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Operation Management

An operation was defined in terms of the mission it serves for the organization, technology it employs and the human and managerial processes it involves. Operations in an organization can be categorized into Manufacturing Operations and Service Operations.

Operation Management is the activity of managing of resource which produce and deliver goods and services. The Manufacturing and service operations can be defined in two broad categories as either manufacturing or service. Manufacturing organizations produce physical tangible items which can be stored as inventory before delivery to the customer.

The service organization produce, intangible items that cannot be produced ahead of time. One of the key developments in operation is the increasing importance of service operations as service industry accounts for an increasing proportion of the output of industrialized economics. A service cannot be stored its production and consumption will occur at the same time that implies the produce of the services will come into contact with the customers. In fact the customer will be involved to a greater or lesser extent in the actual delivery of the operation.

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