The term used to describe all the activities managers do to their firms create finished goods and services is management.

Production management

Explanation:

Production management involves five functions of management i.e. planning, organizing, staffing, directing and controlling. It aims to produce the goods and services according to the customer needs by converting the raw material to finished goods.

To make the finished goods, various process is required that involves raw material, work in progress and finally finished goods.  

According to the given situation, the most appropriate term is production.