Performance Objectives

Quality
D: How well a product is made/how well a service is delivered.
How it's measured: Quality of design, performance and service.
Example: Sony vs Teac

Speed
D: The time it takes to make a product and the time it takes for production and operation processes to respond to changes in market demand
How it's measured: Wait times, lead times, processing times
Example: Hilux lead time - 6 months

Dependability
D: How consistent and reliable a business's products are. Highly durable = dependable
How it's measured: How long the product lasts / warranties help measure this as products are always dependable if they last as long as promises.
Example: McDonald's- same products everywhere (mainly) and a refund if the wait is too long.

Flexibility
D: How quickly the operations sector can adjust to changes in the market.
How it's measured: How well they can change for demand in a period of time.
Example: A sudden increase in demand can cause pressure on capacity.

Customisation
D: Creation of individualised products to meet the specific needs of the customers.
How it's measured: Is it meeting the needs of the customers?
Example: Restaurants customising their meals for specific orders to please customers.

Cost
D: Minimisation of expenses so the process is as cheap as possible.
How it's measured: Cost determines price, higher efficiency means lower costs.
Example: KPI's on product cost and revenue.

	Created by shaycrystal4 over 10 years ago

	Copied to Note by shaycrystal4 over 10 years ago

Business Studies (Operations) Note on Operations Strategies - created from Mind Map, created by shaycrystal4 on 09/03/2014.