• as an operations strategy, Performance objectives are :: goals that relate to particular aspects of the transformation processes.

  • The six main performance objectives that can be allocated to particular key performance indicators (KPIs) are
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  • quality

  • flexibility

  • speed

  • customisation

  • dependability

  • cost

Quality

  • Quality is often determined by consumer expectations,
  • Quality performance objectives include:
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  • 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