This unit handles the day-to-day running of the business to ensure operations within the organization are carried out smoothly. One importance of operation management is to improve the overall productivity of the business. so it can be described that all functional areas undertake operations activities because they all produce the services and goods. 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. Operations management is the central core function of every company. Production management refers to the management of activities related to the production of goods. Production comes under the category of line function which directly affects customer experience and there by future of organization itself. But this cannot only be made possible by the production department. Below is the importance of production management. The goal of the production function is to add value. Production Management involves using resources judiciously, to create acceptable products. Functions of Operations Management. 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. Production, the creation of products and services, is an essential function in every firm. It involves different tasks, such as planning, supervision, scheduling and regulating the activities related to the production of products. Operation Management is in charge of managing the conversion process. A classic example of separation or extraction is Oil into various fuel products. Financial Management - Meaning, Objectives and Functions, Understanding of Production Management, Functions & Importance, relationship between the organization and customers, plan is followed during the production process, management also predicts the performance of products. The supply chain configuration starts from the supply of the raw materials and continues till the production of the final product and then their selling to the customers which will satisfy their needs and wants. How to Get a Full-Ride Scholarship? There are so many functions of the production department. The production manager is also in charge of this area of the business. Engage internal and external vendors to create supply chain for raw material and finished goods between vendor → production facility → customers. But the production comes under the line function category which has a direct impact on the customers. Managing the Quality ; Quality management plays an imperative role in selling a product. Successful organizations have well defined and efficient line function and support function. But if you read this post carefully, you will discover how important the role of the operations manager is. The role of the operation manager is to ensure that products or services are always available and reaches customers promptly. What’s the Aim of the Production Function? They are also vital in both service and manufacturing firms. Marketing function people are frontline representative of the company and provide insights to real product needs of customers. A satisfied customer will undoubtedly want to repeat patronage. And this can be achieved by healthy and productive association between Marketing and Production people. © Management Study Guide In the past, the mindset people had was that operation management isn’t pertinent. Understanding Production and Operations Management Introduction. He also ensures that the output matches the specifications. This process is shown in (Figure). Annealing process (heating at high temperatures and then cooling), is example of production by modification or improvement. Therefore line function to a large extent determines the future of the company in question.

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