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Production Management


The term ‘production’ was more closely associated with manufacturing physical goods and, therefore, production management was also known as manufacturing management. Today, goods are understood in terms of not only physical goods but services as well. Production is related to both goods and services and, therefore, production management is known alas operations management.

Operations management deals with conversion of inputs into outputs. It is a “set of components whose function is to transform a set of inputs into some desired output.”

“It is the management of productive processes that convert inputs into goods and service.”

The inputs are the men, material, equipment, technical knowledge etc.

The conversion process that transforms the inputs into outputs candy be physical transformation in manufacturing operation, locational transformation in transportation, exchange transformation in retailing, storage transformation in warehousing. Informational transformation in legal firms, physiological transformation in medicine, and gratification transformation in entertainment.

Outputs are the goods and services produced through the conversion process. Outputs also include the by-products of goods, whether into the form of pollutants or wastes.

This input-output conversion process is also affected by the environmental forces like Government regulation economic -political -legal framework of the country, policies of competitors in the domestic and international markets, etc.

The feedback mechanism helps to know whether or not the conversion process is effective and whether or not it requires changes in any of its components.

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