Performance Objectives

What are Operations Strategies?

• Operations Strategies: Effective plans for resource utilisation to achieve business objectives.
• Enhance competitive edge and ensure sustainability.
• Relevant in manufacturing and service sectors, such as efficiently using textbooks and computers in an educational setting.

Aligning with Business Goals

• Importance: Operations strategies should align with the company's vision and objectives to maximise effectiveness.
  • Aligned strategies enhance efficiency and profitability.
  • Misaligned strategies can result in inefficiencies and losses.

Alignment	Outcome Example	Impact on Business
Aligned	Efficient resource use to meet demand	Increased profitability
Misaligned	Overproduction leading to waste	Financial losses

Example: A firm prioritising sustainability aligns its operations strategy to minimise waste, thereby preventing losses from excess inventory.

Relationship with Performance Objectives

• Influence: Operations strategies have a direct impact on quality, speed, and dependability.

Example: Adopting new technology can enhance production speed, thus decreasing delivery times, similar to how new learning tools can improve student project completion.

Performance Objectives Overview

Definition and Role

• Performance Objectives: Quantifiable targets that businesses aim to achieve to enhance operational success.
• Crucial for attaining operational efficiency and competitiveness.

Example in Action

• A technology startup sets performance objectives to double its customer base within one year.

The Six Key Performance Objectives

• Quality: Providing products or services that meet or surpass customer expectations.
• Speed: Duration required to deliver products or services.
• Dependability: Consistency and reliability in operations.
• Flexibility: Ability to adapt to changes in the environment or consumer demand.
• Customisation: Adapting products or services to suit specific customer needs.
• Cost: Sensible management of expenses to ensure competitive pricing.

Influence on Operational Strategies

• Performance objectives guide business decisions and strategic directions, steering operational efficiency.

The Influence of Specific Performance Objectives

Quality

Quality: Ensures operational procedures produce outputs that meet or exceed expectations, enhancing customer satisfaction and loyalty.

Performance Objective	Impact of Quality
Speed	Consistent operations reduce delays.
Cost	Less waste results in lower expenses.
Dependability	Reliability strengthens customer trust.

Techniques for Quality Assurance

• Total Quality Management (TQM): A continuous improvement strategy focusing on quality.
• Quality Control (QC) & Quality Assurance (QA): Maintain ongoing product and process quality.

Speed

Speed: The time frame in which products or services are delivered to customers.

• Competitive Advantage: Faster delivery sets a business apart from its competitors.
• Techniques:
  • Just-in-Time (JIT): Aims to reduce waste and enhance efficiency by ordering goods only when needed.
  • Lean Manufacturing: Concentrates on eliminating waste without sacrificing productivity.

Dependability

• Dependability: Consistent delivery of reliable products and services.
• Strategies:
  • Supply Chain Management: Employs agile methods for consistent delivery.
  • Technology Utilisation: Uses predictive analytics for proactive issue resolution.

Flexibility

• Flexibility: The capacity to adjust to market changes and consumer demands.
• Types:
  • Product Flexibility: Ability to quickly modify or introduce new products.
  • Volume Flexibility: Efficiently respond to demand changes.
  • Process Flexibility: Seamlessly adapt operational processes.

Customisation

• Customisation: Personalisation of products or services to satisfy individual customer requirements.
• Strategies:
  • Mass Customisation: Efficient production of tailored goods.
  • Technology's Role: Use of 3D printing and digital platforms.

Cost

• Cost Minimisation: A fundamental principle in operational efficiency.
• Cost Management: Entails controlling expenses and optimising resources.

Techniques and Evaluation for Performance Management

Evaluating Performance Objectives

• Purpose: Evaluation ensures strategies align with business goals, enhancing efficiency and effectiveness.
• Key Metrics and Tools:
  • Key Performance Indicators (KPIs) assess business achievement.
  • Examples of KPIs: Revenue Growth, Customer Satisfaction.

Exam Tips

• Prepare to examine how each KPI influences overall strategy and specific departments.
• Regular feedback loops are essential for continuous improvement.
• Conduct quarterly KPI reviews for strategy adjustments as needed.