OPERATION

MANAGEMENT
LECTURE 3
BY DR ASHOK SENGUPTA
DIFFERENCE BETWEEN PRODUCTION AND
OPERATIONS MANAGEMENT
• Production management is the study of the planning, coordinating, controlling, and
guiding of an organization’s production activities. It is associated with the transformation
of raw materials into finished goods as well as the determination of the final product’s
overall quality. Its primary goal is to produce goods and services of the appropriate
quality and quantity at the appropriate time and at the lowest possible cost. Many people
think that production and operations management are one and the same, but they are in
fact two different fields. So, you must understand the difference between production and
operations management.
• Operations management is the monitoring, design, and prepping of business operations.
The primary goal of operation management is to improve the quality of business
operations. Due to a delivery-focused approach, operations management is focused on
efficiently converting inputs into outputs. Production and operations management
involves the management of resources needed to produce and distribute goods and
services.
• The administration of production, manufacturing, and service provision in an
organization is a part of operations management. Operation management is more
concerned with streamlining processes to leverage resources as efficiently as possible.
Operations managers require knowledge about different project management tools to
smoothly perform their responsibilities.
USES OF OPERATIONS MANAGEMENT

• Strategic planning: Operations management revolves around strategic planning to ensure

maximum utilization of resources.
• Finance: Operations management is all about ensuring that a business is using capital
resources efficiently during production.
• Production design: Operations management also revolves around creating product designs
that meet customer needs and abide by market trends.
• Forecasting: Operations management is also used for predicting how products or services
will perform in the future and how customer requirements will change with time.
USES OF PRODUCTION MANAGEMENT

• Production control: The production management process ensures that the correct plan is
used while manufacturing goods and services.
• Cost and quality control: Production management ensures that customers get high-
quality products at low costs.
• Scheduling: Production management is crucial for formulating the beginning to end of
the production process.
• Machinery maintenance: Production management ensures that the manufacturing
equipment and machinery are in the best condition without any defects.
PRODUCTION VS OPERATIONS MANAGEMENT