Flexibility Flexible operations are operations that can configure the product lines to deal with various requirements and to also adjust these product lines quickly to new requirements. Cost increase productivity, Cost is not only increasing the overall profitability of the firm, but it can also improve the productivity by Importance of five objective quality speed dependbility flexibility and cost better use of the inputs to the operations to get better output like making use of the waste to deliver other products or tools which will cut out the overall waste of the operations.
The more enhanced operations cycles, the faster the firm can respond, the higher customer satisfaction then the more likely they will buy again.
A company should be able to produce different quality product varieties and also adapt its operations to suit different market conditions and delivery schedules.
Speed Speed as an operations objective reflects how fast the firm can respond to customer requests. Let us consider the net income or loss of the company. Cisco is doing well when it comes to flexibility. What Are Operational Performance Objectives?
This objective will be concerned with such issues as the time that it takes to manufacture and process one or more products of the company or the time that it takes to research a new product and develop it. The aim is to speed up response, ensure dependability of delivery, and reduce costs through minimizing total inventory across the whole system Fowler, Speed reduces inventory, Fast operations cycles reduce the time between customer request and product delivery and hence increase the overall revenue of the firm.
You may have a situation in which your net income is increasing, but so are the operating expenses; or, the gross profit stays the same, year in and year out, but the operating expenses steadily increase.
This is determined by subtracting the operating expenses from the gross profit. Operational performance objectives are the areas of operational performance that a company tries to improve, in a bid to meet its corporate strategy. Quality Typically, quality is considered to measure how well a product conforms to certain specifications.
Cost The lower the cost of operations, the lower the price that can be given for the product or the higher profit if no price competition is in place.
In all cases cost is affected by dependability. And hence two points should be taken into consideration: Flexibility Flexibility as an operations objective means how the firm can change or adapt its operations to provide the following: Figure 1 shows the interactions between the above five performance objectives and how cost is influenced by other objectives.
Is reflecting the time between the customer request and product or service delivery. Cisco has TAC Technical Assistance Center team who support customers in troubleshooting as well as new deployment support.
The latter is also closely related to the speed objective. Dependability This operational performance objective measures how dependable the company is when it comes to timely delivery of products to its customers, in accordance with planned prices and costs.
Dependability reduces cost, Additional costs might apply when an item is not delivered on time, the firm either quickly request this item with higher price, or it will delay the production which will affect the revenue.
Introducing Operations Management There are many definitions for Operation Management, however one of them is: Products that feature a greater variety tend to sport lower volumes and higher unit costs and vice versa. After defining its corporate strategy, a company will identify the relevant operational performance objectives to measure and configure the environment, to enable the objectives to be accomplished.
Is reflecting whether the business can deliver product or service that was promised to the customer.
This is where operational performance comes in. Cisco Systems shipped its first product in and is now a multi-national corporation, with over 72, employees in more than countries. These are both bad scenarios, and can easily be missed by focusing only on the gross and net incomes of a business.
Ultimately, this affects the price of the product, the costs of producing it, and the profits to be obtained from that product. The operating expenses consist of the selling expenses, the administrative expenses, and other miscellaneous expenses.
Quality reduces costs, a firm that make a mistake in a product or deliver inaccurate service, will pay extra money and time to correct its mistake. Costs This objective looks at how much variation there is in the unit cost of a product as measured by changes in a variety of factors, including the volume and the variety of the products.
Customers have flexibility in requesting bundled products and services with good discount, they also have flexibility in choosing the shipment date whether to be delayed or flagged as urgent.
All of these are relevant measures of quality. Today, Cisco solutions are the networking foundations for service providers, small to medium business and enterprise customers which includes corporations, government agencies, utilities and educational institutions.
Dependability Dependability or sometimes referred as Reliability is reflecting whether the firm can deliver its products or services on the exact time when they were needed by the customer or at least when they were promised by the firm. Is the measure by which it is said that the product or service is meeting customer expectation.
She also studied business in college. In the case of Cisco, customers who receive malfunctioning products have the right to do free RMA Return Material Authorization where Cisco is responsible to pay the shipment fees as well as the new replacement hardware.Operations Management Objectives Cost Quality Speed Dependability And Flexibility.
Marketing & Service innovations 4. Operations and management improvement 5. Welfare and motivation to employees (b) implement any change in strategy; (10 marks) (c) develop his operation so that it drives the long-term strategy of the hotel.
Flexibility makes a business more competitive and allows them to serve customers more effectively 5 Performance Objectives Quality Speed Dependability Flexibility Cost ~ consistent conformance to customer expectations ~ Businesses must quantify quality by meeting specifications Standardization leads.
Operations Performance- COSTS, SPEED, FLEXIBILITY, QUALTIY and DEPENDABILITY - Transformation to Organizational Excellence Karin RheederOperations PerformanceIALMBA By.
Five generic performance objectives: quality, speed, dependability, flexibility and cost. These can be broken down into more detailed measures or aggregated into composite measure (e.g.
customer satisfaction). Five of the areas are important, i.e., quality, speed, dependability, flexibility and cost, are crucial success factors that management should concentrate on, to achieve competitive advantage in the ever challenging business environment.
Discuss the significance of all of the five operations performance objectives (quality, speed, dependability, flexibility and cost) to VBA’s activities and explain which of these you consider to be the most important to build into the design of VBA’s processes 2.
Cost. Cost is an important objective primarily to the company itself. The.Download