We are a ISO 9001:2015 Certified Education Provider. Hence, the firms have to realize and follow the Importance of Operations Management in order to increase the productivity levels of the goods and deliver the same to the dealers and customers within the stipulated time frame. They are the ones that will distribute the product to potential buyers and should have the capacity to inform the production department of what customers or consumers would prefer. And the sole aim is to deliver the desired products and services to clients while also ensuring that all parties involved are adhering to the policies presented by the management of the company. I am a mother of a lovely kid, and an avid fan technology, computing and management related topics. Privacy Policy, Similar Articles Under - Production & Operations Management, Why Forecasting has Become Very Difficult for Individuals, Firms, and Nations, Quality - A Tool for Achieving Excellence, Productivity and Its Role in Shaping Economies and Businesses. But this can only be possible in a situation where the input and output are maximized. © Management Study Guide Productivity is measured as a total output per one unit of a total input. Understanding Production and Operations Management, Identify the customer needs and convert that into a specific product or service (numbers of products required for specific period of time), Based on product requirement do back-ward working to identify raw material requirements. Both are relevant to an establishment. It’s Components and Process. The marketing people also have a huge role to play in this. Production is important not just because it produces the products that create the eventual profit, but because productivity … Why is production and operations management important in both manufacturing and service firms? Annealing process (heating at high temperatures and then cooling), is example of production by modification or improvement. Production by modification or improvement: It involves change in chemical and mechanical parameters of the raw material without altering physical attributes of the raw material. European Productivity Agency (EPA) has defined productivity as, “Productivity is an attitude of mind. In short, everything regarding production processes such as designing, implementation, and control is the duty of operation management. But if you read this post carefully, you will discover how important the role of the operations manager is. Production is so important because the act of producing too much or too little not only can destroy the firm but the entire field, as the farming example shows. Operation Management is in charge of managing the conversion process. Expansion of … Marketing function people are frontline representative of the company and provide insights to real product needs of customers. Operation management also predicts the performance of products or services in the future. Be it product or services; the idea is to create something that will strengthen the relationship between the organization and customers. But this cannot only be made possible by the production department. They are also vital in both service and manufacturing firms. Making sure that your customers are always happy can also boost business reputation. Production management helps the firm to achieve its sales and business objectives by producing goods and services that meet the need of consumers. I hold a degree in MBA from well known management college in India. It is also in charge of production administration, manufacturing and other processes like the rendering of services. Hence it dictates customer experience. Higher productivity ensures lesser cost of production, higher production and most effective utilisation of available resources. The practices and theories involved in Production and Operations Management … Production and Operation Management deals with the creation of goods and services through the application of the business concept.
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