3.4 Decision making to improve operational performance Flashcards
The value of setting operational objectives
Operational objectives include:
costs
quality
speed of response and flexibility
dependability
environmental objectives
added value.
External and internal influences on operational objectives and decisions
Interpretation of operations data
Calculation of operations data
Students should be able to calculate:
labour productivity
unit costs (average costs)
capacity
capacity utilisation.
The importance of capacity
The importance of efficiency and labour productivity
How to increase efficiency and labour productivity
The benefits and difficulties of lean production
Lean production should include ‘Just in Time’ operations.
Difficulties increasing efficiency and labour productivity
How to choose the optimal mix of resources
The mix of resources should include an understanding of labour and capital intensive processes.
How to utilise capacity efficiently
How to use technology to improve operational efficiency
The importance of quality
Methods of improving quality
Methods of improving quality should include quality assurance.
The benefits and difficulties of improving quality
The consequences of poor quality
The consequences of poor quality
Ways and value of improving flexibility, speed of response and dependability
An understanding of flexibility should include mass customisation.
How to manage supply to match demand and the value of doing so
Ways of matching supply to demand include:
outsourcing
use of temporary and part time employees
producing to order.
Influences on the amount of inventory held
Inventory control should include:
interpreting inventory control charts
lead time
re-order levels
buffer level of inventory
re-order quantities
Influences on the choice of suppliers
How to manage the supply chain effectively and efficiently and the value of this
The value of outsourcing
