Fundamentals of Management, 8th ed

operations

management

The total set of

managerial activities

used by an

organization to

transform resource

inputs into products,

services, or both

Chapter 15: Managing Operations, Quality, and Productivity

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In contrast, the operations activities of Delta Airlines create value and provide time

and place utility through its services. The airline transports passengers and freight

according to agreed-upon departure and arrival places and times. Other service opera-

tions, such as a Budweiser beer distributorship or an American Eagle retail store, create

value and provide place and possession utility by bringing together the customer and

products made by others. Although the organizations in these examples produce differ-

ent kinds of products or services, their operations processes share many important

features.

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