Production is a formal activity that adds value to goods and services, including creation, transport, and warehousing until used. Production is an organized process with specific goals. It implies the creation of a utility or services. Operation is that part of as organization, which is concerned with the transformation of a range of inputs into the required output (services) having the requisite quality level. Production function is ‘the part of an organisation, which is concerned with the transformation of a range of inputs into the required outputs (products) having the requisite quality level’. Production is defined as ‘the step-by-step conversion of one form of material into another form through chemical or mechanical process to create or enhance the utility of the product to the user’. Thus production is a value addition process. At each stage of processing, there will be value addition. In any production function 3 basic factors will be there
A series of sequential activities and operations, which are indispensable in transforming material from a given form to a desired form, indicates production. Edwood Buffa defines production as ‘a process by which goods and services are created’. Some examples of production are: manufacturing custom-made products like, boilers with a specific capacity, constructing flats, some structural fabrication works for selected customers, etc., and manufacturing standardized products like, car, bus, motor cycle, radio, television, etc. Management is the process, which combines and transforms various resources used in the operations subsystem of the organization into value added services in a controlled manner as per the policies of the organization. Is it necessary to study the subject of Production Management even if one is not interested in manufacturing business or activities? We now understand that the subject or word “PRODUCTION” is not restricted to only manufacturing activities as normally will be visualized. End products may be finished components or consumer products, completed paper work or documentations, serviced customers or serviced patients. In short it must be some kind of value added products so that outputs are worth more than just the sum of individual inputs. According to Peter Drucker “Production is not the application of tools to materials but is the application of logic to work.” Obviously we all may be falling in any one of the categories and involved in the production function. Hence it is very vital and important to know all aspects of this management science with proper depth and detail and empower us with the skills of production management to emerge as a versatile and efficient manager.
PRODUCTION AND OPERATIONS MANAGEMENT
Production management is ‘a process of planning, organising, directing and controlling the activities of the production function. It combines and transforms various resources used in the production subsystem of the organization into value added product in a controlled manner as per the policies of the organization’. The set of interrelated management activities, which are involved in manufacturing certain products, is called as production management. If the same concept is extended to services management, then the corresponding set of management activities is called as operations management. E.S.Buffa defines production management as follows:
‘Production management deals with decision-making related to production processes so that the resulting goods or services are produced according to specifications, in the amount and by the schedule demanded and out of minimum cost’. In short production management is The Art of Managing the Production. It basically concerns itself with the conversion of inputs into outputs. It involves planning, implementation, and control of industrial production processes to ensure smooth and efficient operation. Production...
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