Professional Documents
Culture Documents
Productivity 1
PowerPoint presentation to accompany
Heizer and Render
Operations Management, Global Edition, Eleventh Edition
Principles of Operations Management, Global Edition, Ninth Edition
2014
2014
Pearson
Pearson
Education
Education 1-1
Outline
Global Company Profile: Hard Rock Cafe
Planning
Organizing
Staffing
Leading
Controlling
Figure 1.4
2014 Pearson Education 1 - 26
The Heritage of OM
Division of labor (Adam Smith 1776; Charles
Babbage 1852)
Standardized parts (Whitney 1800)
Scientific Management (Taylor 1881)
Coordinated assembly line (Ford/ Sorenson 1913)
Gantt charts (Gantt 1916)
Motion study (Frank and Lillian Gilbreth 1922)
Quality control (Shewhart 1924; Deming 1950)
Human factors
Industrial engineering
Management science
Biological science
Physical sciences
Information technology
High customer interaction: Often what the customer is Limited customer involvement in production
paying for (consulting, education)
Inconsistent product definition: Auto Insurance Product standardized (iPhone)
changes with age and type of car
Often knowledge based: Legal, education, and medical Standard tangible product tends to make automation
services are hard to automate feasible
Services dispersed: Service may occur at retail store, Product typically produced at a fixed facility
local office, house call, or via internet.
Quality may be hard to evaluate: Consulting, Many aspects of quality for tangible products are easy
education, and medical services to evaluate (strength of a bolt)
Reselling is unusual: Musical concert or medical care Product often has some residual value
80
Percent of Workforce
60
40
20
0 | | | | | | | | |
Important Note!
Production is a measure of output only
and not a measure of efficiency
Feedback loop
Figure 1.6
1,000
= = 4 units/labor-hour
250
Figure 1.7
2014 Pearson Education 1 - 59
Capital
10
Percent increase in productivity
0
10 15 20 25 30 35
Percentage investment