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1 - Setting Operational Objectives

The document outlines the importance of setting operational objectives in a business, emphasizing that these objectives should be specific and measurable. It discusses various operational targets such as quality, flexibility, dependability, environmental concerns, and cost reduction, along with internal and external influences on these objectives. Additionally, it includes exercises to fill in gaps, match scenarios to objectives, and identify the significance of unit costs in different contexts.

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8 views2 pages

1 - Setting Operational Objectives

The document outlines the importance of setting operational objectives in a business, emphasizing that these objectives should be specific and measurable. It discusses various operational targets such as quality, flexibility, dependability, environmental concerns, and cost reduction, along with internal and external influences on these objectives. Additionally, it includes exercises to fill in gaps, match scenarios to objectives, and identify the significance of unit costs in different contexts.

Uploaded by

s19019
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Setting operational objectives

Q1 Fill in the gaps

Operational are the targets set by the operations dept. They should be and
measurable such as achieving a labour productivity rate of 256 cars per worker per year.
But as well as targets such as saving time and money there are those such as
improving quality, for example reducing the number of made on the production
line. For a furniture manufacturer of response could be crucial in winning orders,
for example being able to deliver within 2 weeks of ordering. Today there are also
operational targets for concerns like reducing the amount of water used in
manufacturing. Internal influences on operational objectives could be staff motivation and
training whereas influences could include as they could be producing at
higher rates of productivity enabling them to unit costs.

Choose from: external, defects, environmental, reduce, competition, specific, defects,


efficiency, objectives, speed,

Q2 Match the likely operational objective with the scenario

1. Quality A. The ability to enhance product designs to increase the price


consumers are willing to pay
2. Flexibility B. Increasing volume output in order to gain discounts from
suppliers
3. Dependability C. Reducing factory emissions during production
4. Environmental D. Responding quickly to customer demands perhaps changing
over from one production line to another
5. Costs E. Reducing the level of defective products by 30%

6. Added value F. To ensure that customers can expect the same level of
service and quality time and time again

Q3 What is the word formed by the first letter of each operational objective defined below?
3.1 Delighting the consumer in all aspects of the product

3.2 The average cost of one item

3.3 Objective to look after the welfare of the planet

3.4 The time taken to respond to customer orders

3.5 Ability to compete on speed of delivery

© Tutor2u Limited 2015 www.tutor2u.net


Setting operational objectives

Q4 Internal or External influences on Operational Objectives? Simply put an I for Internal or an


E for External next to each.
Staff training enables improved quality
New technology is developed which
enables lower unit costs standards

A new payment system leads to rising A rival firm boosts productivity to lower
productivity levels unit costs

A new law forces companies to lower Investment in new equipment allows


factory emissions increased productivity

A European recession means that output A new manager finds ways to motivate
volume needs to be reduced the production line workers increasing
quality

Q5 Briefly explain why


5.1 Unit cost is much more important for Vauxhall than Rolls Royce cars

This is because Vauxhall’s profit margins are lower, so therefore they wasn’t to reduce their
production costs as much as possible in order top still make good amounts of profit.
Whereas rolls Royce’s profit margin will be higher.
5.2 There is usually a trade-off between quality and unit cost

5.3 Piece rate pay does not always help achieve operational targets

© Tutor2u Limited 2015 www.tutor2u.net

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