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Scope of Production and Operation Management Production management mainly associated with the factory management as the problem of production crept with the development of factory system. Before the evolution of factory system, manufacturing activities are carried on by single person that pose no problem or very insignificant problem of production and therefore question of production management did not arise. But with the inception of factory system, the situation changed and so many problems of production were begun to creep up and necessity arose to tackle with the problems of quality control layout facilities, meeting the schedules and organization of production activities. Thus the scope of production management began to develop.Since the level of production has increased tremendously so many other production problem have been added to its scope. On the present era of intense competition the scope of production management is very wide. The production department in an enterprise is not only concerned with the full exploitation of production facilities but also the human factor that indirectly affects the production, utilization of latest techniques of production and the production of quality goods to the satisfaction of customers of the product.
An electronics firm is currently manufacturing an item that has a variable cost of $.50 per unit and a selling price of $1.00 per unit. Fixed costs are $14,000 per month. Current d
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