Operational Objectives Flashcards
what are the objectives
mission statement > corporate objectives > operation management objectives > operational management strategy > operational management tactical
the design, execution and control of operations that CONVERT resources into designed goods and services
can therefore implement a company’s business strategy
objectives
Customer service
- increase customer satsifaction
- cheaper to get repeat business over constantly getting new business
- reputation and repeat business
Environmental
- reduce waste
- introduce greener technology
Production and flexibility
- ensuring theres sufficent production to meet demand
- lean/JIT etc.
Efficiency
- reducing the unit cost and avergae cost per unit
Quality
- meeting internal + external quality standards
before setting objectives, consider these factors:
- legal size and status of the business
- other business objectives
- state of the economy
- level of competition in the market
- the government at the present moment
- legislation
usefulness of operational management objectives:
- improving coordination
- act as a focus to improve and decision making
- measure against failure and success
- improve efficiency
internal influences
- Corporate objectives
^^^^ operation management consistent and covered - Finance
^^^^^ considerable expenditure on capital, R+D and equipment - HR
^^^ staff needed to be skilled and motivated - Nature of the product
^^^^^ some products better suited to mass production
^^^^^ type of product can influence the quality and the customer service targets
external influences
M - decline than may need new products
C - targets needed to align competition
S - growing social trend to sue firms
T
E - interest rates reduce ability to buy/borrow
E - need to be green - production and wastage
P - change in minimum wage - EU regulations
L - H+S
E - workers not exploited may mean reduced cost of competiton
