Operational Objectives

Question 1

What are operational objectives?

Answer 1

Targets set for production

Question 2

What can setting operational objectives help a company?

Answer 2

Achieve its overall objectives

Question 3

What 3 things can the performance of the production department can be reviewed by?

Answer 3

Quality
Costs
Efficiency

Question 4

What does the quality objective involve?

Answer 4

Maintaining or improving levels of quality

Question 5

What does the costs objective involve?

Answer 5

To minimise costs especially if they are price competitive

Question 6

What does the flexibility objective involve?

Answer 6

Businesses need to be able to react to what customers want

Question 7

What does the efficiency objective involve?

Answer 7

To make better use of resources in order to reduce costs and increase profit

Question 8

What does the innovation objective involve?

Answer 8

Businesses can set their R&D department innovation targets

Question 9

What does the environment objective involve?

Answer 9

Pressure from customers and the Government often leads to firms setting objectives

Question 10

What does the speed of response objective involve?

Answer 10

The speed at which a business can operate is important

Question 11

What is the dependability objective involve?

Answer 11

Customers need to be able to depend on a business and businesses need to depend on their suppliers.

Question 12

What is added value?

Answer 12

A key operational objective for any business

Question 13

What is added value?

Answer 13

Increasing the difference between the cost of the raw materials and the price the customer pays

Question 14

How do you calculate added value?

Answer 14

Sales revenue minus cost of bought-in goods and services

Question 15

How can added value achieved by?

Answer 15

Increasing the selling price or by reducing the costs of raw materials

Question 16

What are operational objectives influenced by?

Answer 16

Internal and external factors

Question 17

What is 3 internal factors that influence operational objectives?

Answer 17

Nature of the product
Availability of resources
Other departments

Question 18

How does the nature of the product influence operational objectives?

Answer 18

Different targets

Question 19

How does availability of resources influence operational objectives??

Answer 19

Many businesses would like to increase output but are limited due to resources

Question 20

How do other departments influence operational objectives?

Answer 20

Objectives and decisions made in the finance,marketing and HR department will affect production.

Question 21

What are 3 external factors that influence operational objectives?

Answer 21

Market conditions
New technology
Competitors performance

Question 22

How do market conditions influence operational objectives?

Answer 22

if customers are spending less money or there are more competitors

Question 23

How does new technology influence operational objectives?

Answer 23

The process needs to adapt

Question 24

How does competitors performance influence operational objectives?

Answer 24

Many firms set targets in reaction to their rivals actions

Question 25

What is job production?

Answer 25

Production of one-off items by skilled workers

Question 26

What is flow production?

Answer 26

Mass production on a continuous production line with division of labour

Question 27

What is batch production?

Answer 27

Production of small batches of identical items

Question 28

What is cell production?

Answer 28

Production divided into sets of tasks, each set completed by a work group

Question 29

What is lean production?

Answer 29

Streamlined production with waste at a minimum

Question 30

What production method would a business choose to try improve the quality of its goods?

Answer 30

Job or cell production