This paper will discuss the importance of production and operation management to a company. It will discuss briefly the scope of production and operations management. It will also discuss the downfall impact of poor production and operation management to a company/small business and how to cope with this problem.
Production/operations management is the process, which combines and transforms various resources used in the production/operations subsystem of the organization into value added product/services in a controlled manner as per the policies of the organization.1
Operations management is an area of management concerned with overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms of materials, labor, and energy) into outputs (in the form of goods and/or services).2
The activities under production and operations management functions are the location of facilities, plant layouts and material handling, product design, process design, production and planning control, quality control, materials management and maintenance management.
Operation risk is one of the examples that results to a poor production and operation management.
Production management is concerned to the manufacturing of the products. The objective of the production management is ‘to produce goods services of right quality and quantity at the right time and right manufacturing cost’. Operation management is about the service that needed. Objectives of operations management can be categorized into customer service and resource utilization. Production/operation management is very...