Chapter 2 Operations performance Flashcards
How operations can impact TBL performance:
Stakeholders:
- Stakeholders
- Directors/top management
- Staff
- Staff reprsentative bodies
- suppliers
- Regulators (financial regulators)
- Government
- lobby groups (environmental groups)
- society
The five operations performance objectives:
Quality -> Being RIGHT
Speed -> Being FAST
Dependability -> Being ON TIME
Flecibility -> Being ABLE TO CHANGE
Cost -> Being PRODUCTIVE
The beneits of the five objectives:
Internal:
Cost - minimum cost, maximum value
Speed - Fast throughput
Quality - Error- free process
Flexibility - ability to change
Dependability - reliable operation
External:
Cost - minimum price, highest value
Speed - quick delivery
Quality - error- free products and services
Flexibilty - frequent new products, maximum choice
Dependability- dependable delivery
External and internal benefits of conformance quality?
Irrespective of a product or service’s specification quality, producing it so it conforms to its specification consistently brings benefits to any operation.
Externally – it enhances the product or service in the market, or at least avoids customer complaints.
Internally – it brings other benefits to the operation.
- It prevents errors slowing down throughput speed.
- It prevents errors causing internal unreliability and low dependability.
- It prevents errors causing wasted time and effort, therefore saving cost.
External and internal benefits of speed?
Externally – it means the elapsed time between a customer asking for a product or service and getting it (in a satisfactory condition). It often enhances the value of the product or service to customers.
Internally – it brings other benefits to the operation.
- It helps to overcome internal problems by maintaining dependability.
- It reduces the need to manage transformed resources as they pass through the operation, therefore saving cost.
External and internal benefits of dependability?
Externally – it enhances the product or service in the market, or at least avoids customer complaints.
Internally – it brings other benefits to the operation.
-It prevents late delivery slowing down throughput speed. -It prevents lateness causing disruption and wasted time and effort, therefore saving cost.
Flexibility – what does it mean?
Flexibility has several distinct meanings but is always associated with an operation’s ability it change
Change what ?
Ø The products and services it brings to the market – product/service flexibility
Ø The mix of products and services it produces at any one time – mix flexibility
Ø The volume of products and services it produces – volume flexibility
Ø The delivery time of its products and services – delivery flexibility
The ‘efficient frontier’ view of trade-offs:
- All performance objectives, to some extend, trade-off against each other.
- Focusing on one (or a narrow set of) performance objectives can enable superior performance in that / those objectives.
