Final answer:
Operations management involves all aspects needed to produce the final product, including managing the production process, quality, supply chain, and inventory. It does not include marketing strategies, financial management, or high-level strategic decisions. In pizza making, it entails managing ingredients, labor, and cooking equipment as factors of production.
Step-by-step explanation:
Operations management includes orchestrating all the necessary resources to produce the final product. This encompasses a wide array of activities and decisions, ranging from the procurement of raw materials to the final delivery of the product to the customer. Key components of operations management include managing the production process, ensuring quality, overseeing the supply chain, and optimizing inventory levels. For example, in the context of pizza making, operations management would involve sourcing flour, water, and yeast for the dough, as well as tomatoes, spices, and cheese for the toppings. It would also involve the coordination of the pizzaiolo's labor, the use of kitchen equipment (representing capital), and the methods for cooking and boxing the pizza. These are all important inputs or factors of production.
However, operations management does not traditionally include responsibilities such as developing marketing strategies, managing the firm's finances, or making high-level strategic decisions, which typically fall under the purview of other departments or executive management. Furthermore, it does not directly deal with the externalities of production, such as environmental impact or social costs, unless these aspects have a direct bearing on the production process and are stipulated by company policy or regulations.