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7. Inventory Control:
Production management also includes inventory control. The production manager must monitor the
level of inventories. There must be neither over stocking nor under stocking of inventories.
If there is an overstocking, then the working capital will be blocked, and the materials may be
spoiled, wasted or misused.
If there is an understocking, then production will not take place as per schedule, and deliveries will
be affected.
8. Maintenance and Replacement of Machines:
Production management ensures proper maintenance and replacement of machines and equipment.
The production manager must have an efficient system for continuous inspection (routine checks),
cleaning, oiling, maintenance and replacement of machines, equipment, spare parts, etc. This
prevents breakdown of machines and avoids production halts.
b. Strategy and operations are inextricably connected. Strategy is a plan to reach an
objective and operations is the means of getting there. Operations management
involves the planning and coordination of work. Strategically, this involves the longterm planning and structuring of work.
Indeed, the task of operations strategy is to design the operating system, which is the joint
configuration of resources and processes, such that its resulting competencies are aligned with the
organizations desired competitive position. Tactically, the task of operations management is to
utilize the operating system and provide the best match of supply with demand.