setting operational objectives Flashcards
what is operational management
- management of processes, activities and decisions relating to way goods and services are produced and delivered
4 types of operational objectives
- cost and volume
- quality
- efficiency and flexibility
- environmental
cost and volume objectives
-ensure operations = cost effective
quality
- markets = competitive
- reputation for high quality= advantage over its competitors
quality objectives, signs of quality
- scrap/defect rates= sign of poor quality
- customer satisfaction
efficiency and flexibility objectives
- ## how effectively assets of business are being utilised
environmental objectives
- customers , base buying decisions on businesses that take environmental responsibility seriously
innovation
- new idea/approach into action
invention v innovation
invention - formulation of new ideas for products or processes
innovation -
practical applications for new inventions
examples of invention and innovation
- first bike ever made v electric bike
types of innovation
- product innovation
- launching new or improved products onto market
process innovation
finding better ways of producing EXISTING products
benefits of PRODUCT innovation
- first mover advatange
e.g - higher prices and profit
- added value
-opportunity to build early customer loyalty
benefits of PROCESS innovation
reduced costs
- improved quality
- greater flexibility
internal influences on operational objectives
- finance
- human resources
- corporate objectives
external influences on operational objectives
technological change
- legal and environmental change
- competitors
