Creating Value through Business Operations

This post discusses creating value through process and operations of businesses.




Operations as a Value-Added Process


Operations start with raw materials and services much like dinner starts with ingredients and the cook's labor. The ingredients and the cook's labor translate to Input(s) in reference to operations.

Operation Inputs

• Material
• Machines
• Labor
• Management

Transformation Process of Business Operations

Just as a cook must "cook or bake the food to "transform the ingredients and effort into whatever is for dinner so to must a business transform inputs into outputs. In the world of business operations and operations management this is known as the transformation process.

Operation Outputs

The goods and services that a company produces are known as the output.

Finance Guy's Final Thoughts


I have a great way to sum up the very nature of business and operations as an added value through process concept.

Here it goes...


"Business is essentially nothing more than buying something for a dollar and figuring out how to sell it for two."

- Finance Guy