Question

Explain the following Operations Management concepts: Value, Efficiency and Effectiveness (12)

Answer 1

Operational Value: In an organization, the business looks forward to creating value and takes up tasks that involve the creation of value. The organizations can create value by looking after the purchases they make, controlling the quality and purchases, inventory management, logistics, and storage. Value is something that is added to make the product of the best kind. Saving money for lowering the cost also falls under value creation.
Effectiveness in operations: It means doing the work in the best way and correctly. If an organization is effective, it meant that it can achieve all the targets in the best way as set initially and is also able to add value to the business.
Operational Efficiency: In this, it is ensured that the work which is taken up is done in the right way that it excludes any errors. It means using the resources to the best, smoothly running the business, charting out a method to be followed and following it, and producing the goods of the utmost quality with low labor and production costs.

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