Production/Operations Management and Other Business Functions

The production function of any business interacts closely with each of the other key functions of the organization. Each firm must integrate the functions of finance, human resources, marketing and production/operations. How well this integration is done will determine the success or failure of the organization.

Production/operations employs the capital resources acquired by the finance function. It converts funds into equipment, tools, facilities, and inventories to produce products.

Production cannot function without people. The staffing function is to recruit, train and maintain workers to fill positions, within the production process in accordance with the manpower planning assessments performed by work-study analysis. Any changes in the production process must be coordinated with the staffing function.

The interaction between production and the marketing function is also complex and critical. Marketing sells what production produces and vice versa. If the interaction between marketing and production functions is not strong, survival of such a firm is in danger.