Production Management vs. Operations Management

Firstly, the main objective of production and operation management is to manage the resources of the firm. The main difference between production and operation management is that production management focuses on the production of goods and services. On the other hand, operation management includes activities like comprising supervisions, planning and designing of business operations. It can also be said that the production management is also a part of operation management.

Production management and operations management are management jargon that needs to be simplified for those who are sitting on the fence or those inside an organization unable to comprehend them clearly. Lastly, both are part of business activities and both are required to run the business smoothly.

Comparison Chart

Basis Production Management  Operation Management
Definition Production Management connotes the administration of the range of activities belonging to the creation of products. Operations Management refers to the part of management concerned with the production and delivery of goods and services.
Capital Production management requires extra capital to make the capital in the beginning and needless labor because it offers with the unit. The operation management requires less capital funding because it wants extra work and needs immediate outcomes.
Found in Production management is found in enterprises where production is undertaken. It is found in Banks, Hospitals, Companies including production companies, Agencies, etc.
Occurrence Production management occurs on outputs after manufacturing raised in the market. Operation management occurs on input during manufacturing.
Objective The objective of production management is to produce the right quality goods in the right quantity at the right time and at least cost Its objective is to utilize resources, to the extent possible so as to satisfy customers wants.

What is Production Management?

Production management performs many tasks regarding the production of goods and services. It is a process of planning, scheduling, supervising and controlling the activities involved in the production of goods and services. The main objective of product management is to produce the right quality at the right time and at the cheapest price.

Basically, production management is found in enterprises where production is found. The Production Management alludes to the utilization of administration requirements to the technology work in an industrial facility. Production administration is the process of viable arranging and controlling the operations of that space of an enterprise which oversees the real change of supplies into accomplished objects. In this process of production management the decision regarding the quality, quantity, price, packaging, design, etc. are taken by the production manager.

Production Management

What is Operation Management?

Operation management gives the insurance of smoothness and effectiveness of the operation in the organization. Basically, deals with designing, implementing and controlling system of the management.

The main objective of the operation management is to make sure that that the operation of business runs effectively and result in the minimum of wastage. Operations administration handles totally different very important points together with deciding the span of assembling crops and enterprise administration strategies and actualizing the construction of information innovation techniques. It ensures the supplies and work, or another data is utilized as a part of the very best and productive route conceivable inside an affiliation – alongside these strains amplifying the yield.

The operations chief wants to consider the common key methods, structural materials arranging, assembling and creation frameworks, and their examination. Operations Management is all about the optimum utilization of the company’s resources.

Operations Management

Key Differences between Production Management and Operations Management

  1. Production Management can be defined as the administration of the set of activities concerning the creation of goods or the transformation of raw material into finished goods. Conversely, Operations Management is used to mean that branch of management which deals with the administration both production of goods and provision of services to the customers.
  2. Production Management can only be found in firms where the production of goods is undertaken. Unlike, one can find operations management in every organization, i.e. manufacturing concerns, service-oriented firms, banks, hospitals, agencies, etc.
  3. Production administration requires no enter from the shopper, however, operation administration takes enter from the shopper as they make the most of companies.
  4. Production administration requires extra capital gear to make the product in the beginning and much less labour because it offers with the units. On the opposite hand, operation administration requires much less capital funding however wants extra work as folks need immediate outcomes.
  5. Operation Management turns into referred to as the method that offers the administration aspect of the issues relating to the enterprise actions and the processes coping with effectivity throughout the group.

Comparison Video


Thus, production and operation management are related to each other. Sometimes people found difficulty in differentiating them. Production management involves in all the activities which are related to the production of goods and services. On the other hand, Operation management is related to all the activities regarding management like production of the good, delivery of services, the quantity of product, quality of product and also meet the customer demands. In conclusion, both are the most important management activity.

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