What is the Difference Between Production and Operation Management?

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The main difference between production and operations management lies in their scope and focus. Here are the key distinctions between the two:

  • Scope: Production management is a subset of operations management, focusing specifically on the production process of goods. Operations management, on the other hand, encompasses a wider range of business activities, including project management, quality assurance, and inventory management.
  • Focus: Production management primarily deals with cost and quality control, as well as the efficient production processes and machinery maintenance. Operations management is more concerned with processes and optimizing them to minimize wastage of resources.

In summary, production management is focused on managing the production process of goods, while operations management is broader in scope, overseeing all business activities involved in creating a product or service.

Comparative Table: Production vs Operation Management

The difference between production and operations management can be summarized in the following table:

Aspect Production Management Operations Management
Meaning Production Management connotes the administration of the range of activities belonging to the production of goods. Operations Management refers to the part of management concerned with the production and delivery of goods and services.
Focus Efficiency in the manufacturing process. Optimization of value chain.
Scope Primarily concerned with the production of goods. Encompasses overall business operations, including production and non-production components.
Time frame Short-term planning. Short and long-term planning.
Decision-making level Tactical. Tactical and strategic.
Components Internal processes. Various functions and departments.
Target Production needs. Customer needs.

Production management is a part of operations management, focusing on the efficiency of the manufacturing process. In contrast, operations management takes a broader view, encompassing production and non-production components, and aims to optimize the value chain.