Textbook Notes (362,868)
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MGTA02H3 (361)
Chapter 2

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University of Toronto Scarborough
Management (MGT)
Bill Mc Conkey

Chapter 2: Increasing Productivity and Quality Terms: Productivity: a measure of efficiency that compares how much is produced with the resources used to produce it Quality: a product’s fitness for use in terms of offering the features that consumers want Labour Productivity: partial productivity ratio calculated by dividing gross domestic product by total number of workers Totally Quality Management (TQM): a concept that emphasizes that no defects are tolerable and that all employees are responsible for maintaining quality standards Performance Quality: the overall degree of quality; how well the features of a product meet consumers’ needs and how well the product performs Quality Reliability: the consistency of quality from unit to unit of a product Quality Ownership: the concept that quality belongs to each employee who creates or destroys it in producing a good or service; the idea that all workers must take responsibility for producing a quality product Business Process Re-engineering: redesigning of business processes to improve performance, quality, and productivity Supply Chain: flow of information, materials, and services that starts with raw materials suppliers and continues through other stages in the operations process until the product reaches the end customer Supply Chain Management (SCM): principle of looking at the chain as a whole to improve the overall flow through the system Productivity:  Measure of efficiency that compares how much is produced with resources used to produce it  Ratio of inputs to outputs Operations manager’s job is  To make things quickly, or cheaply  With a given amount of resources, to maximize the output Quality:  Fitness for us in terms of offering the features that consumers want  Meeting or surpassing customer expectations  4 factors in quality-improvement process: customers, quality, productivity and profits Labour Productivity of a Country = GDP / Total number of Workers Productivity Among Global Competitors  Factors: technologies, human skills, economic policies, natural resources, traditions  Canada’s competitiveness is a concern because we have been living off our rich natural resources  Must emphasize innovation and develop a more sophisticated mix of products  Canada fails to abandon outdated ways of thinking regarding productivity and innovation Domestic Productivity  Increase in productivity increases a nation’s total wealth Manufacturing vs. Service Productivity  Manufacturing productivity is higher than service productivity  Use technology to eliminate inefficiencies  Service sector suffered from “Baurnol’s disease” (economist, William Baurnol)  Baurnol’s disease: since service sector focused more on hands-on activity that machines couldn’t replace, it would be more difficult to increase productivity in services Indus
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