SMG SM 131 Lecture Notes - Lecture 3: Purchase Order, Weighted Arithmetic Mean, Technical Analysis
12 Sep 2018
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Document Summary
Operations problems are a part of every management career. An important first step to managing an operation is analyzing the operation"s process. A process is any conversion activity where inputs are transformed into outputs. In a factory, materials, labor, and capital inputs are used to create finished products. In a retail store, the output is a satisfied customer, while the inputs are the customers, goods for sale, and an effective service delivery system. In a law office or accounting firm, both the inputs and the outputs are largely information: professionals convert raw data into information for the specific needs of the client. Process analysis involves understanding what the process does, how and why it does it, how effectively it works, and how it might be improved. It is a diagnostic process that involves technical analysis, observation, and judgment, much like the diagnostic work of a physician. Process analysis assesses the work or conversion activity performed by some working unit.
