Affluence and worldwide markets increasingly flexible

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Affluence and worldwide markets; increasingly flexible production processes Mass customization Job specialization Changing sociocultural milieu. Increasingly a knowledge and information society. Empowered employees, teams, and lean production Low cost focus Environmental issues, ISO 14000, increasing disposal costs Environmentally sensitive production, Green manufacturing, recycled materials, remanufacturing
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Operations Management 79-65 Business School of Central South University The Productivity Challenge The Productivity Challenge
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Operations Management 79-66 Business School of Central South University The Economic System The Economic System Transforms Inputs to Outputs Transforms Inputs to Outputs The economic system transforms inputs to outputs at about an annual 2.5% increase in productivity (capital 38% of 2.5%), labor (10% of 2.5%), management (52% of 2.5%) Land, Labor, Capital, Management Goods and Services Feedback loop Inputs Process Outputs
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Operations Management 79-67 Business School of Central South University Input-output video Input-output video
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Operations Management 79-68 Business School of Central South University Typical Impact of Quality Typical Impact of Quality Improvement Improvement Parts per man hour 95 100 105 110 115 Year A Year B Year C Cost per unit decreased $1.50 $1.75 $2.00 $2.25 Year A Year B Year C Average worker's annual cash compensation increased 24000 25000 26000 27000 Year A Year B Year C As productivity improved Costs were pared Wages increased
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Operations Management 79-69 Business School of Central South University Measure of process improvement Represents output relative to input Only through productivity increases can our standard of living improve Productivity Productivity Productivity Productivity Units Units produced produced Input used Input used = =
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Operations Management 79-70 Business School of Central South University Multi-Product Productivity Multi-Product Productivity Productivity = Output Labor + material + energy + capital + miscellaneous
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Operations Management 79-71 Business School of Central South University Measurement Problems Measurement Problems Quality may change while the quantity of inputs and outputs remains constant External elements may cause an increase or decrease in productivity Precise units of measure may be lacking
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Operations Management 79-72 Business School of Central South University Productivity Variables Productivity Variables Labor - contributes about 10% of the annual increase Capital - contributes about 32% of the annual increase Management - contributes about 52% of the annual increase
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Operations Management 79-73 Business School of Central South University Key Variables for Improved Labor Key Variables for Improved Labor Productivity Productivity Basic education appropriate for the labor force Diet of the labor force Social overhead that makes labor available Maintaining and enhancing skills in the midst of rapidly changing technology and knowledge
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Operations Management 79-74 Business School of Central South University Jobs in the U.S Jobs in the U.S
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  • Fall '12
  • jay
  • Management, The Land, Central South University, Business School of Central South University

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