Operations Vocabulary

Business Operations

Operations refers to a whole variety of activities that require the day to day functioning of the company that allows it to be profitable and allows it to be productive.

Shortage

Not having enough of something. “We face a shortage of packaging materials.”

Capacity

The amount of work a team or system can handle. “We lack capacity to take on more orders.”

Resource

Person, tool, budget, or materials used for work. “We need more resources to finish on time.”

Forecast

A prediction based on current data. “The sales forecast helps us plan inventory.”

Demand

The amount of customers want or need. “Demand increased after product launch.”

Supply

Amount available to meet demand. “Our supply is limited this month.”

Backlog

Work not yet completed. “The team is working to reduce the backlog.”

Process

A series of actions to complete work. “We need a better process for handling customer requests.”

Workflow

The movement of tasks from one step to another. “The workflow is too slow because approvals take too long.”

Procedure

The official way to do something. “Follow the standard procedure for submitting invoices.”

Task

A specific piece of work to complete. “My main task today is updating the operations report.”

Step

One action in a process. “The first step is to review the client’s order.”

Timeline

Planned schedule for completing work. “We need a realistic timeline for this project.”

Deadline

Final date something must be completed. “The deadline is Friday at noon.”

Priority

Something more important than other tasks. “Customer complaints are our top priority.”

Ownership

Responsibility for a task or outcome. “Who has ownership of this project?”

Schedule

A plan showing when tasks will happen. “We are behind schedule on this week’s deliverables.”

Efficiency

Doing work well without wasting time. “The new system improved efficiency across the department.”

Productivity

Amount of work or production completed. “Daily output increased after the software upgrade.”

Performance

How well a person, team or system works. “We are reviewing team performance this quarter.”

Focus Areas of Strategy Operations

1. Big Picture: How can you see beyond the day to day operations?

2. Strategic Direction: What is the overall strategic direction of the company?

3. Business Acumen: Focusing on understanding the business environment.