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
Three strategic approaches to competitive advantage
Differentiation – better or at least different
Cost leadership- cheaper
Response- more responsive
Key success factors in core competency of marketing:
Service Distribution Promotion Channels of distribution Product positioning
Key success factors for core competency finance/accounting:
Leverage Cost of capital Working capital Receivables Payables Financial control Lines of credit
Key success factors for core competency of production:
Product Quality Process Location Layout Human resource Supply chain Inventory Schedule Maintenance
Global operations strategy—-international strategy
Import/export or license existing product
Global operations strategy– global strategy
Standardized product
Economies of scale
Cross-cultural learning
Global operations strategy – transnational strategy
Move material, people, ideas, across national boundaries
Economies of scale
Cross-cultural learning
Global operations strategy-Multidomestic strategy
Use existing domestic model globally
Franchise, joint ventures subsidiaries
What is CPI
Corrupt Perceptions Index calculated by Transparency International an organization dedicated to fighting business corruption. The index is calculated from up to 13 different individual scores. 0 up to 100. 100 best score
