GMS 401 Lecture Notes - Lecture 2: Outsourcing, Strategic Planning, Job Shop

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 401
• Professor: Wally Whistance- Smith

Document Summary

Higher productivity = higher standard of living: relative to competition leads to competitive advantage in market, less likely it will be supplanted by foreign industry. Outputs are goods produced by operations system. Inputs = single (labour, materials, capital time: multiple (labour + materials, in $, all inputs/totals (total system productivity, in $) Total outputs total inputs = value added: to ti = va. Use fewer people or find better methods to improve productivity. Key factor in country standard of living. Labour productivity is the main instrument used to gauge the performance of individuals and plants. Wage + prices increases = creation inflationary pressure on economy. Average human thinking: inverse relationship = quality goes up, productivity goes down. Optimized workers so much there is so little possibilities to get better at something: automations make gains very little, technology costs a lot. Cannot grow anymore with too much automations. Productivity growth = current period productivity previous period productivity/ previous period productivity.