PRODUCTION / OPERATIONS MANAGEMENT

(MGT713)
ASSIGNMENT NO.1

Question
Despite of the tremendous efforts by the American Companies regarding production
improvement and quality enhancements, they were unable to gain significant success in
the markets. What were the factors that you would consider responsible for lower
productivity of the American Companies? In contrast to the wrong approach adopted by
the American Companies, what would be the RIGHT approach towards productivity
improvements? Give rationale to your answer.

Productivity approach to manufacturing management is not enough because it lose is

much bigger as compare to benefit. So chipping away at productivity is mostly concerned
with direct labour efficiency and this will increase the cost at high ratio and productivity
will improve but it is not sufficient for import industries to complete in market. The
another factor which is focuses excessively on the efficiency of factory workers by adding
discipline attribute and categorizing employees in different departments approach
detracts attention from structure of the production system. Ignores other ways to compete
that use manufacturing as a strategic resource is another deficiency of firms. Similarly
fails to provide or support a coherent manufacturing strategy. When company just
focusing over to become low cost company in the industry this approach rashly rules out
other strategies.

Productivity was not working well enough to make the company cost competitive. This
recognition allowed mangers to seek strategic objectives for manufacturing other than
those determined primarily by cost. The right approach towards productivity
improvements

 Accepting the fact that its manufacturing was in trouble and needed to be run
differently.
Developing and implementing a manufacturing strategy.
Adopting new process technology.
Making major changes in the selection, development, assignments and reward
systems for manufacturing managers.