Explain the operations performance objectives of the operations and the contribution of the operations to the performance of woolsworth
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Operational performance objectives are the areas of operational performance that a company tries to improve, in a bid to meet its corporate strategy. After defining its corporate strategy, a company will identify the relevant operational performance objectives to measure and configure the environment, to enable the objectives to be accomplished. According to Andy Neely, author of the book “Business Performance Measurement: Unifying Theory and Integrating Practice,” there are five main operational performance objectives: speed, quality, costs, flexibility, and dependability.
The Objective of Speed
The objective of speed measures how fast a company can deliver its products and generates sales quotes. This objective will be concerned with such issues as the time that it takes to manufacture and process one or more products of the company or the time that it takes to research a new product and develop it.
Quality of a Product
Typically, quality is considered to measure how well a product conforms to certain specifications. However, it’s more than that, according to Andy Neely. It’s also how desirable the features of the product are; how reliable the product is; how durable it is; how easily it can be serviced; how well it performs its intended function; and, how much the customers believe in its value. All of these are relevant measures of quality.
Variation in Costs
This objective looks at how much variation there is in the unit cost of a product as measured by changes in a variety of factors, including the volume and the variety of the products. Products that feature a greater variety tend to sport lower volumes and higher unit costs and vice versa. Ultimately, this affects the price of the product, the costs of producing it, and the profits to be obtained from that product.
Flexibility in Operations
Flexible operations are operations that can configure the product lines to deal with various requirements and to also adjust these product lines quickly to new requirements. The latter is also closely related to the speed objective. A company should be able to produce different quality product varieties and also adapt its operations to suit different market conditions and delivery schedules.
Dependability of Operational Performance
This operational performance objective measures how dependable the company is when it comes to timely delivery of products to its customers, in accordance with planned prices and costs. The product’s ability to function in an intended way consistently over a reasonable period of time is also a measure of its dependability.