Download to read offline
Uploaded byScruj John
POM Chap2
Here are the steps to solve this problem: 1. Output = 50,000 cages 2. Inputs: - Production Time = 620 Lb-Hour - Wages = Rs. 7.5 per hour * 620 hours = Rs. 4,650 - Raw material = Rs. 30,000 - Component Parts = Rs. 15,350 - Total Inputs = Rs. 30,000 + Rs. 15,350 + Rs. 4,650 = Rs. 50,000 3. Total Productivity = Output/Inputs = 50,000 cages / Rs. 50,000 = 1 cage/Rs. 1 So the total productivity is 1 cage per Rs. 1
POM Chap2
- 1. 1 Chapter 2 Operations &Supply Strategy
- 2. 2 Operation & SupplyStrategy Setting broad policies and plans for using the resources of a firm to best support the firm’s long-term competitive strategy
- 3. 3 Operations Strategy Strategy Process Example CustomerNeeds More Product Corporate Strategy Increase Org. Size Operations Strategy Decisions on Processes and Infrastructure Increase Production Capacity Build New Factory
- 4. 4 Competitive Dimensions Cost orPrice – Make the Product or Deliver the Service Cheap Quality – Make a Great Product or Deliver a Great Service – Design Quality/ Process Quality Delivery Speed – Make the Product or Deliver the Service Quickly Delivery Reliability – Deliver It When Promised Coping with Changes in Demand – Change Its Volume Flexibility and New Product Introduction Speed – Change It Other Product-Specific Criteria – Support It
- 5. 5 Dealing with Trade-offs Forexample, if we reduce costs by reducing product For example, if we reduce costs by reducing product quality inspections, we might reduce product quality. quality inspections, we might reduce product quality. For example, if we For example, if we improve customer improve customer service problem solving service problem solving by cross-training by cross-training Flexibility personnel to deal with a personnel to deal with a wider-range of wider-range of problems, they may problems, they may become less efficient at become less efficient at dealing with commonly dealing with commonly occurring problems. occurring problems. Cost Delivery Quality
- 6. 6 Order Qualifiers andWinners Defined Order qualifiers are the basic criteria that permit the firms products to be considered as candidates for purchase by customers Order winners are the criteria that differentiates the products and services of one firm from another
- 7. 7 Service Breakthroughs A brandname car can be an “order qualifier” Repair services can be “order winners” • Examples: Warranty, Roadside Assistance, Leases, etc
- 8. Operations Strategy Framework 8 Customer Needs Newproduct : Old product Competitive dimensions & requirements Quality, Dependability, Speed, Flexibility, and Price Enterprise capabilities Operations andSupplier capabilities Operations & Supplier Capabilities R&D R&D Technology Systems Technology Systems People People Distribution Distribution Support Platforms Financial management Human resource management Information management
- 9. 9 What is Productivity? Defined Productivityis a common measure on how well resources are being used. In the broadest sense, it can be defined as the following ratio: Outputs Inputs
- 10. 10 Total Measure Productivity TotalMeasure Productivity = Outputs Inputs or = Goods and services produced All resources used
- 11. 11 Partial Measure Productivity Partial measuresof productivity = Output or Output or Output or Output Labor Capital Materials Energy
- 12. 12 Multifactor Measure Productivity Multifactor measuresof productivity = Output Labor + Capital . + Energy or Output Labor + Capital . + Materials
- 13. Example of Productivity Measurement Youhave just determined that your service employees have used a total of 2400 hours of labor this week to process 560 insurance forms. Last week the same crew used only 2000 hours of labor to process 480 forms. Which productivity measure should be used? Answer: Could be classified as a Total Measure or Partial Measure. Is productivity increasing or decreasing? Answer: Last week’s productivity = 480/2000 = 0.24, and this week’s productivity is = 560/2400 = 0.23. So, productivity is decreasing slightly. 13
- 14. 14 Problem-1 Amity Corporation receivedthe data below for its rodent cage production unit. Find the Total Productivity. Output Input 50,000 Cages Production Time: 620 Lb Hour SP: Rs. 3.5/Unit Wages: Rs. 7.5 per hour Raw material: Rs. 30000 Component Parts: Rs. 15350
- 15.