Lecture 2 - Performance Objective in Operations.pdfVIP

Slack, Chambers and Johnston, Operations Management, 6th Edition, ? Nigel Slack, Stuart Chambers, and Robert Johnston 20102.1 2.1 LECTURE 2 Operations Performance Slack, Chambers and Johnston, Operations Management, 6th Edition, ? Nigel Slack, Stuart Chambers, and Robert Johnston 20102.2 2.2 In Chapter 2 – Operations performance – Slack et al (2010). identify the following key questions: ?Why is operations performance important in any organization? ?How does the operations function incorporate all stakeholders’ objectives? ?What does top management expect from the operations function? ?What are the performance objectives of operations and what are the internal and external benefits which derive from excelling in each of them? ?How do operations performance objectives trade off against each other? Key operations questions Slack, Chambers and Johnston, Operations Management, 6th Edition, ? Nigel Slack, Stuart Chambers, and Robert Johnston 20102.3 2.3 Operations Can impact on Performance Slack, Chambers and Johnston, Operations Management, 6th Edition, ? Nigel Slack, Stuart Chambers, and Robert Johnston 20102.4 2.4 Shareholders Directors / top management Staff Staff representative bodies Regulatory bodiesGovernment Suppliers Lobby / interest groups Customers Stakeholder Groups with an “legitimate interest in the operation’s activities” ‘Society’ Slack, Chambers and Johnston, Operations Management, 6th Edition, ? Nigel Slack, Stuart Chambers, and Robert Johnston 20102.5 2.5 Operations?and? processes? excellence Operations and Process Management Contribution to Strategy Enhanced? service Secure? revenue Lower? costs Process? efficiency Reduced?errors,? better?resilience Lower?‘operational’ risk Higher?capacity? utilization Lower?capital? requirements Capabilities?for?future? innovation Opportunities?for? process?learning Slack, Chambers and Johnston, Operations Management, 6th Edition, ? Nigel Slack, Stuart Chambers, and Robert Johnston 20102.6 2.6 C om pe