1. 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

2. 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.

3. 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.

4. 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.

5. 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

6. 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

7. 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

8. 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