Chapter 4: Operations Strategies

Question 1

Performance objectives - Quality

Identify three aspects of quality in operations.

Answer 1

• Quality of design (how well a good is made or a service is delivered).
• Quality of conformance (how well the product meets design specifications).
• Quality of service (how well the service meets customer expectations).

Question 2

Performance objectives - Speed

Speed
Explain why speed is important as a performance objective.

Answer 2

• Reduces wait times for customers.
• Eliminates bottlenecks in production.
• Improves customer satisfaction and loyalty.

Question 3

Performance objectives - Dependability

Describe how dependability benefits a business.

Answer 3

• Ensures consistency in product quality and delivery times.
• Reduces customer complaints and warranty claims.
• Builds trust, leading to repeat business and long-term customer relationships.

Question 4

Performance objectives - flexibility

Assess how flexibility impacts business success.

Answer 4

• Product flexibility: Allows new products to be introduced.
• Volume flexibility: Helps manage production levels efficiently.
• Delivery flexibility: Enhances customer satisfaction with adaptable options.

Question 5

Performance objectives - Customisation

Explain why businesses are offering more customisation options.

Answer 5

• Increases customer satisfaction by meeting specific needs.
• Allows businesses to charge premium prices for personalised products.
• Differentiates businesses from competitors.

Question 6

Performance objectives - cost

Analyse how reducing costs can improve business performance.

Answer 6

• Leads to lower product prices, increasing competitiveness.
• Allows for greater profit margins and financial stability.
• Reduces waste and inefficiencies in operations.