The core objective of all organizationsis to efficiently produce goods or services. Operations management is thestrategy which used to achieve this objective. Operations is the part of abusiness Organization which is directly responsible for producing goods andservices.
Goods are physical items that include row materials, parts,sub-assemblies. Services are activities that provide some combinations of time,location, form, or physical value. Operations / production is also define asthe step by step conversation of one form of material in to other form throughchemical of mechanical process to create or enhance the utility of the productto the user.
Edwood Buffa defines production as ‘a process by which goods andservices are created ‘. Operation Management is the process whichcombines and transform various resources used in the production/ operations subsystems of the organizations in the value added product/ services in a controlmanner as per the policies of the organization. Therefore, it is the part ofthe organization, which is concern with the transformation of a range of inputsin to the required (production, services) having the essential quality level.The set of interrelated management activities which are involve inmanufacturing certain product or services is called as Operation Management. Accordingto Galloway (1993) “operations management is concerned primarily withmanufacturing or the change of state of physical goods”. And also Galloway(1993) argues that “the operations management is all about effective andefficient management of any operation irrespective of whether a physical goodis involved or not”. Operation Management is a process ofplanning, organizing, directing and controlling activities of the productionfunction. It combines and transforms various resources used in the productionsub systems of the organization in to value added product in control manner.
The creation of goods or servicesinvolves transforming or converting inputs into outputs. Various inputs such ascapital, labor, and information are used to create goods or services using oneor more transformation processes (e.g., storing, transporting). To ensure thatthe desired outputs are achieved, an organization takes measurements at variouspoints in the transformation process (feedback) and then compares them withpreviously established standards to determine whether corrective action isneeded (control).