Business Studies: Operations Management Aims

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Business Studies – REV
Operations management aims - these are the broad general goals of the operations management functions of an organisation. Operations management objectives: Specific focused targets of the operations functions within an organisation. Operations management strategies: Long term or short term plans devised at senior level designed in order to achieve the firm’s operations management objectives. Operations management tactics – short-term measures adopted to meet the needs of a short-term threat or opportunity. Quality Targets: Customer satisfaction. Customer complaints: compare quality of different branches or departments. Punctuality: products delivered on time. Cost targets – reduce unit costs: low unit costs = low prices or possible higher profit margins. Reducing fixed costs – A more specific focus and is easier to achieve in comparison to reduce unit costs. Reduce variable costs - find cheaper manufacturers and increase labour productivity. Volume targets – number of items to be produced. Volumes compared to other branches and competitors. The volume targets must be set in relation to these factors. Efficiency – an increase in possible labour productivity. Output per hour, compare this to competitors in order to gather how efficient they are. Just in time – usually deliver within one day of the request. Innovation – initial research and development. Number of patents…etc. Environmental – Reduce water pollution and noise levels. Decrease energy levels and wastage. Increase recycling. Operations management objective reasons: Focus for decision-making and effort. Improve coordination by giving a purpose. Improving efficiency by identifying success and failure. Internal influences on operational objectives: Corporate objectives: must be consistent. HR: skills, training and motivation. Available resources: equipment and a good reputation = high quality products that are cost effective. Nature of the product.
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