Decision making to improve operational performance - 4.1 Flashcards
What is operations management?
Activities, decisions and responsibilities of managing production and delivery of products.
What does labour intensive mean?
Relatively high proportion of labour in production is used compared to capital equipment such as hairdressing.
What does capital intensive mean?
High proportion of capital equipment relative to labour such as a bottling process.
What does quality mean in terms of being an operational objective?
Managers decide what they think customers want. For example, McDonald’s sets targets for what staff should say to customers. The better the quality, the more competitive a business may be.
What does costs mean in terms of operational objectives?
Producing at a lower cost it can compete with rivals and make profits at same price or reduce price and be competitive.
What does speed of response mean in terms of operational objectives?
Providing products faster than competitors. For example, a restaurant making sure no customer is waiting for a table for more than 5 minutes. Although this requires a lot of resourcing.
What does flexibility mean in terms of operational objectives?
Meeting customer needs more precisely giving the business an advantage. Such as a tailored suit.
What does dependability mean in terms of operational objectives?
Deliver reliably on time. For example, a delivery company setting an objective that 95% of delivery’s are on time.
What does environmental objectives mean in terms of operational objectives?
Awareness of impact and greater interest of the what stakeholders think. Could use recycling or reducing waste.
How does marketing activities influence operational objectives?
May determine what actually has to be produced, how it’s produced and quantity required.
How does finance influence operational objectives?
May affect level of investment in technology which may affect what can be produced.
How does Human Resources influence operational objectives?
May determine what’s possible. Number and skills of staff may influence what can be provided.
How do political and legal factors influence operational objectives?
Place restrictions on what can be produced, how, where and who it can be produced for . For example, some countries don’t allow online gambling, limiting the businesses offering their service.
How do economic factors influence operational objectives?
Greater globalisation allows businesses to source supplies more easily from countries all over the world.
How do social factors influence operational objectives?
Customers can search easily for alternatives online. Also greater demand for choice and variety.
How do technological factors influence operational objectives?
Quicker to develop, test and launch new products. For example, new operations can exist such as video games and new processes develop such as paying for parking using your mobile.
How does competition influence operational objectives?
Greater demand for good customer service as customers realise their power. Businesses try to offer more while keeping costs down.
What is the value of setting operational objectives.
- Clarity =Clear targets for what is aimed to achieve and helps employees understand their targets.
-Measurement of performance =Specific goals means they can track progress and assess if they are meeting targets. - Resources allocation =Its easier to allocate resources efficiently allowing businesses to prioritise projects that align with objectives.
