3.4.1 Setting operational objectives

All firms concerned w/ keeping costs down - especially those that compete on price.

Affect what is charged to customer + therefore profits generated. During period of economic downturn, ability to make further cost reductions can mean difference between survival + failute. 

Determined by efficiency of business - can be measured eg by wastage rates/productivity of workforce

About getting things 'right' by meeting/beating customer expectations repeatedly. Crucial role to play in guaranteeing customer satisfaction. 

Firms should aim to produce good/services 'fit for purpose' + create sense of dependability by ensuring products ready when customer's expect them. Failure to do this -> customer dissatisfaction - could send customers to competition.

High degree quality + dependability also required w/ organisation. 

Managers need to ensure quality standards met - need so sync production so products pass from one stage to next. Help reduce production time + costs - goods ready to dispatch to customers sooner

Operations that save time for customer can be very successful eg pizza delivery. 

Time-based management important to firms in product development. Firm 1st to market able to charge higher prices than slower rivals. 

Also important w/in business - faster items pass through production process, lower costs of warehousing materials etc.

Need to be able to vary volume of production easily to respond effectively to unexpected increases/decreases in demand.

Ability to adapt/modify allows firm to appear to be offering customised products that meet customer needs more precisely, but still benefit from high-volume production, keeping costs down.

Flexible approach to production form of lean production.

Valuable quality in supplier. Would be worth paying slightly higher prices to buy wholly reliable supplier who supplies correct number of correct number of correct times on time + to right quality standard.

If delivery late, shelves empty, customers irritated.

Annual reports from consumer-facing plcs may inc environmental objs (usually achievements rather than objs). Problem w/ achievements is they're self-selected, picking only good parts.

Adoption of environmental objs by firm - number of implications:
 - may mean business will need to change supplies of materials to those that come from recycled sources. 
 - staff will need appropriate training to ensure these policies achieve their objectives

To be sustainable in LT added value needed. Process of turning materials/ideas into finished product/service must make selling price higher than all costs.

From profit business needs to reinvest in new tech/higher capacity. Firm must have added value as key underlying objective.

Nature of product - product at heart of any firm's operations, so nature affects op obj eg car manufacturers such as BMW have long-established reputation for high standards of quality - taken into account when developing new models

Personal characteristic of operations director - objectives will differ depending on preferences of boss. Eg James Dyson will ensure any operations directo knows innovagiton primary goal w/in business. In plcs eg Unilever, w/ less dominant CE, will be preferences of operations director that matter.

Demand - level + nature of deman acts as influence. Business must attempt to predict sales volumes + any likely fluctuations to ensure customer expectations met in cost-effective way.

Availability of resources - lack of availability can act as constraint. Eg, skills shortages in industries in UK, inc health care -> reliance on workers from abroad. Shortage of financial resources act as constrain on achievement of op obj.

Competitors' behaviour - Rival firms strive to increase market share + activities likely to have major influence on op obj