4.1 Setting operational objectives

Question 1

Operations function

Answer 1

Function of the business that is responsible for the actual production of a good/ service.

Question 2

Added Value

Answer 2

Amount added to the value of a product or service, equal to the difference between its cost and the amount received when it is sold.

Question 3

Examples of operational objectives

Answer 3

• Costs
• Quality
• Speed of response and flexibility
• Dependability
• Environmental objectives

Question 4

External influences on operational objectives

Answer 4

• Political and legal influences
• Economic influences
• Technological influences
• Competitive influences

Question 5

Economic cycle

Answer 5

Natural fluctuation of the economy between periods of expansion and contraction (growth and recession).

Question 6

Internal influences on operational objectives

Answer 6

• Finance
• Marketing
• Human Resources