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English 103
Essay #3: Film Analysis
Choose any film (a feature length, short, or animated work) and
write a six to eight page analysis of your subject using any
combination of the critical strategies discussed in this class,
such as the issue, conclusions, and reasons you feel are
presented in the movie. The paper should demonstrate your
ability to balance close textual analysis with MLA style
research on a broader topic supported by the texts under
analysis. Your thesis should forward an arguable interpretation
and/or evaluation of the text's value, impact, or significance
according to the criteria of any of the critical strategies covered
so far.
Requirements
Your essay should:
· Have a compelling, original title.
· Put forward a thesis that asserts an arguable claim about the
text based on any of the critical strategies we have discussed.
· Include at least four reliable, scholarly or professional sources
that support your observations/analysis about the text, for
example, a scholarly article on your selected subject, author or
related topic.
· Be 6-8 pages in length, submitted in MLA format with in-text
citations and a separateWorks Cited page.
Competitiveness, Strategy, and Productivity
Chapter 2
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You should be able to:
LO 2.1List several ways that business organizations compete
LO 2.2Name several reasons that business organizations fail
LO 2.3Define the terms mission and strategy and explain why
they are important
LO 2.4Discuss and compare organization strategy and
operations strategy, and explain why it is important to link the
two
LO 2.5Describe and give examples of time-based strategies
LO 2.6Define the term productivity and explain why it is
important to organizations and to countries
LO 2.7Describe several factors that affect productivity
Chapter 2: Learning Objectives
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2
A Cold Hard Fact
Better quality, higher productivity, lower costs, and the ability
to respond quickly to customer needs are more important than
ever, and…
the bar is getting higher
LO 2.1
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This chapter focuses on three separate, but related ideas that are
vitally important to business organizations
Competitiveness
Strategy
Productivity
Chapter Focus
LO 2.1
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Competitiveness
Competitiveness:
How effectively an organization meets the wants and needs of
customers relative to others that offer similar goods or services
Organizations compete through some combination of their
marketing and operations functions
What do customers want?
How can these customer needs best be satisfied?
LO 2.1
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Identifying consumer wants and/or needs
Pricing and quality
Advertising and promotion
Marketing’s Influence
LO 2.1
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Product and service design
Cost
Location
Quality
Quick response
Flexibility
Inventory management
Supply chain management
Service
Managers and workers
Businesses Compete Using Operations
LO 2.1
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Neglecting operations strategy
Failing to take advantage of strengths and opportunities and/or
failing to recognize competitive threats
Too much emphasis on short-term financial performance at the
expense of R&D
Too much emphasis in product and service design and not
enough on process design and improvement
Neglecting investments in capital and human resources
Failing to establish good internal communications and
cooperation
Failing to consider customer wants and needs
Why Some Organizations Fail
LO 2.2
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Hierarchical Planning
Mission
Goals
Organizational strategies
Tactics
Functional strategies
LO 2.3
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Mission
The reason for an organization’s existence
It answers the question “What business are we in?”
Goals
Provide detail and the scope of the mission
Goals can be viewed as organizational destinations
Strategy
A plan for achieving organizational goals
Serves as a roadmap for reaching the organizational destinations
The organizational strategy guides the organization by
providing direction for, and alignment of, the goals and
strategies of the functional units
The organizational strategy is a major success/failure factor
Mission, Goals, and Strategy
LO 2.3
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Mission
Mission
The reason for an organization’s existence
Mission statement
States the purpose of the organization
The mission statement should answer the question of “What
business are we in?”
LO 2.3
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FedEx Mission Statement
FedEx Corporation will produce superior financial returns for
its shareowners by providing high value-added logistics,
transportation and related information services through focused
operating companies. Customer requirements will be met in the
highest quality manner appropriate to each market segment
served. FedEx Corporation will strive to develop mutually
rewarding relationships with its employees, partners and
suppliers. Safety will be the first consideration in all
operations. Corporate activities will be conducted to the highest
ethical and professional standards.
LO 2.3
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Goals
The mission statement serves as the basis for organizational
goals
Goals
Provide detail and the scope of the mission
Goals can be viewed as organizational destinations
Goals serve as the basis for organizational strategies
LO 2.3
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Strategies
Strategy
A plan for achieving organizational goals
Serves as a roadmap for reaching the organizational destinations
Organizations have
Organizational strategies
Overall strategies that relate to the entire organization
Support the achievement of organizational goals and mission
Functional level strategies
Strategies that relate to each of the functional areas and that
support achievement of the organizational strategy
LO 2.3
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Tactics and Operations
Tactics
The methods and actions taken to accomplish strategies
The “how to” part of the process
Operations
The actual “doing” part of the process
LO 2.3
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Core Competencies
Core competencies
The special attributes or abilities that give an
organization a competitive edge
To be effective core competencies and strategies need to be
aligned
LO 2.3
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Organizational StrategyOperations StrategyExamples of
Companies or ServicesLow PriceLow costU.S. first-class
postage
Wal-MartResponsivenessShort processing times
On-time deliveryMcDonald’s restaurants
FedExDifferentiation:
High QualityHigh performance design and/or high quality
processing
Consistent qualitySony TV
Coca-ColaDifferentiation:
NewnessInnovation3M, AppleDifferentiation:
VarietyFlexibility
VolumeBurger King (Have it your way”)
McDonald’s (“Buses Welcome”)Differentiation:
ServiceSuperior customer serviceDisneyland
IBMDifferentiation:
LocationConvenienceSupermarkets; mall stores
Sample Operations Strategies
LO 2.4
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Effective strategy formulation requires taking into account:
Core competencies
Environmental scanning
SWOT
Successful strategy formulation also requires taking into
account:
Order qualifiers
Order winners
Strategy Formulation
LO 2.4
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Order qualifiers
Characteristics that customers perceive as minimum standards
of acceptability for a product or service to be considered as a
potential for purchase
Order winners
Characteristics of an organization’s goods or services that cause
it to be perceived as better than the competition
Strategy Formulation (cont.)
LO 2.4
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Environmental scanning is necessary to identify
Internal factors
Strengths and weaknesses
External factors
Opportunities and threats
Environmental Scanning
LO 2.4
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Economic conditions
Political conditions
Legal environment
Technology
Competition
Markets
Key External Factors
LO 2.4
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Human resources
Facilities and equipment
Financial resources
Customers
Products and services
Technology
Suppliers
Other
Key Internal Factors
LO 2.4
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Operations Strategy
Operations strategy
The approach, consistent with organization strategy, that is used
to guide the operations function
LO 2.4
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Strategic OM Decision AreasDecision AreaWhat the Decisions
AffectProduct and service designCosts, quality, liability, and
environmental issuesCapacityCost, structure, flexibilityProcess
selection and layoutCosts, flexibility, skill level needed,
capacityWork designQuality of work life, employee safety,
productivityLocationCosts, visibilityQualityAbility to meet or
exceed customer expectationsInventoryCosts,
shortagesMaintenanceCosts, equipment reliability,
productivitySchedulingFlexibility, efficiencySupply
chainsCosts, quality, agility, shortages, vendor
relationsProjectsCosts, new products, services, or operating
systems
LO 2.4
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Quality-based strategy
Strategy that focuses on quality in all phases of an organization
Pursuit of such a strategy is rooted in a number of factors:
Trying to overcome a poor quality reputation
Desire to maintain a quality image
A desire to catch up with the competition
A part of a cost reduction strategy
Quality-Based Strategies
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Time-based strategies
Strategies that focus on the reduction of time needed to
accomplish tasks
It is believed that by reducing time, costs are lower, quality is
higher, productivity is higher, time-to-market is faster, and
customer service is improved
Time-Based Strategies
LO 2.5
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Areas where organizations have achieved time reductions:
Planning time
Product/service design time
Processing time
Changeover time
Delivery time
Response time for complaints
Time-Based Strategies (cont.)
LO 2.5
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Agile Operations
Agile operations
A strategic approach for competitive advantage that emphasizes
the use of flexibility to adapt and prosper in an environment of
change
Involves the blending of several core competencies:
Cost
Quality
Reliability
Flexibility
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The Balanced Scorecard Approach
A top-down management system that organizations can use to
clarify their vision and strategy and transform them into action
Develop objectives
Develop metrics and targets for each objective
Develop initiatives to achieve objectives
Identify links among the various perspectives
Finance
Customer
Internal business processes
Learning and growth
Monitor results
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The Balanced Scorecard
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Productivity
Productivity
A measure of the effective use of resources, usually expressed
as the ratio of output to input
Productivity measures are useful for
Tracking an operating unit’s performance over time
Judging the performance of an entire industry or country
LO 2.6
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Why Productivity Matters
High productivity is linked to higher standards of living
As an economy replaces manufacturing jobs with lower
productivity service jobs, it is more difficult to maintain high
standards of living
Higher productivity relative to the competition leads to
competitive advantage in the marketplace
Pricing and profit effects
For an industry, high relative productivity makes it less likely it
will be supplanted by foreign industry
LO 2.6
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Productivity Measures
LO 2.6
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What is the
multifactor
productivity?
Productivity Calculation Example
Units produced: 5,000
Standard price:$30/unit
Labor input: 500 hours
Cost of labor:$25/hour
Cost of materials: $5,000
Cost of overhead: 2x labor cost
LO 2.6
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Solution
What is the implication of an unitless measure of productivity?
LO 2.6
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Productivity Growth
Example: Labor productivity on the ABC assembly line was 25
units per hour in 2014. In 2015, labor productivity was 23 units
per hour. What was the productivity growth from 2014 to 2015?
LO 2.6
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Service sector productivity is difficult to measure and manage
because
It involves intellectual activities
It has a high degree of variability
A useful measure related to productivity is process yield
Where products are involved
Ratio of output of good product to the quantity of raw material
input
Where services are involved, process yield measurement is
often dependent on the particular process:
Ratio of cars rented to cars available for a given day
Ratio of student acceptances to the total number of students
approved for admission
Service Sector Productivity
LO 2.6
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Factors Affecting Productivity
Capital
Methods
Technology
Management
Quality
LO 2.7
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Improving Productivity
Develop productivity measures for all operations
Determine critical (bottleneck) operations
Develop methods for productivity improvements
Establish reasonable goals
Make it clear that management supports and encourages
productivity improvement
Measure and publicize improvements
Don’t confuse productivity with efficiency
LO 2.7
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39
Partial Measures
Output
Single Input
;
Ouput
Labor
;
Output
Capital
Multifactor Measures
Output
Multiple Inputs
;
Ouput
Labor
+
Machine
;
Output
Labor
+
Capital
+
Energy
Total Measure
Goods or services produced
All inputs used to produce them
Input
Output
=
ty
Productivi
Multifactor Productivity
=
Output
Labor
+
Material
+
Overhead
$25/hour))
hours
(2(500
+
$5,000
+
$25/hour)
hours
(500
$30/unit
units
5,000
=
´
´
´
3.5294
=
500
,
42
$
$150,000
=
Productivity Growth
=
Current productivity
-
Previous productivity
Previous productivity
´
100
%
Productivity Growth
=
23
-
25
25
´
100
%
=
-
8
%
Introduction to Operations Management
Chapter 1
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You should be able to:
LO 1.1Define the terms operations management and supply
chain
LO 1.2Identify similarities and differences between production
and service operations
LO 1.3Explain the importance of learning about operations
management
LO 1.4Identify the three major functional areas of organizations
and explain how they interrelate
LO 1.5Summarize the two major aspects of process management
LO 1.6Describe the operations function and the nature of the
operations manager’s job
LO 1.7Explain the key aspects of operations management
decision making
LO 1.8Briefly describe the historical evolution of operations
management
LO 1.9Describe the current issues in business that impact
operations management
LO 1.10Explain the need to manage the supply chain
Chapter 1: Learning Objectives
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Operations Management
What is operations?
The part of a business organization that is responsible for
producing goods or services
How can we define operations management?
The management of systems or processes that create goods
and/or provide services
LO 1.1
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Goods are physical items that include raw materials, parts,
subassemblies, and final products.
Automobile
Computer
Oven
Shampoo
Services are activities that provide some combination of time,
location, form or psychological value.
Air travel
Education
Haircut
Legal counsel
Good or Service?
LO 1.1
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Supply Chain
Suppliers’
suppliers
Direct
suppliers
Producer
Distributor
Final
customers
Supply chain – a sequence of activities and organizations
involved in producing and delivering a good or service
LO 1.1
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The Transformation Process
Inputs
Land
Labor
Capital
Information
Outputs
Goods
Services
Transformation/
Conversion
Process
Control
Measurement
and Feedback
Measurement
and Feedback
Measurement
and Feedback
Value-Added
Feedback = Measurements taken at various points in the
transformation process
Control = The comparison of feedback against previously
established standards to determine if corrective action is needed
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LO 1.1
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Automobile Assembly, Steelmaking
Products are typically neither purely service- or purely goods-
based.
GoodsServices
Home Remodeling, Retail Sales
Computer Repair, Restaurant Meal
Songwriting, Software Development
Surgery, Teaching
Goods-service Continuum
LO 1.2
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Manufacturing vs. Service
Degree of customer contact
Uniformity of input
Labor content of jobs
Uniformity of output
Measurement of productivity
Production and delivery
Quality assurance
Amount of inventory
Evaluation of work
Ability to patent design
LO 1.2
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Every aspect of business affects or is affected by operations
Many service jobs are closely related to operations
Financial services
Marketing services
Accounting services
Information services
Through learning about operations and supply chains you will
have a better understanding of:
The world you live in
The global dependencies of companies and nations
Reasons that companies succeed or fail
The importance of working with others
Why Study Operations Management?
LO 1.3
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Operations
Finance
Marketing
Organization
Basic Functions of the Business Organization
LO 1.4
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Function Overlap
Finance & operations
Budgeting
Economic analysis of investment proposals
Provision of funds
Marketing & operations
Demand data
Product and service design
Competitor analysis
Lead time data
LO 1.4
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Operations manager
Supply chain manager
Production analyst
Schedule coordinator
Production manager
Industrial engineer
Purchasing manager
Inventory manager
Quality manager
OM and Supply Chain Career Opportunities
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APICS - The Association for Operations Management
American Society for Quality (ASQ)
Institute for Supply Management (ISM)
Institute for Operations Research and Management Science
(INFORMS)
The Production and Operations Management Society (POMS)
The Project Management Institute (PMI)
Council of Supply Chain Management Professionals (CSCMP)
OM-Related Professional Societies
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Process Management
Process - one or more actions that transform inputs into
outputsThree Categories of Business Processes:Upper-
management processesThese govern the operation of the entire
organization.Operational processesThese are core processes that
make up the value stream.Supporting processesThese support
the core processes.
LO 1.5
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Supply & Demand
Supply
Demand
>
Supply
Demand
<
Supply
Demand
=
Wasteful
Costly
Opportunity Loss
Customer Dissatisfaction
Ideal
Operations &
Supply Chains
Sales & Marketing
LO 1.5
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Process VariationFour Sources of Variation:Variety of goods or
services being offeredThe greater the variety of goods and
services offered, the greater the variation in production or
service requirements.Structural variation in demandThese are
generally predictable. They are important for capacity
planning.Random variationNatural variation that is present in
all processes. Generally, it cannot be influenced by
managers.Assignable variationVariation that has identifiable
sources. This type of variation can be reduced, or eliminated, by
analysis and corrective action.
Variations can be disruptive to operations and supply chain
processes. They may result in additional costs, delays and
shortages, poor quality, and inefficient work systems.
LO 1.5
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Scope of Operations Management
The operations function includes many interrelated activities
such as:
Forecasting
Capacity planning
Facilities and layout
Scheduling
Managing inventories
Assuring quality
Motivating employees
Deciding where to locate facilities
And more . . .
The scope of operations management ranges across the
organization.
LO 1.6
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Role of the Operations Manager
The Operations function consists of all activities directly
related to producing goods or providing services.
A primary function of the operations manager is to guide the
system by decision making.
System design decisions
System operation decisions
LO 1.6
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System Design Decisions
System design
Capacity
Facility location
Facility layout
Product and service planning
Acquisition and placement of equipment
These are typically strategic decisions that
usually require long-term commitment of resources
determine parameters of system operation
LO 1.6
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System Operation Decisions
System operation
These are generally tactical and operational decisions
Management of personnel
Inventory management and control
Scheduling
Project management
Quality assurance
Operations managers spend more time on system operation
decision than any other decision area
They still have a vital stake in system design
LO 1.6
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Most operations decisions involve many alternatives that can
have quite different impacts on costs or profits
Typical operations decisions include:
What: What resources are needed, and in what amounts?
When: When will each resource be needed? When should the
work be scheduled? When should materials and other supplies
be ordered?
Where: Where will the work be done?
How: How will he product or service be designed? How will the
work be done? How will resources be allocated?
Who: Who will do the work?
OM Decision Making
LO 1.7
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General Approach to Decision Making
Modeling is a key tool used by all decision makers
Model - an abstraction of reality; a simplification of something.
Common features of models:
They are simplifications of real-life phenomena
They omit unimportant details of the real-life systems they
mimic so that attention can be focused on the most important
aspects of the real-life system
LO 1.7
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Understanding Models
Keys to successfully using a model in decision making
What is its purpose?
How is it used to generate results?
How are the results interpreted and used?
What are the model’s assumptions and limitations?
LO 1.7
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1-‹#›
Models are generally easier to use and less expensive than
dealing with the real system
Require users to organize and sometimes quantify information
Increase understanding of the problem
Enable managers to analyze “What if?” questions
Serve as a consistent tool for evaluation and provide a
standardized format for analyzing a problem
Enable users to bring the power of mathematics to bear on a
problem.
Benefits of Models
LO 1.7
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
Quantitative information may be emphasized at the expense of
qualitative information
Models may be incorrectly applied and the results
misinterpreted
This is a real risk with the widespread availability of
sophisticated, computerized models are placed in the hands of
uninformed users
The use of models does not guarantee good decisions
Model Limitations
LO 1.7
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
A decision-making approach that frequently seeks to obtain a
mathematically optimal solution
Supported by computer calculations
Often work together with qualitative approaches
Quantitative Approaches
LO 1.7
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
Performance metrics
All managers use metrics to manage and control operations
Profits
Costs
Quality
Productivity
Flexibility
Inventories
Schedules
Forecast accuracy
Metrics and Trade-Offs
Analysis of trade-offs
A trade-off is giving up one thing in return for something else
Carrying more inventory (an expense) in order to achieve a
greater level of customer service
LO 1.7
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
System - a set of interrelated parts that must work together
The business organization is a system composed of subsystems
Marketing subsystem
Operations subsystem
Finance subsystem
The systems approach
Emphasizes interrelationships among subsystems
Main theme is that the whole is greater than the sum of its parts
The output and objectives of the organization take precedence
over those of any one subsystem
Systems Approach
LO 1.7
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
In nearly all cases, certain issues or items are more important
than others
Recognizing this allows managers to focus their attention to
those efforts that will do the most good
Pareto Phenomenon - a few factors account for a high
percentage of occurrence of some event(s)
The critical few factors should receive the highest priority
This is a concept that is appropriately applied to all areas and
levels of management
Establishing Priorities
LO 1.7
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
Historical Evolution of OM
Industrial Revolution
Scientific management
Human relations movement
Decision models and management science
Influence of Japanese manufacturers
LO 1.8
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
Pre-Industrial Revolution
Craft production - System in which highly skilled workers use
simple, flexible tools to produce small quantities of customized
goods
Some key elements of the industrial revolution
Began in England in the 1770s
Division of labor - Adam Smith, 1776
Application of the “rotative” steam engine, 1780s
Cotton gin and interchangeable parts - Eli Whitney, 1792
Management theory and practice did not advance appreciably
during this period
Industrial Revolution
LO 1.8
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
.
Movement was led by efficiency engineer, Frederick Winslow
Taylor
Believed in a “science of management” based on observation,
measurement, analysis and improvement of work methods, and
economic incentives
Management is responsible for planning, carefully selecting and
training workers, finding the best way to perform each job,
achieving cooperation between management and workers, and
separating management activities from work activities
Emphasis was on maximizing output
Scientific Management
LO 1.8
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
The human relations movement emphasized the importance of
the human element in job design
Lillian Gilbreth – applications of psychology
Elton Mayo – Hawthorne studies on worker motivation, 1930
Abraham Maslow – motivation theory, 1940s; hierarchy of
needs, 1954
Frederick Hertzberg – Two Factor Theory, 1959
Douglas McGregor – Theory X and Theory Y, 1960s
William Ouchi – Theory Z, 1981
Human Relations Movement
LO 1.8
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
Decision Models & Management Science
F.W. Harris – mathematical model for inventory management,
1915
Dodge, Romig, and Shewart – statistical procedures for
sampling and quality control, 1930s
Tippett – statistical sampling theory, 1935
Operations Research (OR) Groups – OR applications in warfare
George Dantzig – linear programming, 1947
LO 1.8
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
Influence of Japanese Manufacturers
Refined and developed management practices that increased
productivity
Credited with fueling the “quality revolution”
Just-in-Time production
LO 1.8
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
Economic conditions
Innovating
Quality problems
Risk management
Competing in a global economy
Key Issues for Operations Managers Today
LO 1.9
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
Environmental Concerns
Sustainability
Using resources in ways that do not harm ecological systems
that support human existence
Sustainability measures often go beyond traditional
environmental and economic measures to include measures that
incorporate social criteria in decision making
All areas of business will be affected
Product and service design
Consumer education programs
Disaster preparation and response
Supply chain waste management
Outsourcing decisions
LO 1.9
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
Ethical Issues in Operations
Ethical issues that may arise in many aspects of operations
management:
Financial statements
Worker safety
Product safety
Quality
The environment
The community
Hiring and firing workers
Closing facilities
Workers’ rights
LO 1.9
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
The Need for Supply Chain Management
In the past, organizations did little to manage the supply chain
beyond their own operations and immediate suppliers which led
to numerous problems:
Oscillating inventory levels
Inventory stockouts
Late deliveries
Quality problems
LO 1.10
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
Supply Chain Issues
The need to improve operations
Increasing levels of outsourcing
Increasing transportation costs
Competitive pressures
Increasing globalization
Increasing importance of e-business
The complexity of supply chains
The need to manage inventories
LO 1.10
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
1-‹#›
MGT530
Critical Thinking Writing Rubric - Module 2
Exceeds
Expectation
Meets Expectation Below Expectation Limited Evidence
Content, Research, and Analysis
21-25 Points 16-20 Points 11-15 Points 6-10 Points
Requirements Includes all of the
required
components, as
specified in the
assignment.
Includes most of
the required
components, as
specified in the
assignment.
Includes some of
the required
components, as
specified in the
assignment.
Includes few of the
required
components, as
specified in the
assignment.
21-25 Points 16-20 Points 11-15 Points 6-10 Points
Content Demonstrates
substantial and
extensive
knowledge of the
materials, with no
errors or major
omissions.
Demonstrates
adequate
knowledge of the
materials; may
include some
minor errors or
omissions.
Demonstrates fair
knowledge of the
materials and/or
includes some
major errors or
omissions.
Fails to
demonstrate
knowledge of the
materials and/or
includes many
major errors or
omissions.
25-30 Points 19-24 Points 13-18 Points 7-12 Points
Analysis Provides strong
thought, insight,
and analysis of
concepts and
applications.
Provides adequate
thought, insight,
and analysis of
concepts and
applications.
Provides poor
though, insight,
and analysis of
concepts and
applications.
Provides little or no
thought, insight,
and analysis of
concepts and
applications.
13-15 Points 10-12 Points 7-9 Points 4-6 Points
Sources Sources go above
and beyond
required criteria
and are well
chosen to provide
effective
substance and
perspectives on
the issue under
examination.
Sources meet
required criteria
and are adequately
chosen to provide
substance and
perspectives on the
issue under
examination.
Sources meet
required criteria
but are poorly
chosen to provide
substance and
perspectives on the
issue under
examination.
Source selection
and integration of
knowledge from
the course is
clearly deficient.
Mechanics and Writing
5 Points 4 Points 3 Points 1-2 Points
Demonstrates
college-level
proficiency in
organization,
grammar and
style.
Project is clearly
organized, well
written, and in
proper format as
outlined in the
assignment. Strong
sentence and
paragraph
structure, contains
no errors in
grammar, spelling,
Project is fairly well
organized and
written and is in
proper format as
outlined in the
assignment.
Reasonably good
sentence and
paragraph
structure, may
include a few
Project is poorly
organized and
written and may
not follow proper
format as outlined
in the assignment.
Inconsistent to
inadequate
sentence and
paragraph
development,
Project is not
organized or well
written and is not
in proper format as
outlined in the
assignment. Poor
quality work;
unacceptable in
terms of grammar,
spelling, APA style,
MGT530
Critical Thinking Writing Rubric - Module 2
APA style, or APA
citations and
references.
minor errors in
grammar, spelling,
APA style, or APA
citations and
references.
and/or includes
numerous or major
errors in grammar,
spelling, APA style
or APA citations
and references.
and APA citations
and references.
Total points possible = 100
MGT-530: – Module 02/CT 01
Regulations:
· GRADING EXPECTATIONS :
1. I recommend that you use the grading rubric to shape your
work product (Attached).  
2. With respect to grading, The instructor really looks for 2
things: citations and substance. I encourage you to include cites
and information from scholarly and/or peer-reviewed sources in
addition to the course text (Stevenson, W. (2018). Operations
management (13th ed.). New York, NY: McGraw-Hill Irwin.
ISBN-13:9781259667473)
Otherwise, my potential for points is reduced. It  indicates you
have read the course materials and searched far and wide for
theories, statistics, and facts to address the issue at hand. I
encourage you to paraphrase these sources. Convert the content
into your own words rather than using direct quotes. This
improves the synthesis of information, and it makes the writing
more closely resemble your own style. 
In addition to scholarly citations, a substantive assignment is
one that not only answers the question but advances the
discussion. Please, do more than is expected.
· The writer must apply APA style guidelines.
· Support your submission with:
1. Course material concepts, principles, and theories from the
textbook and Use it in the references (Stevenson, W. (2018).
Operations management (13th ed.). New York, NY: McGraw -
Hill Irwin. ISBN-13:9781259667473)
2.  At least Four scholarly, peer-reviewed journal articles such
as:
2.1 Zhou, K., Bochtis, D., Jensen, A. L., Kateris, D., &
Sørensen, C. G. (2020). Introduction of a new index of field
operations efficiency. Applied Sciences, 10(1), 329.
2.2 Pilo, M. (2019). Dynamics of Agricultural Productivity and
Technical Efficiency in Togo: The Role of Technological
Change. African Development Review, 31(4), 462–
475. https://doi.org/10.1111/1467-8268.12403
2.3 Zondo, R. (2020). The influence of inventory sequencing for
the improvement of inventory control: Evidence from a South
African automotive assembly organization. Acta Commercii,
20(1).
· Be 5 pages in length, does not include the title page, abstract,
conclusion and required reference page, which are never a part
of the minimum content requirements.
Operations Management and Factors Affecting Productivity
Maduro Cleaning is a small organization that provides cleaning
services to both residential and commercial clients. As a small
organization, the owner assigns crews of two, three, or four
employees to jobs each morning but the owner does not have a
good method of determining a reasonable amount of time that
each cleaning should take. The owner decided to keep data on
job times and crew sizes in the hopes of developing a
productivity measure.
· In this assignment Address the following requirements:
1. Calculate which of the crew sizes has the best productivity
per worker and explain your method.
2. Evaluateyour outcome and the possible reasons that would
explain those results.
3. Project what the productivity might be for a crew size of five
and explain your reasoning.
· Crew Size Avg: Productivity per Crew
2: 3765 square meters per day
3: 4915 square meters per day
4: 6309 square meters per day
Thank you for your support

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English 103Essay #3 Film AnalysisChoose any film (a feature

  • 1. English 103 Essay #3: Film Analysis Choose any film (a feature length, short, or animated work) and write a six to eight page analysis of your subject using any combination of the critical strategies discussed in this class, such as the issue, conclusions, and reasons you feel are presented in the movie. The paper should demonstrate your ability to balance close textual analysis with MLA style research on a broader topic supported by the texts under analysis. Your thesis should forward an arguable interpretation and/or evaluation of the text's value, impact, or significance according to the criteria of any of the critical strategies covered so far. Requirements Your essay should: · Have a compelling, original title. · Put forward a thesis that asserts an arguable claim about the text based on any of the critical strategies we have discussed. · Include at least four reliable, scholarly or professional sources that support your observations/analysis about the text, for example, a scholarly article on your selected subject, author or related topic. · Be 6-8 pages in length, submitted in MLA format with in-text citations and a separateWorks Cited page. Competitiveness, Strategy, and Productivity Chapter 2 Copyright ©2018 McGraw-Hill Higher Education. All rights
  • 2. reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 1 You should be able to: LO 2.1List several ways that business organizations compete LO 2.2Name several reasons that business organizations fail LO 2.3Define the terms mission and strategy and explain why they are important LO 2.4Discuss and compare organization strategy and operations strategy, and explain why it is important to link the two LO 2.5Describe and give examples of time-based strategies LO 2.6Define the term productivity and explain why it is important to organizations and to countries LO 2.7Describe several factors that affect productivity Chapter 2: Learning Objectives Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#›
  • 3. 2 A Cold Hard Fact Better quality, higher productivity, lower costs, and the ability to respond quickly to customer needs are more important than ever, and… the bar is getting higher LO 2.1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 3 This chapter focuses on three separate, but related ideas that are vitally important to business organizations Competitiveness Strategy Productivity Chapter Focus LO 2.1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#›
  • 4. 4 Competitiveness Competitiveness: How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services Organizations compete through some combination of their marketing and operations functions What do customers want? How can these customer needs best be satisfied? LO 2.1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 5 Identifying consumer wants and/or needs Pricing and quality Advertising and promotion Marketing’s Influence LO 2.1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 5. 2-‹#› 6 Product and service design Cost Location Quality Quick response Flexibility Inventory management Supply chain management Service Managers and workers Businesses Compete Using Operations LO 2.1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 7 Neglecting operations strategy Failing to take advantage of strengths and opportunities and/or failing to recognize competitive threats Too much emphasis on short-term financial performance at the expense of R&D
  • 6. Too much emphasis in product and service design and not enough on process design and improvement Neglecting investments in capital and human resources Failing to establish good internal communications and cooperation Failing to consider customer wants and needs Why Some Organizations Fail LO 2.2 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 8 Hierarchical Planning Mission Goals Organizational strategies Tactics Functional strategies LO 2.3 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 7. 2-‹#› 9 Mission The reason for an organization’s existence It answers the question “What business are we in?” Goals Provide detail and the scope of the mission Goals can be viewed as organizational destinations Strategy A plan for achieving organizational goals Serves as a roadmap for reaching the organizational destinations The organizational strategy guides the organization by providing direction for, and alignment of, the goals and strategies of the functional units The organizational strategy is a major success/failure factor Mission, Goals, and Strategy LO 2.3 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 10
  • 8. Mission Mission The reason for an organization’s existence Mission statement States the purpose of the organization The mission statement should answer the question of “What business are we in?” LO 2.3 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 11 FedEx Mission Statement FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related information services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx Corporation will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards. LO 2.3 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 9. 2-‹#› 12 Goals The mission statement serves as the basis for organizational goals Goals Provide detail and the scope of the mission Goals can be viewed as organizational destinations Goals serve as the basis for organizational strategies LO 2.3 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 13 Strategies Strategy A plan for achieving organizational goals Serves as a roadmap for reaching the organizational destinations Organizations have Organizational strategies Overall strategies that relate to the entire organization
  • 10. Support the achievement of organizational goals and mission Functional level strategies Strategies that relate to each of the functional areas and that support achievement of the organizational strategy LO 2.3 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 14 Tactics and Operations Tactics The methods and actions taken to accomplish strategies The “how to” part of the process Operations The actual “doing” part of the process LO 2.3 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 15
  • 11. Core Competencies Core competencies The special attributes or abilities that give an organization a competitive edge To be effective core competencies and strategies need to be aligned LO 2.3 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 16 Organizational StrategyOperations StrategyExamples of Companies or ServicesLow PriceLow costU.S. first-class postage Wal-MartResponsivenessShort processing times On-time deliveryMcDonald’s restaurants FedExDifferentiation: High QualityHigh performance design and/or high quality processing Consistent qualitySony TV Coca-ColaDifferentiation: NewnessInnovation3M, AppleDifferentiation: VarietyFlexibility VolumeBurger King (Have it your way”) McDonald’s (“Buses Welcome”)Differentiation: ServiceSuperior customer serviceDisneyland IBMDifferentiation: LocationConvenienceSupermarkets; mall stores
  • 12. Sample Operations Strategies LO 2.4 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 17 Effective strategy formulation requires taking into account: Core competencies Environmental scanning SWOT Successful strategy formulation also requires taking into account: Order qualifiers Order winners Strategy Formulation LO 2.4 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 18
  • 13. Order qualifiers Characteristics that customers perceive as minimum standards of acceptability for a product or service to be considered as a potential for purchase Order winners Characteristics of an organization’s goods or services that cause it to be perceived as better than the competition Strategy Formulation (cont.) LO 2.4 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 19 Environmental scanning is necessary to identify Internal factors Strengths and weaknesses External factors Opportunities and threats Environmental Scanning LO 2.4 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#›
  • 14. 20 Economic conditions Political conditions Legal environment Technology Competition Markets Key External Factors LO 2.4 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 21 Human resources Facilities and equipment Financial resources Customers Products and services Technology Suppliers Other Key Internal Factors LO 2.4 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior
  • 15. written consent of McGraw-Hill Education 2-‹#› 22 Operations Strategy Operations strategy The approach, consistent with organization strategy, that is used to guide the operations function LO 2.4 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 23 Strategic OM Decision AreasDecision AreaWhat the Decisions AffectProduct and service designCosts, quality, liability, and environmental issuesCapacityCost, structure, flexibilityProcess selection and layoutCosts, flexibility, skill level needed, capacityWork designQuality of work life, employee safety, productivityLocationCosts, visibilityQualityAbility to meet or exceed customer expectationsInventoryCosts, shortagesMaintenanceCosts, equipment reliability, productivitySchedulingFlexibility, efficiencySupply
  • 16. chainsCosts, quality, agility, shortages, vendor relationsProjectsCosts, new products, services, or operating systems LO 2.4 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 24 Quality-based strategy Strategy that focuses on quality in all phases of an organization Pursuit of such a strategy is rooted in a number of factors: Trying to overcome a poor quality reputation Desire to maintain a quality image A desire to catch up with the competition A part of a cost reduction strategy Quality-Based Strategies Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 25
  • 17. Time-based strategies Strategies that focus on the reduction of time needed to accomplish tasks It is believed that by reducing time, costs are lower, quality is higher, productivity is higher, time-to-market is faster, and customer service is improved Time-Based Strategies LO 2.5 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 26 Areas where organizations have achieved time reductions: Planning time Product/service design time Processing time Changeover time Delivery time Response time for complaints Time-Based Strategies (cont.) LO 2.5 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#›
  • 18. 27 Agile Operations Agile operations A strategic approach for competitive advantage that emphasizes the use of flexibility to adapt and prosper in an environment of change Involves the blending of several core competencies: Cost Quality Reliability Flexibility Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 28 The Balanced Scorecard Approach A top-down management system that organizations can use to clarify their vision and strategy and transform them into action Develop objectives Develop metrics and targets for each objective Develop initiatives to achieve objectives Identify links among the various perspectives Finance Customer
  • 19. Internal business processes Learning and growth Monitor results Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 29 The Balanced Scorecard Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 30 Productivity Productivity A measure of the effective use of resources, usually expressed as the ratio of output to input Productivity measures are useful for Tracking an operating unit’s performance over time Judging the performance of an entire industry or country
  • 20. LO 2.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 31 Why Productivity Matters High productivity is linked to higher standards of living As an economy replaces manufacturing jobs with lower productivity service jobs, it is more difficult to maintain high standards of living Higher productivity relative to the competition leads to competitive advantage in the marketplace Pricing and profit effects For an industry, high relative productivity makes it less likely it will be supplanted by foreign industry LO 2.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 32
  • 21. Productivity Measures LO 2.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 33 What is the multifactor productivity? Productivity Calculation Example Units produced: 5,000 Standard price:$30/unit Labor input: 500 hours Cost of labor:$25/hour Cost of materials: $5,000 Cost of overhead: 2x labor cost LO 2.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior
  • 22. written consent of McGraw-Hill Education 2-‹#› 34 Solution What is the implication of an unitless measure of productivity? LO 2.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 23. 2-‹#› 35 Productivity Growth Example: Labor productivity on the ABC assembly line was 25 units per hour in 2014. In 2015, labor productivity was 23 units per hour. What was the productivity growth from 2014 to 2015? LO 2.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#›
  • 24. 36 Service sector productivity is difficult to measure and manage because It involves intellectual activities It has a high degree of variability A useful measure related to productivity is process yield Where products are involved Ratio of output of good product to the quantity of raw material input Where services are involved, process yield measurement is often dependent on the particular process: Ratio of cars rented to cars available for a given day Ratio of student acceptances to the total number of students approved for admission Service Sector Productivity LO 2.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 25. 2-‹#› 37 Factors Affecting Productivity Capital Methods Technology Management Quality LO 2.7 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 38
  • 26. Improving Productivity Develop productivity measures for all operations Determine critical (bottleneck) operations Develop methods for productivity improvements Establish reasonable goals Make it clear that management supports and encourages productivity improvement Measure and publicize improvements Don’t confuse productivity with efficiency LO 2.7 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 2-‹#› 39 Partial Measures Output
  • 27. Single Input ; Ouput Labor ; Output Capital Multifactor Measures Output Multiple Inputs ; Ouput Labor + Machine ; Output Labor + Capital
  • 28. + Energy Total Measure Goods or services produced All inputs used to produce them Input Output = ty Productivi Multifactor Productivity = Output Labor + Material + Overhead $25/hour)) hours (2(500 +
  • 30. Current productivity - Previous productivity Previous productivity ´ 100 % Productivity Growth = 23 - 25 25 ´ 100 % = - 8 %
  • 31. Introduction to Operations Management Chapter 1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› You should be able to: LO 1.1Define the terms operations management and supply chain LO 1.2Identify similarities and differences between production and service operations LO 1.3Explain the importance of learning about operations management LO 1.4Identify the three major functional areas of organizations and explain how they interrelate LO 1.5Summarize the two major aspects of process management
  • 32. LO 1.6Describe the operations function and the nature of the operations manager’s job LO 1.7Explain the key aspects of operations management decision making LO 1.8Briefly describe the historical evolution of operations management LO 1.9Describe the current issues in business that impact operations management LO 1.10Explain the need to manage the supply chain Chapter 1: Learning Objectives Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Operations Management
  • 33. What is operations? The part of a business organization that is responsible for producing goods or services How can we define operations management? The management of systems or processes that create goods and/or provide services LO 1.1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#›
  • 34. Goods are physical items that include raw materials, parts, subassemblies, and final products. Automobile Computer Oven Shampoo Services are activities that provide some combination of time, location, form or psychological value. Air travel Education Haircut Legal counsel Good or Service? LO 1.1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 35. 1-‹#› Supply Chain Suppliers’ suppliers Direct suppliers Producer Distributor Final customers Supply chain – a sequence of activities and organizations involved in producing and delivering a good or service LO 1.1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 37. Measurement and Feedback Measurement and Feedback Measurement and Feedback Value-Added Feedback = Measurements taken at various points in the transformation process Control = The comparison of feedback against previously established standards to determine if corrective action is needed Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education LO 1.1 1-‹#›
  • 38. Automobile Assembly, Steelmaking Products are typically neither purely service- or purely goods- based. GoodsServices Home Remodeling, Retail Sales Computer Repair, Restaurant Meal Songwriting, Software Development Surgery, Teaching Goods-service Continuum LO 1.2 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Manufacturing vs. Service Degree of customer contact Uniformity of input
  • 39. Labor content of jobs Uniformity of output Measurement of productivity Production and delivery Quality assurance Amount of inventory Evaluation of work Ability to patent design LO 1.2 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Every aspect of business affects or is affected by operations Many service jobs are closely related to operations Financial services Marketing services Accounting services
  • 40. Information services Through learning about operations and supply chains you will have a better understanding of: The world you live in The global dependencies of companies and nations Reasons that companies succeed or fail The importance of working with others Why Study Operations Management? LO 1.3 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Operations Finance Marketing Organization
  • 41. Basic Functions of the Business Organization LO 1.4 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Function Overlap Finance & operations Budgeting Economic analysis of investment proposals Provision of funds Marketing & operations Demand data Product and service design
  • 42. Competitor analysis Lead time data LO 1.4 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Operations manager Supply chain manager Production analyst Schedule coordinator Production manager Industrial engineer Purchasing manager Inventory manager Quality manager
  • 43. OM and Supply Chain Career Opportunities Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› APICS - The Association for Operations Management American Society for Quality (ASQ) Institute for Supply Management (ISM) Institute for Operations Research and Management Science (INFORMS) The Production and Operations Management Society (POMS) The Project Management Institute (PMI) Council of Supply Chain Management Professionals (CSCMP) OM-Related Professional Societies Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 44. 1-‹#› Process Management Process - one or more actions that transform inputs into outputsThree Categories of Business Processes:Upper- management processesThese govern the operation of the entire organization.Operational processesThese are core processes that make up the value stream.Supporting processesThese support the core processes. LO 1.5 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#›
  • 45. Supply & Demand Supply Demand > Supply Demand < Supply Demand = Wasteful Costly Opportunity Loss Customer Dissatisfaction Ideal Operations & Supply Chains Sales & Marketing
  • 46. LO 1.5 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Process VariationFour Sources of Variation:Variety of goods or services being offeredThe greater the variety of goods and services offered, the greater the variation in production or service requirements.Structural variation in demandThese are generally predictable. They are important for capacity planning.Random variationNatural variation that is present in all processes. Generally, it cannot be influenced by managers.Assignable variationVariation that has identifiable sources. This type of variation can be reduced, or eliminated, by analysis and corrective action. Variations can be disruptive to operations and supply chain processes. They may result in additional costs, delays and shortages, poor quality, and inefficient work systems.
  • 47. LO 1.5 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Scope of Operations Management The operations function includes many interrelated activities such as: Forecasting Capacity planning Facilities and layout Scheduling Managing inventories Assuring quality Motivating employees Deciding where to locate facilities And more . . . The scope of operations management ranges across the
  • 48. organization. LO 1.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Role of the Operations Manager The Operations function consists of all activities directly related to producing goods or providing services. A primary function of the operations manager is to guide the system by decision making. System design decisions System operation decisions LO 1.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 49. 1-‹#› System Design Decisions System design Capacity Facility location Facility layout Product and service planning Acquisition and placement of equipment These are typically strategic decisions that usually require long-term commitment of resources determine parameters of system operation LO 1.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 50. 1-‹#› System Operation Decisions System operation These are generally tactical and operational decisions Management of personnel Inventory management and control Scheduling Project management Quality assurance Operations managers spend more time on system operation decision than any other decision area They still have a vital stake in system design LO 1.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 51. 1-‹#› Most operations decisions involve many alternatives that can have quite different impacts on costs or profits Typical operations decisions include: What: What resources are needed, and in what amounts? When: When will each resource be needed? When should the work be scheduled? When should materials and other supplies be ordered? Where: Where will the work be done? How: How will he product or service be designed? How will the work be done? How will resources be allocated? Who: Who will do the work? OM Decision Making LO 1.7 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 52. 1-‹#› General Approach to Decision Making Modeling is a key tool used by all decision makers Model - an abstraction of reality; a simplification of something. Common features of models: They are simplifications of real-life phenomena They omit unimportant details of the real-life systems they mimic so that attention can be focused on the most important aspects of the real-life system LO 1.7 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Understanding Models
  • 53. Keys to successfully using a model in decision making What is its purpose? How is it used to generate results? How are the results interpreted and used? What are the model’s assumptions and limitations? LO 1.7 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Models are generally easier to use and less expensive than dealing with the real system Require users to organize and sometimes quantify information Increase understanding of the problem Enable managers to analyze “What if?” questions Serve as a consistent tool for evaluation and provide a standardized format for analyzing a problem Enable users to bring the power of mathematics to bear on a
  • 54. problem. Benefits of Models LO 1.7 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Quantitative information may be emphasized at the expense of qualitative information Models may be incorrectly applied and the results misinterpreted This is a real risk with the widespread availability of sophisticated, computerized models are placed in the hands of uninformed users The use of models does not guarantee good decisions Model Limitations LO 1.7 Copyright ©2018 McGraw-Hill Higher Education. All rights
  • 55. reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› A decision-making approach that frequently seeks to obtain a mathematically optimal solution Supported by computer calculations Often work together with qualitative approaches Quantitative Approaches LO 1.7 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#›
  • 56. Performance metrics All managers use metrics to manage and control operations Profits Costs Quality Productivity Flexibility Inventories Schedules Forecast accuracy Metrics and Trade-Offs Analysis of trade-offs A trade-off is giving up one thing in return for something else Carrying more inventory (an expense) in order to achieve a greater level of customer service LO 1.7 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 57. 1-‹#› System - a set of interrelated parts that must work together The business organization is a system composed of subsystems Marketing subsystem Operations subsystem Finance subsystem The systems approach Emphasizes interrelationships among subsystems Main theme is that the whole is greater than the sum of its parts The output and objectives of the organization take precedence over those of any one subsystem Systems Approach LO 1.7 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#›
  • 58. In nearly all cases, certain issues or items are more important than others Recognizing this allows managers to focus their attention to those efforts that will do the most good Pareto Phenomenon - a few factors account for a high percentage of occurrence of some event(s) The critical few factors should receive the highest priority This is a concept that is appropriately applied to all areas and levels of management Establishing Priorities LO 1.7 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Historical Evolution of OM
  • 59. Industrial Revolution Scientific management Human relations movement Decision models and management science Influence of Japanese manufacturers LO 1.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Pre-Industrial Revolution Craft production - System in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods Some key elements of the industrial revolution Began in England in the 1770s Division of labor - Adam Smith, 1776 Application of the “rotative” steam engine, 1780s
  • 60. Cotton gin and interchangeable parts - Eli Whitney, 1792 Management theory and practice did not advance appreciably during this period Industrial Revolution LO 1.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› . Movement was led by efficiency engineer, Frederick Winslow Taylor Believed in a “science of management” based on observation, measurement, analysis and improvement of work methods, and economic incentives Management is responsible for planning, carefully selecting and training workers, finding the best way to perform each job, achieving cooperation between management and workers, and separating management activities from work activities
  • 61. Emphasis was on maximizing output Scientific Management LO 1.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› The human relations movement emphasized the importance of the human element in job design Lillian Gilbreth – applications of psychology Elton Mayo – Hawthorne studies on worker motivation, 1930 Abraham Maslow – motivation theory, 1940s; hierarchy of needs, 1954 Frederick Hertzberg – Two Factor Theory, 1959 Douglas McGregor – Theory X and Theory Y, 1960s William Ouchi – Theory Z, 1981 Human Relations Movement LO 1.8
  • 62. Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Decision Models & Management Science F.W. Harris – mathematical model for inventory management, 1915 Dodge, Romig, and Shewart – statistical procedures for sampling and quality control, 1930s Tippett – statistical sampling theory, 1935 Operations Research (OR) Groups – OR applications in warfare George Dantzig – linear programming, 1947 LO 1.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
  • 63. 1-‹#› Influence of Japanese Manufacturers Refined and developed management practices that increased productivity Credited with fueling the “quality revolution” Just-in-Time production LO 1.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Economic conditions
  • 64. Innovating Quality problems Risk management Competing in a global economy Key Issues for Operations Managers Today LO 1.9 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Environmental Concerns Sustainability Using resources in ways that do not harm ecological systems that support human existence Sustainability measures often go beyond traditional environmental and economic measures to include measures that incorporate social criteria in decision making
  • 65. All areas of business will be affected Product and service design Consumer education programs Disaster preparation and response Supply chain waste management Outsourcing decisions LO 1.9 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Ethical Issues in Operations Ethical issues that may arise in many aspects of operations management: Financial statements Worker safety Product safety Quality
  • 66. The environment The community Hiring and firing workers Closing facilities Workers’ rights LO 1.9 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› The Need for Supply Chain Management In the past, organizations did little to manage the supply chain beyond their own operations and immediate suppliers which led to numerous problems: Oscillating inventory levels Inventory stockouts Late deliveries
  • 67. Quality problems LO 1.10 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› Supply Chain Issues The need to improve operations Increasing levels of outsourcing Increasing transportation costs Competitive pressures Increasing globalization Increasing importance of e-business The complexity of supply chains The need to manage inventories LO 1.10 Copyright ©2018 McGraw-Hill Higher Education. All rights
  • 68. reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 1-‹#› MGT530 Critical Thinking Writing Rubric - Module 2 Exceeds Expectation Meets Expectation Below Expectation Limited Evidence Content, Research, and Analysis 21-25 Points 16-20 Points 11-15 Points 6-10 Points
  • 69. Requirements Includes all of the required components, as specified in the assignment. Includes most of the required components, as specified in the assignment. Includes some of the required components, as specified in the assignment. Includes few of the required components, as specified in the assignment.
  • 70. 21-25 Points 16-20 Points 11-15 Points 6-10 Points Content Demonstrates substantial and extensive knowledge of the materials, with no errors or major omissions. Demonstrates adequate knowledge of the materials; may include some minor errors or omissions. Demonstrates fair knowledge of the materials and/or includes some major errors or omissions.
  • 71. Fails to demonstrate knowledge of the materials and/or includes many major errors or omissions. 25-30 Points 19-24 Points 13-18 Points 7-12 Points Analysis Provides strong thought, insight, and analysis of concepts and applications. Provides adequate thought, insight, and analysis of concepts and applications. Provides poor though, insight, and analysis of
  • 72. concepts and applications. Provides little or no thought, insight, and analysis of concepts and applications. 13-15 Points 10-12 Points 7-9 Points 4-6 Points Sources Sources go above and beyond required criteria and are well chosen to provide effective substance and perspectives on the issue under examination. Sources meet required criteria and are adequately
  • 73. chosen to provide substance and perspectives on the issue under examination. Sources meet required criteria but are poorly chosen to provide substance and perspectives on the issue under examination. Source selection and integration of knowledge from the course is clearly deficient. Mechanics and Writing 5 Points 4 Points 3 Points 1-2 Points
  • 74. Demonstrates college-level proficiency in organization, grammar and style. Project is clearly organized, well written, and in proper format as outlined in the assignment. Strong sentence and paragraph structure, contains no errors in grammar, spelling, Project is fairly well organized and written and is in proper format as outlined in the assignment.
  • 75. Reasonably good sentence and paragraph structure, may include a few Project is poorly organized and written and may not follow proper format as outlined in the assignment. Inconsistent to inadequate sentence and paragraph development, Project is not organized or well written and is not in proper format as outlined in the assignment. Poor quality work;
  • 76. unacceptable in terms of grammar, spelling, APA style, MGT530 Critical Thinking Writing Rubric - Module 2 APA style, or APA citations and references. minor errors in grammar, spelling, APA style, or APA citations and references. and/or includes numerous or major errors in grammar, spelling, APA style or APA citations
  • 77. and references. and APA citations and references. Total points possible = 100 MGT-530: – Module 02/CT 01 Regulations: · GRADING EXPECTATIONS : 1. I recommend that you use the grading rubric to shape your work product (Attached).   2. With respect to grading, The instructor really looks for 2 things: citations and substance. I encourage you to include cites and information from scholarly and/or peer-reviewed sources in addition to the course text (Stevenson, W. (2018). Operations management (13th ed.). New York, NY: McGraw-Hill Irwin. ISBN-13:9781259667473) Otherwise, my potential for points is reduced. It  indicates you have read the course materials and searched far and wide for theories, statistics, and facts to address the issue at hand. I encourage you to paraphrase these sources. Convert the content into your own words rather than using direct quotes. This
  • 78. improves the synthesis of information, and it makes the writing more closely resemble your own style.  In addition to scholarly citations, a substantive assignment is one that not only answers the question but advances the discussion. Please, do more than is expected. · The writer must apply APA style guidelines. · Support your submission with: 1. Course material concepts, principles, and theories from the textbook and Use it in the references (Stevenson, W. (2018). Operations management (13th ed.). New York, NY: McGraw - Hill Irwin. ISBN-13:9781259667473) 2.  At least Four scholarly, peer-reviewed journal articles such as: 2.1 Zhou, K., Bochtis, D., Jensen, A. L., Kateris, D., & Sørensen, C. G. (2020). Introduction of a new index of field operations efficiency. Applied Sciences, 10(1), 329. 2.2 Pilo, M. (2019). Dynamics of Agricultural Productivity and Technical Efficiency in Togo: The Role of Technological Change. African Development Review, 31(4), 462– 475. https://doi.org/10.1111/1467-8268.12403
  • 79. 2.3 Zondo, R. (2020). The influence of inventory sequencing for the improvement of inventory control: Evidence from a South African automotive assembly organization. Acta Commercii, 20(1). · Be 5 pages in length, does not include the title page, abstract, conclusion and required reference page, which are never a part of the minimum content requirements. Operations Management and Factors Affecting Productivity Maduro Cleaning is a small organization that provides cleaning services to both residential and commercial clients. As a small organization, the owner assigns crews of two, three, or four employees to jobs each morning but the owner does not have a good method of determining a reasonable amount of time that each cleaning should take. The owner decided to keep data on job times and crew sizes in the hopes of developing a productivity measure. · In this assignment Address the following requirements: 1. Calculate which of the crew sizes has the best productivity per worker and explain your method. 2. Evaluateyour outcome and the possible reasons that would explain those results.
  • 80. 3. Project what the productivity might be for a crew size of five and explain your reasoning. · Crew Size Avg: Productivity per Crew 2: 3765 square meters per day 3: 4915 square meters per day 4: 6309 square meters per day Thank you for your support