MGTA02H3 Lecture Notes - Supply Chain, Business Process, Bank Teller
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MGTA02H3 Full Course Notes
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Productivity is a measure of efficiency that compares how much is produced with the resources used to produce it (ie: resource to products, inputs to outputs). The more we are able to produce while using fewer resources, the more productivity grows and everyone benefits. If a country is more productive than another country than it is wealthier, if it is less productive then their standard of living will fall. There are four factors that interact in response to the productivity challenge process: customers, quality, productivity, and profits. The more time you spend and the more materials you use making a product the more it costs. Operations managers are concerned with the best way to make things. Labour productivity is a partial productivity ratio calculated by dividing gross domestic product by total number of workers (commonly used by most countries). The focus on labour, rather than resources, is preferred because most countries keep accurate records on employment and hours worked.
