Definition
Operations management is the process and resources needed to produce goods and services. It includes planning, organizing, and controlling the activities involved in producing a company's specific products or services.
In the room
How the word shows up in a real conversation.
In a Monday review, someone writes Operations management on the board and restates it: “Administration of business practices to create the highest level of efficiency.” The next move is a test, a cut, or a double-down — not another debate about the word.
Common mistake
Using Operations management as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Operations research
Analytical method of problem-solving and decision-making in business operations.
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Operating margin
Percentage of revenue that remains as operating income after operating expenses.
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Operating profit
Profit earned from core business operations before interest and taxes.
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Opportunity cost
Value of the next best alternative that is foregone when making a decision.
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