4. Productivity VS Competitiveness

Question 1

1. DEFINITIONS

Productivity?

Answer 1

Productivity- Refers to a measure of the functioning and efficiency of an operating or production system and the level of output obtained by the inputs. In other words, it refers to the number of outputs that an LSO is able to generate from their inputs.

Labour productivity is output per worker (Cars per worker);

and Capital productivity is output per unit of equipment or machinery (Customer per plane).

It is a measured by determining the efficiency obtained from data about levels of output achieved from a quantity of inputs. The primary aim of the operations manager is to enhance operational efficiency and productivity.

Question 2

1. DEFINITIONS

Efficiency?

Answer 2

Efficiency- Refers to the best use of resources and inputs in the operating process of producing goods and services.

Question 3

1. DEFINITIONS

Effectiveness?

Answer 3

Effectiveness- Refers to the extent to which an organisation formulates and achieves operational objectives.

Question 4

1. DEFINITIONS

Competitiveness?

Answer 4

Competitiveness- Refers to the ability of an LSO to produce goods and services at a lower cost or higher quality than its competitors in matching or bettering its rivals in a given market. Competitiveness refers to an organisations ability to match or better its rivals in a given market.

Question 5

1. DEFINITIONS

Lean Manufacturing?

Answer 5

Lean Manufacturing- Refers to the establishment of systems that will eliminate waste and inefficiencies of any kind in the process of making a product. Manufactures aim in terms of productivity and competitiveness to be efficient in terms of lean manufacturing.

Question 6

2.Productivity?

Answer 6

Regardless of whether an organisation produces a good, a service, or both, the main concern of operations managers is productivity.

• Making improvements (increases) in productivity (output from a quantity of inputs) is critical to business competitiveness.
• The concept of productivity, and usually the measurement of productivity, can be applied to any part of the operations system.

The productivity objective:
• The primary aim of the operations manager is to enhance operational efficiency and productivity.

Question 7

2. Productivity

Importance of Improving Productivity?

Answer 7

Importance of improving productivity:
	Reduces costs
	Increases sales
	Increase market share
	Increase profits

Question 8

2. Productivity

Factors determining organisational productivity:?

Answer 8

Factors determining organisational productivity:
 Technology levels e.g. scanning, robotics.
 Research and development – Offer scope for the development of innovation.
 Equipment and facilities – Quality, reliability and regular maintenance.
 Tasks and processes – Types affect how much is produced and at what cost.
 Layout of facilities – Efficiency savings e.g. reorganising a workstation, introduction of ergonomics.
 Communications processes – Where it is restricted or not.
 Workplace safety – Whether OH&S is taken into account or not.

Question 9

2. Productivity

Service Industries?

Answer 9

Productivity improvements in service industries are likely to be achieved in human resource management, the organisation of work, communications and customer service strategies.

Productivity improvements can be made in any area of the operations system. They can be achieved in human and non-human aspects of the system.

In service industries, advances in information and communications technology (ICT) are generating increases in productivity.

Service industries are usually different in nature from manufacturing operations— service production is typically more customised and personal.

Question 10

2. Productivity

Manufacturing Industries?

Answer 10

Four areas of operations in which managers use strategies to increase productivity:
■ facilities design and layout (section 3.3)
■ materials management (section 3.4)
■ the management of quality (section 3.5)
■ new technology

Question 11

3. Operations Manager and Productivity?

Answer 11

When an organisation desires to increases its level of business competitiveness it requires the operations management to establish objectives… such as increasing productivity, improving quality of outputs and adopting a sustainable approach to its operations.

• An operations manager would be aiming to increase productivity (the amount per worker per period of time), so that the organisation can become more competitive.
• Decisions made by operations managers have a direct impact on the level of competitiveness of the organisation and attainment of corporate objectives.
• An organisation that effectively manages its production of goods and services through wise implementation of operations management strategies will use resources efficiently and keep customers satisfied, resulting in increased profit levels.
• If the operations are being managed efficiently, then costs will be minimised, the quality of the product should increase and the efficiency of the production will increase.

Question 12

3. Operations Manager and Productivity

How operations management can enhance its business competitiveness:?

Answer 12

• Optimal levels of operational efficiency based on:
 reliable supply chain
 minimal wastage and defects
 use of technology
 and an appropriate facilities design and layout.
• High standards of quality put in at all stages and measure against the level of achievement of objectives and mission.
• Ethical and socially responsible considerations must be taken into account.

Question 13

4. Evaluation of Operations Management?

Answer 13

• There are certain key performance indicators that are especially appropriate to use when trying to determine if operating system is working well.
• The key performance indicators will vary according to the type of LSO.
• These are some key performance indicators related to operations management:

Efficiency: The best use of resources (inputs) is an essential component of operations management.

Level of Waste: A measure relating to lean manufacturing and resource usage.

Effectiveness: The extent to which the operating system achieves operational objectives.

Productivity: The amount of output per worker per period of time; when the inputs and processes are managed well.

Customer Satisfaction: Measured by the number of repeat customers.

Profit: If profit is made, this may reflect the effectiveness of managed operations in terms of managing efficiency and productivity levels.

Question 14

Lean Manufacturing?

Answer 14

Waste can include: 
	idle time
	excess time in completion of tasks
	 unused materials
	 discarded materials
	Defective products
	Excessive wait times between production and distribution.

• When waste has been minimized the business is said to be more efficient and is more likely to remain profitable and competitive.
• Most large manufacturers embrace lean manufacturing.