ch 4: productivity

Question 1

One of the primary responsibilities of a manager is to achieve ________________ use of an organization’s resources.

Answer 1

productive

productivity

Question 2

increases value to the economy while keeping inflation in check.

Answer 2

Productivity

Question 2

Although productivity is important for all business organizations, it is particularly important for organizations that use a strategy of low cost, because?

Answer 2

the higher the productivity, the lower the cost of the output.

Question 2

For non-profit organizations, higher productivity means lower costs; for profit-based organizations, productivity is an important factor in determining how competitive a company is.

Question 3

is a key factor in a country’s rate of inflation and the standard of living of its people.

Answer 3

Productivity growth

Question 3

is an index that measures output (goods and services) relative to the input (labor, materials, energy, and other resources) used to produce it. It is usually expressed as the ratio of output to input:

Answer 3

Productivity

Question 4

In business organizations, these are used for planning workforce requirements, scheduling equipment, financial analysis, and other important tasks.

Answer 4

productivity ratios

Question 4

has important implications for business organizations and for entire nations.

Answer 4

Productivity

Question 5

is the increase in productivity from one period to the next relative to the productivity in the preceding period.

Answer 5

Productivity growth

Question 6

Productivity measures can be based on?

Answer 6

• a single input (partial productivity),
• on more than one input (multifactor productivity), or
• on all inputs (total productivity).

Question 7

are often of greatest use in operations management.

Answer 7

Partial measures

Question 7

Calculations of multifactor productivity measure inputs and outputs using a common unit of measurement, such as cost or value. For instance, the measure might use cost of inputs and price of the output:

Question 8

This allows managers to judge performance and to decide where improvements are needed.

Answer 8

Productivity measures

Question 9

These productivity measures are?

Answer 9

aggregate measures

Question 10

is more problematic than manufacturing productivity.

Answer 10

Service productivity

Question 11

In many situations, it is more difficult to measure, and thus to manage, because it involves intellectual activities and a high degree of variability.

Answer 11

Service productivity

Question 12

A useful measure closely related to productivity is?

Answer 12

process yield

Question 12

Think about medical diagnoses, surgery, consulting, legal services, customer service, and computer repair work.

Question 12

productivity improvements are difficult to achieve in this sector

Answer 12

Service

Question 13

Where services are involved, this measurement is often dependent on the particular process.

Answer 13

process yield

Question 13

For example, in a car rental agency, a measure of yield is the ratio of cars rented to cars available for a given day. In education, a measure for college and university admission yield is the ratio of student acceptances to the total number of students approved for admission. For subscription services, yield is the ratio of new subscriptions to the number of calls made or the number of letters mailed.

Question 13

Where products are involved, this is defined as the ratio of output of good product (i.e., defective product is not included) to the quantity of raw material input.

Answer 13

process yield

Question 14

However, not all services lend themselves to a simple yield measurement. For example, services such as automotive, appliance, and computer repair don’t readily lend themselves to such measures.

Question 15

Numerous factors affect productivity. Generally, they are?

Answer 15

methods, capital, quality, technology, and management.

Question 16

processes and procedures wherever possible to reduce variability can have a significant benefit for both productivity and quality.

Answer 16

Standardizing

Question 17

may distort productivity measurements.

Answer 17

Quality differences

Question 18

can lower costs of a wide range of transactions, thereby increasing productivity. It is likely that this effect will continue to increase productivity in the foreseeable future.

Answer 18

Use of the Internet

Question 19

can have an immense negative impact on productivity.

Answer 19

Computer viruses

Question 19

have an adverse effect on productivity, signaling inefficient use of resources.

Answer 19

Scrap rates

Question 20

Searching for lost or misplaced items wastes time, hence?

Answer 20

negatively affecting productivity

Question 21

tend to have lower productivity than seasoned workers. Thus, growing companies may experience a productivity lag.

Answer 21

New workers

Question 22

hampers the ability of companies to update computing resources, generate and sustain growth, and take advantage of new opportunities.

Answer 22

A shortage of technology-savvy workers

Question 22

should be addressed. Accidents can take a toll on productivity.

Answer 22

Safety

Question 23

often affect productivity. The effect can be positive and negative. Initially, productivity may increase after a this, because the workload remains the same but fewer workers do the work—although they have to work harder and longer to do it. However, as time goes by, the remaining workers may experience an increased risk of burnout, and they may fear additional job cuts. The most capable workers may decide to leave.

Answer 23

Layoffs

Question 24

has a negative effect on productivity; replacements need time to get up to speed. l. Design of the workspace can impact productivity. For example, having tools and other work items within easy reach can positively impact productivity. m. Incentive plans that reward productivity increases can boost productivity.

Answer 24

Labor turnover

Question 24

And there are still other factors that affect productivity, such as equipment breakdowns and shortages of parts or materials. The education level and training of workers and their health can greatly affect productivity.

Question 25

can impact productivity. For example, having tools and other work items within easy reach can positively impact productivity. m. Incentive plans that reward productivity increases can boost productivity.

Answer 25

Design of the workspace

Question 26

For example, an efficiency perspective on mowing a lawn given a hand mower would focus on the best way to use the hand mower; a productivity perspective would include the possibility of using a power mower.

Question 26

plans that reward productivity increases can boost productivity.

Answer 26

Incentive

Question 26

The opportunity to obtain lower costs due to higher productivity elsewhere is a key reason many organizations?

Answer 26

turn to outsourcing

Question 27

Hence, an alternative to outsourcing can be improved productivity. Moreover, as a part of their strategy for quality, the best organizations strive for continuous improvement. Productivity improvements can be an important aspect of that approach.

Question 28

A company or a department can take a number of key steps toward improving productivity:

Answer 28

1. Develop productivity measures for all operations; measurement is the first step in managing and controlling an operation.
2. Look at the system as a whole in deciding which operations are most critical; it is overall productivity that is important.
3. Develop methods for achieving productivity improvements, such as soliciting ideas from workers, studying how other firms have increased productivity, and re-examining the way work is done.
4. Establish reasonable goals for improvement.
5. Make it clear that management supports and encourages productivity improvement. Consider incentives to reward workers for contribution.
6. Measure improvements and publicize them.

Question 28

is a narrower concept that pertains to getting the most out of a fixed set of resources;

Answer 28

Efficiency

Question 28

is a broader concept that pertains to effective use of overall resources.

Answer 28

productivity