Euro Tunnel: Performance Objectives, Cost Minimization, and Efficiency

This report provides an analysis of Euro Tunnel's operational management, focusing on key performance indicators and cost-quality trade-offs. It examines the application of the three E's (Efficiency, Economy, and Effectiveness) within the context of Euro Tunnel's operations, highlighting their role in service performance management. The report further explores the tension between cost minimization and quality maximization, and discusses how these competing objectives influence operational strategies. Additionally, it emphasizes the significance of the five performance objectives (Speed, Dependability, Flexibility, Costs, and Quality) in shaping Euro Tunnel's corporate strategy and measuring its success. The analysis underscores the importance of these objectives in ensuring organizational performance and achieving strategic goals. This assignment is a valuable resource for students studying operational management.

OPERATION MANAGEMENT IN
BUSINESS

2.1) EVALUATION OF THREE E'S AND
THEIR APPLICATION ON EURO
TUNNEL
In the case of the operations management the measurement of the performance
is vital. All of this three E's will help Euro Tunnel to manage and maintain the
performance of the services offered.
 Efficiency
 Economy

CONTINUED......
 Effectiveness

2.2) IMPACT OF THE TENSION
BETWEEN COST MINIMIZATION AND
QUALITY MAXIMIZATION
Cost minimization and quality maximization has the impact of tension as it is
much difficult for Euro Tunnel to increase the quality of the services along with
reducing the cost of the products. Both of them can not be done together.
 Cost minimization

2.2) IMPACT OF THE TENSION
BETWEEN COST MINIMIZATION AND
QUALITY MAXIMIZATION
Cost minimization and quality maximization has the impact of tension as it is
much difficult for Euro Tunnel to increase the quality of the services along with
reducing the cost of the products. Both of them can not be done together.
 Cost minimization

CONTINUED.....
 Quality maximization

2.3) SIGNIFICANCE OF THE FIVE
PERFORMANCE OBJECTIVES THAT
UNDERLINE OPERATIONS
MANAGEMENT
It is very important for a company to find performance objectives when they
are planing a new corporate strategy. Through this Euro Tunnel will be able to
identify the organizational performance. With the help of this the company will
be able to outline the measures it intends on using to conclude if performance
objectives are met. The performance objectives are explained as below:
 Speed
 Dependability

CONTINUED....
 Flexibility
 Costs
 Quality

REFERENCES

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