MAIN OBJECTIVES OF PRODUCTION AND OPERATIONS MANAGEMENT

Production and Operations Management deals with the creation of goods and services
through the application of the business concept. They are also vital in both service and
manufacturing firms. It has a primary objective, which is to employ the company’s resources
to produce goods and services fit for the market. The goal of the production function is to add
value. 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. The marketing people also have a huge role to play in this.
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.
The paper discusses the main objectives of production and operations management.

Cera (2020) argued that the goal of customer satisfaction is an important part of effective
production and operations. In the past, the manufacturing function in most companies was
inwardly focused. Manufacturing had little contact with customers and did not always
understand their needs and desires. In the 1980s, many U.S. industries, such as automotive,
steel, and electronics, lost customers to foreign competitors because their production systems
could not provide the quality customers demanded. As a result, today most American
companies, both large and small, consider a focus on quality to be a central component of
effective production and operations management. Hence many companies in today’s world
have production and operations managers, the following are the main objectives of
production and operation management.

Quality assurance

Maintaining product quality is a key objective of Production and Operations Management.

Ensuring that products meet or exceed established standards is vital for customer satisfaction
and long-term success. Product Managers must implement quality control measures, monitor
production processes, and address any issues that could compromise the final product’s
quality. Cera (2020) states that the appropriate excellence preferred for a product is
determined to retain in view the necessities of the customer. It may or may not be the fine
high-quality as the manufacturing management needs to hold fees and different technical
features in mind as nicely. Production and Operations management ensures that quality
products are manufactured by the organisation. It aims that customers’ expectations are
fulfilled by the product. Attempts are made to convert the needs of customers into production
specification while designing a product. Certain standards are set through production
management process and attempts are made to fulfil these standards.

For instance, imagining the bustling floor of an automotive assembly plant. From scheduling
the arrival of raw materials, such as metal sheets and engine parts, to coordinating the
assembly line workforce, Production and Operations Management ensures that the
manufacturing process flows smoothly.

Optimal resource utilisation

One of the primary objectives of Production and Operations Management is to ensure the
efficient utilisation of resources. This includes managing raw materials, labour, equipment,
and time in a way that minimises waste and maximises output. In the process of optimising
resource allocation, a business can reduce costs and enhance overall productivity. The
manufacturing has to be finished in quantity to ensure huge beneath or overproduction. In the
case of over-manufacturing, the capital is unnecessarily tied up in inventories. In contrast, in
the case of under-production, the supply will no longer be sufficient to satisfy the call. It is
one of the objectives of production and operations management (Thomson,2018).

For example, In the energy sector, optimising resources means generating maximum power
while minimising waste. Renewable energy sources like solar panels are strategically placed
to capture the most sunlight, thus optimising energy production.

Cost minimisation

Controlling production costs is a critical objective that directly impacts a company’s

profitability. Product and Operations Managers strive to identify and eliminate inefficiencies
in processes, reduce wastage, and streamline operations to produce goods and services at the
lowest possible cost without compromising quality. Thomson (2018) postulate that Cost
reduction is the primary focus of every business. Production and Operations management
aims at minimising the cost of product activities of business. It involves usage of sound
supply chain management in production planning minimising the overall production and
supply cost. Production management estimates the true cost of a product before its production
and tries to keep its production cost within the parameter of pre-estimated cost.

For example, the fashion industry, where they ensure that the manufacturing process aligns
with the latest trends and seasonal demands. The objective here is to strike a balance between
creativity, timely production, and cost-effectiveness, ultimately delivering stylish garments to
consumers.

Timely delivery

Meeting delivery schedules is essential for maintaining customer trust and fulfilling market
demand. Production Management aims to create realistic production timelines and ensure that
goods and services are produced and delivered on time. This objective involves effective
coordination of various stages of production and efficient scheduling. Production and
Operations management aims to ensure that products or services are delivered to customers
within the agreed-upon timelines. It involves effective planning and scheduling of production
activities, managing inventory levels, and coordinating with other departments such as
procurement, logistics, and sales to meet customer deadlines (Naqib,2013).

For a company to deliver their products and services in time they must be adaptive and
flexible in the process of production. Production and Operations management aims to build
flexibility and adaptability into the production process to respond quickly to changing market
conditions, customer demands, and unforeseen disruptions. This objective of production and
operations management involves implementing agile production systems, adopting advanced
manufacturing technologies, and developing contingency plans to manage risks effectively.

Naqib (2013) continued to argue that in today’s rapidly changing business environment, the
ability to adapt to market fluctuations and shifts in demand is crucial. Production
Management objectives include establishing flexible production processes that can quickly
adjust to changes in consumer preferences, technological advancements, and market trends.

For example, Smartphones, laptops, or other electronic devices, the process involves
managing the procurement of electronic components, coordinating assembly lines, and testing
products for functionality and quality. Production Managers here strive to balance
technological advancements with efficient production, all while adhering to stringent quality
control measures. Another example can be Food and beverage manufacturing plant
(Lilongwe Daily). Here, Production Management ensures that ingredients are sourced,
processed, and packaged efficiently to create a range of consumable products.

Continuous improvement

Production and Operations Management objectives also include fostering a culture of

continuous improvement. This involves regularly evaluating production processes,
identifying bottlenecks or inefficiencies, and implementing enhancements to optimise
operations over time. Continuous improvement leads to increased efficiency and
competitiveness. Production and Operations management emphasizes the pursuit of
continuous improvement in all aspects of the production process. It involves identifying areas
for improvement, implementing process optimization techniques, fostering a culture of
innovation and learning, and regularly monitoring performance metrics to drive ongoing
enhancements in productivity, quality, and efficiency (Fletcher, 2021).

For example, the concept of lean principles is a prime example of continuous improvement.
Toyota, for instance, pioneered this approach, focusing on minimising waste and maximising
efficiency. Through methods like Kaizen (continuous improvement) events, production
managers and workers collaborate to identify and eliminate inefficiencies in processes,
leading to streamlined production, reduced costs, and enhanced product quality.

In conclusion, Production/operations management is the process, which combines and

transforms various resources used in the production/operations subsystem of the organization
into value added product/services in a controlled manner as per the policies of the
organization. Optimal resource utilisation transcends industry boundaries, uniting them in a
common pursuit of efficiency. After handling raw materials, human capital, energy, or time,
effective Production Management ensures that resources are channelled towards achieving
the greatest output with minimal waste. These examples underscore the versatility and
importance of Production Management across industries. It’s the invisible hand that guides
the transformation of ideas into tangible products, embracing creativity, precision, and
efficiency.
REFERENCES

Fletcher, H. (2021). Firm Resources and Sustained Competitive Advantage. Journal of

Management, 17(1), 99–120.

Thomson, P. (2018). Business logistics. In: International journal of interdisciplinarity in

theory and practice

Cera, Y. (2020). Manpower Strategies for Flexible Organizations. Personnel Management,

16(8), 28–31.

Naqib, F. (2013). Labour Market Flexibility, Operations and Production Management and
Corporate Performance. British Journal of Management, 12(4), 287–306