Operation’s Performance Objectives – Speed
Speed of response means the time between an external or internal customer requesting a product or service, and them actually receiving it. As with quality, there are both internal and external effects.
The importance of external speed is that it aids in responding quickly to customers and is usually viewed in a positive nature by the customers who will have a greater likelihood of returning. There are circumstances when it is possible to charge more when providing a faster service. An example of this is mail or courier services that will have a tariff list with charges defined by speed of delivery.
The internal effects of speed generally relate to cost reduction. The areas where speed reduces cost are in reducing inventories and reducing risks.
Usually, faster throughput of information (or customers) will mean reductions in costs for example, the quick processing of passengers through airport terminal gates can reduce turn round times of the aircraft, thereby increasing utilisation. However, fast throughput can have an effect on dependability. Materials, information or customers waiting in a system for long periods (slow throughput speed) can result in a higher chance of them getting lost or damaged with a knock-on effect on dependability.
Operations should devote time to understanding market requirements, which has been defined by the organisation’s marketing function, and devote themselves to the main job of ensuring operations processes are capable of actually delivering market requirements. They state that companies can only be successful if they position themselves in the market through a combination of pricing, promotion, product design and management of product and service delivery to customers.