Source: Honda Motor Company
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Key teaching objectives
• 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?.
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Operations performance is vital for any organization is no exaggeration to view operations management as being able to either ‘make or break’ any business. • This is not just because the operations function is large and, represents the bulk of its assets and the majority of its people, •but because the operations function gives the ability to compete by providing the ability to respond to customers and by developing the capabilities that will keep it ahead of its competitors in the future.
• It
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
How operations can affect profits way operations management performs its activities can have a very significant effect on a business. • So any organization needs some way of assessing the performance of its operations function and its operations management • 3 perspectives on operations performance, from macro to micro: i •how each of the organization’s stakeholders may view operations performance. •what top management may expect of the operations function. •A common set of more detailed operations performance objectives
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel