COMM-1006EL Chapter Notes - Chapter 3: Wheel Alignment, Process Flow Diagram, Mass Customization
Document Summary
Operations is one key to any organization"s success. Along with marketing, operations, often called production, is where an organization adds value and makes money. According to the model of operations, a company purchases inputs (materials, customers, information), Transforms them in some way through a transformation process, and then sells the outputs to customers. The core of operations is the transformation process. Some conclusions about operating processes are: different organizations process (transform) different types of input. Although almost every organization transforms a mixture of inputs, one type usually dominates: operations is everywhere. It extends to all departments of the enterprise, not just the factory. Accounting depts. need a process to transform transactions into financial records, and marketing depts. need processes to capture information from and about customers: one organization"s outputs often become another"s inputs. Inputs & outputs are a matter of perspective: operations links suppliers and customers by adding value for which customers will pay.