F. Speed as a competitive advantage refers to the fact that organizations need to quickly develop, make, and distribute products and services. The operations system refers to all the variables in the process of transforming inputs into outputs. Within this system, the transformation process must be designed, operated, and controlled. This is the essence of operations management. Both have a need for operations management.
Productivity is a key concern for both manufacturing and service organizations.
Many of the concepts and techniques that worked in manufacturing are being transferred to service organizations. Productivity is the overall output of goods and services produced, divided by the inputs needed to generate that output. It's a composite of people and operations variables. To improve productivity, management needs to focus on both. Re-engineering focuses on the transformation process in the operations system.