Definition of Production Management

One cannot demarcate the beginning and end point of Production and Operation Management in an establishment. The reason is that it is interrelated with many other functional areas of business viz. marketing, finance, industrial relations policies etc .Alternately, Production and Operation Management is not independent of marketing, financial, and personnel management due to which it is difficult to formulate some single appropriate definition of Production and Operation Management. 

The following definitions try to explain main characteristics of Production and Operation Management.

• In the words of Mr. E.L. Brech: “Production and Operation Management is the process of effective planning and regulating the operations of that section of an enterprise which is responsible for the actual transformation of materials into finished products”. This definition limits the scope of operation and production management to those activities of an enterprise which is associated with the transformation process of inputs into outputs. The definition does not include the human factors involved in production process. It lays stress on materialistic features only.

• Production and Operation Management deals with decision making related to production processes, so that the resulting goods and services are produced in accordance with the quantitative specifications and demand schedule with minimum cost. According to this definition design and control of the production system are two main functions of production and operation management.

• Production and Operation Management is a set of general principles for production economies, facility design, job design, schedule design, quality control, inventory control work study and cost band budgeting control. This definition explains the main areas of an enterprise where the principles of production and operation management can be applied. This definition clearly points out that the production and operation management is not a set of techniques.

It is evident from the above definitions that production planning and its control are the main characteristics of production and operation management. In the case of poor planning and control of production activities the organization may not be not be able to attain its objectives and may result in loss of customer’s’ confidence and retardation in the progress of the establishment.

In short, the main activities of operation and production management can be listed as;

• Specialization and procurement of input resources namely management, material and labor, equipment and capital.
• Product design and development to determine the production process for transforming the input factors into output goods and services.
• Specialization and control of transformation process for efficient production of goods and services.


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