Operations Management Objectives Flashcards
What is the purpose of operations management objectives?
They help achieve overall objectives, they provide a sense of direction, they may be motivational and they help managers control operations
What must operations management objectives do?
They must fit with the overall objectives of the business
What might operations objectives focus on?
- improving productivity
- improving the level of quality
- reduce the level of rejection rates
- reduce the level of wastage
What is operations management?
The design, execution and control of operations that convert resources into desired goods and services and implement a company’s business strategy
How can businesses measure labour productivity?
Output per worker/total output
How can businesses measure total productivity?
units per worker/machine
Why would a business want to be more efficient?
To reduce the unit cost and become more competitive
How might a customer service objective be achieved?
Increasing customer satisfation, better reviews, repeat business
What might be the aim of improving volume of production/flexibility?
Ensuring there is sufficient production to meet demand
How could a quality objective be achieved?
Reducing defects, meeting internal and external quality standards
How might corporate objectives influence OPs objectives?
OPs objectives must allign with these
How would finance impact OPs objectives?
OPs requires considerable finance
How would HR impact OPs objectives?
Staff must be suitably skilled and motivated to carry out objectives
How would the nature of the product or service impact OPs objectives?
Affects the type of production, the need for quality and customer service
How would marketing affect OPs objectives?
If marketing want to develop a new product, it will influence operational targets. OPs must have capacity for if marketing do a promotional campaign
How could the external market affect OPs objectives?
If declining, might need new products
How could competition affect OPs objectives?
Efficiency may be necessary
How could social trends affect OPs objectives?
Will influence the type of products needed
How can technology impact OPs objectives?
Quality, waste, efficiency
How can the environment impact OPs objectives?
Green production methods
How can the economy impact OPs objectives?
Will affect finance avaliable to innovate
How can politics impact OPs objectives?
Will impact wages, labour, legislation
How can legislation and ethics impact OPs objectives?
regulations and conditions
