MGT 250 Lecture Notes - Lecture 51: Operations Management

29 views2 pages

5 Jun 2018

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

• Managing Service & Manufacturing Operations:

➢ Operations Management: managing daily production of goods & services.

➢ Productivity: a measure of performance that indicates how many inputs it

takes to produce or create an output.

Productivity = Outputs / Inputs

o At their core, organizations are production systems.

o Companies combine inputs to produce outputs in the form of finished

products/services.

▪ Inputs:

 Labor

 Raw materials

 Capital

 Knowledge

o The fewer inputs it takes to create an output or the greater the output

from one input is, the higher the productivity.

▪ Q: Why does productivity matter?

❖ For many companies, higher productivity doing more for less

results in:

 Lower costs

 Lower prices

 Faster service

 Higher market share

 Higher profits

❖ Statistics:

find more resources at oneclass.com

Unlock document

This preview shows half of the first page of the document.
Unlock all 2 pages and 3 million more documents.

Already have an account? Log in

Get access