Focuses on managing processes: actions that convert inputs into outputs. Almost any business function can be modeled as a network of processes. The first part of the course examines processes, both individually and as part of a larger system; students see that good process design reflects both the volume and the variety of the product. A common course theme is the deleterious effect of variability (in demand, supply, quality, or capacity) in complex systems. Queuing theory and simulation are particularly helpful for analyzing process capabilities. The second part analyzes how goods and services are produced. After describing the strategic role of operations, it examines forecasting systems, inventory management, and just-in-time and logistic management. Constrained optimization models provide information about managing with finite resources. The final part examines process improvement through quality and productivity management and corporate learning.