Five Operations Performance Objectives

Operations management is an area of management concerned with overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms of materials, labor, and energy) into outputs (in the form of goods and/or services).

The Big 5 of Operations performance objectives

Operations add value for customers and contribute to competiveness by being able to satisfy the requirements of its customers. It uses key performance measures to align the needs of the customer with the desired effectiveness of the overall business.

Quality:

Doing things correctly, RFT (right first time every time), error free, fit for purpose meeting specification.

Quality is the cornerstone of any manufacturer or service provision company. It is the last word on your company’s reputation – speaking long after the purchase has been made as to how well the good or service performs. The bitterness of poor quality lingers long after the sweetness of meeting schedules has been forgotten.

Speed:

Do things fast, Reduced Lead time, OTIF (on time in full), minimizing lag.

For many businesses quoting super fast turnaround times is the key differentiator in what separates them from their competition. In order to deliver this speed advantage a business must look at the internal value chain as a means to increase efficiency and reduce the system lag. Lean manufacturing has many tools and techniques for identifying and reducing wasted time in process.

Dependability:

Doing things on time, staying true to your word, and keeping promises with your customers and suppliers.

If your reputation is a key component in your commercial value proposition, then being