Operation (in the multioperation make-to-order process)

A step performed in a manufacturing process.

For instance, manufacturing a sofa includes the following operations:

• Cutting wood
• Building a frame
• Stuffing
• Applying the covering

A multioperation make-to-order process includes registering operations in work-in-progress documents. This ensures accounting for the manufacturing overheads incurred in the operations. These overheads are included in the cost of finished goods.