Midterm- Productivity Flashcards
(Multifactor productivity)
More than one output
establish a destination for the org
Mission and goals
one of the primary responsibilitrs of an ops manager is to achieve_______ of an orgs resources
productive use
relates to the plans that determine the direction an organization takes in pursuing its goals
Strategy
where can PRODUCTIVITY be computed for? (4)
- single operation
- department
- organization
- or even an entire country
(goods and services)
Output
where does the choice on productivity measures primarily depends?
on the purpose of measurement
(Total productivity)
All inputs
where does the unit of outputs used in productivity measures depend?
on the type of job performed
Effective use of resources
Productivity
Output/labor
Output/Machine
Output/Capital
Partial measures
the basis of an organization
Mission
It is how effectively an organization meets the meeds of customers relative to others that offer similar goods or services
Competitiveness
Output/Labor+machines
Output/Labor+Capital+Energy
Multifactor Measures
All inputs used to produce them
Total measure
affect the ability of an org to compete or the ability to serve its purpose
Strategy
allows managers to judge performance and to decide where improvement are needed
productivity measures
how to determine productivity measures of an entire industry or the natinal productivity of a country
by combining productivity measures of various companies or industries
Productivity measurements serve as_____ of the effective use of resources
Scorecards
Relates how effective an organization is in the marketplace compared eith other organizations that offer similar products or services
Competitiveness
why business leaders are concerned with productivity?
It relates to competitiveness
why governement leaders are concerned eith national productivity?
Close relationship bet. productivity and nation’s standard of living
responsible for high standards of living enjoyed by people in industrial nations
high levels of productivity
what happens when wage and price increases is not accompanied by an increase in productivity?
creates inflationary pressures on nation’s economy
Negative impacts on Productivity: (4)
- Lower propensity to save and higher propensity to consume, which slows capital formation and attracts foreign goods
- Increasing govt regulations add to administrative burden of companies
- Increasing demand for services which are less productive than manufacturing ops.
- An emphasis on short run performance
an index that measures output relative to the input use to produce them
Productivity
may distort productivity measurements
Quality differences
How to treat productivity?
Approximate indicators
Factors that affect productivity: (5)
- methods
- Capital
- Quality
- Technology
- Management
Key Steps in Improving Productivity: (7)
- Develop productivity for all operations; measurement is the first step in managing and controlling ops.
- Look at the system as a whole in deciding ehich ops are most critical; overall productivity is important.
- Develop methods for achieving productivity improvements.
- Establish reasonable goals for improvement.
- Consider incentives to reward workers for contributions.
- Measure improvements and publicise them
- Dont confuse productivity eith efficiency
Developing Methods for achieving productivity improvements: (3)
- Solicit ideas from workers
- Study how other firms increased productivity
- Reexamining the way work is done
Narrower concept that pertains to getting the most out of a given set of resources
Efficiency
Broader concept that pertains to effective use of overall resources
Productivity
How to Formulate Strategy? (4)
- SM must take into account distinctive compitencies of the org
- Must scan the envi
- Must determine ehat the competitors are doing or planning to do
- Must critically examine other factors that could either have pos or neg effects (swot approach)
- must take into account both order qualifiers and order winners
provides substance to overall mission
Goals
An important factor in determining wheter a company prospers, barely gets by or fails
Competitiveness
Exploited inexpensive labor pool
Low labir cost strat
the ratio of output to input
productivity
Keys on competitiveness: (5)
Price Quality Product Differentiation Flexibility Time
amount a customer must pay for the product or service
price
It relates to the buyer’s perceptons of how eell the product/servixe will serve its purpose
Quality
“minimum standard of acceptability”
Order Qualifiers
Refers to any special features that cause a product or service to be perceived by the buyer as more suitable that a competitor’s product or servcie
Product differentiation
Ability to respond to changes
Flexibility
plans for achieving goals
Strategies
destinations
goals
should serve to guide formulation of strategies for the orgs as well as decision making at all levels
mission
refres to a number of diff. aspects of an organization’s operations
time
methods and actions used to accomplish strategies
tactics
the road maps for reaching the destination
strategies
after sale activities
Service
overall strategies;relate to entire org
Organizations strategies
focus on reducing the time required ti accomplish various activities
Time-Based strat
relate to each of the functional areas of the organization
Functional strategies
They are more specific in nature than strategies and they provide guidance and direction for carrying out actual ops
Tactics
needs the most specific and detailed plans and decision making in an orgs
actual ops
those special attributes or abilities possessed by an organization that give it a competitive edge
Distinctive Compitencies
key variables that affect pricing/profitability
Cost
qunatitative approach that guides us in decision making
statistics
Goal must have:
smart objectives
those characteristics that potential customers perceive as minimum standard of acceptability to be consideres as a potential for purchase
Order Qualifiers
heart and soul of org
managers and workers
effectively matching supplies of goods with demands
Inventory management
Reasons why organizations fail or perform poorly: (7)
- Putting too much emphasis on short term financial performance at the expense of research and dev.
- Failing ti take advantage of strengths and opps and or failing to recognize threats
- Neglecting operations strategy
- Placing too much emphasis in product and service design and not enough on process design
- Neglecting investments in capital and HR
- Failing to est. good internal communications and cooperation among diff functional areas
- Failing to consider customer eants and needs
“What business are we in?”
Mission
Two questions to competing; knowing wants and needs
- What do customers want?
2. How can we deliver that to them?
how do customers evaluate product or service?
by its performance relative to cost
where do the nature of orgs strategy depends?
Mission
the overall relationship that exists from the mission down to actual ops is________
heirarchical in nature
provides overall direction for the organization
strategy
it has long term impact on the nature and characterists of the org
Strategy
considering the events and trends that present either threats or opps dor the org
Environmental scanning
Some strat of japanese manufacturing: (4)
- low labor cost strat
- Scale-based strat
- Flexible factories
- Focused factories
used capital intensive methods to achieve labor productivity and lower unit cost
Scale based strat
this characteristics of an organizations goods/servixes that cause them to be perceived as better than the competitors
Order winners
used smaller factories that focused in narrow product lines to take advantage kd specializationand achieve higher quality
Focused factories
reduced the time needed to incorporate new products and process designs
Flexible factories
Internal factors of environmental Scanning:(7)
HR
- Financial Resources
- Products and ervice
- Tech
- Suppliers
- Customers
emphasis is on cost minimization or product differentiation
Traditional strat
Focus on satisfying the customer by integrating wuality in all phases of the org.
Quality-based strat
Used felxible equipments that allowes volume and design changes. continued to stress quality
Flexible Factories Strat
where can orgs achieve time reduction? (6)
- planning time
- product/service design time
- processing time
- Changeover time
- delivery time
- Response time for complaints
This includes not only the final product/service but also related processes such as design, producttion and service after sale
Quality-based strat
output is greater than resources used
productivity
narrower in scope, dealing primarily eith the operations aspect of the org
Operations strat
basis of measuring won a country is productive
indexes
Operations strategy:
Products, Processes,methods, operarinf resourxes, wuality, cost , lead times and scheduling
External Factors of Envi Scanning: (6)
- Economic Conditions
- Political Conditions
- Legal Environment
- Technology
- Competition
- Markets
Refres to materials and workmanship as well as design
Quality
The key to successfully competing:
Determine customer eants and then direct efforts toward meeting customer expectations
(Labor, materials, energy)
inputs
Formula in expressing customer value and satisfying them
Value=performance/cost=Quality+speed+Flexibility/Cost
are the “how to” part of the process and ops as the actual “doing” part of the process
Tactics
relates to products,processes, methodsquality,costs, lead times and scheduling
Ops strat
(partial productivity)
Single output
provides general direction for an organization and gives rise to orgs goals
Mission
the reason for orgs existence
Mission
where can PRODUCTIVITY be based on?(3)
- single output(partial productivity)
- More than one output(multifactor prodcutivity)
- All inputs(total productivity)
