Operational management- making operational decisions 0.0 / 5 ? Business StudiesOperations managementASAQA Created by: DivyaCreated on: 07-05-13 18:27 Operational targets These are specific and usually measurable objectives set for each operations activity of a business 1 of 11 Capacity the maximum output that a firm can produce with existing resources 2 of 11 Capacity utilisation this is the proportion that current output is of full capacity output. Actual output /maximum output x100 3 of 11 Unit costs is the average cost per unit of output. Total costs/output 4 of 11 Excess capacity when a business has greater production capacity than is likely to be used in the foreseeable future 5 of 11 Overtime staff working beyond their contracted hours in exchange for a higher hourly wage 6 of 11 Temporary staff workers employed for a fixed period of time after which the employment contract may not be renewed 7 of 11 Part time staff workers employed on a less than full weekly hours contract e.g.15 hours a week 8 of 11 stocks material or finished goods held by a firm as needed to supply customers demand 9 of 11 sub-contracting using a supplier to manufacture part or all of the firms product or service 10 of 11 rationalisation reorganising resources to cut costs- often leading to cut back in capacity 11 of 11
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