Productivity is the creation of goods and services, and goods and services result from the

transformation of inputs into outputs. Operations management is creating value in terms of goods
and services, with attention to efficiency. All organizations’ departments are divided into three
primary functions. Finance, Marketing and Operations. The costliest segment of the organization
is operations; it also is responsible for most tasks performed in the organization. Nowadays,
seldom organizations do all the work by themselves. A supply chain is a global network of
organizations that deliver value to customers by offering their goods and services.

The management process in operations management includes planning, organizing, staffing,

leading, and controlling. Operation managers apply these processes to each operation
management function. There are ten significant decisions of operation management, managing
quality, layout strategy, location strategy and more. The history of operation management is
vital. Since early concept in 1776 until recently 2015, operations management focus was
subsequently on Cost focus, Quality focus and Customization focus.

Economic activities that commonly produce intangible products are called services. For example,
haircut and education. Pay in service industries vary, as in some segments is low and in other
segments pay well. In general, operation managers are the primary players responsible for
improving and increasing efficiency and productivity in their organizations. There are three main
productivity variables, Labor, Capital, Management. Ways to increase productivity in each are as
follows. Healthier and better-educated labour is more productive. An adequate amount of capital
investment put into business as well as a suitable economic environment (taxes, inflation) also
increases the productivity of a firm. And lastly management, management is responsible for half
of the annual increase in productivity. Due to the advancement of technology and science, there
is less need for manual labour, which created a need for educated and skilled human resources. A
knowledge society is where most of the labour force has migrated from manual work to
knowledge-based work.