Business Studies: Operations Management Aims
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
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