4.1a Understanding Operational Objectives Flashcards Preview

Business Studies AS > 4.1a Understanding Operational Objectives > Flashcards

Flashcards in 4.1a Understanding Operational Objectives Deck (12):
1

Operations management definition

Process that uses the resources of an organisation to provide the right goods or service for the customer

2

Operational objectives definition

Objectives of the operations management function within an organisation

3

Unit cost definition

The cost of producing one unit of output

4

Unit cost formula

Unit cost = total cost ÷ units of output

5

Quality definition

Features of a product or service that allow it to satisfy customers

6

Quality is important because

- Markets are more competitive
- Customers are more knowledgeable and demanding
- Information about poor quality can be shared easily

7

Quality targets

- Have a low defect rate
- Customer satisfaction
- Low amount of customer complaints

8

Speed of response definition

Time taken for a customer requirement to be fulfilled.

9

Efficiency and flexibility targets

- Labour productivity
- Output per time period
- Capacity utilisation

10

Adding value definition

Process of increasing the worth of resources by modifying them

11

Ways value can be added

- Transformation of various components
- USP
- Building a brand

12

Advantages of adding value

- Higher price can be charged
- Protection against competitors offering lower prices
- Focuses business on its target market segment

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