The operations function encompasses all the activities necessary to produce the goods or services of the business. These can include such activities as the following:Capacity This includes determining how much of a product or service is able to be produced with the available materials, labor, and equipment (known as inputs) as well as what changes in inputs are required by fluctuating customer demands.Production Layout This is the way in which the goods or service will be produced: for example, the design of an assembly line or, in the case of a service, the process to be used in providing it, such as a model plan or protocol for a financial audit.Scheduling Scheduling activities make sure the products or services are available at times of peak customer demand.Quality Management Quality assurance (QA) ensures that the product or service meets acceptable standards.