Operation management refers to the process of transforming resources into finished goods. It is important for managers to understand operation management concepts to efficiently achieve organizational goals. There are two main types of organizations - manufacturing produces physical goods while service produces nonphysical services. Managing productivity and establishing a strategic role for operation management can help organizations maintain global leadership. Value chain management involves managing the activities and information across the entire process from raw materials to finished products to create value for customers. Current issues in managing operations include leveraging technology, focusing on quality initiatives like planning, organizing and controlling for quality, and enabling mass customization through lean processes.