Operational Objectives

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7 Terms

1

What are the key types of operational objectives?

  • Costs

  • Quality

  • Speed/Flexibility

  • Dependability

  • Environmental

  • Added Value

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2

What are the features of cost objectives?

  • Unit costs

  • Fixed costs (break-even)

  • Productivity/efficiency

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3

What are the features of quality objectives?

  • Scrap/defective output

  • Customer service

  • Customer returns

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4

What are the features of speed/flexibility objectives?

  • Labour productivity

  • Capacity utilisation

  • Order lead times

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5

What are the features of dependability objectives?

  • Downtime (production)

  • Maintenance costs

  • Reputation for quality

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6

What are the features of environmental objectives?

  • Waste management

  • Recycling

  • Carbon emissions

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7

What are the features of added value objectives?

  • Gross profit

  • Gross profit margin

  • Unit costs

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