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Productive systems are those that convert or transform resource inputs into useful goods and services as outputs. Such productive systems are generally referred to as Operations systems. Operations management, often described as Production and Operations Manageement (POM), relates to the management of such systems. Of the many developments taking place in the disciplines in the recent past, the most radical is perhaps the concept of what the discipline represents. Upto the 1970s, Operations Management was considered as a ‘centre’ system with its basic focus on ‘cost reduction’. Since the 1990s, it has been increasingly recognised as a ‘basis’ for ‘value creation’ within the organisation.
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