Introduction to production and operations management

Definition
Production and Operations Management ("POM") is about the transformation of
production and operational inputs into "outputs" that, when distributed, meet the needs of
customers.

The process in the above diagram is often referred to as the "Conversion Process".
There are several different methods of handling the conversion or production process
Job, Batch, Flow and Group
POM incorporates many tasks that are interdependent, but which can be grouped under
five main headings:
PRODUCT
Marketers in a business must ensure that a business sells products that meet customer
needs and wants. The role of Production and Operations is to ensure that the business
actually makes the required products in accordance with the plan. The role of PRODUCT
in POM therefore concerns areas such as:
- Performance
- Aesthetics
- Quality
- Reliability
- Quantity
- Production costs
- Delivery dates

PLANT
To make PRODUCT, PLANT of some kind is needed. This will comprise the bulk of the
fixed assets of the business. In determining which PLANT to use, management must
consider areas such as:
- Future demand (volume, timing)
- Design and layout of factory, equipment, offices
- Productivity and reliability of equipment
- Need for (and costs of) maintenance
- Heath and safety (particularly the operation of equipment)
- Environmental issues (e.g. creation of waste products)
PROCESSES
There are many different ways of producing a product. Management must choose the best
process, or series of processes. They will consider:
- Available capacity
- Available skills
- Type of production
- Layout of plant and equipment
- Safety
- Production costs
- Maintenance requirements
PROGRAMMES
The production PROGRAMME concerns the dates and times of the products that are to
be produced and supplied to customers. The decisions made about programme will be
influenced by factors such as:
- Purchasing patterns (e.g. lead time)
- Cash flow
- Need for / availability of storage
- Transportation
PEOPLE
Production depends on PEOPLE, whose skills, experience and motivation vary. Key
people-related decisions will consider the following areas:
- Wages and salaries
- Safety and training
- Work conditions
- Leadership and motivation
- Unionisation
- Communication

What is Operations Management?

Operations Management deals with the design and management of products, processes,
services and supply chains. It considers the acquisition, development, and utilization of
resources that firms need to deliver the goods and services their clients want.
The purvey of OM ranges from strategic to tactical and operational levels. Representative
strategic issues include determining the size and location of manufacturing plants,
deciding the structure of service or telecommunications networks, and designing
technology supply chains.
Tactical issues include plant layout and structure, project management methods, and
equipment selection and replacement. Operational issues include production scheduling
and control, inventory management, quality control and inspection, traffic and materials
handling, and equipment maintenance policies.
What Does Operations Management Mean?
Operations management refers to the administration of business practices to create the
highest level of efficiency possible within an organization. Operations management is
concerned with converting materials and labor into goods and services as efficiently as
possible to maximize the profit of an organization.
Investopedia explains Operations Management
Operations management teams design the method of conversion of inputs (materials,
labor, proprietary information, etc.) into outputs (goods, services, value-added products,
etc.) that is most beneficial to the organization. Operations management teams attempt to
balance costs with revenue to achieve the highest net operating profit possible.
Production & Operations Management
Previously called Production Management
Then Production and Operations Management
Often called Operations Management
Should not be confused with Operations Research or Production Management which are
the domain of Mechanical and Industrial Engineering.
Operations Management form core of any organizations senior leadership.
What are organizations
An organization is a business entity that can work for profit or non profit purposes to
generate a value added product or service for its customers.
Whether profit or non profit, the role of an OPERATIONS MANAGER is to sustain,
protect, and project the companys operations side.
Why Operations Manager
Every organization must manage processes and operations by which processes are
performed.
An operations Manager controls the processes by which value is added from conversion
of inputs to outputs.
Why Operations Manager

Inputs include materials, inventory, services, land, and energy, human and capital
resources.
Why Study OPERATIONS MANAGEMENT
Operations Management form core of any organizations senior leadership.
An organization is a business entity that can work for profit or non profit purposes to
generate a value added product or service for its customers.
Whether profit or non-profit, the role of an OPERATIONS MANAGER is to sustain,
protect, and project the companys operations side.
Every organization must manage processes and operations by which processes are
performed.
An operations Manager controls the processes by which value is added from conversion
of inputs to outputs.
Inputs include materials, inventory, services, land, and energy, human and capital
resources.