Service operations: production activities that yield intangible services. Goods production: production activities that yield tangible products. Production means making physical goods and services. Products provide business with economic results (profie/wage/goods purchased from others), and non economic result (new technology/innovation/pollution). Operations (production) management: systematic direction and control of processes that transform resources into finished goods and services. Production managers: managers responsible for ensuring that operations processes create value and provide benefit: farmers are production manager because they convert soil into tobacco and employ workers, production manager: resource+transformaiton activites + products of services. Operations processes: a set of methods/technologies used in produciton of good/service: transfmoration technology: require combine resource/break resource, customer contact: service, goods producing processes. All goods are classified by: 1) type of transformation technology they transform raw material into finished goods. 2) analytic/synthetic nature of transformation process: 1) types of transformaiton technology: turn raw materials into good. E. g al, steel, fertilizer fabrication process: mechanically alter shape of product.