Production and operations management is the systematic direction and control of the processes that transform inputs into finished goods and services. The operations function comprises a significant percentage of the employees and physical assets in most organizations.
Operations managers are concerned with each step in providing a service or product.
They determine what should go into an operating system, such as equipment, labor, tools, facilities, materials, energy, and information and how these inputs can best be obtained and used to satisfy the requirements of the market place. Managers are also responsible for critical activities such as quality management and control, capacity planning, materials management, purchasing, and scheduling. The importance of production and operations management has increased dramatically in recent years. With the globalization of markets, firms are recognizing that the operations function can be used as a competitive weapon to strengthen their position in the market place. Managers in production and operations management play a strategic as well as a tactical role in satisfying customer needs and making their firms strong international competitors.