Why Is Operations Management Important? Encompasses Services and Manufacturing manufucturing organization-produces physical goods service organization-produces nonphysical outputs in the form of services U.S.economy currently dominated by the creation and sale of services Managing Productivity prodcv-overall output of goods or services divided by the inputs needed to generate that output increasing productivity is key to global competitiveness productivity is a composite of people and operations variables ©Prentice Hall,2002 19-6Why Is Operations Management Important? Encompasses Services and Manufacturing – manufacturing organization - produces physical goods – service organization - produces nonphysical outputs in the form of services • U.S. economy currently dominated by the creation and sale of services Managing Productivity – productivity - overall output of goods or services divided by the inputs needed to generate that output – increasing productivity is key to global competitiveness – productivity is a composite of people and operations variables © Prentice Hall, 2002 19-6