Output

Definition: 

The end result of a firm’s operational processes, be it a tangible product or an intangible service, as determined by the Total Product Concept. 

Most firms have a combination of both to varying degrees (material good and customer service). 

Output should be directed downstream toward the requirements and needs of the target market; be that the Resources, Industrial, Intermediate, or Consumer markets. The nature of the output should always be responsive to consumer demand.

• Manufacturing firms can mass-produce and stockpile tangible outputs (see inventory management). 

• The output of service firms cannot be pre-produced and stockpiled; the output is consumed during delivery

Outputs from an operations process is not fixed; however, change is difficult and expensive. 

It takes time (and money) to remodel and reconfigure processes after they’re implemented - change can create resistance.  

Hopefully, the revenue and profit from the production of a single good is more than the investment in operations process adaptations required for it to be made.