Performance objectives
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The document discusses key performance objectives for operations including quality, speed, dependability, flexibility, customization, and cost. It provides descriptions of each objective and examples of key performance indicators (KPIs) that could be used to measure them such as the number of defects in production (quality), output per hour (speed), uniformity of products (dependability), variation in daily output (flexibility), number of unique orders processed (customization), and total production costs (cost).
Performance objectives
- 2. A LOOK AT THE SYLLABUS
- 3. PERFORMANCE OBJECTIVES What do we consider to be the key areas of interest when considering our operations success?
- 4. PERFORMANCE OBJECTIVES Objective Description Quality Quality is a measure of excellence or a state of being free from defects, deficiencies, and significant variations Speed How quickly does production take and how quickly can it respond to changes in demand? Dependability How uniform, consistent and reliable a businesses products are. Flexibility How quickly operations processes can adjust to changes in the market? Customisation Refers to creation of individualised products to meet the specific needs of customers Cost Minimisation of expenses so that the operations function can be completed as cheaply as possible.
- 5. PERFORMANCE OBJECTIVES Qantas Sales Depend Foreign Customers Calling
- 6. COME UP WITH SOME KPIS FOR EACH Objective Examples of KPIs Quality - Number of defects in production Speed Dependability Flexibility Customisation Cost
- 7. COME UP WITH SOME KPIS FOR EACH Objective Examples of KPIs Quality - Number of defects in production - Amount of warranty returns processed. - Awards won. Speed - Output per hour/day/week - lead times (time between order and delivery) Dependability - How uniform/identical the products are Flexibility - Variation in the output on a daily basis (can you tolerate volatile orders?) Customisation - Number of unique orders processed. Cost - Total production costs - Costs per unit of output - Staff overtime wages level - Total staff efficiency