3.4 decision making to improve operational performance Flashcards
operational objectives
costs
quality - customer service/ returns
speed of response - labour productivity
added value
resource mix
labour intensive
capital intensive
why quality is important
customers are more knowledgeable
more able to share information on social media
reputation for quality can be a competitive advantage
quality control
based on inspection
takes defects out of
quality insurance
based on processes
builds quality in
kaizen, continuous improvement for TQM, all employees are looking for improvement
cost of poor quality
competitive disadvantage
remaking product
waste materials
losing customers
damage business reputation
outsourcing
delegate a process to an external provider
call centre/delivery/computer systems
outsourcing benefits and risks
B - economies of scale
- specialist suppliers
R - may not meet quality
- costs may not be lower
internal influences on operational objectives
corperate - the business goals can’t be countered
finance - investment and cost of the operations
hr - targets for productivity, effected by training and automation
marketing - product changes may strain operations if the production isn’t flexible
external influences on operational objectives
economic environment- changes in interest rate, cost of investment
technological change - innovation is rife, hard to change production
regulations can mean they have to change it