By Dr. Olaniyi Opanuga, PhD, FNIPM, FCIAM, FIMC, COPOM(c) 

President & Chairman of Council

Nigerian Institute of Production Management (NIPM)

 

 

1.0 INTRODUCTION

National Productivity and economic growth is dependent on the number and quality of people involved in the production of goods and services.

The wealth of a nation which is acquired through production cannot increase without professionalism.

Professional production and operations management which the Nigerian Institute of Production Management (NIPM) promotes, advances and regulates is critical to output maximization, productivity increases and value optimization. These are the key drivers of competitive advantage and economic growth especially at a time when global challenges are so intense that nations are competing fiercely on the strength of production efficiency driven by innovation, technology and operational excellence.

2.0 The Concept of Production And Operations Management

2.1 What is Production Management?

Production is the process of creating value by transforming inputs into outputs in the form of goods and services.

Production management can be defined as the efficient and effective sustainable transformation of resource inputs such as land, labour, materials, equipment, capital, information and entrepreneurship into outputs in the form of goods and services.

Production Resources 

resource inputs known as productive resources may be grouped as follows; natural resources, human resources, financial resources, capital resources, technological resources, data and information resources and intellectual property resources.

Production is the bedrock of economic development globally.

2.1.1 Classification of Production

Production is practiced at five (5) levels of industry

Production can be categorized by industrial sectors as follows;

Primary Production; Mining, Quarrying and Mineral Extraction, Agriculture, Forestry, Fishing etc.

Secondary Production; Manufacturing, Construction and Building, Energy (oil, Gas and Electricity)

Tertiary Production; Services e.g. Media, Transportation, Security, Banking and Finance, Restaurants, Hotels, Investments, Insurance, Legal Services.

Quarternary Production; Intellectuals, Occupations, Education, Training, Consulting, Knowledge/Information Systems and Intelligence – based products and services. Also advanced technologies involving computers, communications e.g. the use of artificial intelligence, robotics autonomous vehicles, big data, internet of things, quantum computing, Nano technology, 3D printing/additive manufacturing.

Quinary Production; Government organizations, public service, civil service and non – profit – based services such as military, police, education, healthcare, housing, arts and culture, environment and other services based on decisions and policies at the highest level of governance. Talking about public goods and services we have public production.

Public Production refers to the systems and processes used by government to create and deliver goods and services to the citizens.

2.2 What is Operations Management?

Historically, Operations Management is a new name for production management. In every production or productive activity you will find operations. Production is at the Centre of all operations. Production of goods, services and some other desired results or outcomes.

The idea of operations management which can be traced back to production activities in the wake of industrial revolution is based on how an organization can create value at the highest level of efficiency, effectiveness and sustainability.

Operations management deals with the administration of business practices (whether government business or private enterprise) to produce (create and deliver value in the form of) goods and services at the highest level of efficiency, effectiveness and sustainability.

Production management and operations management earlier used interchangeably have become distinct fields of knowledge. However, production skill remains the hub and kernel of operations management.

Hence, the founder of Nigerian Institute of Production Management (NIPM) ensured that the mandate of covers operations management. Yes, NIPM is also an operations management institute.

3.0 NIPM – Pioneer Operations Management Institute In Nigeria

Founded in 1987 Nigerian Institute of Production Management (NIPM) is the pioneer and flagship operations management institute in Nigeria.

The number one object for which the institute is registered is to regulate the standards of practice and the promotion and advancement of the profession of production and operations management in Nigeria.

The chief concern of production and operations management practice is to ensure that resources are optimally utilized for the benefit of all stakeholders – government, citizenry, shareholders, management, labour, customers, suppliers etc.

Production and operations managers are required to formulae and implement public or corporate policies, strategies and decisions, plan and execute successful projects, oversee, plan, organize, lead, control, co – ordinate manufacturing and service people, systems and processes for competitive advantage, profitability and growth and generally to create and deliver maximum value.

Production and operations managers are given different titles in public and private sectors.

CEOs oversee the day – to – day operations of a business. The president of a country oversees government operations and public production people, systems and processes.

Designing and implementing policies and strategies to ensure that organizations run smoothly, safely, efficiently and sustainably come within the purview of production and operations management.

 

4.0 SERVICOM, Corporate Value Statement; The Place of Operational Excellence

For instance, SERVICOM is an affirmative compact institutionalized by the Federal Government of Nigeria to ensure that the people get value from government through quality service, good leadership and civic education on what the masses should expect from public office holders. In the private sector companies have value statements.

Driving operational excellence to create maximum value for all stakeholders require professionalism in production and operations management.

 

5.0 The activities of NIPM

NIPM supports organizations to increase human capabilities, strength supply and value chains, improve systems and processes with a view to improving product and service quality, safety, environment, productivity, maintainability and operational efficiency so that they can compete favorable on the national, continental and international scene.

NIPM advocates alignment between public policy and private sector strategy thrusts to provide the much-needed leverage for global competiveness of ‘’Made – in – Nigeria’’.

 

5.1 National Productivity and Economic Growth

Nigerian Institute of Production Management (NIPM) has been leveraging its unique competency standards – based manufacturing and operations management education, training, certification and membership programmes to increase productivity, quality, safety, reliability, maintainability, efficiency, sustainability and competiveness of organizations.

Nigerian Institute of Production Management (NIPM) remains top on the list of most important professional bodies in Nigeria, Africa and the World.

The entire world will seize to exist without production. Production volume, rate and efficiency impacts competiveness of organizations, standards of living of a country’s population and the extent of its economic development. Production creates value. And, the quality of human capital matters.

NIPM champion standards for the optimization of production and operations efficiency through the development and improvement of professional competencies, innovative systems and processes and market – centric productivity – driven customer service delivery.

6.0 Production Management and Value Chain Optimization

The nation’s value chain from agriculture to mining, energy, manufacturing, construction and service hovers around production and value chain optimization requires professionalism in production and operations management.

Production managers play a key role in transforming national productivity and economic growth through efficient, effective and sustainable management of value chains.

7.0 Impact of NIPM – Operations Institute on National Productivity

The productive capacity of any organization or nation cannot be optimized without professional production and operations management. Productivity of all resources including labour is dependent on the knowledge of production management. To increase productivity, you need to understand what to produce, where, when, how and why. Then, you need skills and competencies to ensure productivity, quality, efficiency, safety, maintainability, reliability, environmental sustainability etc.

Attempting to solve productivity problems without understanding how to design and manage production systems and processes is like putting the cart before the horse or building a house without a solid foundation. Sure, the building with a faulty foundation will eventually collapse. That is what is happening in cases of failed governments, businesses, projects and products.

Productivity metrics and KPIs are useful but there are so many others to gain from production and operational KPI metrics.

NIPM impacts national productivity by raising the standards of production efficiency in private and public sectors organizations nationwide.

 

8.0 CONCLUSION

Nigerian Institute of Production Management (NIPM) as the apex professional body of production and operations management and the associated supply chains and logistics has made tremendous impact on the Nigeria’s economy through is regulatory standards – based education, training, membership and industrial advisory programmes for over 35 years.

How qualified the nation’s production and operations managers and workforce are is critical to national productivity.

Production is the creation of goods and services. Productivity is the measure of production efficiency.

Production management focuses on productivity optimization at personal, corporate and national levels.

Sure, the building with a faulty foundation will eventually collapse. That is what is happening in cases of failed governments, businesses, projects and products. Productivity metrics and KPIs are useful but there are so many others to gain from production and operational KPI metrics.