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Operations Strategies Part 1 (Performance Objectives are the goals that…
Operations
Strategies
Part 1
Performance Objectives
are the goals that relate to particular aspects of the transformation function and can be allocated to particular KPI's in the areas of:
Quality
Design:
How well a good is made or a service is delivered
Conformance:
how well the good or service meets its prescribed design and certain specification.
Service
how reliable, suitable and timely the service delivery is.
Speed
the time is takes for the production and operations processes to respond to changes in the market demand.
Dependability
how consistent and reliable businesses goods and services are
Flexibility
how quickly operations processes can adjust to changes in the market
Customisation
the creation of individualised goods or services to meet the specific needs of the customers.
Cost
the minimisation of expenses so that operations processes are conducted as cheaply as possible.
New product or service design and development
two different approaches to design and development are: Consumer Preferences and Changes and Innovations in technology.
Important factors in new product design and development include: Quality, Supply chain management, capacity management and cost.
Service design and development differs from the design and development of products as services are intangible and 'consumed' as they are produced.
A service can be
Explicit
: the application of time, expertise, skill and effort. or
Implicit
- the feeling of being looked after.
Supply Chain Management
involves the management and flow of supplies throughout all input, transformation processes and outputs. There are three key aspects to SCM: Sourcing & Global sourcing, E-commerce and logistics.
Sourcing
in the context of SCM, it involves the purchasing of inputs for transformation processes. Global sourcing refers to where and how the supplies are sourced within the limitations of geography.
E-commerce
enables business to source through online links to suppliers through business to business (B2B) processes and also enables customers direct access to products through business to consumer (B2C) processes.
Logistics
refers to the physical distribution and transportation of products. The use of warehouses and distribution centers is crucial to the successful management and movement of inventories.
Outsourcing
involves taking to market those internal business processes and activities that can be done better and at lower cost when given to external vendors.
Advantages
: simplification, efficiency and cost savings, increased process capability, increased accountability, access to skill/ resources lacking within the business, provides capacity to focus on core competencies.
Disadvantages
cost and uncertainty associated with payback, issues with communication and language, loss of control of standards and information, loss of corporate memory and costs associated with IT, organisational chnage, redesign and management.
Technology
create a competitive advantage.
leading edge
most advanced and innovative at any one point in time. It creates products more efficiently at a higher standard, reduces waste, operate more effectively.
Established Technology:
widely accepted and used and helps establish basic standards of productivity and speed.