What is the difference between the terms "production management" and "operations management"? Operations management is a term used by non-profit organizations and production management is a term used by for-profit organizations. Production management focuses on the part of the supply chain that deals with getting raw materials and producing the final product. Operations management focuses on the part of the supply chain that gets the finished product to the consumer. Operations management is a broader, more recent term than production management, encompassing service organizations as well as manufacturing. Production management is a broader, more recent term than operations management, encompassing service organizations as well as manufacturing