Productivity 1
PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition
© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 1-1
Outline
▶ Global Company Profile: Hard Rock Cafe
▶ Planning
▶ Organizing
▶ Staffing
▶ Leading
▶ Controlling
Figure 1.4
© 2014 Pearson Education, Inc. 1 - 23
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)
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
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, Inc. 1 - 52
Management
▶ Ensures labor and capital are effectively
used to increase productivity
▶ Use of knowledge
▶ Application of technologies
▶ Knowledge societies
▶ Difficult challenge