Introduction to Production Management

Manufacturing is the process of transforming the raw materials into finished tangible goods while Production is the process of transforming the raw materials into both tangible and intangible goods.

Service is any activity of benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. While the term ‘product’ includes both tangible and intangible outputs.  

Production management:

 Production management is the application of management principles to the production function which involves the application of planning, organizing, directing and controlling to the production process.

Production management is concerned with the decision making regarding the selection of raw materials, conversion process and production of goods and services at minimum cost according to the demands of customers through the management process of planning, organizing, directing and controlling.

The difference between Operations Management and production management:

Operations Management is the study of set of activities comprising supervision, planning and designing of business operations in the field of manufacturing of goods and services is termed as operations management.

Production management on the other hand focuses specifically on the production of goods and services and is concentrated upon churning output from input. It is a broad sum of activities that go into turning raw material into final, finished product.

While operations management is focused upon administration, planning and execution of operations involved in production of goods and services and trying to minimize the resources at the same time increasing output, production management is more concerned with input/output and churning out products in the shape of desired finished product.