The performance objectives relate to how things are done in the organisation in order to gain a strategic/competitive advantage:
• Cost: “producing goods and services at a cost which enable them to be priced appropriately”
The company produce the high levels of productivity and high capacity utilisation to use of bargaining power to negotiate the lowest prices for production inputs.
• Quality: “doing things right”, influence customers’ level of satisfaction and build long-term relationship and opportunity for cross-selling products and services
• Speed: “doing things fast” by minimising lead-time;
• Dependability: doing things in a timely manner “so as to keep delivery promises;
• Flexibility: being adaptable to internal and external changes (Slack et al., 2013, p. 46).
The quality as the most important aspect for a product and Quality as the error free in mind with which the product. The external and internal benefits of conformance quality is irrespective of a product specification quality, producing it so it conforms to its specification consistently brings benefits to operation. Externally, it enhances the product in the market to avoids discrepancy among customer. Internally, it brings other benefits to the operation. It prevents errors slowing down throughput speed, prevents errors causing internal unreliability and low dependability. It prevents error causing wasted time and effort.
Speed again has different interpretations externally and internally. Externally, It means the condition between a customer asking for a product or service and getting it in a satisfactory condition. It often enhances the value of the product. Internally, it brings other benefits to the operation. It reduce the need to manage transformed resources as they pass through the operation therefore will NOT DELAY the operation.
Flexibility in the introduction of new goods. The ability to adjust the number of customers served. The ability to get out-of-stock items.