1. Do Now – AS Reminder
Can you remember what the following are?
Effective Operations
Capacity Utilisation
Dealing with
Customer Service
suppliers
Quality
3. Learning Objectives
By the end of the lesson you should be able to:
1. Understand the range of operational objectives
typically set by larger businesses.
2. Understand how internal and external factors can
influence the setting of operational objectives.
4. Understanding Operational
Objectives
What are operational
objectives?
Targets set in relation to
the production process
or provision of a
service.
Targets can include
output levels or unit
costs.
5. What do the operations function do?
Decide where to produce
Decide what production facilities are needed
Choose best production methods
Manufactures the product
Order supplies and chooses suppliers
Monitors quality
Research new production processes
Ensure efficiency
Motivates staff
6. What objectives might they have?
Operational objectives:
quality
cost targets
volume targets
innovation
efficiency
environmental targets
benchmarking
innovation
Research:
1. Find a description of each operational target.
2. Research businesses and find at least one real-life example of each of
the operational objectives listed above.
7. Operational Objectives – Research Questions
1. With use of an appropriate example, explain what
the term ‘operational objectives’ means to a
manufacturer of soft drinks, such as Coca-Cola.
2. Analyse the role of environmental targets within the
supermarket industry.
3. What might be the operational targets of an online
insurance company such as Direct Line?
4. Discus the potential advantages of adopting a policy
of benchmarking between NHS Hospitals.
8. What are Internal and External
influences on operational objectives?
Internal
Resources available
Ethics of the company (fairtrade?)
The corporate objectives
Brand image
External
Competitors performance
Customer expectations
Supplier actions
Economic changes
Demographics
9. Operational objectives and Mr Bean
Dave Woodward
CEO Heinz UK & Ireland
Age 45
Started at John Lewis
Then Mars
Then Coke
Then P & G
10. Mr Bean article questions
1. Four years ago Heinz was a UK market leader, what was the problem with the
company?
2. What was the Operational Strategy adopted by Dave Woodward?
3. How much impact has this strategy made “dry grocery” vs the rest of the
market?
4. Provide two examples of the output of this strategy
5. Despite the recession how have Heinz’s revenues been doing?
6. What’s the nature of the next wave of this strategy hinted at in the article?
7. What is an alternative/additional strategy discussed in the article and why has it
been dismissed?
8. Can you identify a third strategy referred to?
9. Given that ketchup and beans “are about as mature as markets get” where is
growth going to come from in the future?
12. Re-cap Learning Objectives
You should now be able to:
1. Understand the range of operational objectives
typically set by larger businesses.
2. Understand how internal and external factors can
influence the setting of operational objectives.
Notas del editor
Effective operations:Customer Service – few click websites, help desk, after sales service. Dealing with suppliers – Keeping costs down/ ethical/ speed of delivery/ payment terms/ location.Quality:Quality Control – checking at the end.Quality Assurance – checking throughout the production process/ all staff involved. Quality and marketing – closely link in A2.Capacity Utilisation:Spare capacity can lead to higher production costs. Can either reduce capacity or increase usage. Spare capacity can include machinery or space.