Question

Name the three (3) fundamental properties, or characteristics that we have studied for any production transformation process. (The blue-print of production).

Then, provide a simple numerical example for each one of the three properties.

Answer 1

One cannot demarcate the beginning and end point of Production and Operation Management in an establishment. The reason is that it is
interrelated with many other functional areas of business viz. marketing, finance, industrial
relations policies etc .Alternately, Production and Operation Management is not independent
of marketing, financial, and personnel management due to which it is difficult to formulate some single appropriate definition of Production and Operation Management. The following
definitions try to explain main characteristics of Production and Operation Management:
• In the words of Mr. E.L. Brech: “Production and Operation Management is the
process of effective planning and regulating the operations of that section of an
enterprise which is responsible for the actual transformation of materials into finished
products”. This definition limits the scope of operation and production management to
those activities of an enterprise which is associated with the transformation process of
inputs into outputs. The definition does not include the human factors involved in
production process. It lays stress on materialistic features only.
• Production and Operation Management deals with decision making related to
production processes, so that the resulting goods and services are produced in
accordance with the quantitative specifications and demand schedule with minimum
cost. According to this definition design and control of the production system are two
main functions of production and operation management.
• Production and Operation Management is a set of general principles for production
economies, facility design, job design, schedule design, quality control, inventory
control work study and cost band budgeting control. This definition explains the main
areas of an enterprise where the principles of production and operation management
can be applied. This definition clearly points out that the production and operation
management is not a set of techniques.