Production and Operation Management

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1.

What is Production and Operations Management

Production and operation management deals with the creation of goods


and services through the application of business concept which transform it into
a set of defined, controlled, and repeatable policies that fit for the market. They
will strengthen the relationship between the organization and customer but that is
only possible with the help of production department.

2. Why do we need to study Production and Operations Management?

We need to study production and operations management for us to


understand how they work. It is important because it will help the business
organization to manage and supervise goods, services and people. They are both
relevant to an establishment that help them to accomplish its objective. It will
also help you to learn something that you might need in bringing innovation in
your life.

3. Do Manufacturing and Service Organizations differ?

Yes, they are different. First, manufacturing organizations produce physical,


tangible goods that can be stored in inventory before they are needed. By contrast,
service organizations produce intangible products that cannot be produced ahead of
time. Another one is that, in manufacturing organizations most customers have no
direct contact with the operation however, in service organizations the customers
are typically present during the creation of the service.

4. State and explain 5 differences of Service Providers from Manufacturing


Organizations
Here are five main differences between service and manufacturing
organizations: the tangibility of their output; production on demand or for
inventory; customer-specific production; labor-intensive or automated operations;
and the need for a physical production location.

Tangibility of Output

The key difference between service firms and manufacturers is the tangibility of
their output. The output of a service firm, such as consultancy, training or
maintenance, 

Production on Demand

Service firms, unlike manufacturers, do not hold inventory; they create a service
when a client requires it. Manufacturers produce goods for stock, with inventory
levels aligned to forecasts of market demand. 

Customer Specific Production

Service firms do not produce a service unless a customer requires it, although
they design and develop the scope and content of services in advance of any
orders.

Labor Requirements and Automated Processes

A service firm recruits people with specific knowledge and skills in the service
disciplines that it offers

Physical Production Location

Service firms do not require a physical production site. The people creating and
delivering the service can be located anywhere.

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