Operations Management: Operations and productivity

Pure service

A service that does not include a tangible product.

Sustainability:

Can we keep making the same product year after year without losing money. Does it cost more money to make than to sell?

Why is OM important?

Cost, Customer Satisfaction, and Core Function

What is Costs?

How much does it cost to do "that"? Are people willing to pay what it costs? Can I make a profit? Can i break even (if nonprofit)?

Multifactor productivity is calculated by combining the input units:

Productivity= Output/ (Labor + Material + Energy + Capital + Miscellaneous)

What are the 5 components of OM?

Resources Inputs Transformation Outputs Value

Productivity=

Units Produced/ Input Used

Knowledge Society

A society in which much of the labor force has migrated from manualo work to work based on knowledge.

Operations management (OM)

Activities that relate to the creation of goods and services throught the transformation of inputs to outputs.

What is Core funcion?

Create a product of value from your inputs and resources.

Services:

Economic activities taht typically produce an intangible product.

Multifacotr productivity

Indacates the ratio of many or all resources (inputs) to the goods and services produced (outputs).

Single-factor productivity

Indicates the ratio of one resource (input) to the goods and services produced (outputs).

What is Customer Satisfaction?

Low price strategy: keep customers happy by keeping cost down. (Customer Satisfactoin has to match up with your strategy)

Management Process:

The applicatoin of planning, organizing, staffing, leading, and controlling to the achievement of objectives.

Production

The creation of goods and services

Productivitiy

The ratio of outputs (goods and services) divided by one or more inputs (such as labor, capital, or management).

Service Sector

The segment of the economy that includes trad, financial, lodging, education, legal, medical, and other professional occupations.

Productivity Variables:

The three factors critical to productivity improvement--Labor, capital, and the art and science of management.

Multifactor productivity is also known as:

Total factor productivity