Define operations management and briefly discuss the importance of this management process.
The term operations management refers to the design, operation, and control of the transformation process that converts such resources as labor and raw materials into goods and services that are sold to customers. The system takes in inputs—people, technology, capital, equipment, materials, and information—and transforms them through various processes, procedures, and work activities into finished goods and services. Marketing, finance, research and development, human resources, and accounting convert inputs into outputs such as sales, increased market share, high rates of return on capital, new and innovative products, motivated and committed employees, and accounting reports. Operations management is important because it encompasses both services and manufacturing, it’s important in effectively and efficiently managing productivity, and it plays a strategic role in an organization’s competitive success.
Source: Management, 11e (Robbins/Coulter)