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Key Performance Objectives of Operation Strategy
There is broad consensus that supports the view that operational competitive priorities which satisfy customers such as price, variety, quality and delivery speed and reliability are the core competencies in an operations strategy. Adam and Swamidas (1989), Anderson et al (1989), Hill (1993). Similarly the effectiveness of the organisation's business strategy is closely linked with the decisions which relate to performance objectives and operations structure and architecture. See the two following tables.
Suggested success factors for typical services
Public Sector - Health Care 1. Increased consumer demands - increased performance measurement 2. Increased quality of service and choice demanded 3. Increasing salaries
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Item Cost - $7.00 Order Cost - $283.00 Annual Hold - 32% of item cost Annual Demand - 22,100 Average Demand - 442 per week Standard deviation of weekly demand 20 per week lead time
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