Syllabus Point:

operations strategies

• performance objectives - quality, speed, dependability, flexibility, customisation, cost

Performance objectives refers to the measures of the effectiveness of the operations function. Performance objectives are the key performance indicators (KPIs) which operations managers will strive to achieve.

QSDFCC - Quesadilla FC(C)

Quality

• how closely a product conforms to customer expectations
• quality can influence cost, for example if products are manufactured without mistakes, the cost of fixing a product is not incurred, but there is an upfront cost of higher-quality inputs.

Case Study:

Customers expect quality from Qantas, this is seen through increased cost so they know they will get things like:

• Leg room increase, better food, better in flight entertainment ect.

Speed

• the time difference between a customer's request for a good or service and when it is received (lead time)

Case Study:

McDonald's has strict time constraints

• 11 seconds to toast bun
• 20 seconds burger assembly
• 14 seconds package

Dependability

• the reliability of the product or service

Case Study:

Qantas, once known for being reliable for their low number of crashes or incidents compared to other airlines, eg. Malaysian Airlines

Flexibility

• how easily and quickly operations can switch to a new model or variation of a good to meet a change in the market or customer's wants

Customisation

• The ability to modify a standard product to meet the individual needs of the customer.

Case Study:

Macca's "create your taste" menu

Cost

• Influenced by the cost of the inputs.
• Lower costs is important for competitiveness (cost leadership)