Production and Operation Management Function

Production and operation management (or POM) is focused with the changeover of inputs into outputs for the organization by applying resources, along with meeting the organisational objectives whilst conforming to effectiveness, efficiency and adaptability. POM is different from other organizational functions like human resources, marketing, etc. , primarily due to focus on using physical resources. In some cases marketing or human resources can be sub-classified under POM.

Mostly POM systems provide physical goods or services. To further illustrate, service is provided by CGHS or the Central Government Health Service or by Indian Railways but the class of service is different, hence any comparison is very different for both examples.


POM Role

There has been an expansion in industrial activity in past decades. Not only does the present industry produce varied products but also quickly and on scale. Due to industrialization consumer awareness has also increased. Consumers across the globe want more and better products. Advancements in technology, telecommunications, Internet and transport has enabled globalization and movement of goods or services across the globe.

Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in terms of meeting customer requirements. Operations management is primarily concerned with planning, organizing and supervising in the contexts of production, manufacturing or the provision of services. It is concerned with managing an entire production system which is the process that converts inputs (in the forms of raw materials, labor, and energy) into outputs (in the form of goods and/or services), as an asset or delivers a product or services. Operations produce products, manage quality and creates service. Operation management covers sectors like banking systems, hospitals, companies, working with suppliers, customers, and using technology. Operations is one of the major functions in an organization along with supply chains, marketing, finance and human resources. The operations function requires management of both the strategic and day-to-day production of goods and services.