Production operations is the design, operation, assessment and improvement of asystem that provides products to satisfy customer needs and wants in the market place.The course of managing production operations for 2005 virtual Management Gamecommenced with devising a strategy in Quality and cost variables; R&D, productionprocess organization, production planning as well as continuous improvement. Planning production operations is a significant course for managementpractitioners looking forward to learn the skill of business operation. Management Game is the global management education course conducted byCarnegie Mellon University. The course trains the simulation of a typical competitiveenvironment with software technologies and the internet. Every company in thissimulative environment manages the marketing, production, finance and human resources.The software allows for decision inputs that are simulated by teams of managementstudents and collaborate under a highly cognitive workload to reuse software outputs forstrategy analysis and choice. The simulation exercise 2005 blended participants expertise with businessmanagement background from various localities: from (North Eastern University,) China,Japan, Russia, Ukraine and Chile into a competitive business world. Management teamstook over two product line virtual management companies; to produce and market wristwatches in a given world for 3 years. Teams of 4-6 people were assigned a totallyindependent word made of 5 companies in total This thesis introduces Production Operations at Grand Inc., commencing 2005simulation exercise. The performance of functional operations in production: factorylocation selection, R&D control, cost control, production capacity, inventory control,container management etcetera. As indicated in the MG structure above, this thesis reportpresents Production Operations Strategy choice and accomplishment for Grand Inc., thefirm that undertook operations status for company 2, in word 2 MG simulation exercise. This report introduces the background of Grand Inc. strategy and its managerialteams mission scope. It presents a detailed overview of the general company strategy2005 -2007. In addition it draws the general structure of the overall company strategy and itsdefinition into production operation parameters: capacity, inventory control, qualitymanagement and benchmarking, and infrastructural decisions for shipping product tovarious markets. Further more it discusses the implementation, accomplishment of productiongoals and how they are aligned to the general company strategy. Particular successprojects for the periods 2005-2007 and project dilemmas are outlined upon which furtherdecision making is based. Subsequently in line with Grands continuous improvement program, the paperalso discusses future 3 years strategy and forecast budget plans for the proceedingperiods 2008-2010 as well as supplementary measures to be implemented in supply chainmanagement.