POM - Introduction of Prodcution and Operation Management - MBAnetbook.co.in

Friday, July 25, 2014

POM - Introduction of Prodcution and Operation Management

Production management is concerned with those processes which convert the inputs in to outputs. The input can be various resources like raw materials, men, machines, methods, etc. and the outputs can be goods or services.

Increasingly manufacturing organizations also provide services Ex. Car manufacturer also provides after sales services.  A service organization also deals in products Ex. Bank other than safe keeping of money also offer Loan products.

Operations management put emphasis on  managing the processes to produce and distribute products and services. It involves production, distribution and delivery of the organization's goods and services.

Transformation Process

Main objectives of the Production Managemnt
  1. Efficiency- increased output for a given input.
  2. Productivity- increased production using given resources.
  3. Reduce Cost- production is more economical (reduce cost)
  4. Quality- good quality products at reduced cost.
  5. Reduced processing time- increased production within a given amount of time.
  6. Utilization of resources- Utilization of 5M (Machinery, Material, Money, Manpower, Manufacturing service)

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