Nature and Scope of Production & Operations Management
Production and operations management is a rapidly evolving cross-industry, multi-sectoral and interdisciplinary and multidisciplinary business discipline. In this area of knowledge directors, managers and employees from various industries and sectors are involved. Production takes place in agricultural, mining, electricity, oil and gas, construction and service industries. We have government production as well as private sector production. Scientists, engineers, technologists, social scientists, artists and artisans are all involved in production. Every human being (just like all living things and every creature) engages in production on a daily basis. Production as a word means more than what most people think. On a lighter note even the dead produces. Yes waste!
Nature and Scope of Production & Operations Management
Production and operations management is a rapidly evolving cross-industry, multi-sectoral and interdisciplinary and multidisciplinary business discipline. In this area of knowledge directors, managers and employees from various industries and sectors are involved. Production takes place in agricultural, mining, electricity, oil and gas, construction and service industries. We have government production as well as private sector production. Scientists, engineers, technologists, social scientists, artists and artisans are all involved in production. Every human being (just like all living things and every creature) engages in production on a daily basis. Production as a word means more than what most people think. On a lighter note even the dead produces. Yes waste!
Operations are performed by everyone. The difference is in the nature, structure, complexity and dimension.
For instance, operations may be simple or complex. Operations may relate to business, industrial or sectoral processes. There are local, regional and global operations.
Production and operations management deals with planning, controlling, organizing, directing and co-ordinaring systems and processes that create and deliver value sustainably.
The operations of an organization may include manufacturing, plant factory operations, construction operations, mining operations, agricultural operations, energy (oil, gas, electricity) operations or service operations. Also, operations are involved in projects, logistics, supply chain and so on. Project management is part of production and operations management. Project is a type of production system whose circle involves initiating, planning, design and analysis, executing, monitoring and closing with a view to delivering projects on time and within budget.
Logistics operations refer to the process consisting of moving goods or services from one point to another, typically from a supplier to a producer and to a customer or the end user. These operations include warehousing, distribution, shipping, inventory management, order fulfillment, transportation and customer service.
Supply chain management is an aspect of operations management concerned with the flow of goods and services from the supplier through the production stages to the final delivery to the customer or consumer or end user. Supply chain operations include supply/demand planning, procurement, import/export, logistics and customer service operations.
This aspect of business operations focuses on relationship between an organization and its suppliers and vendors while aligning demand with supply to ensure high level of efficiency, speed of order fulfillment, quality, safety, customer satisfaction and improved organizational performance in terms of increased sales, lower operating costs, increased profits and business sustainability.
Other aspects of production and operations management include quality management, maintenance management, safety, health and environmental (SHE) management security operations management, financial operations management, marketing, distribution and sales operations, stores purchasing and materials management and so on.
The resources used by production and operations management professionals include:
Human Resources
Machines, Equipment and Tools
Finance
Technology
Materials
Facilities
These resources are transformed to achieve the goals of an organization while achieving the highest level of customer satisfaction, ensuring regulatory compliance and creating sustainable stakeholder value.
Nigerian Institute of Production Management (NIPM) is concerned with the advancement of production and operations management knowledge and maintenance of high standards of ethical practice. We assure the ethical integrity, professional reputation and superior competencies of our members. Join us and stand for professional excellence.
Have a chat with us at NIPM whatzapp message: 08069006671, 08023140750, call: 08066411565, 09023194157
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