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ma4 - providing training and proper work methods/tools and...

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Chapter 1: Operations and Productivity Operations Management is activity that creates value in the form of goods or services through the transformation process. Essential functions: 1. Marketing –influences demand 2. Production/operations—creates the product and is responsible for the production process 3. Finance/accounting—tracks how well the company is doing, pays bills and collects money Cost Focus: -Early concepts (1776-1880) -Scientific Management Era (1880-1910) -Mass Production Era (1910-1980) Quality Focus: -Lean Production Era (1980-1995) Customization Focus: -Mass Customization Era (1995-2015) Eli Whitney: Received government contract to make 10,000 muskets. Showed that machine tools could make standardized parts to exact specifications Frederick W. Taylor: “Father of Scientific Management.” Studied how tasks were done as chief engineer for Midvale Steel. Began first motion and time studies and created efficiency principles. Taylor’s Principles: Management should take more responsibility for matching employees to right job,
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Unformatted text preview: providing training and proper work methods/tools, and establishing incentives for work to be accomplished. Frank and Lillian Gilbreath: Developed work measurement methods. Applied efficiency methods to their home and 12 children Henry Ford: Created Ford Motor Company using first moving assembly line to make Model T. W. Edwards Deming: Taught Japan quality control methods. Used statistics to analyze process. His methods involve workers in decisions Productivity Challenge: Productivity is the ratio of outputs (goods and services) divided by the inputs (resources such as labor and capital) Productivity is a measure of process improvement representing output relative to input. Standard of living improves through productivity increases. Productivity Variables: 1. Labor—contributes about 10% of annual increase 2. Capital—contributes 38% of annual increase 3. Management—contributes 52% of annual increase...
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