Production Management: Definition and Solution

What is Operations Management?

Operations management is pretty similar to production management, but is the day-to-day running of the business, ensuring operations and production within the business are carried out efficiently and smoothly. This also includes handling administrative, factory-level, and service management.

The focus point of your operations management is the customer. If the customer is satisfied, then you’re heading in the right direction.

However, how you handle your resources is also the function of operations management, since you want to be improving customer satisfaction with the least amount of wastage with the maximum utilization of resources.

But what are the functions of operations management?

Strategy

From raw inventory management to routing manufacturing, under operations management, you’ll need to develop plans and tactics that will help you achieve lean inventory and a smooth production flow to get a competitive edge over your competitors.

Product Design

Here is where you should investigate if your product caters to the need of the customers and follows the market trend. Yes, your product may have survived the prototype stage, but people’s needs and wants change, and you need to be ready to adapt your product with those shifts in trends and predictions.

Forecasting

Demand planning will allow you to understand how your product is performing on the marketplace, and decide on how to proceed, be that increasing, decreasing, or even stopping production on a product.

And that’s the ins-and-outs of operations management, and as you can probably see, the difference between production management and operations management isn’t much.

Regardless of if you struggle to set them apart or call it something else, here’s why it’s important to have your operations and productions management down to a tee.

Difference between Production and Operations Management?

Production and operations management is an all-encompassing term that covers managing the manufacturing of your products and those finished goods and services.

You might be furling an eyebrow, “Aren’t those two technically different areas?”

Traditionally speaking, a manufacturer would make its products and dispatch them to a third-party, and that would be the end of it.

But, as more businesses take more control over their company and brand, they’ve started to introduce services such as customization into their production.

And as we control more aspects of our business, we need to also balance production and operations management.

As manufacturers have drifted toward a direct to consumer brand, and even retailers now manufacture their own branded products, the line between production management and operations, products and services, has become increasingly blurred.

Are you still confused?

Production and operations management are very similar, but the main difference between the two is:

Production management – Monitoring and managing the manufacturing of products.

Operations management – The services which are on offer to the customer and the work that needs to be done to finish the production.