Business Processes & Operations

8 Pages Posted: 30 May 2017

See all articles by Robert Landel

Robert Landel

University of Virginia - Darden School of Business

John Faulk

University of Virginia - Darden School of Business

Abstract

This technical note defines and provides example calculations for certain process analysis concepts—capacity, bottleneck, cycle time, throughput time, Little's Law—relating inventory, throughput time, and throughput rate.

Excerpt

UVA-OM-1013

BUSINESS PROCESSES & OPERATIONS

This note serves as an introduction to processes in business. It provides a background of terminology and measurements of processes and an example of using these tools to analyze a process. Effective business managers must be able to understand processes and make knowledgeable decisions on how to improve operations.

Importance of Operations Processes

Every business has a set of processes whose goal is to add value for customers. An organization's success is frequently determined by how effectively operations can satisfy customers' expectations. Operations fulfillment is often a critical part of realizing an organization's strategy.

There are countless examples of businesses that depend upon their operational excellence for success. For instance, Wal-Mart's strategy is to be the low-cost retailer of general merchandise. Wal-Mart is the undisputable market leader because its operations processes are the best in supply-chain management, and its efficiency allows significant cost savings through best-practice distribution and inventory. Therefore, discount-store customers choose Wal-Mart because it offers the lowest prices with reasonable service. Alternatively, Ritz-Carlton hotels' strategy focuses on providing the highest personal service at a premium price. Their customers expect extraordinary service in return for the high rates of their hotel. Therefore, the operations at each hotel must ensure that every staff member provides superior service to their guests.

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Keywords: communication process, communication strategy

Suggested Citation

Landel, Robert and Faulk, John, Business Processes & Operations. Darden Case No. UVA-OM-1013. Available at SSRN: https://ssrn.com/abstract=2974873

Robert Landel (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/landel.htm

John Faulk

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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