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1、Operations performance objectivesThis first point made in this section is that operations objectives are very broad. Operations management has an impact on the five broad categories of stakeholders in any organisation.

2、 Stakeholders is a broad term but is generally used to mean anybody who could have an interest in, or is affected by, the operation. The five groups are:? Customers - These are the most obvious people who will be affect

3、ed by any business. What the chapter goes on to call the five operations performance objectives apply primarily to this group of people.? Suppliers - Operations can have a major impact on suppliers, both on how they pr

4、osper themselves, and on how effective they are at supplying the operation.? Shareholders - Clearly, the better an operation is at producing goods and services, the more likely the whole business is to prosper and shar

5、eholders will be one of the major beneficiaries of this.? Employees - Similarly, employees will be generally better off if the company is prosperous; if only because they are more likely to be employed in the future. H

6、owever operations responsibilities to employees go far beyond this. It includes the general working conditions which are determined by the way the operation has been designed.? Society - Although often having no direct

7、 economic connection with the company, individuals and groups in society at large can be impacted by the way its operations managers behave. The most obvious example is in the environmental responsibility exhibited by

8、 operations managers.The five performance objectivesquality, speed, dependability, flexibility, and cost.QualityQuality is placed first in our list of performance objectives because many authorities believe it to be the

9、 most important. Certainly more has been written about it than almost any other operations performance objective over the last twenty years. As far as this introduction to the topic is concerned, quality is discussed l

10、argely in terms of it meaning 'conformance'. That is, the most basic definition of quality is that a product or service is as it is supposed to be. In other words, it conforms to its specifications.There are tw

11、o important points to remember when reading on quality as a performance objective.? The external affect of good quality within in operations is that the customers who 'consume' the operations products and servi

12、ces will have less (or nothing) to complain about. And if they have nothing to complain about they will (presumably) be happy with their products and services and are more likely to consume them again. This brings in

13、more revenue for the company (or client’s satisfaction in a not-for-profit organisation. ? Inside the operation quality has a different affect. If conformance quality is high in all the operations processes and activiti

14、es very few mistakes will be being made. This generally means that cost is saved, dependability increases and speed of response increases. This is because, if an operation is continually correcting mistakes, it finds i

15、t difficult to respond quickly to customers requests.they were promised delivery the second time after it failed to be delivered the first time? Again, it has external and internal affects.? Externally (no matter how i

16、t is defined) dependability is generally regarded by customers as a good thing. Certainly being late with delivery of goods and services can be a considerable irritation to customers. Especially with business customers

17、, dependability is a particularly important criterion used to determine whether suppliers have their contracts renewed. So, again, the external affects of this performance objective are to increase the chances of cust

18、omers returning with more business.? Internally dependability has an affect on cost. The chapter identifies three ways in which costs are affected - by saving time (and therefore money), by saving money directly, and b

19、y giving an organisation the stability which allows it to improve its efficiencies. What the chapter does not stress is that highly dependable systems can help increase speed performance. Once more, think about it the

20、other way round -'how can an operation which is not dependable ever promise its customers fast response?“ See the figure below.and servicesFlexibilityThis is a more complex objective because we use the word 'fl

21、exibility' to mean so many different things. The important point to remember is that flexibility always means 'being able to change the operation in some way'. Some of the different types of flexibility (pr

22、oduct/service flexibility, mix flexibility, volume flexibility, and delivery flexibility). It is important to understand the difference between these different types of flexibility, but it is more important to understa

23、nd the affect flexibility can have on the operation. ? Externally the different types of flexibility allow an operation to fit its products and services to its customers in some way. Mix flexibility allows an operation

24、 to produce a wide variety of products and services for its customers to choose from. Product/service flexibility allows it develop new products and services incorporating new ideas which customers may find attractive

25、. Volume and delivery flexibility allow the operation to adjust its output levels and its delivery procedures in order to cope with unexpected changes in how many products and services customers want, or when they want

26、 them, or where they want them.? The internal affects associated with this performance objective. The three most important are namely flexibility speeds up response, flexibility saves time (and therefore money), and f

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