presentation on

Production management v/s operation management by Binam Ghimire

A high level comparison with distinct production and operation management can be done on the following characteristics :-

1. Output production management deals with

manufacturing of product s like ( car, computer etc ) where as operation management covers both product and service.

Works of production management

Works of operation management

2. Use of outputProducts like computers, cars are

utilized over a period of time where as service needed to consume immediately.

Use of cars for long period

• 1980

• 2015

3. Classification of workTo produce product more of

capital equipments are required where as service require more labor and lesser capital equipment.

Uses of capital equipment in production management

Uses of labor in operation management

4. Customer contactThere is no participation of customer

during production where as for service a constant customer contact is needed.

No participation of customer during production management

Participation of customer during operation management

Scopes of production and operation management

Production and operation management concern with a conversion of inputs and outputs using physical resources so as to provide the desired utilities to the customer while meeting the other organizational objective of effectiveness, efficiency.

Following are the scope of POM:-

1. Location of facilities The selection of location is the key decision as

large investment is made on building, plant and machinery.

It deals with the question such as where our main operation should be.

It is also one of the factor which affect the business.

5 star hotel in village area wrong location of facilities

5 Star hotel in tourist area

Right location of facilities

2. Plant layout and material handling

plant layout refers to the physical arrangement of facilities. It is concerned with the orderly and properly arrangement and use of available resources i.e. men, material, money, machines, and methods of production inside the factory.

Material handling refers to the moving of materials from the store room to the machine and from one machine to next.

Examples of plant layout

Examples of material handlingMoving of material from storeroom to machine

# Moving of material from one machine to another

4. Process design process design is the macroscopic decision

making of an over all process route for converting raw material into finished goods.

These decision encompass the selection of a process, choice of technology, process flow analysis and layout of facilities.

5. production, planning and control

The principle of production, planning and control lies on the statement that “First plan your work and work on your plan”

The main function of production, planning and control includes planning routine, scheduling, dispatching and follow up.

Planning Working on plan

6. Quality control Quality control can also be defined as that

industrial management technique by means of which product of uniform acceptable quality is manufactured.

It aims in prevention of defects at the source, realizes on effective feedback system and corrective action procedure.

Defected quality

quality product

Corrective action procedure

7. Material management Material management is that aspect of

management function which is primary concerned to business.

Main objective of material management are to minimize material cost, to purchase, receive, transport and store material efficiently.