Understanding operational objectives

Understanding operational objectives

  • Created by: Natasha
  • Created on: 14-01-10 18:34

Understanding operational objectives

an operations management hierarchy

the operations management like all other functional areas ave a hierarchy of aims, objectives and tactics:

  • corporate aims
  • corporate objectives
  • operational aims
  • operational objectives
  • operational strategies
  • operational tactcs

types of operational objectives

  • quality circles
    • customer satisfaction
    • customer complaints
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    • scrap rates (%)
    • punctuality = deliveries on time
      • total deliveries x 100
  • cost targets
    • reducing unit costs
    • reducing fixed costs
    • reducing variable costs per unit
  • volume target
    • number of items to be produced
    • targets in individual markets
    • percentage growth targets
    • volume in comparison to other branches or organisations
  • innovation
    • spending a certain amount on R & D
    • targeting R&D expenditure as a % of sales
    • developing a particular innovation
    • innovation to extend product ranges
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  • efficiency
    • output per hour
    • reducing stock holding
    • just in time delivery
    • speed of response and action objectives
    • labour productivity=output
      • number of workers employed
  • environmental target
    • reducing water pollution by a certain level of %
    • reducing the business's carbon fottprint or reducing carbon dioxide emissions
    • reducing noise levels
    • reducing the use of energy
    • minimising waste products or materials
    • increasing levels of recycling
    • making products that can be easily and largely recycled
    • achieving self sufficiency in energy use
    • replacing extracted or used resources
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reasons for setting operations management objectives

  • to act as a focus for decision making and effort
  • to provide a yardstick against whichsuccess or failure can be measured
  • to improve coordination, by giving teams and departments a common purpose
  • to improve efficiency, by examining the reasons for success and failure in different areas

internal influences on operations management objectives

  • corporate objectives
  • finance
  • HR
  • resources available
  • the nature of the product
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external influence on operations management objectives

  • market factors
  • competitors and performance
  • technological change
  • economic factors
  • legal factors
  • environmental factors
  • suppliers
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gareth lloyd


Uttererly ******* useless. this is not a teaching resourse. Is this site genuine?

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