Difference between Production and Operations Management
Production and operations management are two aspects of running a business that are often confused with each other. Both are essential to the success of the business, but they differ in terms of goals, techniques, and activities.
Goal
The goal of production management is to ensure that goods are produced efficiently and effectively. Production management is concerned with the management of the production process, from raw material acquisition to finished product delivery. It involves planning, controlling, and executing the production process to ensure that products are made on time, within budget, and to the desired quality standards.
The goal of operations management, on the other hand, is to manage the entire operations of the business. It is concerned with the management of resources such as people, equipment, and technology to ensure that the organization can provide quality goods and services to its customers at a reasonable cost.
Techniques
Production management employs techniques such as demand forecasting, capacity planning, production planning, scheduling, inventory management, quality control, and logistics management. These techniques are aimed at ensuring that the production process runs smoothly and efficiently.
Operations management, on the other hand, employs a broader range of techniques such as human resource management, financial management, marketing, supply chain management, and strategic planning. These techniques are aimed at ensuring that the business as a whole runs smoothly and achieves its goals.
Activities
Production management activities include designing products, selecting suppliers, sourcing raw materials, designing production processes, determining which machinery and equipment to use, setting production schedules, monitoring production processes, and managing inventory.
Operations management activities, on the other hand, include managing the workforce, paying employees, managing finances, creating marketing strategies, ensuring compliance with regulations, managing supply chains, and creating strategic plans for growth and development.
In conclusion, there are many differences between production and operations management. While production management focuses on the production process, operations management focuses on the overall operations of the business. By understanding these differences, businesses can effectively manage their resources and achieve their goals.
Table difference between production and operation management
| Production Management | Operation Management |
|---|---|
| Concerned with the conversion of raw materials into finished products | Concerned with the overall management of the operations of an organization |
| Focuses on manufacturing processes and techniques | Focuses on processes and techniques that support the overall operations of the organization |
| Emphasizes on efficiency, productivity and quality control of production process | Emphasizes on efficiency, productivity and quality control of all operational processes |
| Involves planning, designing, scheduling and monitoring production processes | Involves overall planning, designing, scheduling and monitoring of operational processes |
| Uses technology and automation to improve the production process | Uses technology and automation to improve operational efficiency and effectiveness |
| Includes activities such as inventory management, quality control and maintenance of production equipment | Includes activities such as supply chain management, quality assurance and maintenance of all operational equipment |