3.4.1 Setting operational objectives Flashcards
what is operations
management refers to the managing of the process that converts inputs to outputs
normally made of a series of smaller operations or processes
what is the process of operational objectives
transforms resources into goods and or services
what is a good
a tangible product
a car
what is a service
intangible
car wash, haircut etc
what does operations management decide
level of output
range of products
level of customer service
labour intensive or capital intensive
how to provide good
outsourcing vs business
what is a supply chain
a series of activities involved in turning the initial resources into the final product
what is a cost objective
reduce unit costs
reduce fixed costs
what is average cost equation
average cost = total costs / number of units
what are quality objectives
operations work with marketing to decide what customers want
better quality improves competitiveness
customer satisfaction
level of production
what is punctuality equation
(deliveries on time/ total deliveries) x100 = punctuality
what is the operations process
inputs- land, capital, labour, enterprise
transformation process
outputs- goods and services
what are stages in the production process
raw materials
manufacturing
transportation
retail
disposal/ recycling
what are speed of response objectives
business may compete by providing their goods or services faster than their competition
lead times
pricing effects
order to delivery
what are flexibility objectives
product- ability to switch from one to another
volume- change level of output
mix- wide range of alternatives
delivery- adapt to change in time and volume quickly
what are dependability objectives
refers to the ability of a business to deliver reliably on time
quality
punctuality
durability
what are environmental objectives
reduce carbon footprint
minimising waste
recycling
transport efficiency
renewable resources
more recycling
what are types of organisations
gathering, analysing and distributing info
adoring and transporting products
transforming people
producing goods
bring products and customer together
how can add value objectives link to inputs
processed into outputs with hopefully added value
how can added value objectives link to raw materials
used to but capital equipment and labour remain for use again
how can added value objectives link to the tertiary sector
service make up the output. more labour intensive. secondary capital intensive
what are outputs classified as
natural resources, semi finished, and finished goods or services
what is the added value equation
added value = selling price - cost of production
what is added value
any thing else you can add to a product to charge for
a USP and food marketing mix is effective
what is the relative importance of operational objectives
varies from product to product
depends on target market and customers requirements
how managers want the business to compete
