Common Operational Objectives

• Cost

  • reducing unit costs
  • reducing fixed costs
  • reducing variable costs per unit
• Quality

  • improve customer satisfaction
  • reduce customer complaints
  • reduce level of product returns
  • reduce scrap rate in production
  • improve punctuality of deliveries
• Speed of response

  • improve time taken for a customer requirement to be fulfilled
• Flexibility

  • create product, volume and delivery flexibility in production
• Dependability

  • ensuring products are dependably of a good quality and delivered punctually
  • ensuring dependability by making products that are durable, long lasting and unlikely to break down
• Environmental objectives

  • reducing water pollution
  • reducing carbon foot print
  • reducing noise levels
  • increasing recycling levels
  • replacing the use of non-renewable inputs
• Added value

  • the process of increasing the worth of resources by modifying
• Added value = sales value - cost of materials, components and bought in services
• Methods of adding value

  • creating a USP - this may be real such as different design or it may be perceived based on image and branding
  • identifying an attractive mix of design, function, image and service