Key areas of performance

- Quality
- Speed
- Dependency
- Flexibility
- Cost
- Slack, D

Quality

- What the customer decides

- Categories of quality
- Transcendental good brand image
- Fit for purpose B2B

Speed

- Turnaround
- Next day delivery
- Rate at which inputs are made into outputs

Dependability

- Does it do “what it says on the tin”

- Life expectancy of goods and services
- Level of guarantees

Flexibility

- How quickly can the organisation make changes to provide for customers’ changing
wants and needs
- Example the 24/7 economy of the GIG economy, changes to the way goods and services
can be delivered.

Cost

- Comparison with direct competitors

- Ability to buy well
- Elimination of waste
- Getting the most out of resources inc. People, materials, time & money. Yes money has a
cost too.

Capacity

- The order in which jobs come together

- The order in which jobs are done
- Monitoring production
- How many /much of a job can be done at any one time
- Get any of these wrong performance will suffer
Output

- Effected by variety
- Volume, the more you have to make generally takes more time
- Visibility, how near you are to the customer
- Ergonomics, excessive movements, poor layouts/ environments effect output.
- Poor Job design, see string diagrams, work measurements / flow
- Delays between sub-operations, referred to as downtime

Key performance Indicators (KPI)

- Waiting times for major operations (NHS)

- Kevel of occupancy in hotels
- Number of rejects per 1k screws made

Value chain Analysis

- Primary activities
o Inbound logistics
o Outbound logistics
o Marketing/ sales service
- Secondary activities
o Infrastructure
o HRM

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