A production system takes inputs and converts them into outputs. The conversion process is the predominant activity of a production system. The primary concern of an operations manager is the activities of the conversion process. Operations managers make decisions when problems are complex and wrong decisions are costly.They have to take decisions like:

Strategic Decisions: These decisions are of strategic importance and have long-term significance for the organization. Examples include deciding: the design for a new product’s production process where to locate a new factory whether to launch a new-product development plan

Operating Decisions: These decisions are necessary if the ongoing production of goods and services is to satisfy market demands and provide profits. Examples include deciding: how much finished-goods inventory to carry the amount of overtime to use next week the details for purchasing raw material next month.

Control Decisions: These decisions concern the day-to-day activities of workers, quality of products and services, production and overhead costs, and machine maintenance. Examples include deciding: labor cost standards for a new product frequency of preventive maintenance new quality control acceptance criteria Apart from this they also have to provide information about the outputs, the conversions, and the inputs is fed back to management. This information is matched with management’s expectations. When there is a difference, management must take corrective action to maintain control of the system.

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