Operations Management deals with the ways that for-profit, public body and voluntary organisations produce goods and services. Using transformation processes, it converts input resources, including information, material and customers, by harnessing staff knowledge and facilities to meet external and internal customers' needs. As such, though often not appreciated, it is present in every department of every organisation.
Operations management exists at three highly interdependent levels that inform each other:
Within levels 2 and 3, the vast majority of an organisation's resources, particularly its people, exist, hence the sources of its short and long term capabilities. It is where competitive advantage and best practice performances can be achieved, provided the organisation is continuously adapting to the threats and opportunities of its external environment and continuously implementing improvements. Hence, operations management is a core element of organisational activity that focuses on the operations objectives of speed, quality, dependability, flexibility and cost.