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Finance and productivity


For a for-profit organisation, the overall target is not and can not possibly be increasing productivity or optimising processes – it is making money. However, understanding the value-adding operations has to be a core goal for every business executive. This is especially the case when operations are constrained by the bottleneck (and not by low demand). In those cases, even minimal operational improvements at the bottleneck can have a very high impact on the revenue.

These lecture notes were taken during 2013 installment of the MOOC “An Introduction to Operations Management” taught by Prof. Dr. Christian Terwiesch of the Wharton Business School of the University of Pennsylvania at

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