introduction to operations management
definition: activities that relate to creation of goods & services through transformation of inputs to outputs
goods vs services, services are
production vs productivity
single-factor productivity
multifactor productivity
productivity improvement. factors critical to improved productivity
intangible
produced & consumed simultaneously
unique (unlike anyone else's)
high customer interaction, demands uniqueness
inconsistent product definition
knowledge-based (educational, medical)
dispersed, brought to customer
production: creation of goods and services through transformation
productivity: ratio of outputs divided by one/more inputs
efficiency (doing the job well with min resources) vs effective (doing the right things). to reach efficiency, you need to be effective
outputs divided by one input
productivity = units produced/labor hours = 1.000/250 = 4 units per labor hour
outputs to many inputs
labor. education, diet, social overhead (transport, sanitation)
capital. humans are tool users, capital provides these tools
management ensures labor and capital are effectively used to increase productivity
productivity = output/(labor + material + energy + capital + misc)