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Difference Between Production and Operations Management

Difference Between Production and Operations Management

The major concern of each and every business is to make products and services to meet customer needs. Both production and operations management are terms linked to the manufacturing aspect of business operations. On one hand, production management is about managing tasks related with the production of goods.

Whereas, on the other hand, operations management is one step ahead of production management. It should be observed that production management is a vertical of operations management. Operations management relates to managers administrating business operations.

Most often, the difference between production and operations management typically gets confused. At times, the two terms are thought to be similar, however, they are not. So, dig into this blog to know in detail about production management and operations management : meaning, functions, importance, and differences.

Also read: The Use of Technology in Management

What is Production Management?

Production management is the examination of the planning, controlling, coordinating, and guiding of a production activities of an organization. It is connected with the modification of raw materials into completed goods as well as the analysis of the final product’s overall quality. Its major objective is to make goods and services of the befitting quality and quantity at the proper time and at the lowest accomplishable cost. Many people usually think that production and operations management are one and the same. However, they are in fact two different areas. So, you need to understand the difference between production and operations management.

What is Operations Management?

The term Operations management refers to the monitoring, design, and prepping of business operations. The major objective of operation management is to enhance the quality of business operations. Because of a delivery-focused strategy, operations management is focused on converting inputs into outputs with efficiency.  Production and operations management entails the management of resources required to make and distribute products and services.

The management of production, manufacturing, and service supply in an organization is a component of operations management. Operation management is more taken up with streamlining processes to allow resources as expeditiously as possible. Operations managers needs knowledge about different tools related with project management  to execute their responsibilities smoothly.

As per production and operations management, production management majorly concentrates on cost and quality control. Whereas, operations management focuses on how an organization can boost customer satisfaction.

Uses of Operations Management

Like a product management term, an operations management course provides knowledge about the required processes. The essential applications of operations management are given in the following sections:

Strategic Planning: 

Operations management revolves around strategic planning for making sure of the maximum utilization of resources.


Operations management is all about making sure that a business is integrating capital resources with efficiency during production.

Production Design: 

Operations management also revolves around building product designs that helps in meeting customer requirements and stick by market trends.


Operations management is also applied for projecting how products or services will be performing in the near future and how customer demands will transform with time.

Uses of Production Management

Do you understand how product managers are crucial for the successfulness of any business? Keep reading this article to know the importance of production management in a company:

Production Control: 

The production management process further insures that the right strategy is implemented while manufacturing goods and services.

Cost and Quality Control:

Production management helps in ensuring that customers receive high-quality products at low costs.


Production management is vital for proposing and structuring the beginning to end of the production process.

Machinery Maintenance: 

Also, production management makes sure that the manufacturing equipment and machinery are in their best possible condition without any defects to make products.

Key Differences

The difference between production and operation management, are mentioned in the following sections:

  • Production Management can be defined as the administration of the set of tasks that are related with the production of goods or modification of raw material into complete On the contrary, Operations Management is used to imply that vertical of management which firsthand deals with the administration both production of items and assistance of services to the customers.
  • In production management, the manager has to make decisions about the quality, design,  quantity and cost of the product built by the department. On the contrary, the objective of operations management is greater in comparison to the production management. Wherein the operations manager is concerned after the product design, quantity, quality, process design, area, manpower assistance, storing, maintenance, logistics, inventory and warehouse management, waste management, etc.
  • Production Management can only be found in the organizations where production of items is undertaken. Whereas, one can identify operations management in each and every organization. For example, service-oriented firms, manufacturing concerns, banks, hospitals, agencies, etc.
  • The fundamental objective of production management is to deliver the right quality items with the required quantity at right time and best possible cost. On the contrary, the goal of operations management is to make the best possible use of a company’s resources, in order to meet the customer’s demands.

Also read: Importance of Product Management in the Software Industry

Final Thoughts

Both production and and operations management are crucial departments of an organization targetting to boost their manufacturing process. If you want to make a career as any one of these professionals, you should understand the differences between production and operations management.

Therefore, developing the relevant skills and knowledge is necessary for executing all tasks related to the production and operations management.

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