The Sage Course Companion on Operations Management is an accessible introduction to the subject that will help readers to extend their understanding of key concepts and enhance their thinking skills in line with course requirements. It provides support on how to revise for exams and prepare for and write assessed pieces. Readers are encouraged not only to think like an operations manager but also to think about the subject critically.

Operations Performance Objectives

Operations Performance Objectives

Operations performance objectives

In order to ensure that resources are allocated appropriately in operations it is necessary to record, monitor and review aspects of operations performance. A key task in this process is the identification of appropriate measures of performance that relate to the internal and external factors that are relevant to organisational competitiveness.

Slack et al. (2007) describe five basic operations performance objectives which allow the organisation to measure its operations performance. The performance objectives are quality, speed, dependability, flexibility and cost. Each one of these objectives will be discussed in terms of how they are measured and their significance to organisational competitiveness.

Quality

From a customer perspective quality characteristics include reliability, performance and aesthetics. From an operations viewpoint quality is related to how closely ...

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