Buss3-11-Understanding Operational Objectives

Front 1

Operations Management Aims:

Back 1

Broad, general goals of the operations management function within an organisation.

Front 2

Operations management objectives:

Back 2

Specific focused targets of the operations management function within an organisation

Front 3

Operations management Strategies:

Back 3

Long-term or medium-term plans, devised at senior management level, and designed to achieve the firms operations management objective.

Front 4

Operations Management Tactics:

Back 4

Short-term operations management measures adopted to meet the needs of a short-term threat or opportunity.

Front 5

Quality Targets:

Back 5

Customer Satisfaction ratings:a survey can reveal quantitative and qualitative factors.
Customer Complaints:Compare quality of different brances or departments.
Scrap Rates:Items rejected as a % of items produced.
Punctuality:Products delivered on time.

Front 6

Cost targets:

Back 6

Reduce unit costs:low unit costs = either low prices or higher profit margins at same prices.
Reducing fixed costs:A more specific focus and is easier to achieve than unit cost reduction.
Reducing Variable costs per unit:Find cheaper manufacturers and improve labour poductivity.

Front 7

Volume Targets:

Back 7

Number of items to be produced.
Targets in individula markets.
% growth targets:% growth in output, this can vary between different departments.
Volumes compared to branches and competitors:must set volume targets relative to these factors.

Front 8

Efficiency:

Back 8

Labour productivity:Increased figure= increased productivity and efficieny.
Output per hour:Compare tis to competitors to see is efficiency maintained or improved.
Reduced Stockholding:Reduce high stock levels from warehouses.
Just-in-time:Usually deliver with 1 day hours of request.
Speed of response and action objectives: Speed of response e.g telephone or email ASAP.

Front 9

Innovation:

Back 9

Research and development.
Research and development expenditure as a % of sales.
Number of patents.
Developing paticular innovation:based on objectives.
To extend product ranges:On new styles and brands.

Front 10

Enviormental

Back 10

Reduce water pollution and noise levels
Reduce energy levls and wastage and increase recycling.

Front 11

Reasons for operations objectives

Back 11

Focus for decision making and effort.
Improve coordination by giving a purpose.
Improve efficiency by identifying success and failure.

Front 12

Internal Influences on operations management objectives

Back 12

Corporate objectives: Must be consistent.
Finance:based on budget for capital equipment and research and development.
HR:Skills, training and motivation.
Avaliable resources:Equipement and a good reputation=high qaulity products that are cost effective.
Nature of product.

Front 13

External influences on operational objectives

Back 13

Market:State of the market(Good or Bad).
Competitors actions:Introduce new products that have been successful for a competitor.
Technology:Affects quality of products and increase productivity and reduce wastage.
Economic:Increase in interst rates can increase costs and reduce sales levels.
Political:Legislations and red tape.
Legal:health and safety risks.
Enviormental:Ristrictions on raw materials.
Suppliers:Ensure flexibility, high quality and low cost materials.