Operational Obejectives

Question 1

What is meant by operations?

Answer 1

the function of a business that is concerned with providing customers with a product they want in a timely, effective and profitably way.

Question 2

What does effectively managing operations allow a business to do?

Answer 2

• control cost of production
• add value to its products
• adapt to the needs of customers

Question 3

State and explain two operational objectives

Answer 3

1) costs - operation management must manage costs in order to maximise profit
2) Quality - Make sure quality is meeting it standards ensuring product/service is fit for purpose

Question 4

What are the 4V’s of operations?

Answer 4

volume
variety
visibility
variability

Question 5

State 3 internal and external influences on operational objectives

Answer 5

1) economic factors - operations must adapt to changes in level of demand in the market
2) Social factors - e.g consumers expect more personalisation of the products they buy
3) nature of the product - minimising cost may be very important for a product sold for £1.99