UNDERSTANDING PRODUCTION, OPERATIONS AND SUPPLY CHAIN MANAGEMENT
by: DR OLANIYI OPANUGA, FNIPM, FIoMD, FSCOM, FSCSCMP, COPOM©
Dean of Studies, School of Post-Graduate Studies, College of Production & Operations Management (COPOM)
1.0 INTRODUCTION
The first question i always ask whenever i stand before Managers and Supervisors at any production and operations management related training course is: what is production or what is production management? I also ask: what is an operations; operations management, what is supply chain management? Usually, the answers I get vary depending on the understanding or knowledge level of the individual. Some people define production the same way they would define manufacturing. They refer to the conversion of raw materials and other resources into finished goods. Some would say production management is part of operations management while supply chain management include production or production management. Yet, others see supply chain management as a re-enactment of purchasing and supply of old.
There are no hard and fast rules for organizations concerning the job roles and designations because they can be subjective. It all depends on the complexity of functions and scope of the business. For instance a local retail store may have an operations or supply chain manager just the way Walmart, Amazon or Costco do but the difference lies in what they do and how they do it.
My consultancy and training firm-Optimum Resources Ltd worked on a project bordering on technology, engineering and industrialization in Nigeria with an aspect tracing the history of companies like UAC, Unilever, PZ Cussions, Nigerian Breweries, Flour Mills of Nigeria, Lafarge Cement, Nestle, Dufil Prima Foods, Nexans Nigeria and British American Tobacco and how they started manufacturing. Does non-manufacturing precludes one from being a producer? Aliko Dangote was into trading focusing on the importation of goods like cement, rice, sugar, flour, salt, fish and fertilizer while exporting commodities such as cotton, cashew nuts, cocoa, sesame seeds and ginger to several countries before setting up manufacturing plants. Is import and export not about production? What is the essence of operations or supply chain devoid of production? Must production take place in the factory, a farm or construction site? Absolutely no! Not all production activities are concerned with physical products. In fact most activities such as office work, from clerical operations to managerial decisions and board-level policy-making are production jobs which may bear different names or titles. During the tenures of the first and second president of the Nigerian Institute of Production Management (NIPM) the emphasis was on manufacturing. Both Engr. A Deen Adekoya, former Technical Director, CAP Plc and Mr Adebowale Thompson, former Managing Director, Berger Paints Nigeria Plc were from the manufacturing sector and the need to lay the foundation was crucial. I started the campaign for the professionalization of production and operations management in Nigeria in 1987 as the convener and pioneer National Secretary of NIPM in the manufacturing sector. Though I worked in the manufacturing my exposure in the service sector such as the media, education, consulting and government stand me in better stead as the 3rd and current President to look beyond manufacturing.
This has been envisaged in my blueprint way back at the inception when we set the objects of NIPM to include regulation of operations management practice nationwide.
We knew that those not feeling at ease with the word “production” will definitely come to terms with “operations”. After all, manufacturing is covertly a service of production activity. Manufacturing industries should not see themselves as product providers but service providers. In the end, all goods are meant to provide services. I hope I’m making sense? Consumers buy satisfaction not product. The price they pay is to enable them satisfy their needs.
- THE NEED FOR FUNDAMENTALS
As a teacher, trainer and management consultant my students, trainees and clients often ask me questions that bother on ethymology or definitions. Also some students/trainees have failed to demonstrate the desired professional dept in the answers they give to certain examination/test questions. In a knowledge society the need to know is crucial to success. You are what you know because you cannot be greater than the limits of your knowledge.
Here, I would like to share knowledge of the basics about production, operations and supply chain management. My aim is to define for clarity, deepening of thoughts and to incite comments and diverse opinions. I am aware of many definitions but I want to offer a different perspective to most academic or textbook stereotypes. After all, learning is never ending. We learn even as we do critique. Now, here we go:
- PRODUCTION
Production is a process (or processes) of combining inputs (resources) in order to make and deliver outputs (goods, services or results). It is the act of creating things that have value and satisfy the needs of individuals and the society. Generally, economic well-being and development of every nation is created through production processes.
Remember that in the concept and application of total quality management (TQM) we talk of internal and external customers-implying that departments other than the ‘production department’ are also producers. Understand that we used the word “productivity” across the board. But, you can’t have productivity without production. Simply put, productivity is used to measure the efficiency of production. So, for productivity to increase you must start from the knowledge of production. Production is applied in different ways. Production is the process that converts raw materials and other inputs into finished goods in the manufacturing environment. But in Universities production process converts students into graduates or manpower that is readily available for the labour market. Hospitals are means to produce human health from the state of ill-health or morbidity. Airlines and other transport mode produce logistical utilities. Production management can be defined as the planning, organizing, controlling, co-ordinating and directing activities aimed at using resources to create value. The management of production is meant to balance of efficiency with effectiveness in the utilization of resources to create value in the form of goods and services with the aim of achieving organizational objectives and goals which include the satisfaction of customers and the provision of benefits to other stakeholders such as the shareholders, employees, government, the community and society in general. Production management is carried out at global, continental, national or local as well as strategic and operational levels.
Production management involves providing leadership for the workforce to deliver on customer promises and expectations using resources optimally across the organization. production management techniques can be applied in all the departments be they engineering, finance, sales and marketing, human resources or administration. Limiting the simply practice of production management to the factory simply explains the limit of knowledge of the person involved. For instance projects are simply production jobs with premeditated starting and finishing dates rather than a continuous flow. Also the job of a sales/marketing manager and his or her team is to produce profitable and satisfied customers while the accountant is to produce accurate and reliable financial reports. Let me add that logistics and supply chain managers are to produce form, time and place utilities that best synchronize the interest and value of suppliers, producers and the consumers.
The Human Resources Department must constantly find means of producing knowledge and skills-set best suited for/to current and future jobs. Or, how does it achieve organizational development and productivity without resourcing and building capability? Are still wondering who a “production managers” is?
- OPERATIONS
Operations are the things done, the steps taken, the tasks or activities performed to achieve production and the overall goals and objectives of a business or an organization. Operations lead to a process and processes lead to production of goods, services or specific results. Production is the mother of all operations. It is the reason for every process. A process is a series of operations involved in the way a particular job is done. Processes like its constituent parts called operations are also meant to deliver value. Operations management is another name (or a new name) for production management.
Economic well-being, progress or development of every nation is driven by two sets of people – the producers and the consumers who interact together. Consumers also produce just like the suppliers do. Producers include government, businesses and individuals.
Production can be classified into primary, secondary and tertiary. If you like you can add what is called the quaternary or quinary production. The operations manager’s job is to produce whether physical products or services or both. The principles are the same, only the characteristic features and the environment are different. Production takes different forms. It may be a philanthropy or social or religious service. It may be about your domestic affairs or the way you bring up your family. As a human being everyone exits by passing through a production process and live in a world that came into being through production process(es). Simply look around you, from the foundations of the earth and all planetary forces, the natural phenomenon on which science depends to these days of digital transformation such as the artificial intelligence (AI) and the internet of things (IOI), tell me which is not about production? Even you-what can you do outside production? Perhaps consumption!
Production can also be in the form of Market Production (which is about exchange, e.g retail markets and financial markets, public utilities sector/government services) and household production (domestic activities, some of which can develop into industrial production activities like what led to industrial revolution in the 19th century in Britain).
- SUPPLY CHAIN
A supply chain can be defined as the interconnected operations involving people, organizations, resources and information. Supply chain management is the management of all operations involved in the integration of supply and demand, processes, cross-functions and interfaces within and across organizations including working with the suppliers, service providers and the customers to fast-track the delivery of stakeholder’s value. Greater efficiency, lower cost, speed, collaboration, partnership, alignments and higher profits is what supply chain managers bring to the table of production. Supply Chain Management is part of Production and Operations Management as a professional practice. Remember, we are not referring to production or operations department here. We are looking at production and operations function from the global and strategic perspective. On a lighter note, let me ask: don’t supply chain professionals produce services? Hence, they are also production professionals!
They work in production organizations!! They are production people!!!
- THE NEXUS
Customer satisfaction at a profit (or some other benefits) to the organization is at the epicenter of all production, operations and supply chain activities. Supply chain activities are operations or production activities. There is no human activity under the sun that is not about production.
Suppliers and customers are also producers-whether goods and/or services. Distributors and retailers produce services. Production runs in a cycle-from primary production through stages to consumption and production of wastes which are recycled to achieve further production. Production also runs globally at different levels and in all departments of every organization. Production operations take place in the factory but not limited to the production department. To avoid tautology and in want of fancy name “operations” is used to qualify the functions in other departments: For example: Finance or Financial operations, Sales operations, Marketing operations, Supply chain operations, Logistics
operations, Administration operations, Human resources operations, field operations, project operations, retail operations, procurement operations, transport operations, engineering operations etc. Also, examples of production of services in the services sector are: public sector operations, banking operations, airport/airlines operations, shipping operations, medical operations, insurance operations, security operations, military operations and other usages.
- CONCLUSION
Production is the process or processes involved in the creation of goods and/or services that provide utilities. Production creates value in the form of goods, services, results or benefits. Operations are activities, tasks, elements or parts of production process or processes. Supply chain is the series of interconnected activities or operations (including the flow of information and services) from sourcing and procurement through conversion and logistical processes to the customers and the related feedback. The management of supply chain provides the effectiveness and efficiency required for optimum profitability and customer satisfaction. A supply chain process comprises operations which I have explained as elements of production.
The professional body recognized by law to regulate the practice of Production and Operations Management in Nigeria is Nigerian Institute of Production Management (NIPM). If you are not a member of NIPM but you are in a Production or Operations job or role you are not yet a professional. That mark of professionalism is still missing and you need to find it for competency, relevance and status.
The College of Production & Operations Management (COPOM) is affiliated to NIPM and its Professional Certification, Diploma, Advanced Diploma and Post-Graduate Diploma programmes are recognized by the Institute for the purpose of Membership admission requirements. Employers are also taking keen interest Reputable multinational organizations such as Friesland Campina WAMCO Nigeria Plc and Cadbury Nigeria Plc have found the curriculum of NIPM useful for staff training. Directors and Senior Managers of companies like Jos International Breweries Plc, Johnson Wax Nigeria Ltd, Afrotec Industries etc and senior lecturers of higher institutions such as Federal Polytechnic Ede and Osun State Polytechnic graduate from the Pot-Graduate School of the College of Production and Operations Management-COPOM. In Nigeria today, most production/operations manager are not professionally qualified. Only a few employer are interested in professional development of production/operations manager. Many manufacturers are themselves lacking in professional production and operations management knowledge. They merely complain about capacity utilization, low productivity and high cost of doing business without looking inwards or self-assessment. Employers who engage the services of professionally unqualified production or operations managers are hypocrites. The Standards Organization of Nigeria (SON), National Food and Drug Administration Control (NAFDAC) and other agencies need to go too far to know organizations that are likely to produce adulterated, fake, substandard and unwholesome goods. They are those whose Operations Sirectors and Plant/Production managers are not professionally certified by COPOM and registered by NIPM. If you practice or wish to work as a Production Manager, Operations Manager, Supply Chain Manager or any other job or role involving production or operations such as teaching and research in the field you can start with a COPOM
Professional Diploma and NIPM Associate Membership. Professional qualifications of COPOM and NIPM will give you the leading edge in your career and in a managing your own business. Let COPOM and NIPM put you on the fast track to success by building your expertise and making you stay up-to-date exhibiting integrity and sharing the right values.
Readers Comments and Enquiries:
Send your comments or enquiries to
e-mail address:drolaniyiopanuga@gmail.com
or call 08023140750, 090290288863
For Further Reading
Resources, research and learning materials which NIPM Members and COPM Certification trainees can obtain for free include:
OLANIYI OPANUGA, (1999) Professionalism In Production And Operations Management.
Production Management Review Vol.5 No.1 Nigerian Institute of
Production Management (NIPM) Steadfast Publications Ltd.
OLANIYI OPANUGA, (2004) Modern Principles of Management And Their Applications In
Production and Operations. Journal of Production And
Operations Management(NIPM), Vol.1 No.1 College of Production
& Operations Management (COPOM).
OLANIYI OPANUGA,(2008) Rationale for Professional Practice of Production And
Operations Management in Nigeria, Vol.8 No.1, Nigerian Institute
of Production Management (NIPM), Steadfast Publications Ltd.
OLANIYI OPANUGA, (2011) Your Career And The Real World: Panacea for Success, A Paper
presented at a seminar organized by Microbiology Association,
Department of Sciences And Biotechnology, School of Science And
Technology, Babcock University, Ilisan-Remo, Nigeria.
| Dr. Olaniyi Opanuga who teaches at the Post-Graduate of School, the College of Production & Operations Management (COPOM) and the COPOM Institute of Operations Management Development (IOMD). Is the current President and Chairman of Council, Nigerian Institute of Production Management (NIPM), Chairman, Optimum Resources Management, Technology & Engineering Services, Honourary Director General, The Certified Institute of Applied Management And Administration-CIAMA and a fellow of several professional bodies locally and internally.He is a Fellow of the Society of Certified Supply Chain Management professions (SCSCMP) an arm of Nigerian Institute of Production Management and Research Fellow of Centre for Productivity Development (CPD).
Dr. Opanuga has trained over 5000 persons from Federal Government Agencies, academic institutions, multinational, international and indigenous industries. He has attended several conferences and conferences locally and in the overseas. He has over 100 published papers/articles to his credit. Dr. Opanuga is the Publisher and Editor-In-Chief of Production Management Reviews Journal of Production And Operations Management and the Human Capital.
|
Vacancies/Jobs At NIPM
Work full-time or part-time from your location for NIPM and make money as:
- State Co-ordinators
- Institutional Representatives
- Industrial Area Representatives
- Corporate Co-ordinators
State Co-ordinators are to co-ordinate membership and institute’s services such as education and training programmes in their respective states and FCT, Abuja.
Institutional Representatives could be senior lectures in a University or Polytechnic. They will be involved in Career Advisory, membership and Institute’s services such as research, publications, education training and consultancy.
Industrial Area Representatives are to represent the institute in their industrial areas, providing publicity and organizing Institute’s programmes in their Industrial Area.
Corporate Co-Ordinators are to publicize Institute’s activities, distributing publications handling registration of members and organize members meetings in their organizations.
0 Comment