Chapter-2 operations performance objective. Page 39 A company should be concerned to satisfy its customers’ requirements for fast and dependable services at reasonable price, as well as helping its own suppliers to improve services they offer. There are five basic performance objectives and they apply to all types of operation: There are five basic performance objective Quality. Speed Dependability Flexibility Cost
Details Quality:- it means the “doing things right”. It signifies the conformance to the customers expectation( effectiveness concept).It means offering a product/service with superior specification or producing it with consistently achieves conformance . Externally , maintaining quality enhance the product/service in the market and lead to avoid customers complaint. Internally, it decrease the cost and increase the dependability. Speed:- It means “doing things faster”. It signifies to minimize the elapsed time between customers requesting the product/service and receiving them. Externally, it enhance the value of the product/service and improve the customer service. Internally, it reduce the inventories and reduce the risk of delaying the commitment.
Externally it enhance the customers service and avoid the complaint. Dependability:- it means “doing things in time”. it involves the delivering of the product/service to the customers when it it is promised Externally it enhance the customers service and avoid the complaint. Internally it saves time and money that can be used to solve the reliability problems and gives stability to operations. Flexibility:- it means “changing what you do”. It signifies the degree to which an operation process can change what it does and how it is doing it or when it is doing it. Externally, it introduce new products and services frequently Offered wide range of mix products and services Deliver different quantities /volume of products Deliver products and different times.
Internally flexibility of operations help to speed up response, save time wasted in changes. Cost:- it means “doing thing cheaply”. It involves the ability to reduce the cost of the goods and service produced. Externally low cost allow organizations to reduce their price in order to gain higher volume or alternatively increase the profitability Internally cost performance help in achieving the performance objectives.
External effects of the five performance objectives Speed Cost Depend-ability Flexibility Quality Lower prices (or higher profits) Faster customer response Error-free products and services Wider variety More customisation More innovation Cope with volume fluctuations On-time deliveries
Internal effects of the five performance objectives Speed Cost Depend-ability Flexibility Quality High total productivity Fast throughput Reliable Process Error free process Ability to change
Fig 2.4- Quality means different things in different operations Quality could means Hospital Patient receive most appropriate treatment Treatment carried out in correct manner Patients are consulted and keep informed Staff is courteous, friendly and helpful Automobile plant All parts made to specification Assembly is to specification Product is reliable Product is attractive and blemish-free Bus Company The buses are clean and tidy Buses are quite and fume free Timetable is accurate and user friendly Staff is courteous ,friendly and helpful Super market Goods are good in condition Stores are clean and tidy Decor is appropriate and attractive Staff are courteous, friendly and helpful
Fig 2.5- Speed means different things in different operations Hospital The time between requiring treatment and receiving treatment kept to minimum The time for the test results-rays etc to be minimum Automobile plant Time between dealer and requesting a vehicle of a particular specification and receiving it in minimum time. The time to deliver spare parts to service centers kept minimum Bus company Time between a customer setting out on the journey and reching his destination minimum