Topic 4 - Operational Decisions Flashcards
What Are Operational Objectives?
The targets a business sets in order to produce goods and services in the most effective way possible.
What Can Operational Objectives Relate To?
A number of measures of efficiency.
What Does Setting Operational Objectives Help A Business Achieve?
It overall business objectives.
What Is Operations Management?
Is concerned with those aspects of the business which are directly linked to the fulfilment of customer orders.
What Does The Operations Management Do With Inputs?
Inputs are processed to form an output and then distributed to the customer.
What Is Efficiency?
Maximising production, whilst minimising waste.
What Is The Performance Of The Production Process Reviewed And Assessed On?
Its ability to meet operational objectives.
What Are The 7 Operational Objectives?
~ Quality
~ Costs
~ Speed of response
~ Flexibility
~ Dependability
~ Environmental objectives
~ Added value
What Is The Operational Objective Of Quality?
The quality of raw materials, processes, outputs and customer service need to match the customer requirements.
What Is The Operational Objective Of Cost?
The cost of each individual product or service supplied, which is directly linked to selling price and profit.
What Kind Of Costs Could The Firm Cut?
~ Fixed
~ Variable
What Is The Operational Objective Of Speed Of Response?
The speed at which a business can operate is important.
How Can We Achieve The Operational Objective Of Speed Of Response?
~ Decreasing the production time of the product
~ Decreasing the waiting time for customers
~ Getting new products to market more quickly
What Other Objective Is The Speed Of Response Closely Related To?
The businesses efficiency objectives.
