5 performance objective
(2013) what are the generic performance objectives that operations are mostly seen to compete on? Fully explain the performance objectives and the advantage that each may support. What trade-offs may be made in pursuit of a specific competitive advantage. E.g. low cost product/service.
Evaluate the extent to which the 5 performance objectives are applicable to a small, independent record shop and chain of large record shop suggesting which objectives might be the most critical to each service.
Using the 5 performance objectives to frame your argument, how could a small convenience store/corner shop ever hope to complete with a large supermarket? Using the performance objective, in what areas would the small shop have difficulty in competing.
QUALITY: is consistent conformance to customer’ expectations, all operations regard quality as a particularly important objective. It is a major influence on customer satisfaction or dissatisfaction, it they satisfaction they will likely return. The advantage of good quality is not only effect on external customer but also makes life easier inside the operation as well. First, quality reduces costs, if things are done correctly first time, expenditure is saved on sorting out and correcting mistakes. Second, quality increases dependability, there is fewer problems because poor quality means a more reliable delivery process. For example, Quality in supermarket is products are in good condition, the store is clean and tidy, decoration is appropriate and attractive, staffs are courteous, friendly and helpful.
SPEED: is the time delay between customers requesting products or services and them receiving them. Speed is important because of its advantage are externally, speed is an important aspect of customer service and speed reduces inventories by decreasing internal throughput time and reduce risks by delaying the commitment of resources. For example: speed in supermarket is the time taken for the total transaction of going to the supermarket, making the purchases and returning kept to a minimum( giu o muc toi thieu) and the immediate availability of goods.
DEPENDABILITY: is doing things in time for customer to receive their goods or services exactly when they are needed, or at least when they were promised. The advantages of dependability are externally, dependability is an important aspect of customer service and internally, dependability within operations increases operational reliability, so saving the time and money that would otherwise be taken up in solving reliability problems and also giving stability to the operation E.G. dependability in supermarket are predictability of opening hours, proportion of goods out of stock kept to a minimum, keeping to reasonable queuing (xep hang) times, constant availability of packing.
FLEXIBILITY: is the ability to offer a wide variety of products or services to the customer and to be able to change these products or services quickly. It can provide 4 types of requirement namely product/service flexibility( introduce new product/service), mix flexibility (wide range of goods stocked, mix of product and service), volume flexibility( change output depend on over time), delivery flexibility( change the timing of the delivery of its service/product).  of flexibility is the increased ability of operations to do different things for different customers high flexibility lead to produce a high variety of products/services. Some organizations develop flexibility through customizing product/service for each individual customer. They manage to produce in high-volume which reduce the cost is called Mass customization.  advantage: flexibility speeds up( tang toc do) response, saves time, maintains dependability e.g. flexibility in supermarket are product/service flexibility-the introduction of new goods or promotions, mix flexibility-a wide range of goods stocked, volume flexibility-the ability to adjust the number of customers served, delivery flexibility-the ability to obtain out-of-stock items.
COST: the companies compete directly on price, cost will clearly be their major operations objective. The lower the cost of producing their goods/services lower price for customer. Externally, low costs allow org to reduce their price to gain higher volumes or increase their profitability on existing volume levels . internally, cost performance is helped by good performance in the other performance objective. E.g: high quality do not waste time or effort to re-do things. High speed reduce level of in-process inventory between processes as well as reducing administrative. Dependable  rely on delivery exactly as planned, this eliminates wasteful disruption and allows the other processes to operate efficiently. Flexible
TRADE-OFF are the extent to which improvements in one performance objective