Production & Operations Management (POM) Defined

Production & Operations Management is defined as the design, operation, and improvement of the transformation process, which converts the various inputs into desired outputs of products and services.

Definitions of P/O systems

Production is the creation of goods and services. Production/operation system is any system which

transforms input into output and in the mean time creates value

Introduction of P/O systems

In some organizations the product is a physical good

(refrigerators, bread, etc.) and the activities creating such tangible product is usually referred to as Production.

In others the product is a service (insurance, health care for

elderly, etc.). The production that takes place to produce a service is called Operations.

Operations Management
The management of systems or processes that create goods and/or provide services

Value added
Inputs Land Labor Capital Transformation/ Conversion process
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Outputs Goods Services

Control
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Hospital Process
Inputs
Doctors, nurses Hospital Medical Supplies Equipment Laboratories

Processing
Examination Surgery Monitoring Medication Therapy

Outputs
Healthy patients

Twin objectives of operations management

1. The customer service objective.
To provide agreed/adequate levels of customer service (and hence customer satisfaction) by providing goods or services with the right specification, at the right cost and at the right time.

2. The resource utilization

objective.

To achieve adequate levels of resource utilization (or productivity) e.g., to achieve agreed levels of utilization of material,machines and labor.

introduction to production and operations management

Definition
Production and Operations Management ("POM") is about the transformation of production and operational inputs into "outputs" that, when distributed, meet the needs of customers.

The process in the above diagram is often referred to as the "Conversion Process". There are several different methods of handling the conversion or production process 1.Job, 2.Batch, 3.Flow and Group.

SCOPE OF PRODUCTION AND OPERATIONS MANAGEMENT

Following are the activities which are listed under production and operations management functions: