OPERATIONS: Strategies Flashcards
List all the performance objectives (KPI’s)
Speed
Dependability
Flexibility
Cost
Customisation
Quality
With reference to a case study, explain ‘Speed’ as a KPI
Speed refers to the time it takes to fulfil orders, aiming to satisfy customer’s demands as fast as possible. It aims to reduce lead times, increase the rate of processing, and eliminate any bottlenecks. For instance, Toyota’s Kanban system facilitates real-time part replenishment, reducing excess inventory, optimising for efficiency and speed.
With reference to a case study, explain ‘Dependability’ as a KPI
Refers to the consistency in reliability of business’s products. High durable products have a greater degree of dependability, inversely to low durable products, where it has low dependability. For instance, Toyota has focused on being reliable and increasing its dependability based on their “Just-in-time” production system of the Toyota’s Production System (TPS).
With reference to a case study, explain ‘Flexibility’ as a KPI
A business’s ability to swiftly adapt its operational processes to changes in the market. Depending on the demand of the market, businesses may have to think of the volume of the production. Therefore, flexibility can be achieved if business’s have access to machinery that allows for quicker manufacturing and processing, being able to quickly adapt to changes. For instance, Toyota’s Production System’s flexibility goes being manufacturing, even implanting their principles of Jidoka, translating to “automation with a human touch”. Continuous pursuit of reducing lead times in office tasks demonstrates commitment to adaptability.
With reference to a case study, explain ‘Cost’ as a KPI
Minimising operational expenses. If businesses acquire new technology, this can reduce need for labour in the long run, minimising systematic mistakes. For instance, Toyota implements new manufacturing systems that reduce cost of labour; they have effectively managed cost to produce high-quality vehicles at reasonable prices.
With reference to a case study, explain ‘Customisation’ as a KPI
Creating products tailored to individual needs of customers. Although this incurs costs, this allows businesses to differentiate its goods and services to that of their competitors. For instance, Toyota creates specialised products such as leather seats, driver grips, and hiluxes, differentiating from its competitors such as Honda or Holden.
Define ‘Quality’ as a KPI
Refers to predefined standards for businesses to follow, being determined by consumer’s expectation.
List the three types of ‘Quality’ performance objectives
Quality design
Quality conformance
Quality of service
Describe what is meant by ‘Quality design’
Design of product is determined before the production. Design of the product therefore determines the inputs required.
Explain what is meant by ‘Quality conformance’
How the product meets standards of established design; a measure of how consistent businesses are with meeting their standard of expected design quality. For instance, comparing a Mercedes car with a cheap plastic toy of Mercedes car; their inputs differ, as well as their use. Mercedes cars are of high-quality design, but a cheap plastic toy car would have low-quality design. Nevertheless, as long as it meets the required design specifications, the product is still of high-standard conformance.
Describe what is meant by ‘Quality of service’
Quality design and conformance combine, contributing to delivery of services. This refers to how reliable the service is and how well the needs of customers are met.
With reference to a case study, explain ‘Quality’ as a KPI
Determined by customer’s expectation. Consists of quality design, quality conformance, and quality of service. For instance, high-grade quality design arises from high-grade inputs, leading to higher prices, being successful in developing and manufacturing materials of their products.
Identify what is meant by ‘New product or service design and development’
A strategy of operation processes that focuses on the design and development of new products, enabling for businesses to attain a competitive advantage.
