UNIT 4 OPERATIONS - SETTING OP OBJECTIVES Flashcards
What are operations responsible for
actual production of a g/s
operations invovles managing the process f transforming inputs into
outputs
important concept in transformation is
added value
whats added value
amount added to the value of a p/s
equal to teh difference between its cosst ad the amoiunt recieved wehn its sold
its not only operations that can add value how can mkting add valu
create greater nramd awarenss and a usp which will add val it erms of highe rselling price
what are teh 5 operatoinal objectives
reduced unit costs
environmental objectives
dependability
speed of repsonse and flexibility
quality targets
operational objectives have to fit wih the overall
corporate objectives
operational objectives must be
SMART
by being SMART operational objectives can be used to
evaluate and judge the overall performance of operations managment
reducing /costs refer to
3 thigns
unit costs
fixed cost
productvity and efficiency
why do we want to reduce costs
3 reasons
keeping em down means bs pass savigs onto consumers
increase profit margins (assuming keep price same)
can allow for higher dividends
increasing profits from reduced costs means we can do what 4 things
retain 4 emergency/sof
incentivise employees
increase output/capacity
invest into capital /labour for efficiceny
how can we reduce unit costs
greatwer capapcity utilisarion
imporved prodcutivity
better supplier terms
what does quality relate to
expectations of a p/s
what are the quality targets we can aim for
5
better products
greater reliability
lower wastage
lower returns
lower complaints
why do we want better quality
in terms of customer satisfactoin
higher customer satiscation
in teh long term leads to increased reputation for a product
which can increase brand loyalty
and you can reduce your PED which means can icnrease price and revenye
higher quality products measn you attract a certain calibre of custoemr - wahts the benefit
higher quality customers
who prepared to pay more for the beenftits
how can we improve quality
increasing quality control and assurance
what is speed of repsonse
how quickly a busiess can fulfill orders and queries
what is flexibility
speed you adapt to customers changing meeds
give examples of speed of repsones
only a certain time you let customers be on hold
what does flexiblity relate to - example wise
3 things
could be adpatation for existing products
how quick you can change output to deal with troughs and peaks ind demand
how quick you can change range/choice of products e.g if blue trends how quick can you make a product thats vogue for the time
overall int erms of speed and flexiblity - businesses that act quick and efficient to customers needs beenfit from
increased sales and profit
depenabiity means
do customers get what they want
the more depednable you are as a busienss
the more popular if you are esp if better than comp
what do environmental objectives mean
consideration for community they operate in
nowadays cinsumrs are awa reof effect of enviro how does thi simpat bs
most follow CSR dicatcted by gov/consumers that deamdn it
how does environmental obj save firms money
reduced waste and lowering of bills
beng environmentally friendly creates and image for the bs as a
reputable brand consumers feel good aoubt getting behind/supporting
in terms of quality how can it affect my rpoduct portfolio
if one product percieved as bad quality youre whole portfolio could be tainted meaning have to lwoer cost to stir up demand
and greater marketing efforts - may put pressure on costs as if not getting sales how are you gona pay ? - may have to take SOF out
what may our environemntla obj be
minimising packaging
minimising waste
sustainability
pollution control
what are the internal influences
marekting
hr
finance
corp obj
exlain how mkting affect op obj
2 points
nature of product or service : whats expected/main selling point
this wukk affect what op obj is most importnt
e.g rolls royce premium luxury - quality obj is most important
if regualr changes to mkting mix esespech product - may put starin on operations if relativley inflexible
explain how HR affect op onj
quality and capacity of workforce determine quality and ouptut of operaion
goals relating to productivity affected by investment in trainng
skills of workforce determine
explain how finance affcets op obj
operational obj involves investmetn adn costs
so finacial state of business directly affects choies available/op descison making
e.g if wanna invest in new production tech to increase higher quality cant do that w/o finacne
how does corp obj affect operations
op obj have to align
e.g if corp obj is to icnrease quality cant fo lower unit costs
means some obj cant be a thinf
what are the external influences
competitiors
economic enviro
tech change
legal/enviro change
how does legal / enviro change afffect op
regulation and legislation of enviro place challenges on op obj
may have to focus on higher quality goods or profucing in ways that minimise impact on enviro
health and safety
how does econmic enviro affect op obbj
op dpt needs ot be preapred for and repsond to changes in economy as demand wil fluctuagte according to stages of econ cycle
explain how technological influences impact op obj 2 ways
impacted operation in production and way consumers purchase g/s
explain how op obj have been influence dby tech influences
CAD and CAM has resulted in speedier innovation and better quality ( more capacity utilissation and efficiency)
explain how op obj have been influencd in terms of way customers purchase good and serices
use of comparison and review sites means consumers more aware and demanding in terms of price quality and customer service (increase quality and dependability)
explain how competitive influence sinfleunce operational descision making
mkts become more comp at home and overseas
so more pressure on bs in terms of costs , quality and price
theres greater wawreness among vonsumers so increasing presure on op to take its part in maintianign consuemr loylaty
