Production and Operation Management
Chapter One: an introduction
What do we mean by POM?
POM is the management of operation system within the organization, which converts inputs into the organization’s products and services.
Discuss the relationship between POM and other organization’s functions?
Three basic functions in a typical business organization:
- production operations
The production operations integrates with marketing and finance to accomplish the desired overall organization objectives; under the management control which plan, organize, and direct those functions.
(1) Production operations…this function consist of all activities that are directly related to producing goods or providing services. Thus, it exists not only in manufacturing and assembly operations عمليات التصنيع والتجميع, which are goods-oriented, but also in service-oriented areas such as (healthcare, transportation and, retailing)
It’s responsible for the creation of an organization’s end outputs, either goods or services
(2) Marketing…is all activities that guarantee the flow of goods and services from the producers to the consumers. Nowadays, marketing as a function provides the 4Ps: promotion, product, price, and place.
(3) Finance…include all activities relates to securing resources at favorable prices and allocating those resources throughout the organization. Mr.Mohamed Abdel Aaty
How those functions overlap?
(A) Production and Marketing
In manufacturing, they work together whereas, marketing promotes goods that production cannot profitably produce (because of costs and prices), and production may reproduce items for which there is no demand.
Operations always ask and need information about market demand, product design, and current products. Thus, marketing can supply information on consumer preferences.
(B) Production and Finance
Finance people should provide information on what funds might be available and what new funds might be needed for new products and services. Hence من هنا, finance and operations management exchange information and expertise in such activities:
Budgets that prepared in order to plan financial requirements,
Evaluation of alternative investments in plant,
Funding of operations
Without production, no products or services could be produced; without marketing, no products or services could be sold; and without finance, financial failure would surely result. In addition to these primary functions, there are a number of supporting functions in many organizations, such as (personnel, purchasing, storage, and engineering…etc)
How operations inside the organization are processed?!
- In the systems approach, the organization is viewed as an operation system.
- A system…is as collection of people, resources, information that is intended to perform a specific function, or reach a predetermined محدد من قبل (specific) objective.
- Every system has subsystems or may be a part of a large system. For example, the organization has subsystems, such as: marketing, finance, production, purchasing, storage, and personnel. Also, the organization may be a subsystem of bigger industrial system.
- To achieve its key goal (generating goods and services), OS includes a conversion process
Compare outputs to objectives
- There is no operation take place without them.
- They are either tangible (people, material, facilities and energy) or intangible (information).
- The product of the transformation of inputs by the processes.
- They can be either goods or services.
- Tangible such as, clothing, buildings, metals, electrical appliances.
- Intangible such as, services in hospitals,...
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