9.3.1—Operational decisions

Operational decisions concern how inputs are transformed into outputs, including process, capacity, quality, technology, inventory and supplier choices.

Each decision affects cost, quality, speed, dependability and flexibility. The right choice depends on customer value, demand, capability and risk.

A bakery deciding between batch and flow production must weigh variety, volume, freshness, labour and equipment before choosing a process.

An operationally efficient choice can still fail if it produces the wrong value for customers.