KK2- Key Elements of an Operations System

Inputs

The Resources used in production (when creating a good or service)

Processes

The conversion of inputs (resources) into outputs (goods or service)

Outputs

The final product produced by the business (the good or service)

Good

A Good is a tangible product made for a customer, such as bread, mobile phones, laptop cases, clothes, textbooks, etc. It is something we can usually pick up, store, touch, feel, etc.

Service

A service is an intangible product provided to a customer, such as a haircut, massage, tutoring, phone plans, insurance, counselling, uber rides, etc. It is something we can’t usually pick up, store, touch, feel, etc. For example, I can’t store a haircut to use later.