PM in Operations

Abstract

Operations management was previously called production management, clearly showing its origins in manufacturing. Operations management is the area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that all company activities and business operations are most efficient in terms of using as few resources as needed and effective in terms of meeting customer requirements. Operations management is primarily concerned with planning, organizing and supervising in the contexts of production, manufacturing or the provision of services. It is concerned with managing an entire production system which is the process that converts inputs (in the forms of raw material, labour, energy and resources) into outputs (in the form of goods and/or services), as an asset or delivers a product or services. Operations produce products, manage quality and create service. Operation management covers sectors like banking systems, hospitals, companies, working with suppliers, customers, and using technology. Operations are one of the major functions in an organization along with supply chains, marketing, finance and human resources. The operations function requires management of both the strategic and day-to-day production of goods and services. Operations management involves the production, planning, organizing, and supervising processes of products or services and targets to meet customer demands by delivering excellence to its customers (Freitag, Manager Magazin, 12, 12–14, 2004; Ohno, Toyota production system. Beyond large scale production. New York: Productivity Press, 1990).

The key to the Toyota Way and what makes Toyota stand out is not any of the individual elements. But what is important is having all the elements together as a system. It must be practiced every day in a very consistent manner, not in spurts.

Taiichi Ohno (1912–1990)