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 how many days is a required production run, Johnson Plastics makes ...

Johnson Plastics makes and sells, among many other things, specialty plastic display cases for retail stores. Johnson's expected demand for the display cases is 1,000 units, and av

Explain loosening the constraints, Which of the following actions would exp...

Which of the following actions would expand the feasible region of an LP model? A.Loosening the constraints. B.Tightening the constraints. C.Multiplying each constraint by

Quality and reliability & after sales service, Quality and Reliability & Af...

Quality and Reliability & After Sales Service - Operation Strategy Quality and reliability  The extent to which the customers' expectations are satisfied or exceeded by

: Why are services typically more difficult to stand, Ask question : Why ar...

Ask question : Why are services typically more difficult to standardize#Minimum 100 words accepted#

Explain full capacity and with product demand rising, Develop a decision tr...

Develop a decision tree for the case of a company is operating at full capacity and with product demand rising. The choice is between new equipment and overtime. A 20% rise in sale

Explain marketing and selling, What is your understanding of the terms: mar...

What is your understanding of the terms: marketing and selling? Are they the same? How do you differentiate the two terminologies? Provide examples to support your points.

Explain sample provided by the supplier, A shirt manufacturer buys cloth by...

A shirt manufacturer buys cloth by the 100-yard roll from a supplier. For setting up a control chart to manage the irregularities (e.g., loose threads and tears), the following dat

Explain hamilton marketing services, Could someone help me to figure out th...

Could someone help me to figure out this case? Thanks very much. Alex Hamilton founded Hamilton Marketing Services in 1999 after leaving a major marketing consulting firm in Chicag

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