Management plays a very crucial role in planning, strategy, and decision-making activities in a firm. Production and operations management are the two technical terms that are mostly encountered by students of business and commerce. Many people use both these terminologies interchangeably. However, there is an obvious difference between them. In this article, we will understand the complete difference between production and operations management with some of the following additional concepts.
Production management simply refers to the set of activities that deals with the production of goods and services or the conversion of raw materials into finished products. This field of study deals with controlling, scheduling, organizing, planning, and directing all the production processes of the firm. In a nutshell, it is the process of decisions regarding price, quality, quantity, packaging, design, etc, taken by the production management of the firm, so as to ensure the efficient use of resources to turn raw materials into the best product.
Some of the important functions of production management are as follows.
- It helps the business to achieve its production goals
- It helps to introduce the new products to the market.
- Ensures that a company keeps on manufacturing good quality products and that all the resources are used optimally.
- It helps in maintaining a firm reputation and image in the market.
On the other hand, operations management refers to all the managing activities of an organization that are taking place before, during, and after manufacturing goods and services. This field of study involves designing, planning, and supervising production as well as non-production activities. It primarily focuses on ensuring the optimal usage of firm resources and decreasing wastage. In addition, operations management assists an organization or a company to improve its efficiency and deliver quality products and services to customers or clients.
Production Management Vs Operations Management(Comparison Table)
|Basis For Difference||Production Management||Operation Management|
|Definition||It refers to the activities concerned with the creation and production only.||It refers to the part of management concerned with the management of overall business operations – including production and post-production activities.|
|Focuses On||Offering the right quality of goods/products at the right time and at the right place.||Utilizing the firm resources most efficiently and effectively in order to meet the desires and requirements of the customers.|
|Decision-Making||Related to the production of goods and services only||Related to the regular business activities of a business entity|
|Found In||Found in the enterprises where production is undertaken||It is found in the places like Hospitals, Banks, companies, etc.|
|Capital Requirement||It requires extra capital to make the capital in the beginning||It requires less capital funding.|
Key Differences Between Production And Operations Management
Some of the key differences between production vs operation management are as follows.
- Production management simply refers to the set of activities that deals with the production of goods and services or the conversion of raw materials into finished products. On the other hand, operation management refers to all the managing activities of an organization that are taking place before, during(while), and after manufacturing goods and services.
- Production management could be found only in the firms where the production of goods is undertaken. Unlike, one can find operations management in every organization, i.e. manufacturing concerns, service-oriented firms, banks, hospitals, agencies, etc.
- The main objective of production management is to provide the right and good quality of products in the right quantity at the best price and right time. On the other hand, operations management primarily focuses on making the best possible utilization of the organization’s resources in order to meet the customer’s wants and needs.
So, we can conclude that both production and operations management plays a significant role in a firm. The main objective of production management is to provide the right and good quality products in the right quantity at the best price and right time. On the other hand, operations management primarily focuses on making the best possible utilization of the organization’s resources in order to meet the customer’s wants and needs.