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Production and Productivity

The document discusses operations management and productivity. It defines operations management as transforming inputs into outputs through production of goods and services. It distinguishes between goods, which are tangible products, and services, which are intangible and produced and consumed simultaneously. Productivity is defined as the ratio of outputs to inputs and measures efficiency, while production only measures output. The document lists learning objectives around defining key terms, computing productivity, and identifying variables to enhance productivity. It provides examples of critical operations management decisions around design, supply chain, quality, and scheduling. The objective is to improve productivity over time through process improvements.

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83 views15 pages

Production and Productivity

The document discusses operations management and productivity. It defines operations management as transforming inputs into outputs through production of goods and services. It distinguishes between goods, which are tangible products, and services, which are intangible and produced and consumed simultaneously. Productivity is defined as the ratio of outputs to inputs and measures efficiency, while production only measures output. The document lists learning objectives around defining key terms, computing productivity, and identifying variables to enhance productivity. It provides examples of critical operations management decisions around design, supply chain, quality, and scheduling. The objective is to improve productivity over time through process improvements.

Uploaded by

Nuryaani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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OPERATION AND

PRODUCTIVITY
1st Meet - Risna Kartika, S.E., M.M.
Source: Jay Heizer and Barry Render
1.Define operations management
2.Explain the distinction between
goods and services
3.Explain the difference between
production and productivity
4.Compute single-factor productivity
5.Compute multifactor productivity

Learning Objectives 6.Identify the critical variables in


enhancing productivity
When you complete this chapter you
should be able to:

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Operations management
(OM) is the set of activities
that creates value in the
What Is Operations form of goods and services
Management? by transforming inputs into
outputs
Production is the creation of
goods and services
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Organizational Chart
On Management
Process

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Why Study MO?

 OM is one of  We want (and  We want to  OM is such a 


three major need) to know understand costly part of
functions how goods and what an
(marketing, services are operations organization
finance, and produced managers do
operations) of
any
organization

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Ten Critical Decisions
Design of goods and services Supply chain management
What good or service should we offer? Should we make or buy this component?
How should we design these products and services? Who are our suppliers and who can integrate into our e-
Managing quality commerce program?
How do we define quality? Inventory, material requirements planning, and JIT
Who is responsible for quality? How much inventory of each item should we have?
Process and capacity design When do we re-order?
What process and what capacity will these products require?
What equipment and technology is necessary for these
processes?
Location strategy Intermediate and short–term scheduling
Where should we put the facility? Are we better off keeping people on the payroll during
On what criteria should we base the location decision? slowdowns?
Layout strategy Which jobs do we perform next?
How should we arrange the facility? Maintenance
How large must the facility be to meet our plan? Who is responsible for maintenance?
Human resources and job design When do we do maintenance?
How do we provide a reasonable work environment?
How much can we expect our employees to produce? Your Logo or Name Here 7
Characteristic of Goods
• Tangible product
• Consistent product definition
• Production usually separate from consumption
• Can be inventoried
• Low customer interaction
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Characteristics of
Service
• Intangible product
• Produced and consumed at same time
• Often unique
• High customer interaction
• Inconsistent product definition

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The Differences:

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Productivity

Productivity is the ratio of


outputs (goods and services)
divided by the inputs
(resources such as labor and
capital)
The objective is to improve
productivity!
• Important Note!
• Production is a measure of
output only and not a measure of
efficiency

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Productivity

• Measure of process
improvement
• Represents output
relative to input
• Only through
productivity increases
can our standard of
living improve

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Risna Kartika, S.E., M.M.
082115050696
[email protected]

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