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Lecture 2 (Performance objectives (Dependability (Saves time- Prevents…
Lecture 2
Performance objectives
Dependability
Saves time- Prevents late delivery slowing down throughput speed. Prevents lateness causing disruption and wasted time and effort
Gives stability -if everything is dependable, a level of trust will build up between different parts of operations. (predictable, no surprises)
Flexibility
Product (modified products) Mix (wide range of products) volume (change its level of output) delivery (change timing of delivery)
Why is it important
Saves time- (hospital example, individual needs, flexible facilities)
Speeds up response- (hospital, can cope with a sudden influx of patients)
Speed
Reduces inventories- the longer items take to move though a process, the more time they will be waiting= higher inventory
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Cost
If competing on price, the lower the price of producing goods the lower the price can be to customers
Quality
Quality increases dependability - e.g. goods run out on the supermarket shelves results in loss in revenue and irritating customers
Reduces costs - the fewer mistakes made by each process in the operation the less time will be needed to correct mistakes and less confusion and irritation
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Top-down/bottom-up
Bottom-up strategies companies may make strategic decisions (guides) based on experience of proving products and services to customers at operational level
Top-down strategies guides the business in relation to its customers, markets and competitors, also the strategy of the corporate group