Transforming inputs into outputs - productivity measures, Operation Management

Assignment Help:

Transforming Inputs into Outputs - Productivity Measures

As will become clearer during the course of this chapter, a more quantitative definition of productivity cannot easily be given, since both the measures of achievement and the objectives of the organisation will have a major impact on the way and means by which productivity is measured. For these reasons, the definition of productivity used throughout will be output(s)/ input(s). This is illustrated as a systems diagram in the following figure.

756_Transforming Inputs into Outputs - Productivity Measures.png

To the politician productivity means money to spend on roads and hospitals; to the economist it is a comparative measure of the health, vitality and competitive strength of an economy; to an operations manager it is a comparative measure of improvement.  Productivity is important to everyone. We should constantly seek increases, so that the economy of the nation will continually produce an improving standard of living for all citizens.  The increase in gross national product in the US has increased around 1.7 per cent per annum for the past 10 years. For some Asian economies the increase was as high as 5 per cent. The productivity increase of 1.7 per cent according to Heizer and Render (2001) was due to a mix of inputs which contributed the following proportions: 

  • Capital contributed 38 per cent of the 1.7 per cent growth in the economy
  • Direct labour contributed 10 per cent of the 1.7 per cent growth in the economy
  • Management contributed 52 per cent of the 1.7 per cent growth in the economy

 

Measuring productivity is an effective way of determining a country's ability to improve living standards. Also, increasing productivity is the only way that labour and capital can achieve greater financial benefits. Productivity is a significant issue for all societies and one which operations managers must address. 

Despite varying individual perceptions of the concept, by the end of this chapter there should be little doubt in your mind that productivity is a critical issue to all not only within organisations but also nations, and that efficient operations can play a large role in the improvement of productivity. 

The major constituents are further broken down: 

  • Capital: level of capital investment and cost of capital
  • Labour: basic education and skills; diet and motivation; labour availability
  • Management: education and supply

 

From this breakdown it is clear that management makes a very significant contribution to a nation's GDP. The factors of greatest significance are education and supply. In a knowledge society change is brought about by people who are well educated and motivated who are given the opportunity to bring about improvements in their society. This analysis suggests that if countries wish to lever their productivity, then the education and training of management is their prime goal closely followed by the availability of capital and a conducive environment.


Related Discussions:- Transforming inputs into outputs - productivity measures

Explain people discriminate when prejudice impacts their, People discrimina...

People discriminate when prejudice impacts their Answer beliefs. attitudes. intentions. behavior.

Explain sales manager and credit manager learn to appreciate, 1. Can you de...

1. Can you devise strategies for the two viewpoints in a firm to live together harmoniously? 2. How can both the sales manager and credit manager learn to appreciate each other'

Calculate the percent change in the labor ratios, A department employs 3 ty...

A department employs 3 types of workers: laborers earning $5 per hour, machine operators earning $9 per hour and maintenance workers earning $16 per hour. For a certain job over 2

Describe at least four basic factors, In operations management, as in life,...

In operations management, as in life, a balanced approach is often the best policy. One of the best examples of the benefits of this in operations management is the "lean approach"

ROLE OF PRODUCTION PLANNING AND CONTROL, WHAT IS MEAN BY RODUCT DESIGN IN O...

WHAT IS MEAN BY RODUCT DESIGN IN OPERATION MANAGEMENT?

Find probability that the store is full, A drug store has two windows avail...

A drug store has two windows available for serving customers, who arrive at a Poisson rate of 40/hr. Service time is exponentially distributed with a mean of 2 min. Only one window

Significance of collecting information about competitors, Discuss the impor...

Discuss the importance of collecting information about competitors? Distinguish between ethical and unethical methods of gathering competitive intelligence.

Compute the breakeven volume, The following table shows the critical factor...

The following table shows the critical factors in a company's decision on choosing a new piece of equipment. Calculate the breakeven volume and utilization for each option and then

Describe culture and values and ethics, Discuss culture, values, ethics, an...

Discuss culture, values, ethics, and other such elements that lead to differences in social culture; 2) Explain the business and economic implications of differences in culture and

Product /management, Define Product Management,functions of Product managem...

Define Product Management,functions of Product management

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd