3.4 Decision making to improve operational performance
Students should consider the following throughout this section of the specification:
- how developments in technology are affecting decision making and activities in operations (eg more online businesses, better links with customers, suppliers and inventory control)
- ethical and environmental influences on operations decisions
- market conditions and competition
- how decisions in operations improve the competitiveness of a business
- the interrelationship between operational decisions and other functions.
Setting operational objectives
Content |
Additional information |
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The value of setting operational objectives |
Operational objectives include:
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External and internal influences on operational objectives and decisions |
Analysing operational performance
Content |
Additional information |
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Interpretation of operations data |
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Calculation of operations data |
Students should be able to calculate:
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| The use of data in operational decision making and planning |
Making operational decisions to improve performance: increasing efficiency and productivity
Content |
Additional information |
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The importance of capacity |
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The importance of efficiency and labour productivity |
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How to increase efficiency and labour productivity |
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The benefits and difficulties of lean production |
Lean production should include 'Just in Time' operations. |
Difficulties increasing efficiency and labour productivity |
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How to choose the optimal mix of resources |
The mix of resources should include an understanding of labour and capital intensive processes. |
How to utilise capacity efficiently |
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How to use technology to improve operational efficiency |
Making operational decisions to improve performance: improving quality
Content |
Additional information |
|---|---|
The importance of quality |
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Methods of improving quality |
Methods of improving quality should include quality assurance. |
The benefits and difficulties of improving quality |
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The consequences of poor quality |
Making operational decisions to improve performance: managing inventory and supply chains
Content |
Additional information |
|---|---|
Ways and value of improving flexibility, speed of response and dependability |
An understanding of flexibility should include mass customisation. |
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How to manage supply to match demand and the value of doing so |
Ways of matching supply to demand include:
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Influences on the amount of inventory held |
Inventory control should include:
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Influences on the choice of suppliers |
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How to manage the supply chain effectively and efficiently and the value of this |
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The value of outsourcing |
