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The triple bottom line describes how an organisation should measure themselves not just on the traditional economic profit, but focus on three things. What are these?
The social bottom line - The buiness should accept that they bear some responsibility for the impact they have on society and their staff
The environmental bottom line - means the extent to which business activity negatively impacts on the natural environment.
- The economic bottom line - basically means that the operation resources must be used effectively. There are several ways:
- - reduce costs
- - customer satisfaction
- - reduce risk of operational failure
- - reduce amount of investment
- - provide future innovation
Look at figure 2.3, page 45. It's good.
Why is quality important?
Quality is the most visible part of what an operation does, and the customers can easily judge itQuality reduces costs.
Quality increases dependability.
Why is speed important?
Outside: The faster a customer can expect to get a product, the more limey he/she is to buy it.
Inside: Speed reduces inventories
Speed reduces risk- forecasting tomorrow's event is far less of a risk than forecasting next year's.THe faster the speed, the shorter the forecast can be.
Why is dependability important?
Outside: Doing things in time for customers to receive their goods and services when they are needed is important. If a bus is always late, then they are better off taking a taxi.
Inside: It saves time: FAiling to deliver something on time can cause others to having to arrange special orders etc.
It saves money - Ineffective use of time will add to the cost.
It gives stability - No surprises gives a feeling of safety and comfort. eth.
Why is flexibility important?
Being able to change the operation in some way is important. It makes it possible to include a wide range of customers.
Inside: flexibility speeds up response
- It saves time
- It speeds up response
- It maintains dependability
Why is cost important?
The lower the costs, the lower the price, the more customers.
How can one improve productivity?
Since productivity is output/input, a lot f measures can be taken. For example, relocating facilities to lower costs. Cutting out waste.
Trade-offs pn page 60. Read if you want :)
Sure thing :D