Cost, quality, delivery, and flexibility are examples of operational objectives. Some companies may emphasize costs because they adopt a cost leadership strategy, which requires them to operate with a lower cost structure than the industry average.
Operational Objectives. What are some examples?
What's it: Operational objectives refer to something we aim for or target through operational functions. They are specific objectives for the operations department, which not only align with objectives in other business functions but also
Operations Department: Roles and Relationships With Other Business Functions
What's it: The operations department is the business area dealing with production. This department is a strategic area besides marketing, finance, and human resources. It is responsible for converting raw materials and components into finished
Value Chain Analysis: How to Do It?
Value chain analysis requires us to examine in detail the various activities within the business. Then, we evaluate them to see where and how businesses can create value for customers. It is useful to understand opportunities to add
How does your company create value along the value chain?
Your company can create value along the value chain to gain a competitive advantage. And, then, scanning it regularly and making sure it's relevant to customer requirements allows your company to continuously outperform your competitors, keeping
Value Chain: Definition, Importance and How it Works
What's it: A value chain is the various activities within a business, supporting each other and contributing to creating value for customers. This concept provides a framework for visualizing which areas a company can add value to and how
Production: Meaning, and Methods
What's it: Production is the process of creating goods and services using resources. It adds value if the output value exceeds the input used value. In broader terms, it is an organized process of adding value to goods and services. For
Just-In-Time: Meaning, How It Works, Pros and Cons
What's it: Just-in-time (JIT) is a system for reducing production times and response times from suppliers and customers. Toyota introduced this system for the first time in Japan in the 1960s and 1970s. Why just-in-time
Mass Customization: Meaning, Types, Advantages, Disadvantages
What's it: Mass customization is a technique for modifying something according to our needs and on a large scale. For example, in a production company, a company modifies and adjusts its output to demand using flexible manufacturing technology.