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OPERATIONS STRATEGY (Performance Objectives (Quality (High quality needs…
OPERATIONS STRATEGY
Strategic decisions and actions that set the role, objectives and activities of the operation
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In short term infrastructure must be managed to meet market demand. In long term, infrastructure must be configured to fit anticipated market changes
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Performance Objectives
Quality
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Sometimes, quality much be precise every time
(conformance quality)
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Dependability
Focuses on keeping promises, mainly relating to delivery
Not to be confused with quality, dependability is logistics operations
Cost
Influenced by overheads, capital, market demand, cost of equipement etc
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Performance Trade-offs
Operations cant be good at everything
i.e. lowest cost, fastest time, highest quality etc
When decisions are being made, trade offs must occur
e.g, quality for price
When trade offs occur, the impact should be realised
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