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operation management occurs on inputs during manufacturing but production management
occurs on outputs after manufacturing raised inmarkets
In simple terms, Production is a subset of Operations Management. Operations management ensure complete product/service realization cycle including, planning, purchase, production/service provision, Quality control etc....
More concisely to differentiate Production Management and Operation Management, usually 4 areas can be considered :
A. OUTPUT
Production Management deals with manufacturing / production / construction, while Operation Management cover both products and services with that product
B. USAGE OF OUTPUT
Time for production Management and product consumption takes time, while Services by the Operation Management consumed immediately
C. CLASSIFICATION OF WORK
Production Management needs more capital equipment including lands & factories, more investment and less labours, while Services in Operation Management require more labour (HR) and lesser capital investment
D. CUSTOMER CONTACT
Production Management needs no customer contact during production, while Operation Management always deals with customers directly and indirectly, alongwith the contacts with many more 3rd parties like suppliers, dealers, communication agencies etc.
Operation management plans and manage the execution of the operations plan which includes all business functions to perform end-to-end business processes.
Production management plans and manages the execution of the production plan which includes only the production business processes. This starts with the approved forecast and ends up with products in the company's store. Production plan is part of the company's operations plan.
Production vs Operation Management
Production management and operations management are management jargon that needs to be simplified for those who are sitting on the fence or those inside an organization unable to comprehend them clearly. Sometimes it becomes confusing to be talking about production management inside operations management but they are separate and distinct entities in the study of management as ultimately, production is a part of the whole cycle of operations. Read on to clarify the doubts.
Operations Management
The study of set of activities comprising supervision, planning and designing of business operations in the field of manufacturing of goods and services is termed as operations management. The purpose of operations management is to make certain that the operations of a business are efficient and effective and result in minimum of wastage. Operations management tries to cut down resources involved in operations while at the same time making operations more effective and productive. In fact operations management is more concerned on processes than people or products. Operations management in a nutshell is using physical resources in an optimum manner, converting input into output, so as to supply to the market the desired and finished product.
Production Management
Production management on the other hand focuses specifically on the production of goods and services and is concentrated upon churning output from input. It is a broad sum of activities that go into turning raw material into final, finished product. One may feel that production management is a subset of operations management, but production management in itself is a broad subject that comprises production planning and control, inventory management, and operations control. Production management includes all management activities spanning selection. Designing, operating, controlling and updating production system.
