Operation’s Performance Objectives – Quality
Doing things right by providing error free products and services will satisfy the majority of customers.
Quality is placed first in the list of performance objectives as many believe it to be the most important and relates to conformance i.e. the most basic definition of quality is that a product or service is as it is supposed to be. In other words, it conforms to its specifications.
The external effect of good quality within operations is that consumers have less (or nothing) to complain about and if they have nothing to complain about they will be happy with the products and services with a result that they will be more likely to consume them again. This creates increased revenue for the company.
Internally to the operation, quality has a different effect: if conformance quality is high in all operations processes and activities very few mistakes will be being made generally resulting in cost savings, increases in dependability and increased speed of response. When an operation is continually correcting mistakes, it finds it difficult to respond quickly to customer requests.