Nature of Production and Operation Management

Operations management is frequently used all along with production management in literature on the subject. It is hence useful to understand the nature of operations management. Operations management is understood as the procedure whereby resource or inputs are transformed into more helpful products. A second reading of the sentences reveals that, there are hardly any differences among the terms production management and operations management. Though there are at least two points of distinction among production management and operations management.

First the word production management is more employed for a system where tangible goods are produced. While, operations management is more often used where different inputs are converted into intangible services. Viewed from this perspective operations management will cover services like organizations as airlines, banks, utilities, educational institutions, pollution control agencies, super bazaars, libraries, consultancy firms and police departments, in  addition of  course to  the manufacturing enterprises.

The second distinction associates to the evolution of the subject. Operations management is the term which is used today. Production management precede operations management in the historical expansion of the subjects.

The word production management & operation management are used interchangeably.