HBC 2402: Production and Operations Management Notes

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HBC 2402: Production and Operations Management Notes

LESSON 1
Production and operations management
1.1. Introduction
This first topic introduces you to the field of operations management. Generally, it
describes the nature and scope of operations management, and how it relates to the
other parts of the organisation 2.0
1.2. Objectives
At the end of this unit you should be able to:
1. Define the term production/operations management (POM).
2. Identify the three major functional areas of organisations and describe how
they interrelate.
3. Compare and contrast service and manufacturing operations.
4. Briefly describe the historical evolution of POM.
1.3. Introduction to Production and Operations Management
Operations management deals with the production of goods and services that people buy and use everyday. It is the function that enables organisations to achieve
their goals through efficient acquisition and utilization of resources. Manufacturers
of steel, food, vehicles, computer (i.e. physical goods) need operations management. So do health care providers, banks, schools, retailersetc. Every organisation,
whether public or private, manufacturing or service, has an operations function. To
some people, the term production conjures up images of factories, machines and assembly hires. Interestingly enough, the field of production management in the past
focused almost exclusively on manufacturing management, with a heavy emphasis
on the methods and techniques used in operating a factory.
In recent years, however, the scope of production management has broadened considerably. Production concept and technologies are applied to a wide range of activities and situations; that is, in services such as health care, food service, recreation,
banking, hotel management, retail sales, education, transportation and government
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