GMS 401 Lecture Notes - Lecture 7: Operations Management, Cost Leadership, Flexible Response
16 Oct 2017
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Document Summary
Identifying the optimum size and investment allows firms to spread overhead costs, providing a cost advantage: e. g. Quality: may change while the quantity of inputs and outputs remain constant: e. g. Hdtv compared with 1950"s tv: both tv but different quality, 2. Precise units of measure: may be lacking: not all automobiles require same inputs: some cars are subcompact, others, productivity variables- three factors critical to productivity improvement are porsches, 1. Labour (10% contribution of annual increase: result in healthier, better educated and better nourished labour force, can result into shorter work week, three key variables for improved labour productivity are, 1. Basic education appropriate for an effective labour force: 2. Social overhead that makes labour available, such as transportation and sanitation: 2. Capital (38% of annual increase: humans are tool using animals, capital investment provides these tools, capital investment has increased in canada most years, accumulated capital investment increased in canada at compound annual growth of 4. 5, 3.
