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13 Cards in this Set
- Front
- Back
Operations Management Aims:
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Broad, general goals of the operations management function within an organisation.
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Operations management objectives:
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Specific focused targets of the operations management function within an organisation
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Operations management Strategies:
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Long-term or medium-term plans, devised at senior management level, and designed to achieve the firms operations management objective.
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Operations Management Tactics:
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Short-term operations management measures adopted to meet the needs of a short-term threat or opportunity.
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Quality Targets:
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Customer Satisfaction ratings:a survey can reveal quantitative and qualitative factors.
Customer Complaints:Compare quality of different brances or departments. Scrap Rates:Items rejected as a % of items produced. Punctuality:Products delivered on time. |
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Cost targets:
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Reduce unit costs:low unit costs = either low prices or higher profit margins at same prices.
Reducing fixed costs:A more specific focus and is easier to achieve than unit cost reduction. Reducing Variable costs per unit:Find cheaper manufacturers and improve labour poductivity. |
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Volume Targets:
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Number of items to be produced.
Targets in individula markets. % growth targets:% growth in output, this can vary between different departments. Volumes compared to branches and competitors:must set volume targets relative to these factors. |
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Efficiency:
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Labour productivity:Increased figure= increased productivity and efficieny.
Output per hour:Compare tis to competitors to see is efficiency maintained or improved. Reduced Stockholding:Reduce high stock levels from warehouses. Just-in-time:Usually deliver with 1 day hours of request. Speed of response and action objectives: Speed of response e.g telephone or email ASAP. |
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Innovation:
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Research and development.
Research and development expenditure as a % of sales. Number of patents. Developing paticular innovation:based on objectives. To extend product ranges:On new styles and brands. |
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Enviormental
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Reduce water pollution and noise levels
Reduce energy levls and wastage and increase recycling. |
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Reasons for operations objectives
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Focus for decision making and effort.
Improve coordination by giving a purpose. Improve efficiency by identifying success and failure. |
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Internal Influences on operations management objectives
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Corporate objectives: Must be consistent.
Finance:based on budget for capital equipment and research and development. HR:Skills, training and motivation. Avaliable resources:Equipement and a good reputation=high qaulity products that are cost effective. Nature of product. |
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External influences on operational objectives
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Market:State of the market(Good or Bad).
Competitors actions:Introduce new products that have been successful for a competitor. Technology:Affects quality of products and increase productivity and reduce wastage. Economic:Increase in interst rates can increase costs and reduce sales levels. Political:Legislations and red tape. Legal:health and safety risks. Enviormental:Ristrictions on raw materials. Suppliers:Ensure flexibility, high quality and low cost materials. |