topic 4- operations Flashcards
what are the operational objectives ?
cost
quality
speed of response
flexibility
dependability
environmental
efficiency
added value
what is an operational objective ?
targets that are set for production
- helps the company achieve an overall goal
what can operational objectives help measure ?
the performance of production
- as if objectives met then a good performance
what is quality as an operational objective ?
either improving or maintaining quality
what is cost as an operational objective ?
to reduce costs
- can be done w reducing fixed or variable costs
- like delayering
what is flexibility as an operational objective ?
the business should be able to adapt and react to the change in customers wants and needs
what is efficiency as an operational objective ?
better use of resources
- done by increase capacity utilisation and labour productivity
what is environment as an operational objective ?
reduce carbon emissions and use recycled materials
- pressure to do this comes from customers and the government
what is speed of response as an operational objective ?
customers don’t like to wait for the production time so being able to do it quickly
what is dependability as an operation objective ?
-the customers depend on the business for there goods or services
-whilst business depend on the supplier for there supplies
what is added value as an operational objective ?
add the extra value when the business transforms the raw materials into the final product
what does added value usually increase ?
profits
how can you achieve added value ?
increasing the selling price
reducing costs of raw materials
what do customers pay more for ?
quality of a product
what is capacity ?
the maximum output that it can produce in a given period without buying more fixed assets
