It is a logical grouping of activities that share resources or are done in parallel. For example, you might create a work center for processing customer orders and another for packing the orders. You would then assign the appropriate resources to each work center, such as machines and employees. That would allow you to optimize the use of your resources and improve throughput. It can be as simple as a single workstation or as complex as an entire factory. In most cases, each will have one or more associated resources (e.g., machines, tools, workers) necessary for performing the work assigned to that center.