3.4.1 Setting Operational Objectives Flashcards
What is operations management
The management of processes, activities and decisions relating to the way goods and services are produced and delivered
What is efficiency
Achieving maximum productivity with minimum wasted effort or expense
Resources
Stock or supply of money, materials, staff and other assets that can be drawn on by a person or organisation in order to function effectively
What is automation
The use of machines that are substitutes for labour
What is robotics
The science and technology of robots and their design, manufacture and application
What are the 5 parts of operation management
Add value
Operate efficiently
Manage resources
Coordinate supply chain
Ensure quality
What is the operations process
Inputs- transformation process- output
What are the key types of operational objectives
Cost & volume
Quality
Efficiency & flexibility
Environmental
What are cost & volume objectives
A business ensuring that operations are cost effective
What are example cost and volume objectives
Productivity & efficiency
Unit cost per item
Number of items to produce
Why does a business have a need for quality
Markets are more competitive and customers are more knowledgeable, demanding, willing to complain and able to share info
What are example of quality objectives
Scrap/ defect rates
Reliably
Customer satisfaction
Number/ incidence of customer complaints
Customer loyalty
What are efficiency & flexibility objectives
Closely linked to cost targets
Are they being utilised effectively?
Measure of how responsive a business can be to unexpected changes in demand
What are examples of efficiency & flexibility objectives
Labour productivity
Output per time period
Capacity utilisation
Order lead times
What is the calculation for
Unit cost per item or variable costs per unit
Total variable cost (divide) outputs or units produced
