Operation and Production Management

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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.


Though many authors define the product with Consumer orientation, it is better for us to deal with different angles, because it will be helpful for us to understand the subject of production and Operation Management.
(i) For a Consumer: The product is a combination of or optimal mix of potential utilities. This is because every consumer expects some use or uses from the product. Hence he/she always
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Above discussion about product, production and management will help us to understand what exactly the Production Management or Production, and Operations Management is.


Operations Management is the conversion of inputs into outputs, using physical resources, so as to provide the desired utility/utilities of form, place, possession or state or a combination there-of to the customer while meeting the other organizational objectives of effectiveness, efficiency and adaptability. It distinguishes itself from other functions such as personnel, marketing, etc. by its primary concern for ‘conversion by using physical resources’. There should be a number of situations in either marketing or personal or other functions, which can be classified or sub-classified under Production and Operations Management. For example, (a) The physical distribution of items to the users or customers, (b) The arrangement of collection of marketing information, (c) The actual selection and recruitment process, (d) The paper flow and conversion of data into information usable by the judge in a court of law, etc. Can all be put under the banner of production and operations management? ‘The conversion’ here is subtle, unlike manufacturing which is obvious. While in case (a) and (b) it is the conversion of ‘place’ and ‘possession’ characteristic of product, In (c) and (d) it is the conversion of the ‘state’ and characteristics. And using
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