientific process which involves transformation of raw material (input) into desired product or service (output) by adding economic value. Production and Operations Management Production (or Operations) management is an umbrella term which encompasses a gamut of ideas within the jingoistic managerial circles, mostly exemplified by the varied literal definitions of these terms based on the source.
The main difference between production and operations management is that while production management is concerned with the management of activities related to production of goods, whereas operations management is related to the management of both production of .
Production Management refers to the application of management principles to the production function in a factory. In other words, production management involves application of planning, organizing, directing and controlling the production process.
(i) First is the development of factory system of. The mission of Production and Operations Management is to serve as the flagship research journal in operations management in manufacturing and services.
The journal publishes scientific research into the problems, interest, and concerns of managers who manage product and .
The mission of Production and Operations Management is to serve as the flagship research journal in operations management in manufacturing and services. The journal publishes scientific research into the problems, interest, and concerns of managers who manage product and process design, operations, and supply chains.