Production management consists of two words, namely the management and production. There is some sense that management is basically an attempt to achieve the goals by way of coordinating the activities of others through planning, organizing, directing, and supervision. Principal function is the management in the financial, personnel, marketing, and production.
Understanding of production is defined as activities producing goods for the purpose of gaining profit. This understanding is too narrow, because production can also produce the services, either for profit or not. So that there is another sense of the production is the creation of goods and services. Therefore, the production term was later developed by surgery. Pressure within the meaning of operation is the activity of changing the form rather than on results. Operations can be performed by for-profit institutions, such as furniture companies, transportation services, and not a for-profit institutions, such as orphanages.
What is meant by the operation or operations are activities that transform inputs into outputs more useful than the original form. In other words, the operation is an activity to change the form to add benefits or create new benefits. Input or inputs are categorized two kinds, namely the factors of production in the form of man, money, materials, methods, and information. Information is input from outside agencies that run the operation, for example, information on population, number of consumers, and consumer income.
While the output or the output is the product, which may include goods and services. Operations Management is a series of activities that produce value in the form of goods and services by transforming inputs into outputs. So that operations management is the application of management science to manage operations effectively and efficiently.
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