4’ms of

Entreprenuership
Production and
Operations
Managements
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• is a professional who oversees the
production process and coordinates all
activities to ensure enough resources on
hand. They can plan workers' schedules,
estimate costs and prepare budgets to
ensure workflow meets required deadlines.

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 FUNCTION OF THE PRODUCTION MANAGEMENT

The definitions discussed above clearly shows that the concept of production management is related mainly to the organizations engaged in production of goods and
services. Earlier these organizations were mostly in the form of one man shops having insignificant problems of managing the productions.
But with development and expansion of production organizations in the shape of factories more complicated problems like location and lay out, inventory control,
quality control, routing and scheduling of the production process etc. came into existence which required more detailed analysis and study of the whole phenomenon.
This resulted in the development of production management in the area of factory management. In the beginning the main function of production management was
to control labour costs which at that time constituted the major proportion of costs associated with production.
But with development of factory system towards mechanization and automation the indirect labour costs increased tremendously in comparison to direct labour costs,
e.g., designing and packing of the products, production and inventory control, plant layout and location, transportation of raw materials and finished products etc.
The planning and control of all these activities required more expertise and special techniques.
In modern times production management has to perform a variety of functions, namely:
(i) Design and development of production process.
(ii) Production planning and control.
(iii) Implementation of the plan and related activities to produce the desired output.
(iv) Administration and co-ordination of the activities of various components and departments responsible for producing the necessary goods and services.
However, the responsibility of determining the output characteristics and the distribution strategy followed by an organization including pricing and selling policies are
normally outside the scope of Production Management.

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• SCOPE OF THE
PRODUCTION
The scope of production
management is indeed vast.
Commencing with the selection of
location, production management
covers such activities as acquisition
of land, constructing building,
procuring and installing machinery,
purchasing and storing raw materials
and converting them into saleable
products. Added to the above are
other related topics such as quality
management, maintenance
management, production planning
and control, methods improvement
and work simplification and other
related areas.

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 SYSTEM PRODUCTIVITY

Productivity systems are practices, guidelines, or systematic methodologies that

help people get things done in an efficient manner. The best productivity systems
are structured — but flexible — and are generally easy to adopt.

CAPITAL PRODUCTIVITY
is the measure of how well physical capital is used in providing goods and
services. Productive use of physical capital and labor are the two most important
sources of a nation's material standard of living.

LABOR PRODUCTIVITY
measures the hourly output of a country's economy. Specifically, it charts the amount of real
gross domestic product (GDP) produced by an hour of labor. Growth in labor productivity
depends on three main factors: saving and investment in physical capital, new
technology, and human capital.

PERSONNEL PRODUCTIVITY

is an assessment of the efficiency of a worker or group of workers. Productivity

may be evaluated in terms of the output of an employee in a specific period of time.
 FACTORS TO INCRESED EMPHASIS ON FASTER PRODUCT DEVELOPMENT AND INTRODUCTION
Desirability is probably the most important factor. If people don’t need or want to use a product, it will
fail. To be desirable, a product has to solve a specific problem or offer a tangible benefit. Take the example of
Sonos, a wireless hi-fi system that allows people to enjoy music by providing easy access to a range of
streaming services. It’s simple and convenient to use, and it offers a decent sound quality. Products like the
Sonos system are sometimes called vitamins, as they provide a nice-to-have benefit, similar to vitamin
supplements. Compare this to a product like Apple’s AirTags, which address the issue of finding keys and other
misplaced items. Such a product is also referred to as a painkiller, as it addresses a problem or pain point. But
no matter how a product is classified, it must create value for its users—or it is doomed.
Feasibility implies that it is possible to design and build the product: the technologies required exist or can
be developed. Additionally, enough people with the right skills are available or can be recruited. If, for example,
developing the product requires the application of advanced machine learning algorithms, then you’d have to
explore if appropriate machine-learning frameworks exist, or if it’s possible to develop the algorithms in house.
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Viability means that developing and providing the product is viable from a business perspective. The
product therefore has to create enough business benefits to justify spending money on it. These may include
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generating revenue, reducing cost, increasing productivity, and strengthening the brand. Examples of revenue-
generating products are Google Search, which generates money through ads, and Microsoft Word, which is
monetised through subscriptions (as part of the Office suite). Contrast them with products like the Google
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Chrome browser and Microsoft Edge, which offer different business benefits: they allow the companies to
control how users access the Internet, tie them to their respective ecosystems, and make it more likely that
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Ethicality , finally, statesadipiscing
that a product mustelit
not cause
any harm to people and planet: It must not reduce people’s mental wellbeing, for example, by getting them
hooked or by offering content that promotes misinformation, self-harm, or violence. Additionally, an ethical
product does not contribute to climate change and does not damage the environment by how it is developed,
provided, and—if it includes hardware and plastics—manufactured, delivered, and disposed of. To achieve
this, you will benefit from a business model that is fair to all parties and from making ethically sound design
and programming decisions, for instance, by avoiding the use of dark patterns and mitigating machine
learning biased.
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 OPERATIONS STRATEGY
is a set of decisions an organization makes regarding the production
and delivery of its goods. Organizations may consider each step they take
toward manufacturing or delivering a product an operation, and all decisions
regarding these various operations are the operations strategy.

This Photo by Unknown Author is licensed under CC BY-SA

STRATEGY is an action that managers take to attain one or

more of the organization’s goals. Strategy can also be defined
as “A general direction set for the company and its various
components to achieve a desired state in the future. Strategy
results from the detailed strategic planning process”.

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 Competitive
priorities
Signify a strategy manufacturing
capabilities that can improve a
plant’s position in the market.
Such focus may guide decisions
with regards to the capacity,
technology, production process,
planning, control, etc.

Order qualifiers are Design process

necessary attributes that
is a way of figuring out what
a product must possess you need to do, then doing it.
for it to be entered into Along the way you might solve
competition. Order one or more problems, try to
achieve a goal, and/or create
winners, however, are something specific.
the 'winning' attributes
that lead to customers
buying a product.

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 CHARACTERISTICOF SERVICE AND
PRODUCTS
. Intangibility:
Intangibility is an important
consideration that complicates the
functional responsibility of a
Click manager,
marketing icon to add picture
specially while
influencing and motivating the
prospects/customers. The goods of
tangible nature can be displayed, the
prospects or buyers can have a view
and they can even test and make a
trial before making the buying
decisions.
2. Perishability
Another point complicating the task of a
professional is the nature of perishability
that we find in the services. The goods if
not sold today can be stored, preserved
for further selling. Thus, the risk element
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is here in a different form. But in the
context of services, if we fail to sell the
services, it is lost only not for today but
even for the future.
3. Inseparability:
This is also a feature that complicates
the task of professionals while
marketing
Click the
icon services.
to addThe
picture
inseparability focuses on the fact that
the services are not of separable
nature. Generally, the services are
created and supplied simultaneously.
4. Heterogeneity:
Another feature is heterogeneity
which makes it difficult to establish
standard. The quality of services can’t
be standardized. The prices charged
may be too high or too low. In the case
of entertainment and sports, we find
the same thing. The same type of
services can’t be sold to all the
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customers even if they pay the same
price.
 
5. Ownership:
It is also ownership that makes it
significant to market the services in a
bit different way. The goods sold are
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transferred from to
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place to another,
the ownership is also transferred and
this provides to the buyers an
opportunity to resell.
6. Simultaneity
Services can’t be delivered to
customers or users. Services don’t
move through the channel of
distribution. For availing the services,
it is essential that the users are
brought to the providers or the
providers go to the users. It is right to
say that the services have limited
geographical areas.
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7. Quality Measurement
The quality of service requires another
tool for measurement. We can’t
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measure it to of
in terms add picture
service level. It
is very difficult to rate or quantify the
total purchase. As for example, we can
quantify the food served in a hotel but
the way a waiter or a carrier serves it
or overall environment or behavior of
other staff can’t be ignored while
rating the total process. 
8. Nature of Demand:
While going through the features of
services, we can’t underestimate the
factor related to the nature of demand.
Generally, the services are found of
fluctuating nature. Particularly during
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the peak season, we find an abnormal
increase in the demand.
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Operations Strategy and Competitiveness

• Competitive advantage is Chart Title

the leverage a business has
6
over its competitors. This can
be gained by offering clients 5
better and greater value.
Advertising products or 4
services with lower prices or
higher quality piques the 3
interest of consumers. This is
the reason behind brand 2

loyalty, or why customers

prefer one particular product 1

or service over another.

0
Category 1 Category
Series 1 2 Series 2 Category
Series 3 3 Category 4

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• Operations management concerns the
creation, production, and delivery of
products and services. The concept
comprises areas such as :
-Supply chain management
-Logistical management
-Environmental sustainability in the
supply chain
-Environmental models and policies
-Energy markets and operational
management
-Manufacturing and quality management
-New product development and
technology management
-Project management
-Purchasing and procurement
management
-Service system design
Operations research concerns the application of
quantitative methods to solve operations problems. In
particular, the cluster performs research on the
development of new methods and the application of
methods in the following areas (among others):
• Combinatorial optimization
• Discrete-event simulation
• Optimal control theory
• Dynamic programming, including Markov decision
processes
• Game theory and differential games
• Optimization and linear programming
• Stochastic modeling, e.g., stochastic processes
and Markov chains
• Risk analysis
What are the advantages of bringing
customers into the transformation
process or technical core

There are several advantages to bringing or

involve the customer into the transformation
process. For instances, the company receives
direct feedback from the final user, the people
that use or interact with the goods or
deliverables. The manufacture will compare on
basis of historical information which I the most
accurate corrective action to improve the
process. Another point to consider form the
customer opinions will be times of production
 Future of service and operations
management
is here now and is crucial to control the
chaos of hybrid IT. Innovations in
service and operations management are
emerging as an imperative from the
service desk to the boardroom for
enterprises to achieve faster time-to-
market; increase productivity, efficiency,
and quality of service. In a landscape
that seems to evolve on a daily basis,
successful digital leaders know that
aligning IT service and operations
management is the key to growing at
the scale required to compete and
thrive. Industry leading enterprises are
embracing this convergence to drive a
service experience that delivers service
delivery excellence, empowers line-of-
business users, and increases business
agility.

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