vw pom session1 - new.ppt
TRANSCRIPT
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OperationsManagementChapter 1 Operations and Productiit!
2006 Prentice Hall, Inc.
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NGUYN DANH NGUYN, PHDNGUYN DANH NGUYN, PHDDivision of Industrial ManagementDivision of Industrial ManagementScool of !conomics and ManagamentScool of !conomics and ManagamentHanoi Universit" of #ecnolog"Hanoi Universit" of #ecnolog"
" $acelor of Industrial Heat and %efregiration !ngineering,$acelor of Industrial Heat and %efregiration !ngineering,
HU#, &''(HU#, &''(" M$A ) AI#, #ailand, &''*M$A ) AI#, #ailand, &''*" PD ) +a"ama Universit", -a.an, /001PD ) +a"ama Universit", -a.an, /001" 2ield %esearc3 Management, Production and +.eration2ield %esearc3 Management, Production and +.eration
Management, 4ualit" Management, Service Management,Management, 4ualit" Management, Service Management,
H%M, and +rgani5ational $eavior6H%M, and +rgani5ational $eavior6" #rainer for AI#78, SA8, #o"ota, 2ord, 8ietnam Airlines6#rainer for AI#78, SA8, #o"ota, 2ord, 8ietnam Airlines6
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#!9##!9#:ecture notes:ecture notes
Norman Gaiter and Greg 2ra5ier, Production andNorman Gaiter and Greg 2ra5ier, Production and+.erations Management, sevent edition, Sout;+.erations Management, sevent edition, Sout;
7ases and su..lementar" reading materials7ases and su..lementar" reading materials" %eference =oos%eference =oos
Scmenner %6
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8I!#NAM!S! #!9#8I!#NAM!S! #!9#
" 4un lB Sn Cut ) #S6 Ngu"En 8Fn Ngin, N4un lB Sn Cut ) #S6 Ngu"En 8Fn Ngin, NCut =n Ji Kc 4uLc gia H ni, /00&6Cut =n Ji Kc 4uLc gia H ni, /00&6
" 4un tr Sn Cut v tOc ngi. ) #S6Qng Min4un tr Sn Cut v tOc ngi. ) #S6Qng Min#rang, N Cut =n #Lng R, /00(6#rang, N Cut =n #Lng R, /00(6
" 4un tr Sn Cut v Dc v ; #S6 Tng t #an4un tr Sn Cut v Dc v ; #S6 Tng t #anPVng, N Cut =n #Lng R ) /00(PVng, N Cut =n #Lng R ) /00(
" GiOo trWn 4un tr Sn Cut v #Oc ngi. ) #S6GiOo trWn 4un tr Sn Cut v #Oc ngi. ) #S6#rVng on #X 7Z =iRn[ ) N Cut =n :ao#rVng on #X 7Z =iRn[ ) N Cut =n :ao\ng 9] i ) /00>\ng 9] i ) /00>
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+utline+utline
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+utline ; 7ontinued+utline ; 7ontinued
#e Heritage +f +.erations#e Heritage +f +.erationsManagementManagement
+.erations In #e Service Sector+.erations In #e Service Sector Differences $et@een Goods AndDifferences $et@een Goods AndServicesServices
Gro@t +f ServicesGro@t +f Services
Service Pa"Service Pa"
!Cciting Ne@ #rends In +.erations!Cciting Ne@ #rends In +.erationsManagementManagement
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+utline ; 7ontinued+utline ; 7ontinued
#e Productivit" 7allenge#e Productivit" 7allenge Productivit" MeasurementProductivit" Measurement
Productivit" 8aria=lesProductivit" 8aria=les Productivit" And #e Service SectorProductivit" And #e Service Sector
!tics And Social %es.onsi=ilit"!tics And Social %es.onsi=ilit"
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:earning +=_ectives:earning +=_ectives
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:earning +=_ectives:earning +=_ectives
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+rgani5ing to Produce+rgani5ing to Produce
Goods and ServicesGoods and Services !ssential functions3!ssential functions3
Mareting ) generates demandMareting ) generates demand
Production`o.erations ) createsProduction`o.erations ) createste .roductte .roduct
2inance`accounting ) tracs o@2inance`accounting ) tracs o@
@ell te organi5ation is doing, .a"s@ell te organi5ation is doing, .a"s=ills, collects te mone"=ills, collects te mone"
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+rgani5ational 7arts+rgani5ational 7arts
+.erations#eller
Sceduling7ec 7learing7ollection#ransaction
.rocessing
2acilitiesdesign`la"out8ault o.erationsMaintenanceSecurit"
2inanceInvestments
Securit"%eal estate
Accounting
Auditing
Mareting:oans
7ommercial Industrial 2inancial Personal
Mortgage
#rust De.artment
7ommercial $an
Figure 1.1(A)Figure 1.1(A)
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+rgani5ational 7arts+rgani5ational 7arts
+.erationsGround su..orte?ui.mentMaintenanceGround +.erations 2acilit" maintenance 7atering
2ligt +.erations 7re@ sceduling 2l"ing 7ommunications Dis.atcingManagement science
2inance`accounting
Accounting Pa"a=les %eceiva=les General :edger2inance 7as control
International eCcange
Airline
Figure 1.1(B)Figure 1.1(B)
Mareting#rafficadministration %eservations Scedules #ariffs .ricing[Sales
Advertising
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MaretingSales.romotionAdvertising
SalesMaretresearc
+rgani5ational 7arts+rgani5ational 7arts
+.erations2acilities 7onstruction maintenanceProduction and inventor" control
Sceduling materials control4ualit" assurance and controlSu..l";cain managementManufacturing #ooling fa=rication assem=l"Design
Product develo.ment and design Detailed .roduct s.ecificationsIndustrial engineering !fficient use of macines, s.ace,
and .ersonnel
Process anal"sis Develo.ment and installation of .roduction tools and e?ui.ment
2inance`accountingDis=ursements`credits
%eceiva=les Pa"a=les General ledger2unds Management Mone" maret International
eCcange7a.ital re?uirements Stoc issue $ond issue
and recall
Manufacturing
Figure 1.1(C)Figure 1.1(C)
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+.tions for Increasing+.tions for Increasing7ontri=ution7ontri=ution
SalesSales $100,000$100,000 $150,000$150,000 $100,000$100,000 $100,000$100,000
Cos o! "oo#sCos o! "oo#s 80,00080,000 120,000120,000 80,00080,000 64,00064,000
"ross argi%"ross argi% 20,00020,000 30,00030,000 20,00020,000 36,00036,000
Fi%a%&e CossFi%a%&e Coss 6,0006,000 6,0006,000 3,0003,000 6,0006,000Su'oalSu'oal 14,00014,000 24,00024,000 17,00017,000 30,00030,000
aes a 25*aes a 25* 3,5003,500 6,0006,000 4,2504,250 7,5007,500
Co%ri'uio%Co%ri'uio% $ 10,500$ 10,500 $ 18,000$ 18,000 $ 12,750$ 12,750 $ 22,500$ 22,500
Fi%a%&e+Fi%a%&e+arei%garei%g A&&ou%i%gA&&ou%i%g --
-io%-io% -io%-io% -io%-io%
/%&rease/%&rease e#u&ee#u&e e#u&ee#u&e
SalesSales Fi%a%&eFi%a%&e ro#u&io%ro#u&io%Curre%Curre% ee%ue 50*ee%ue 50* Coss 50*Coss 50* Coss 20*Coss 20*
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#en 7ritical Decisions#en 7ritical Decisions
#en Decision Areas#en Decision Areas
Service and .roduct designService and .roduct design 4ualit" management4ualit" management Process and ca.acit" designProcess and ca.acit" design :ocation:ocation :a"out design:a"out design Human resources, _o= designHuman resources, _o= design Su..l";cain managementSu..l";cain management Inventor" managementInventor" management
ScedulingSceduling MaintenanceMaintenance
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#e 7ritical Decisions#e 7ritical Decisions
Service and .roduct designService and .roduct design
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#e 7ritical Decisions#e 7ritical Decisions
Process and ca.acit" designProcess and ca.acit" design
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#e 7ritical Decisions#e 7ritical Decisions
:a"out design:a"out design Ho@ sould @e arrange te facilit"Ho@ sould @e arrange te facilit"
and material flo@^and material flo@^
Ho@ large must te facilit" =e to meetHo@ large must te facilit" =e to meetour .lan^our .lan^
Human resources and _o= designHuman resources and _o= design Ho@ do @e .rovide a reasona=le @orHo@ do @e .rovide a reasona=le @or
environment^environment^ Ho@ muc can @e eC.ect ourHo@ muc can @e eC.ect our
em.lo"ees to .roduce^em.lo"ees to .roduce^
a'le 1.2 (&o%.)a'le 1.2 (&o%.)
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#e 7ritical Decisions#e 7ritical Decisions
Su..l";cain managementSu..l";cain management Sould @e mae or =u" tis com.onent^Sould @e mae or =u" tis com.onent^
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#e 7ritical Decisions#e 7ritical Decisions
Intermediate and sortIntermediate and sort))termtermscedulingsceduling Are @e =etter off ee.ing .eo.le onAre @e =etter off ee.ing .eo.le on
te .a"roll during slo@do@ns^te .a"roll during slo@do@ns^
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Significant !vents in +MSignificant !vents in +M
Figure 1.3Figure 1.3
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#e Heritage of +M#e Heritage of +M
Division of la=or Adam Smit &**>Division of la=or Adam Smit &**>7arles $a==age &b1/[7arles $a==age &b1/[
Standardi5ed .arts [Gantt carts Gantt &'&>[
Motion stud" 2ran and :illian Gil=retMotion stud" 2ran and :illian Gil=ret&'//[&'//[
4ualit" control Se@art &'/( Deming4ualit" control Se@art &'/( Deming&'10[&'10[
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#e Heritage of +M#e Heritage of +M
7om.uter Atanasoff &'b[7om.uter Atanasoff &'b[
7PM`P!%# DuPont &'1*[7PM`P!%# DuPont &'1*[
Material re?uirements .lanning +rlic"Material re?uirements .lanning +rlic"
&'>0[&'>0[ 7om.uter aided design 7AD &'*0[7om.uter aided design 7AD &'*0[
2leCi=le manufacturing s"stem 2MS &'*1[2leCi=le manufacturing s"stem 2MS &'*1[
$aldrige 4ualit" A@ards &'b0[$aldrige 4ualit" A@ards &'b0[ 7om.uter integrated manufacturing &''0[7om.uter integrated manufacturing &''0[
Glo=ali5ation &''/[Glo=ali5ation &''/[
Internet &''1[Internet &''1[
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!li 1 died &b/1$orn &*>1 died &b/1
In &*'b, received governmentIn &*'b, received government
contract to mae &0,000 musetscontract to mae &0,000 musets So@ed tat macine tools couldSo@ed tat macine tools could
mae standardi5ed .arts to eCactmae standardi5ed .arts to eCact
s.ecificationss.ecificationsMuset .arts could =e used in an"Muset .arts could =e used in an"
musetmuset
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2rederic died &'&1$orn &b1> died &'&1
no@n as fater of scientificno@n as fater of scientific
managementmanagement In &bb&, as cief engineer forIn &bb&, as cief engineer for
Midvale Steel, studied o@ tassMidvale Steel, studied o@ tass
@ere done@ere done$egan first motion and time studies$egan first motion and time studies
7reated efficienc" .rinci.les7reated efficienc" .rinci.les
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$orn &b> died &'(*$orn &b> died &'(* In &'0, created 2ord MotorIn &'0, created 2ord Motor
7om.an"7om.an"
In &'&, first used moving assem=l"In &'&, first used moving assem=l"line to mae Model #line to mae Model #Unfinised .roduct moved ="Unfinised .roduct moved ="
conve"or .ast @or stationconve"or .ast @or station Paid @orers ver" @ell for &'&&Paid @orers ver" @ell for &'&&
k1`da"h[k1`da"h[
Henr" 2ordHenr" 2ord
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7ontri=utions 2rom7ontri=utions 2rom
Human factorsHuman factors
Industrial engineeringIndustrial engineering
Management scienceManagement science$iological science$iological science
P"sical sciencesP"sical sciences Information scienceInformation science
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Ne@ 7allenges in +MNe@ 7allenges in +M
Glo=al focusGlo=al focus
-ust;in;time-ust;in;time
Su..l" cainSu..l" cain.artnering.artnering
%a.id .roduct%a.id .roductdevelo.ment,develo.ment,alliancesalliances
MassMasscustomi5ationcustomi5ation
!m.o@[email protected]"ees, teamsem.lo"ees, teams
#o#o2rom2rom :ocal or national focus:ocal or national focus
$atc si.ments$atc si.ments
:o@ =id .urcasing:o@ =id .urcasing
:engt" .roduct:engt" .roductdevelo.mentdevelo.ment
Standard .roductsStandard .roducts
-o= s.eciali5ation-o= s.eciali5ation
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7aracteristics of Goods7aracteristics of Goods
#angi=le .roduct#angi=le .roduct
7onsistent .roduct7onsistent .roductdefinitiondefinition
Production usuall"Production usuall"se.arate fromse.arate fromconsum.tionconsum.tion
7an =e inventoried7an =e inventoried :o@ customer:o@ customer
interactioninteraction
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7aracteristics of Service7aracteristics of Service
Intangi=le .roductIntangi=le .roduct Produced andProduced and
consumed at same timeconsumed at same time
+ften uni?ue+ften uni?ue Hig customerHig customer
interactioninteraction
Inconsistent .roductInconsistent .roductdefinitiondefinition
+ften no@ledge;=ased+ften no@ledge;=ased
2re?uentl" dis.ersed2re?uentl" dis.ersed
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Industr" and Services asIndustr" and Services as
Percentage of GDPPercentage of GDPManufacturingManufacturing ServiceService
Australia
Australia
7anada
7anada
7ina
7ina
75ec%e.
75ec%e.
2rance
2rance
German"
German"
Hongong
Hongong
-a.an
-a.an
MeCico
MeCico
%
ussian2ed
%ussian2ed
SoutAfrica
SoutAfrica
S.ain
S.ain
UU
USUS
'0'0
b0b0
*0*0
>0>0 1010
(0(0
00
/0/0
&0&0 00
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Goods 8ersus ServicesGoods 8ersus Services
a'le 1.3a'le 1.3
7an =e resold7an =e resold
7an =e inventoried7an =e inventoried
Some as.ects of ?ualit"Some as.ects of ?ualit"
measura=lemeasura=leSelling is distinct fromSelling is distinct from.roduction.roduction
Product is trans.orta=leProduct is trans.orta=le
Site of facilit" im.ortant for costSite of facilit" im.ortant for cost
+ften eas" to automate+ften eas" to automate
%evenue generated .rimaril"%evenue generated .rimaril"from tangi=le .roductfrom tangi=le .roduct
Attri=utes of GoodsAttri=utes of Goods
#angi=le Product[#angi=le Product[
Attri=utes of ServicesAttri=utes of Services
Intangi=le Product[Intangi=le Product[
%eselling unusual%eselling unusual
Difficult to inventor"Difficult to inventor"
4ualit" difficult to measure4ualit" difficult to measure
Selling is .art of serviceSelling is .art of service
Provider, not .roduct, isProvider, not .roduct, isoften trans.orta=leoften trans.orta=le
Site of facilit" im.ortant forSite of facilit" im.ortant forcustomer contactcustomer contact
+ften difficult to automate+ften difficult to automate
%evenue generated .rimaril"%evenue generated .rimaril"from te intangi=le servicefrom te intangi=le service
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+rgani5ations in !ac Sector+rgani5ations in !ac Sector
Service SectorService Sector !Cam.le!Cam.le of all of all-o=s-o=s
ProfessionalProfessionalServices,Services,!ducation,!ducation,:egal, Medical:egal, Medical
Notre Dame Universit",Notre Dame Universit",San Diego oo, ArnoldSan Diego oo, ArnoldPalmer Hos.italPalmer Hos.ital
25.525.5
#rade retail,#rade retail,@olesale[@olesale[
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+rgani5ations in !ac Sector+rgani5ations in !ac Sector
Service SectorService Sector !Cam.le!Cam.le of all of all
-o=s-o=s
$usiness and$usiness and%e.air Services%e.air Services
Snelling and Snelling,Snelling and Snelling,, HiltonHotels,
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+rgani5ations in !ac Sector+rgani5ations in !ac Sector
ManufacturingManufacturingSectorSector !Cam.le!Cam.le of all of all-o=s-o=s
GeneralGeneral General !lectric, 2ord,General !lectric, 2ord,U6S6 Steel, IntelU6S6 Steel, Intel
13.313.3
7onstruction7onstruction $ectel, McDermott$ectel, McDermott 7.17.1
AgricultureAgriculture ing %ancing %anc 2.52.5
MiningMining Homestae MiningHomestae Mining 0.40.4
SectorSector Percent of all _o=sPercent of all _o=s
ServiceService 76.7*76.7*
ManufacturingManufacturing 23.3*23.3*
a'le 1.4a'le 1.4
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ServicesServices
Manufacturing
Manufacturing
Develo.ment of teDevelo.ment of teService !conom"Service !conom"
Figure 1.5 (A)Figure 1.5 (A)
AgricultureAgriculture
&00&00
'0'0
b0b0
*0*0
>0>0
1010
(0(0
00
/0/0
&0&0
00
&b00&b00 &b10&b10 &'00&'00 &'10&'10 /000/000
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Develo.ment of teDevelo.ment of teService !conom"Service !conom"
Figure 1.5 (B)Figure 1.5 (B)
00 )
/1/1 )
/0/0 )
&1&1 )
&0&0 )
11 )
00 )
&'10&'10 &'*0&'*0 &''0&''0 /0&0/0&0
) &10&10
) &/1&/1
) &00&00
) *1*1
) 1010
) /1/1
) 00!m
.lo"mentYmillions[
!m
.lo"mentYmillions[
IndeC3
IndeC31997
51
00
1997
51
00Manufacturing
em.lo"ment
Industrial.roduction
!stimate
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Develo.ment of teDevelo.ment of teService !conom"Service !conom"
Figure 1.5 (C)Figure 1.5 (C)
United States
7anada
2ranceItal"
$ritain
-a.an
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Ne@ #rends in +MNe@ #rends in +M
:ocal or:ocal ornationalnationalfocusfocus
:o@;cost, relia=le:o@;cost, relia=le@orld@ide communication@orld@ide communicationand trans.ortationand trans.ortationnet@orsnet@ors
Glo=al focusGlo=al focus
$atc large[$atc large[si.mentssi.ments Sort .roduct life c"clesSort .roduct life c"clesand cost of ca.ital .utand cost of ca.ital .ut.ressure on reducing.ressure on reducinginventor"inventor"
-ust;in;time-ust;in;timesi.mentssi.ments
:o@;=id:o@;=id.urcasing.urcasing
4ualit" em.asis re?uires4ualit" em.asis re?uirestat su..liers =e engagedtat su..liers =e engaged
in .roduct im.rovementin .roduct im.rovement
Su..l";Su..l";caincain
.artners,.artners,!nter.rise!nter.rise%esource%esourcePlanning,Planning,e;commercee;commerce
Figure 1.6Figure 1.6
PastPast 7auses7auses 2uture2uture
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Ne@ #rends in +MNe@ #rends in +M
:engt":engt".roduct.roductdevelo.mentdevelo.ment
Sorter life c"cles,Sorter life c"cles,Internet, ra.id internationalInternet, ra.id internationalcommunication, com.uter;communication, com.uter;aided design, andaided design, andinternational colla=orationinternational colla=oration
%a.id .roduct%a.id .roductdevelo.ment,develo.ment,alliances,alliances,colla=orativecolla=orativedesignsdesigns
Standardi5edStandardi5ed.roducts.roducts
Affluence and @orld@ideAffluence and @orld@idemarets increasingl"marets increasingl"fleCi=le .roductionfleCi=le .roduction.rocesses.rocesses
MassMasscustomi5ationcustomi5ation@it added@it addedem.asis onem.asis on?ualit"?ualit"
-o=-o=s.eciali5ations.eciali5ation
7anging socioculture7anging socioculturemilinium increasingl" amilinium increasingl" ano@ledge and informationno@ledge and informationsociet"societ"
!m.o@[email protected]"ees,em.lo"ees,teams, andteams, andleanlean.roduction.roduction
Figure 1.6Figure 1.6
PastPast 7auses7auses 2uture2uture
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Ne@ #rends in +MNe@ #rends in +M
:o@;cost:o@;costfocusfocus
!nvironmental issues, IS+!nvironmental issues, IS+&(000, increasing dis.osal&(000, increasing dis.osalcostscosts
!nvironmentall"!nvironmentall"sensitivesensitive.roduction,.roduction,greengreenmanufacturing,manufacturing,
rec"cledrec"cledmaterials,materials,remanufacturingremanufacturing
Figure 1.6Figure 1.6
PastPast 7auses7auses 2uture2uture
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Productivit" 7allengeProductivit" 7allenge
Productivit" is te ratio of out.uts goodsProductivit" is te ratio of out.uts goodsand services[ divided =" te in.utsand services[ divided =" te in.uts
resources suc as la=or and ca.ital[resources suc as la=or and ca.ital[
#e o=_ective is to im.rove tis#e o=_ective is to im.rove tismeasure of efficienc"measure of efficienc"
Im.ortant NotehProduction is a measure of out.ut
onl" and not a measure of efficienc"
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2eed=ac2eed=ac loo.loo.
+ut.uts+ut.uts
Goodsand
services
ProcessesProcesses
#e U6S6 economic s"stemtransforms in.uts to out.uts
at a=out an annual 2.5*increase in .roductivit" .er
"ear6 #e .roductivit"increase is te result of a
miC of ca.ital (38*of 2.5*),la=or (10*of 2.5*), and
management (52*of 2.5*)6
#e !conomic S"stem#e !conomic S"stem
In.utsIn.uts
:a=or,ca.ital,
management
Figure 1.7Figure 1.7
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Increasing Productivit" )Increasing Productivit" )#e :A Motor Pool#e :A Motor Pool
$efore3$efore3 7ost7ost $120$120million annuall"million annuall" 21,00021,000veiclesveicles
30*30*of teof te 900900tras trucs @ere in re.airtras trucs @ere in re.air 11*11*of .olice cars @ere in re.airof .olice cars @ere in re.air
Actions3Actions3 7reated team assignments7reated team assignments
Assigned .aring .laces for trucsAssigned .aring .laces for trucs
#ires ceced and trucs em.tied eac nigt#ires ceced and trucs em.tied eac nigt Standard customer .icu.s esta=lisedStandard customer .icu.s esta=lised 7om.uteri5ed fleet management7om.uteri5ed fleet management Mecanics moved to nigt siftMecanics moved to nigt sift
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Measure of .rocess im.rovementMeasure of .rocess im.rovement
%e.resents out.ut relative to in.ut%e.resents out.ut relative to in.ut
+nl" troug .roductivit"+nl" troug .roductivit"increases can our standard of livingincreases can our standard of livingim.roveim.rove
Productivit"Productivit"
Productivit" Productivit" Units .roducedUnits .roduced
In.ut usedIn.ut used
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Productivit" 7alculationsProductivit" 7alculations
Productivit" Productivit" Units .roducedUnits .roduced:a=or;ours used:a=or;ours used
44units`la=or;ourunits`la=or;our1,0001,000250250
:a=or Productivit":a=or Productivit"
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Multi;2actor Productivit"Multi;2actor Productivit"
+ut.ut+ut.ut
:a=or p Material p !nerg":a=or p Material p !nerg"p 7a.ital p Miscellaneousp 7a.ital p Miscellaneous
Productivit" Productivit"
Also no@n as total factor .roductivit"Also no@n as total factor .roductivit"
+ut.ut and in.uts are often eC.ressed+ut.ut and in.uts are often eC.ressedin dollarsin dollars
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7ollins #itle Productivit"7ollins #itle Productivit"
Staff ofStaff of 44@ors@ors 88 rs`da"rs`da" 88titles`da"titles`da"Pa"roll cost Pa"roll cost $640$640`da"`da" +veread +veread $400$400`da"`da"
+ld S"stem3+ld S"stem3
+ld la=or+ld la=or
.roductivit".roductivit"
88titles`da"titles`da"
3232la=or;rsla=or;rs
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7ollins #itle Productivit"7ollins #itle Productivit"
Staff ofStaff of 44@ors@ors 88rs`da"rs`da" 88titles`da"titles`da"Pa"roll cost Pa"roll cost $640$640`da"`da" +veread +veread $400$400`da"`da"
+ld S"stem3+ld S"stem3
88titles`da"titles`da"
3232la=or;rsla=or;rs
+ld la=or+ld la=or
.roductivit".roductivit" .25.25titles`la=or;rtitles`la=or;r
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7ollins #itle Productivit"7ollins #itle Productivit"
Staff ofStaff of 44@ors@ors 88 rs`da"rs`da" 88titles`da"titles`da"Pa"roll cost Pa"roll cost $640$640`da"`da" +veread +veread $400$400`da"`da"
+ld S"stem3+ld S"stem3
1414titles`da"titles`da" +veread +veread $800$800`da"`da"Ne@ S"stem3Ne@ S"stem3
88titles`da"titles`da"
3232la=or;rsla=or;rs
+ld la=or+ld la=or
.roductivit".roductivit"
Ne@ la=orNe@ la=or
.roductivit".roductivit"
6/1 titles`la=or;r 6/1 titles`la=or;r
1414titles`da"titles`da"
3232la=or;rsla=or;rs
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7ollins #itle Productivit"7ollins #itle Productivit"
Staff ofStaff of 44@ors@ors 88rs`da"rs`da" 88titles`da"titles`da"Pa"roll cost Pa"roll cost $640$640`da"`da" +veread +veread $400$400`da"`da"
+ld S"stem3+ld S"stem3
1414titles`da"titles`da" +veread +veread $800$800`da"`da"Ne@ S"stem3Ne@ S"stem3
88titles`da"titles`da"
3232la=or;rsla=or;rs
+ld la=or+ld la=or
.roductivit".roductivit" .25.25titles`la=or;rtitles`la=or;r
1414 titles`da"titles`da"
3232la=or;rsla=or;rs
Ne@ la=orNe@ la=or.roductivit".roductivit" .4375.4375titles`la=or;rtitles`la=or;r
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7ollins #itle Productivit"7ollins #itle Productivit"
Staff ofStaff of 44@ors@ors 88rs`da"rs`da" 88titles`da"titles`da"Pa"roll cost Pa"roll cost $640$640`da"`da" +veread +veread $400$400`da"`da"
+ld S"stem3+ld S"stem3
1414titles`da"titles`da" +veread +veread $800$800`da"`da"Ne@ S"stem3Ne@ S"stem3
+ld multifactor+ld multifactor
.roductivit".roductivit"
88titles`da"titles`da"
$640 400$640 400
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7ollins #itle Productivit"7ollins #itle Productivit"
Staff ofStaff of 44@ors@ors 88rs`da"rs`da" 88titles`da"titles`da"Pa"roll cost Pa"roll cost $640$640`da"`da" +veread +veread $400$400`da"`da"
+ld S"stem3+ld S"stem3
1414titles`da"titles`da" +veread +veread $800$800`da"`da"Ne@ S"stem3Ne@ S"stem3
88titles`da"titles`da"
$640 400$640 400
+ld multifactor+ld multifactor
.roductivit".roductivit" .0077.0077titles`dollartitles`dollar
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7ollins #itle Productivit"7ollins #itle Productivit"
Staff ofStaff of 44@ors@ors 88rs`da"rs`da" 88titles`da"titles`da"Pa"roll cost Pa"roll cost $640$640`da"`da" +veread +veread $400$400`da"`da"
+ld S"stem3+ld S"stem3
1414titles`da"titles`da" +veread +veread $800$800`da"`da"Ne@ S"stem3Ne@ S"stem3
88titles`da"titles`da"
$640 400$640 400
+ld multifactor+ld multifactor
.roductivit".roductivit"
Ne@ multifactorNe@ multifactor
.roductivit".roductivit"
.0077.0077titles`dollartitles`dollar
1414titles`da"titles`da"
$640 800$640 800
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7ollins #itle Productivit"7ollins #itle Productivit"
Staff ofStaff of 44@ors@ors 88rs`da"rs`da" 88titles`da"titles`da"Pa"roll cost Pa"roll cost $640$640`da"`da" +veread +veread $400$400`da"`da"
+ld S"stem3+ld S"stem3
1414titles`da"titles`da" +veread +veread $800$800`da"`da"Ne@ S"stem3Ne@ S"stem3
88titles`da"titles`da"
$640 400$640 400
1414titles`da"titles`da"
$640 800$640 800
+ld multifactor+ld multifactor
.roductivit".roductivit"
Ne@ multifactorNe@ multifactor
.roductivit".roductivit"
.0077.0077titles`dollartitles`dollar
.0097.0097titles`dollartitles`dollar
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Measurement Pro=lemsMeasurement Pro=lems
4ualit"4ualit"ma" cange @ile tema" cange @ile te?uantit" of in.uts and out.uts?uantit" of in.uts and out.uts
remains constantremains constant !Cternal elements!Cternal elementsma" cause anma" cause an
increase or decrease inincrease or decrease in.roductivit".roductivit"
Precise unitsPrecise unitsof measure ma" =eof measure ma" =elacinglacing
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Productivit" 8aria=lesProductivit" 8aria=les
:a=or:a=or; contri=utes a=out; contri=utes a=out 10*10*ofofte annual increasete annual increase
7a.ital7a.ital; contri=utes a=out; contri=utes a=out 32*32*of te annual increaseof te annual increase
ManagementManagement; contri=utes a=out; contri=utes a=out
52*52*of te annual increaseof te annual increase
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:a=or Sills:a=or Sills
A=out alf of te &*;"ear;olds in te US cannotA=out alf of te &*;"ear;olds in te US cannotcorrectl" ans@er ?uestions of tis t".ecorrectl" ans@er ?uestions of tis t".e
Figure 1.8Figure 1.8
I t t d P d ti it
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Investment and Productivit"Investment and Productivit"in Selected Nationsin Selected Nations
USUS UU
7anada7anada
Ital"Ital"
$elgium$elgium
2rance2rance
NeterlandsNeterlands
-a.an-a.an
&0&0
bb
>>
((
//
00
Percentincreaseinmfg
.roductivit"
Percentincreaseinmfg
.roductivit"
Percentage investmentPercentage investment
&0&0 &1&1 /0/0 /1/1 00 11
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Productivit" at #aco $ellProductivit" at #aco $ell
Im.rovements3Im.rovements3 %evised te menu%evised te menu Designed meals for eas" .re.arationDesigned meals for eas" .re.aration
Sifted some .re.aration to su..liersSifted some .re.aration to su..liers !fficient la"out and automation!fficient la"out and automation #raining and em.lo"ee em.o@erment#raining and em.lo"ee em.o@erment
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Productivit" at #aco $ellProductivit" at #aco $ell
Im.rovements3Im.rovements3 %evised te menu%evised te menu Designed meals for eas" .re.arationDesigned meals for eas" .re.aration
Sifted some .re.aration to su..liersSifted some .re.aration to su..liers !fficient la"out and automation!fficient la"out and automation #raining and em.lo"ee em.o@erment#raining and em.lo"ee em.o@erment
%esults3
Pre.aration time cut to 8secondsManagement s.an of control
increased from 5to 30 In;store la=or cut =" 15ours`da" Stores andle t@ice te volume @it
alf te la=or 2ast;food lo@;cost leader
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!tics and Social %es.onsi=ilit"!tics and Social %es.onsi=ilit"
7allenges facing7allenges facingo.erations managers3o.erations managers3
Develo.ing safe ?ualit" .roductsDevelo.ing safe ?ualit" .roducts
Maintaining a clean environmentMaintaining a clean environment
Providing a safe @or.laceProviding a safe @or.lace
Honoring communit" commitmentsHonoring communit" commitments