Importance or Problems of Production & Operation Management | Student Notes |

Importance of Production & Operation Management 

1.) Importance to Organization

2.) Importance to Consumer

3.) Importance to Investors

4.) Importance to Employee

5.) Importance to Suppliers

6.) Importance to Nation

 

1.) Importance to Organization

1.) It helps to build a good image of the organization.

2.) It helps in the development of new products.

3.) Ability to face competition.

4.) Efficient utilization of resources.

5.) Cost control.

6.) Facilitates growth and expansion.

 

2.) Importance to Consumer

1.) Increased use-value in the product.

2.) Receive Quality Products

3.) Gets product at Reasonable Price

4.) Receive the Products at the right time

3.) Importance to Investors

1.) Increase trust

2.) Increase security for their investment

3.) Adequate market returns

4.) Increase Credibility among prospective investors

5.) Improve good image in the society

4.) Importance to Employee

1.) Gets adequate wages or salary

2.) Job security

3.) Improved working condition

4.) Provide Job satisfaction

5.) Future growth

5.) Importance to Suppliers

1.) Improve relationship

2.) Help in getting future contracts

3.) Help in increasing sales and profit

4.) Receive timely payment

6.) Importance to Nation

1.) Use Proper utilization of natural resources

2.) Increase the standard of living

3.) Increase demand and supply in the market

4.) Increase employment opportunity

5.) Help in economic development 

Problems of production and operation Management

1.) The problem of Facility Location

2.) The problem of Facility Layout

3.) The problem of Product design

4.) The problem of Inventory control

5.) The problem of Capacity planning

6.) The problem of Production planning

7.) The problem of Cost control

8.) The problem of Quality control