Production is a formal activity that adds value to goods and services, including creation, transport, and warehousing until used. Production is an organized process with specific goals. It implies the creation of a utility or services.
Operation is that part of as organization, which is concerned with the transformation of a range of inputs into the required output (services) having the requisite quality level.
Production function is ‘the part of an organisation, which is concerned with the transformation of a range of inputs into the required outputs (products) having the requisite quality level’.
Production is defined as ‘the step-by-step conversion of one form of material into another form through chemical or mechanical process to create or enhance the utility of the product to the user’. Thus production is a value addition process. At each stage of processing, there will be value addition.
In any production function 3 basic factors will be there * Input * Transformation * Output
A series of sequential activities and operations, which are indispensable in transforming material from a given form to a desired form, indicates production.
Edwood Buffa defines production as ‘a process by which goods and services are created’. Some examples of production are: manufacturing custom-made products like, boilers with a specific capacity, constructing flats, some structural fabrication works for selected customers, etc., and manufacturing standardized products like, car, bus, motor cycle, radio, television, etc.
Management is the process, which combines and transforms various resources used in the operations subsystem of the organization into value added services in a controlled manner as per the policies of the organization.
Is it necessary to study the subject of Production Management even if one is not interested in manufacturing business or activities?
We now understand that the subject or word “PRODUCTION” is not restricted to only manufacturing
References: Everett, E. Adam, Jr. Ronald J. Ebert, (1994). Production and Operations Management, Prentice-Hall of India Private Limited, 5th Edition,. Joseph, G. Monks, (2004). Theory and Problems of Operations Management, Tata McGraw-Hill Publishing Company Limited, 2nd Edition,. R. Pannerselvam, (2004). Production and Operations Management, Prentice-Hall of India Private Limited, 9th print,. S. Anil Kumar, N. Suresh (2008). Production and Operations Management, New Age International (P) Limited Publishers, 2nd Edition,