setting operational objectives Flashcards
define operations objective
an objective for the operations function which should be SMART
what are costs?
the key cost target is the unit cost that is the cost of one unit of output
what does PESTEL stand for?
Political Economics Social Technological Environment Legal
quality is…
the key features of a product to satisfy customer needs
what is speed of response?
the time taken for a customer requirement to be fulfilled
define flexibility
the ability of a business to change its operations- often a response to customer needs or internal or external factors
what’s dependability?
the consistency of the quality of the goods and punctuality of its delivery
what’s an environmental objective?
the extent to which a firm considers the environmental impact of its operational activities
define adding value
the process of increasing the value of resources by transforming or modifying them- e.g. making finished goods from raw materials
what is labour intensive?
when the operations process uses a high proportion of labour in production compared to the amount of capital equipment used
what is capital intensive?
when the operations process uses a high proportion of capital equipment in production compared to the amount of labour used
what’s operations management?
the process that uses an organisations resource to provide the right goods and services to customers are the activities
what are 3 internal factors of operational objectives?
- marketing
- factors
- human resources
name 5 external factors of operational objectives
- political/legal
- economic
- social
- technological
- competitive
name 3 ways to add value
- obtain a prestigious address
- offer short delivery time
- use low cost materials when not visible to customers
