The first control goal, ensure effectiveness of operations, strives to ensure that a given operations process (e.g., our cash receipts process) is fulfilling the purpose for which it was intended. Notice that we must itemize the specific operations process goals. These goals are specific to each organization and no uniform set of operations goals exists. In each of the business process chapters, we provide a representative listing of operations process goals. 1
The next goal, ensure efficient employment of resources, can be evaluated in only a relative sense. For example, let’s assume that one goal is to deposit all cash on the day received. To determine efficiency we would need to know the cost of the people and computer equipment required to accomplish this goal. If the cost is more than the benefits obtained (e.g., security of the cash, interest earned), the system might be considered inefficient. Likewise, if our system costs more to operate than a system in a similar organization, we would judge the system to be inefficient.
Let’s now discuss the last operations process control goal in Table 8.1, to ensuresecurity of resources. As noted in the table, resources take many forms, both physical and nonphysical. Information has become a key resource of most organizations. For example, the information about our customers (as stored in the accounts receivable master data) is very valuable for this company. An organization must protect all of its resources, both tangible and intangible.