Operational Strategies
- Created by: Maria-Elianna Constantinou
- Created on: 21-05-13 14:22
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- Operational Strategies
- Operational objectives are the targets pursued by the operations department of a business
- Quality is an important operational target and may encompass minimising faults and implementing quality standards
- Other operational targets include innovation, increasing efficiency and protecting the environment
- Internal influences on operational objectives include the businesses finanial position and corporate objectives
- Economies of scale benefit businesses by reducing unit costs as output rises, allowing price reductions without reducing profit margins
- Firms choose a mix of resources to use in production and may not opt to be labour intensive or to rely on capital (Capital intensive)
- Innovation is the development of new ideas and their conversion into sucessful products and processes.
- The location of a business depends on a variety of factors, including availability of supplies, transport links and proximity to markets.
- Most businesses seek the lowest cost location and increasingly this involves multi site locations, often in a number of countries
- Lean production encompasses a range of processes designed to use fewer resources
- Simultaneous engineering
- Just in time
- Critical Path Analysis
- CPA is a planning technique that allows businesses to complete complex projects as quickly as possible
- The weaknesses of CPA is its reliance on estimates of time durations which are difficult to forecast
- JIT manufacturing is a philosophy based on eliminating waste and uses minimal resources to satisfy demand.
- Kaizen means continuous improvement. Its successful use can improve productivity levels and a businesses competitivness
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