Beruflich Dokumente
Kultur Dokumente
Operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs
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13
Figure 1.2
15
Characteristics of Goods
Tangible product
Characteristics of Service
Intangible product
Can be resold Can be inventoried Some aspects of quality measurable Selling is distinct from production Product is transportable
Site of facility important for cost Often easy to automate Revenue generated primarily from tangible product
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75
|
50
|
25
|
0
|
25
|
50
|
75
|
100%
|
Table 1.4
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Example
General Electric, Ford, U.S. Steel, Intel Bechtel, McDermott King Ranch Homestake Mining
% of all Jobs
11.5 7.9 1.6 0.4
Table 1.4
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15.1 5.2
Table 1.4
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Example
Snelling and Snelling, Waste Management, Pitney-Bowes Citicorp, American Express, Prudential, Aetna, Trammel Crow, EDS, IBM Olive Garden, Hard Rock Cafe, Motel 6, Hilton Hotels, Walt Disney, Paramount Pictures U.S., State of Alabama, Cook County
% of all Jobs
10.1
9.6
8.5
4.6
Table 1.4
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Employment (millions)
Service
60
40 20 0
Manufacturing
| | | | | | | 1950 1970 1990 2010 (est) 1960 1980 2000
United Sta
Cana Fran It
40
50
1970
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2008 (est)
60 70 Percent
80
Productivity Challenge
Productivity is the ratio of outputs (goods and services) divided by the inputs (resources such as labor and capital)
The objective is to improve this measure of efficiency
Important Note! Production is a measure of output only and not a measure of efficiency
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Processes
The U.S. economic system transforms inputs to outputs at about an annual 2.5% increase in productivity per year. The productivity increase is the result of a mix of capital (38% of 2.5%), labor (10% of 2.5%), and management (52% of 2.5%).
Outputs
Goods and services
Feedback loop
Figure 1.7
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Productivity
Units produced Productivity = Input used
Productivity Calculations
Labor Productivity
Productivity = Units produced Labor-hours used 1,000 250
= 4 units/labor-hour
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Multi-Factor Productivity
Output Productivity = Labor + Material + Energy + Capital + Miscellaneous
Also known as total factor productivity Output and inputs are often expressed in dollars
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8 titles/day
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8 titles/day
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8 titles/day
8 titles/day Old labor = productivity 32 labor-hrs = .25 titles/labor-hr 14 titles/day New labor = productivity 32 labor-hrs
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8 titles/day
8 titles/day Old labor = productivity 32 labor-hrs = .25 titles/labor-hr 14 titles/day New labor = = .4375 titles/labor-hr productivity 32 labor-hrs
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