Production management refers to the management of activities related to production. Whereas operations management goes one step further and manages administrations and business operations related to manufacturing and other activities. Production management is a subset of operations management. There is very little difference between production management and operations management, so much so that previously this function was also known as production management.
However, operations management is a broader function, which includes all the activities of the organization. It ensures that the company is running smoothly and delivering what management wants. This function includes both productive and non-productive activities. The main objective of operations management is to ensure that the company's resources are used optimally and that waste is reduced to the minimum possible.
Although before the manufacture of products was carried out in small workshops, now they have expanded and have become large factories that need efficient management to complete it efficiently. Operations management, on the other hand, goes beyond production management, since it refers to the administration of business operations that take place during the production of goods and services. Its regular control and the carrying out of the necessary repairs are the responsibility of the production managers. However, operations management ensures that available resources are wasted to a minimum by focusing more on optimizing processes.
Controlling the performance of team members and ensuring that they have everything they need to do their jobs is also part of operations planning. Production management is the field in which the principles of management apply to the production function. They must ensure operational efficiency and look for new technologies that can improve the company's profits. This is an important function, and this is where you can see the difference between production and operations management.
Thanks to a delivery-focused approach, operations management focuses on efficiently converting inputs into outputs. Managing operations is important for any company, as it ensures that customers always have access to products and services. The operations manager must also manage the finances related to the company's production and daily activities. There are several departments in a company, and all of them must be managed to get the job done efficiently.
Production management is essentially focused on offering products of the right quality at the right time, in the right quantity and at the right price. The operations manager must also keep a close eye on the inventory to ensure that it is maintained at optimal levels.
