Explained- Production and Operations Management (A detailed report)


The industrialization has changed the world completely. Over the years, the lives of people and their living standards have uplifted miraculously just because of industrialization. Production and operations management are the gears in the whole industrial revolution. The production of products and utilities build the foundation of industries. Moreover, the commonwealth and people from every corner of society widely use these.

Understanding the core of Production and Operations Management

Consumption of goods and utilities has increased with an exponentially growing population. Therefore, there is a need for continuous production and stocking the goods. Continuous production comes with several critical issues like technical faults, overworked machinery, fatigue among human resources, and several other functional and operational issues.

So, to handle these issues, operations management comes into play. It works as a backbone to production in three steps. Firstly, by working parallel from the input of raw materials. Secondly, by processing the raw materials. Thirdly, by producing the final product and delivering it to the final customer. Production processes are optimized by the operations management team so that there is less investment of resources with maximum profitability.

Decisions are the tools to execute the biggest plans with a sheer will to succeed. In the case of industries related to products or services, factors like gaining profits and customer satisfaction influence the decision making. This is because a customer has the power to do a business or break it.

A good decision can change the fate of the industry. It will bring in maximum profits, which will flourish the business. On-point and exact decisions that are taken at the correct time doubles the monetary benefits. In conclusion, it can make greater and positive impacts on the industry’s total profits.

The production and operations management team make critical decisions for the industry in the field each day for greater optimization.

Production and operations management involves three very important and vital decisions. At different stages over time, such decisions are made. Mentioned below are the three different decisions, for instance:

Production & Operation Management
January 6, 2022
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Table of Contents

Production Planning

Planning helps to chalk out the master plan for optimized and effective production. Managers face initial challenges in deciding the foundation factors for production. Production planning is done so that production takes lesser resources in the easiest manner. Also, it produces maximum products and services to increase the industry’s net profit.

Production planning gives rise to a few basic questions. For instance, WHEN will the production start and how many times during a financial year keeping in mind various conditions. With this, WHERE will the production begin keeping in mind the strategic location according to the geography. One must also remember the lesser logistics needs to reduce logistic expenses for carrying the raw materials to the production site and transporting the finished product to the marketplace.

HOW the production will take place is the last question that arises. For this query, the initial strategy to start the production is discussed. Further, everything related to technical and human resources is discussed for the production. Planning sets up the building blocks to start a highly efficient production and rewarding production for the industry.

A production team for the best production planning in the initial years of the industry is set up. This team must include production managers, finance managers, human resource managers, and legal managers. Moreover, they are the ones who know better and can contribute their years of knowledge to the best decisive policies. Production planning is one of the initial steps to formalize an industrial fortune.

Production and Operations Management

Production Control

Control can bring stability and lesser chances of risk in an industry. Informed decisions are the tools of production control. The industry manager or the production manager does quality and cost control. Apart from this, he is also responsible for scheduling the day to day activities during production in an industry. Quality control of the product or service paves the way to customer loyalty and goodwill in the market.

A customer always wants the best product with the least prices and quality that always grows and does not decrease with time. Hence, the production managers should always keep a check on quality control. He also trains the human resources and the new hires about the importance and mandate of quality assurance. Cost is something on which the industry runs. This is because the monetary resources are finite, and any leak in the cost structure may be drastic for the industry. Therefore, financial managers should do audits and install checks and balances at every stage of the industry. This can help reduce the chances of any cost related problem and eliminate the possibility of financial leaks.

A lack of discipline leads to deficits which are proven to be critical. This is because the firm makes the scheduling of day to day activities in the industry important. A production manager ensures that targets are reached by the end of the day and deadlines are followed strictly. To eliminate the chances of defiance in duty, he also makes sure that the defaulters are probed.  Moreover, to ensure the industry’s profitability, a strict plan is chalked out.

You can also read our article on Principles of Operations Management.

Improving Production and Operations

Up-gradation and diversification is the new trend prevalent in the industry as competitors are growing rapidly. To counter this, a production and operations management team should gear up by upgrading the existing methodologies and technologies used for the production.

New technology makes the production line more efficient. It does so by producing more products in lesser time and utilizing lesser resources with the least waste produced. Today, industries are even recycling their waste to produce new products and hence increasing the companies’ net profit.

How is the modern era changing this industry?

New technologies like the Internet of Things, Machine Learning, and artificial intelligence are emerging. Nowadays, industries are inculcating these into the production lines and other management operations in the industry. It helps in optimizing the whole process from head to toe. It can help monitor and alert processes; machine learning and artificial intelligence can automate the industry and reduce human resources resulting in reduced expenses and greater profits.

Improving the operations from time to time saves the industry from disruptive new products in the market. It also helps to stay relevant to the end customer. The production and operations management team ensure tasks like improving the production techniques. And also ensure that each employee realizes the value of the need of the hour to expand, upgrade, and grow each day using modern tactics and skills. If the industry fails to adopt the new techniques, the product can also lose its acceptance in the market. Moreover, other competitors can overthrow the new product. To sum up, improving the production and operations management will take the company to the next level of unimaginable success.

The above mentioned three decisions go hand in hand with the industry’s growth. It also ensures industry stabilization with a strong market grip and customer acceptance and loyalty over the years.

When we talk about production planning, we have various verticals that we need to consider. These are based upon the term for which we are planning. So there are three types of planning which are –

Short Term Planning

This is a method of planning for the term up to a year for all the urgent needs of the industry. It is related to the raw materials, the processing technology, and the final delivery mechanism. The managers of each industry section carry out this method based on the daily inputs.

Shorter terms chalk out plans accordingly. In the beginning, carrying out the execution is done based on these short-term plans. Further, for implementing the executions, other short-term planning is done. Feedback’s are the foundation of short term planning. This short-term planning runs the industry’s day-to-day activities and helps ensure that all operations are in line and optimized completely.

Medium Term Planning

Medium-term planning is a method to make decisions for about two years. These plans help run campaign production activities that last for about two years.

This method is useful if the industry decides to produce a product for about two years based on the market condition. It may be related to the recession period or any pandemic or other periodic cause. In that case, the managers from each industry come together to do medium-term planning for optimized production and operations management over about two years.

Long Term Planning

The term planning in long-term planning is for three to five years. It is related to matters of utmost importance. Some elements largely affect this method. For instance, the sources of raw materials, the goods that are to be produced, how the goods should be produced, where the goods should be produced, and so on are some elements that largely affect this method.

Long term planning outlines the whole structure of the industry. It does so by providing insights into the industry’s future with the help of past and present data points collected from each aspect of the industry.

The top-level executives of the industry initiated the long term plans. This is because they want to drive the industry through all the disruptive technologies, reach the top, and gain maximum profitability by using the most optimized production and operations management methods.

Term-based planning becomes useful to separate industries’ priorities and invest resources at the right time at the right location. Investing resources is a very critical task for an industry. Above all, the resources are finite, so efficient term planning helps provide highly efficient production and management operations.

Operations management is the supporting hand of production. Hence, we should know what types of production occur in an industry. Mentioned below are a few such types of production-

types of production occur in an industry

Mass Production:

Bulk production of products happens in this technique. Mass production usually utilizes standardized discrete assemblies for continuous processes, suitable for a large production volume. It is generally linked with mind-numbing recurrence with very definite machinery. In addition, the human resource pool, which is low on skill or creativity, is also connected with it.

Continuous Production:

It is a Non-flexible mode of producing products. This category includes a complete sequence of operations in a definite set-up.

Batch production:

Batch production is a form of manufacturing. The job processing occurs through all the functional departments in lots or batches. Although, each lot ought to have a different route of production.

Job Shop Production:

Customers’ custom specifications for a limited quantity of products characterize this product type. Also, general-purpose machines and more creative and skilled labour affect it.

Productions and operations management jobs are male-dominated as they require extended work hours and less flexibility. The biggest corporations hire employees annually for productions and operations management. There is a requirement of a lot of people to run the processes. These people then run it in an optimized manner with the growth of the scale of the industry. This helps consume less time, reducing the fatigue among the employees caused due to long work hours.

Skilled or unskilled employees both come in handy. Appointing the employees is done based on their capacity to work, zeal to learn, and the temper to completely implement their skills into the job. The average salary provided to the productions and operations management employees is 7.2 lacs annually.IT major companies like IBM, TCS and

Amazon is the major recruiter because of the large scale of these industries worldwide.


Read More – Production & Operations Management: Meaning, Types, Scope, Courses, Jobs & More


Part-time Job Opportunities for Production and Operations Management Graduates:

Working part-time helps gain extra income to handle all the over-budget daily needs. In addition, people who have deep knowledge of all the core concepts can implement these skills into the practical works of production and operations management around them. Mentioned below are a few such jobs-

Subject Matter Expert at Chegg

Chegg hires subject matter experts who solve the queries of students studying abroad. It also helps earn a good amount of money for each solved question. Moreover, as time goes on, the compensation per query also increases. Such people can log on to the Chegg website, give a small test, and then if the test is cleared, they are ready to be experts after submitting important documents.

Industry managers at local small scale industry

Graduates with good knowledge of operations management can work in the local small-scale industries. They can also handle the day-to-day operations for the growth of the small industry and earn a pretty good income while staying in their city.

Final Thoughts

Humongous corporations present all over the world need productions and operations management. They need to sort out their product strategy to execute smooth and optimized production. You can study deeply about production and operations management. Furthermore, you can also look for highly paid jobs with numerous perks.

Commercial background students and students from a mathematics background can work for production and operations management. The industry has a lot of job profiles in every section. The industry level starts from the input of raw materials to the processing part and then to the final delivery or quality control team as an instance of the production and operations management.

A well-equipped, skilled, and knowledgeable employee in production and operations management can change the industry and contribute to its success. Production and operations management go hand in hand to keep the industry on track. They help reduce expenditure, increase production, and increase its net profitability.

In conclusion, a good production team and a complimentary and excellent operations management team can flag bearers of the industry’s success. Above all, they are the ones who pave the way for stability in the industry. The industry can easily reach its targets and even perform beyond the targets. They can achieve this with the help of the production and operations management team and reach the horizons of success.

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