2. Nature and Scope ofNature and Scope of
Operation Management :-Operation Management :-
* Operations management is often used along with* Operations management is often used along with
production management in literature on the subject.production management in literature on the subject.
It is therefore, useful to understand the nature ofIt is therefore, useful to understand the nature of
operations management .Operations management isoperations management .Operations management is
understood as the process whereby resources orunderstood as the process whereby resources or
inputs are converted into more useful productsinputs are converted into more useful products
3. ** A second reading of the sentence reveals that, thereA second reading of the sentence reveals that, there
is hardly any difference between the termsis hardly any difference between the terms
production management and operationsproduction management and operations
management .But, there are a least two points ofmanagement .But, there are a least two points of
distinction between production management anddistinction between production management and
operations managementoperations management
*First, the term production management is more*First, the term production management is more
used for a system where tangible goods are producedused for a system where tangible goods are produced
.Whereas ,operations management is more.Whereas ,operations management is more
frequently used where various inputs arefrequently used where various inputs are
transformed into tangible servicestransformed into tangible services
4. * Viewed from this perspective, operations* Viewed from this perspective, operations
management will cover such servicesmanagement will cover such services
organization as banks ,airlines ,utilitiesorganization as banks ,airlines ,utilities
,pollution control agencies super bazaars,,pollution control agencies super bazaars,
educational institutions ,libraries ,consultancyeducational institutions ,libraries ,consultancy
firm and police departments, in addition ,offirm and police departments, in addition ,of
course ,to manufacturing enterprises. Thecourse ,to manufacturing enterprises. The
second distinction relates to the evolution ofsecond distinction relates to the evolution of
the subject. Operation management is thethe subject. Operation management is the
term that is used now a days .Productionterm that is used now a days .Production
management precedes operationsmanagement precedes operations
management in the historical growth of themanagement in the historical growth of the
subjectsubject
5. *The two distinctions not*The two distinctions not
withstanding, the terms productionwithstanding, the terms production
management and operationsmanagement and operations
management are usedmanagement are used
interchangeablyinterchangeably
..
6. Scope of Production andScope of Production and
Operation Management:Operation Management:
The scope of production and operationsThe scope of production and operations
management is indeed vastmanagement is indeed vast
.Commencing with the selection of.Commencing with the selection of
location production management coverslocation production management covers
such activities as acquisition of land,such activities as acquisition of land,
constructing building ,procuring andconstructing building ,procuring and
installing machinery ,purchasing andinstalling machinery ,purchasing and
storing raw material and convertingstoring raw material and converting
them into saleable productsthem into saleable products..
7. **Added to the above are other related topicsAdded to the above are other related topics
such as quality management ,maintenancesuch as quality management ,maintenance
management ,production planning andmanagement ,production planning and
control, methods improvement and workcontrol, methods improvement and work
simplification and other related areas.simplification and other related areas.
