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 consumption behaviours which you consider unethical, Compile a list...

Compile a list of consumption behaviours which you consider unethical. For each behaviour listed, explain why you view it as wrong

Explain project charter is to help the project team, One purpose of the pro...

One purpose of the project charter is to help the project team and the project sponsor to commit to the project

Flow process chart, Flow Process Chart Flow process chart is defined ...

Flow Process Chart Flow process chart is defined as a graphic representation of all operations inspections transportations delays and storages occurring during a process or p

#operational performance, what are the 5 operational performance objectives...

what are the 5 operational performance objectives may influence decision making associated to process design and layouts

Explain why is following up important with participants, Why is following u...

Why is following up important with participants who did not show up for their scheduled participation in your research?

Describe yelled at her in front of co-workers, Recall the case in which an ...

Recall the case in which an employee claimed harassment by her supervisor in which he altered her work hours with the knowledge that doing so would adversely affect her hypoglycaem

Explain leading a diverse workforce, 1. What lessons about leading people a...

1. What lessons about leading people and managing organizations does Zappos and its CEO, Tony Hsieh, provide? Explain your conclusions. 2. Each of the management challenges%u201

Explain larry is likely liable for a battery, Larry is upset with his roomm...

Larry is upset with his roommate Bill because he refuses to clean up after himself. In a fit of rage, Larry tries to slap Bill in the head, but he misses. At the time, Bill is turn

Explain what will be the percent increase or decrease, 1.15 Refer to Proble...

1.15 Refer to Problems 1.13 and 1.14. If Charles lackey's utility costs remain constant at $500 per month, labour at $8 per hour, and cost of ingredients at $0.35 per loaf, but Cha

Explain the stages in greiner''s growth model, Have you experienced any of ...

Have you experienced any of the stages in Greiner's growth model or Weitzel and Jonsson's model?

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