3.4.1 Setting objectives

• What is the production line?


  Inputs --> Transitional processes --> Outputs
• What do inputs mean?

  The materials, site, labour and enterprise that goes into a process
• What does a transformation process mean?


  Where the factors of production are transformed into a good with value
• What do outputs mean?

  The end condition of a good or service
• In order to be more efficient:

  • Reduce waste by increasing outputs or reducing inputs
  • Motivate employees/labour to move more efficiently
• What is operations management?


  The management of processes, activities and decisions relating to the way goods and services are produced and delivered
• What are the key operational objectives?

  Adding Value

  Operating efficiency

  Manage resources

  Managing the supply chain

  Ensuring quality

  Speed of response

  Environmental impact
• Objectives:

  • Raw materials - procurement, negotiation and communication with suppliers
  • Manufacturing - value added
  • Transportation - logistics and storage
  • Retail - how is it distributed
  • Disposal/recycling - aftersales and services
• How to categorise objectives?

  • Volume - flow production, job production
  • Variety - small differences in batches
  • Visibility - can you see the product being made
  • Variability - demand and how much does it change
• More operational objectives?


  Environmental and ethical

  Costs and volume

  Quality

  Efficiency and flexibility