1.8 Key Terms
Key Terms
- Effectiveness: It’s about doing the right things. This means making choices and taking actions that benefit the business and, most importantly, add value for the customer.
- Efficiency: It’s about doing things well but without wasting resources. This means finding ways to streamline tasks and avoid unnecessary steps that cost time or money.
- Finance is the lifeblood of the company. They manage the money flow, ensuring there’s enough to cover everything from materials and payroll to equipment upgrades.
- Goods: Tangible products like vehicles, clothing, cell phones, and shovels.
- HR is the foundation of any successful organization. They recruit, hire, and train the talented individuals who make up the operations team.
- Macro-operation is an overall transformation that is usually required to produce a good or service
- Manufacture: This involves physically creating products, such as automobiles.
- Marketing acts as the bridge between customers and operations. They ensure the company creates products or services that fulfill customer needs and desires.
- Micro-operations are the more detailed transformations within the macro-operation.
- Operations encompasses all activities necessary for delivering an organization’s goods or services to customers and clients.
- Operations management is the management of the processes that transform inputs into goods and services that add value for the customer.
- Service: Service-oriented processes focus on treating customers or storing products, as seen in hospitals or warehouses.
- Services: Intangible offerings such as car repairs, haircuts, and medical treatments.
- Supply: This encompasses changes in ownership of goods, often observed in retail settings.
- Transformation process is any activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides outputs for customers or clients.
- Transport: Processes related to the movement of materials or customers, such as taxi services.
