Tools and Tactics for Operations Managers (Collection)

9. Value, Customer Satisfaction, Profit

Use with Care

Contrary to popular belief, there are no standard definitions for these terms. What is value? What is customer satisfaction? Where and when do we measure profit? For the high performance operational solution to make sense we need to lay down some definitions that the solution will use. Words have meaning. Semantics are important. And when we’re trying to go where no one has gone before and create something that few have seen before, it’s especially important to provide a point of origin. Defining our terms is critical. This is also true in every math- and science-related field. Terms must be defined before we know what the meaning of X is, and how X is used. This chapter defines what the solution’s ...