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as an operations strategy, Performance objectives are :: goals that relate to particular aspects of the transformation processes.
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The six main performance objectives that can be allocated to particular key performance indicators (KPIs) are
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quality
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flexibility
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speed
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customisation
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dependability
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cost
Quality
- Quality is often determined by consumer expectations,
- Quality performance objectives include:
? - quality of design
- quality of conformance
- quality of service
Quality of design
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- arises from an understanding of consumers and their preferences.
- extends to how well a good is made or a service is delivered.
Quality of conformance
- Quality of conformance is :: the focus on how well the product meets the standard of a prescribed design with certain specifications.
Quality of service
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- service reliability
- does the service meet the client’s needs
- is the service delivery responsive consumer expectations.
Speed
- speed refers to :: the time it takes for the production and the operations process to ==respond to changes in market demand==. (indicated by lead times)
Dependability
- Also referred to as reliability
- dependability (reliability), as a performance objective, refers to :: how consistent and reliable a business’s products are.
Flexibility
- flexibility refers to :: how quickly operations processes can adjust to changes in the market
Customisation
- Customisation refers to :: creation of individualised products to meet the specific needs of customers.
- mass customisation
- e.g. car manufacturers allowing online customised car orders
Cost
- cost as a performance objective, refers to :: the minimisation of expenses so that operations processes are conducted as cheaply as possible