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Operations Performance Objectives

A company should be concerned to satisfy its customers’ requirements for fast and dependable services at reasonable price, as well as helping its own suppliers to improve services they offer. There are five basic performance objectives and they apply to all types of operation: • Quality • Speed • Dependability • Flexibility • Cost (Slack, N. et al, 2001). VI. Managing quality The management quality is just as important for service organizations as it is for manufacturing organizations. For most companies today, superior quality is at the core of their business strategy.

For these companies, attaining near-perfect product quality is seen as a principal means of capturing market share in global competition. The prominence of product quality in business strategy for many firms has come from the painful knowledge that you may lose business to lower priced products, but you win it back with superior product quality. Achieving superior product quality within a business requires a long-term process of changing the fundamental culture of the organization. Product and service quality begins when business strategy is formulated.

For each product or service, a plan is developed that aims at distinguishing it from its competitors. For many products and services today, quality is the

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weapon of choice to capture global markets. For world-class companies, preeminent product and service quality is the number one distinctive competency for which they are striving. World-class companies do not differentiate between productivity improvement and quality improvement – for them they are the same thing. Quality drives the productivity machine for these companies.

Perhaps most important of all, world-class companies have stopped depending on inspection to catch defects; rather, they are concentrating every organizational effort on doing everything right the first time. They are striving to find and fix their quality problems, not to have inspection programs aimed at catching defects while sloppy production methods continue. And world-class companies employ Just in Time (JIT) manufacturing; product standardization, automated equipment, and preventive maintenance not just to reduce costs but also for their impact on quality and consumer service.

World-class companies are committing tremendous resources to put in place total quality management (TQM) programs aimed at continuous quality improvement that includes: ? Top management commitment and involvement ? Customer involvement ? Design products for quality ? Design production processes for quality ? Control production processes for quality ? Develop supplier partnerships ? Customer service, distribution, and installation ? Build teams of empowered workers ? Benchmarking and continuous improvement

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