The Operations Management Complete Toolbox (Collection)

6. Budget Control

Operations are run by the allocation of several types of resources. These can include the use of human resources, capital equipment, facilities, and finances. With the exception of some organizations that are run with volunteer human resources, most organizations require finances to manage the acquisition of resources. The organization having a purpose, called a strategic objective, needs to procure resources to accomplish that objective. Finances in the form of cash, lines of credit, or investor capitol are typically used in purchasing resources, managing an operation, and payment of salaries for human resources. In maintaining the operation, these financial expenditures need to be outlined and organized so that executives ...