What is operational efficiency

Last post 10:56 pm September 10, 2018
by Adwait Vaidya
6 replies
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05:26 pm September 8, 2018

Dear All,

Please, help to understand what is "operational efficiency"?

regards, Karen

 

10:00 pm September 8, 2018

Hi Karen, 

I remember (if I am not mistaken) that the question about operational efficiency or maybe close to operational efficiency was on my PSPO 1 exam. 

From the web: 

Operational efficiency is the capability of an enterprise to deliver products or services to its customers in the most cost-effective manner possible while still ensuring the high quality of its products, service and support.

So, in Scrum language, this is the Product Owner's case. For further details, I guess google will help you )))  

07:33 am September 9, 2018

Thank you Orkhan,

Yes, this question is form PSPO1 exam.

Your answer helped me to understand the question,

regards, Karen

 

12:20 am September 10, 2018

@ Orkhan,

Please correct me if I am wrong, operational efficiency = throughput? (whenever someone talks on operational stuff, I immediately think of THE GOAL by Mr. Eli Goldratt. It is an amazing read, funny and educative!)

Cheers!

Adwait.

05:01 am September 10, 2018

operational efficiency = throughput?

A team which considers itself to be operationally efficient on the basis of throughput might be very good at delivering lots of the wrong things a great many times.

05:24 am September 10, 2018

I think the discussion here should be in a business context.

It's about the ratio between the values and the cost, not about the team's velocity, productivity, and creativity.

10:56 pm September 10, 2018

Hi Ian,

Yes, when we say throughput - it has to be something valuable to business or users, otherwise it is just waste - so i guess we are both saying the same thing in different languages?

Cheers!

Adwait.