Lecture Objectives Flashcards
Explain difference between production and productivity
Production is creation of goods or services
Goods vs services distinction
A services is hard to
A good has lasting effect
Compute single factor productivity
Input used (example:labor hrs)
Compute multifactor productivity
Input used (labor+materials+energy+capital+investment)
Critical values in identifying productivity
- Basic education
- Diet of labor force
- Social overhead
Challenge is maintaining and enhancing skills in the midst of rapidly changing technology and knowledge
Operations management
The set of activities that create value in the form of goods or services by transforming inputs into outputs
Eli Whitney
Gov grant make 10,000 muskets showed machine tools could produce standardized parts
Frederick Taylor
Father of scientific a management first motion and time studies-efficiency principles
Taylor principles were management should take more responsibility for:
Matching employee to right job
Providing proper training
Providing proper work methods and tools
Establishing legitimate incentives for workers
Frank & Lillian Gilbreth
Engineering team developed work measurement methods
Henry Ford
First used moving assembly line-unfinished product moved by conveyor past work station
W. Edwards Demming
Teaching Japan quality control methods -used statistics to analyze process- included workers in decisions
Basic management functions of OM
Planning Organizing Staffing Leading Controllingk
Define mission
The purpose or rationale for an organizations existence– it tells an organization where it is going– answers what do we contribute to society– provides boundaries and focus – purpose for being
Define strategy
How an organization expects to achieve its missions and goals– tells the organization how to get there
