12/6/2020

INTRODUCTION TO
PRODUCTION & OPERATIONS
MANAGEMENT
SITI SUHAIDAH SAHAB

CONTENT
1. What is operation & production management?
2. Why are goods and services?
3. Transformation process
4. Career opportunities
5. Summary

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TOPIC LESSON OUTCOME

1. Define production & operation management
2. Functions of production & operation management
3. Differentiate products and services
4. Identify career opportunities

WHAT?

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Operations management involves planning, organizing, and

supervising processes, and make necessary improvements
for higher profitability.

Production Management refers to the application of

management principles to the production function in a
factory.

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OPERATION

CEO

MARKETING OPERATIONS FINANCE HR

OPERATION

Operations management (OM) is the business function responsible

for managing the process of creation of goods and services.
It involves planning, organizing, coordinating, and controlling all the
resources needed to produce a company’s goods and services

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PRODUCTION
INPUT CONVERSION OUTPUT
PROCESS

PRODUCTION

Production, the creation of products and services, is an essential

function in every firm.
Production turns inputs, such as natural resources, raw materials,
human resources, and capital, into outputs, which are products and
services.

https://courses.lumenlearning.com/wm-introductiontobusiness/chapter/operations-
management/

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COMPARISON OF PRODUCTION AND

OPERATION MANAGEMENT
PRODUCTION MANAGEMENT OPERATION MANAGEMENT
MEANING Production Management implies the Operations Management refers to the
administration of the range of activities part of management concerned with
belonging to the creation of products. the production and delivery of goods
and services.
DECISION MAKING Related to the aspects of production. Related to the regular business
activities.
FOUND IN Enterprises where production is Banks, Hospitals, Companies including
undertaken. production companies, Agencies etc.
OBJECTIVES To produce right quality goods in right To utilize resources, to the extent
quantity at right time and at least cost. possible so as to satisfy customer wants

Difference Between Production and Operations Management (with Comparison Chart)

S, says, & Chaudhary
https://keydifferences.com/difference-between-production-and-operations-management.html

FUNCTIONS

PRODUCTION PRODUCTION PLANT FACTORY PHYSICAL

PLANNING CONTROL LAYOUT BUILDING ENVIRONMENT

METHOD INVENTORY QUALITY PRODUCT

STUDY CONTROL CONTROL DEVELOPMENT

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An important key in company’s success or

failure is how well it manages its operation.

DECISION MAKING IN OM & PM

Selection process
PERIODIC Goods and services design
DECISION Quality
Location
Long Term Layout Design
Short Term
Selection of equipment's
HR & Job Design
Supply chain Management
CONTINUAL
DECISION Inventory
Labor control

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OBJECTIVES
PERFORMANCE

COST

WHAT ARE GOODS AND

SERVICES?

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COMPARISON
GOODS SERVICES
1. Tangible offering to a customer 1. An intangible offering
2. One-time exchange for value 2. Involves a longer period of time
3. The value of a product is inherent in the 3. The value of a service often comes from the
tangible offering itself eventual benefit that the customer perceives
from the time while using the service.
4. A product can be returned to the seller for
replacement or refund in the event that it is 4. A service is something that can only be felt
wrong or damaged therefore cannot be returned.
5. A product can be owned by the purchaser 5. A service cannot be returned to the service
since ownership is transferred the moment a provider since it is something that is
transaction has been performed. intangible

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THE GOODS-SERVICE CONTINUUM

TRANSFORMATION
PROCESS

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VALUE- ADDED

INPUT TRANSFORMATION OUTPUT

FEEDBACK

FEEDBACK FEEDBACK
CONTROL

EXAMPLES OF INPUTS,
TRANSFORMATION, AND OUTPUTS
INPUTS TRANSFORMATION OUTPUTS
Land Processes High Goods Percentage
Human Cutting, Drilling Houses
Capital Transporting Automobiles
Raw Materials Teaching Clothing
Equipment Farming Computers
Facilities Mixing Machines
Energy Packing Televisions
Information Copying, Faxing High Service Percentage
Time Analyzing Health Care
Legal Constraints Developing Entertainment
Government Regulations Searching Car Repair
Researching Legal
Innovating Banking
Selling Communication

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RECENT TRENDS

1. Just in Time Production 9. Technological Advancement

2. Product Development 10. Corporate Downsizing
3. Global Focus
4. Employee Empowerment
5. Customized Production
6. Time Reduction
7. Flexible Production System
8. Redesigning Business Process

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SCOPE OF OPERATION &

PRODUCTION
MANAGEMENT

The scope of operations management ranges across the organization

The operations function includes many interrelated activities such as:
1. Forecasting
2. Capacity planning
3. Scheduling
4. Managing inventories
5. Assuring quality
6. Motivating employees
7. Deciding where to locate facilities
8. And more .

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CAREER
OPPORTUNITIES

Among the numerous job titles are operations manager,

production analyst, project manager, production manager,
industrial engineer, time study analyst, inventory manager,
purchasing manager, schedule coordinator, distribution
manager, supply chain manager, quality analyst, and quality
manager.

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SCOPE OF WORK

PLAN ORGANIZE STAFF LEAD CONTROL

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SUMMARY

Helena Lidelöw & Kajsa Simu

(2015), Understanding
construction contractors and their
operations strategies, 8th Nordic
Conference on Construction
Economics and Organization

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