Operational Definition

Definition

An operational definition is a clear meaning of a concept that can be easily communicated and understood by others. The definition defines what is acceptable and what is not. This is especially important in business settings when  companies and their customers must come together and agree to the same criteria, test or decision (preferably measurable) of a product's or service's characteristics.

Operational definitions provide the rules for making decisions. In his book Out of the Crisis, Dr. Deming states that "An operational definition of safe, round, reliable, or any other quality characteristic must be communicable with the same meaning to vendor as to purchaser, and the same meaning yesterday and today to the production worker. An operational definition uses the following:

• A specific test of a piece of material or an assembly or a transaction.
• A criterion (or criteria) for judgment.
• Decision: yes or no, the object, material or transaction did or did not meet the criterion (or criteria)."

Operational definitions are important when measurements and data collection methods are determined to measure and understand product and process performance.