Difference Between Production and Operations Management

Production and operations management have more in common than in difference. Production management refers to the management of products, whereas operational management refers to managing services. 

Through online tutoring, one can understand this concept in a better-simplified way.

Definition of Operations Management

In operations management, you are responsible for overseeing, designing, controlling, and reshaping processes in production to ensure that goods and services are produced as needed.

In simple terms, operation management is the process of controlling and directing processes.

The process of using resources (inputs) to deliver goods or services to customers or clients (outputs) is known as operations management.

This basic model applies equally in manufacturing and services organizations and both the private and non-profit sectors.

Two principles in operation management are mentioned below;

1. Organizations must deal with the quantity, technology, and staffing issues of their processes at all levels, not just the operations department.
2. An organization’s various parts have their own identities, even though they are related.

Importance of Operations Management:

• Finance- Operational management relies heavily on finance. Operations managers must not squander funds on inefficient activities. In order to satisfy consumer demands, he should ensure that the organization’s finance is used to manufacture useful products and services.
• Operation– Organizing, managing, directing, and controlling the routine daily operations of an organization constitutes the scope of operational management. It is the responsibility of an operation manager to ensure all activities occur in an efficient and effective manner.
• Strategy– Operation management is also responsible for formulating strategies. Preplanned tasks should be assigned to the operation manager. Developing a plan and tactic can help organizations optimize their resources and create a competitive advantage.
• Product Design– Product design must match market trends and demands, which is the job of the operations manager. As the manufacturer, he should ensure that the product is manufactured using innovative techniques and maintains its quality. 
• Maintaining Quality– An operational manager should ensure that the product is of higher quality. Products of inferior quality should never be accepted by the manager. Quality-management efforts and task supervision should be the manager’s responsibility. When defects are discovered, they should take the necessary measures to rectify those defects.

Definition of Production Management

Production management is defined as the planning, organizing, coordinating, directing, and controlling of a company’s material supply and processing activities that meet an approved sales program. During these activities, Labour, Plant, and Capital available to the organization are utilized to their maximum benefit.

The 6 basic principles of production management. The process is about bringing together 6M’s.

• Men
• Material
• Money
• Materials
• Methods
• Marketing

The functions of production management are as follows:

• Selection of Product and Design

In order to produce a product, production management must first determine which product is right for production. Then it selects the right design for the product. Because the success and survival of a company are dependent on the selection of the product and design, care must be taken during this process. Only after evaluating all other alternatives thoroughly should the product be selected. It is essential for the right design to follow after the right product has been chosen. In order to make a good product, the design must be in accordance with the customer’s needs. Customers should be able to obtain the maximum value for the least amount of money. The best way to accomplish this is through the use of techniques such as value engineering and value analysis in production management.

• Selection of Production Process

Choosing the right production process is very important for production management. It is also important that they decide what technology, equipment, material handling systems, etc., will be used.

• Selecting Right Production Capacity

To meet the demand for the product, production management needs to choose the right production capacity. If more production capacity is chosen, problems will arise. Both short and long-term production capacity must be planned by the production manager. A break-even analysis should be performed when planning capacity.

• Production Planning

Planning is an important part of production management. Routing and scheduling decisions are made by the production manager.

Routes are determined by determining how the work should be done and by sequencing the stages. Route optimization aims to determine which operations in the manufacturing process should be performed in the most efficient and effective manner. Route optimization ensures a smooth flow of work.

The scheduling process is used to determine when a particular production activity needs to begin and conclude.

• Production Control

The term production control is also used to describe production management. Production management includes monitoring and controlling the production process. During this time he has to go and check if the actual production has been carried out as planned. The quality of the actual production must be compared with the plan and any deviations must be found. After which, the necessary steps need to be taken in order to remedy the deviations.

• Quality and Cost Control

A quality and cost-control component of production management is also included. In the competitive world of today, quality and cost control are highly valued. Most people want to purchase products that are of high quality and at affordable prices. It is important that the quality of the products is continually improved by the production manager in order to meet this requirement of the consumers. Additionally, he must also reduce the costs of his products.

• Inventory Control

The inventory control component of production management is also included. Managers are responsible for maintaining track of inventories. It is not permissible to overstock or understock inventory.

An overstocking of materials will block the working capital, and the materials may spoil, waste, or be misused.

Understocked areas will affect production as they will not be able to meet schedules, thus affecting deliveries.

• Maintenance and Replacement of Machines

Maintaining and replacing machines and equipment is the responsibility of production management. Production managers need an efficient system for continuous inspections (routine checks), cleaning, lubricating, maintaining, and replenishing machines, equipment, and spare parts. Keeping machines working properly prevents breakdowns and production interruptions.

Key Difference Between Production and Operations Management:

1. The goal of Production Management is to manage and control all the activities involved in the creation of goods or their transformation from raw materials to finished goods. Operations Management, on the other hand, is used here to refer to the branch of management that deals with managing both the production of products as well as the provision of services to the customers.
2. In firms where goods are produced, Production Management resides. In contrast, operations management is found in almost every organization, whether it be manufacturing firms, service-oriented companies, banks, hospitals, or government agencies.
3. In production administration, the consumer does not need to get involved. However, in operation administration, the customer is involved to maximize the benefit of companies.
4. As the product is made with units, production management needs more capital equipment in the beginning and much less labor. As opposed to operation management, it requires much less capital investment, however requires a lot more effort because people are looking for immediate results.
5. Essentially, Operation Management is an approach that provides the administration aspect to the issues associated with the business actions and processes that enhance efficiency throughout the organization. Online homework help you can write more brief differences. Whereas production management doesn’t deal with the administrative aspect of the business.