Supply Chain and Operations Management

The field of Production and Operations Management/Supply Chain Management (POM/SCM) is an integral part of the management discipline. The POM/SCM consists of two major areas or sectors of our economy as follows: Production. Relates to the manufacturing function. In manufacturing, certain predetermined parts are put together in a specific way and the same result could be repeated time and again. Manufacturing uses materials, machines, technology, and automation in producing goods. Manufacturing accounts for about only 17% of the United States' Gross National Product (GNP). Operations. Translates to the services function of our economy. Services are bound and driven by a time and place utility. The simultaneous production and consumption of the service occurs in doctor appointments, parking cars, eating at a restaurant, etc. Services are the fastest growing sector of our economy and account for nearly 80% of the United States' GNP. Nine of 10 jobs will be created in services in this decade.