Forest Product Management Introduction

1. Forest-Based Industries
Production Management
Lesson 1. An
Introduction

2. Production & Operation Management
• Production (or Operations) management is an umbrella
term which encompassess a gamut ideas.
• 15. Production and Operation Management deals with the
creation of goods and services through the application of
the business concept. They are also vital in both service
and manufacturing firms.
• Production and Operations Management has a primary
objective, which is to employ the company’s resources to
produce goods and services fit for the market.

3. Production Management involves using
resources judiciously, to create acceptable products.
In this case, raw materials are being transformed into
value-added products efficiently.
The production manager is also in charge of
this area of the business. In other words, decisions
such as quantity, quality, price, design, packaging
style and material for the product, among others, are
made by the production manager. He also ensures
that the output matches the specifications.

4. Operation Management
10. Operation Management is in charge of managing
the conversion process. This unit handles the day-to-day
running of the business to ensure operations within the
organization are carried out smoothly. It is also in charge of
production administration, manufacturing and other processes
like the rendering of services.
In short, everything regarding production processes
such as designing, implementation, and control is the duty of
operation management. And the sole aim is to deliver the
desired products and services to clients while also ensuring
that all parties involved are adhering to the policies presented
by the management of the company. The focus is also to make
sure that there is little or no wastage during and after the
production process, through the effective use of the firm’s
resources.

5. Function of Operations Management
(1-4)
Finance
Operation management’s responsibility is to make sure that the company’s
resources are used in the right manner to generate goods that satisfy its
customers.
Strategy
Operations managers also help in the development of plans or tactics that could
lead to the maximization of resources and production of products that gives the
company a competitive edge over its competitors.
Product Design
It is the operations manager’s responsibility to come up with product design that
not only caters to the needs of customers but follows the market trend.
Forecasting
Operation management also predicts the performance of products or services in
the future. In other words, he critically analyses what customers’ demand for
certain products would be in the future.

6. Importance of Operation Management
The role of the operation manager is to
ensure that products or services are always
available and reaches customers promptly.
He also makes sure that raw materials are
transformed successfully into finished
products.
One importance of operation management
is to improve the overall productivity of the
business. Resources are also used properly in
other to eliminate wastage and boost profit.

7. Production Function
9. Production is a fundamental requirement for all economies
and societies. It is the process of making goods and/or services that
satisfy consumers’ wants.
Production creates products which humans want and are
willing to pay for, which boosts the economy and allows manufacturers
to continue producing more and more output
The goal of the production function is to add value. Be it
product or services; the idea is to create something that will strengthen
the relationship between the organization and customers. But this
cannot only be made possible by the production department.
The marketing people also have a huge role to play in this.
They are the ones that will distribute the product to potential buyers
and should have the capacity to inform the production department of
what customers or consumers would prefer.

8. 5-8

9. 11-14

11. Function of Production Management
The role of Production Management is quite
elaborate. But the sole aim is to ensure the
business produces quality products that can
satisfy the needs of customers on a regular
basis. Below are the functions of production
management.

20. THANK YOU :)