...MANAGING EFFICIENCY AND PRODUCTIVITY Week 11 Dr Pieris Chourides Productivity • A measure of performance. • Broadly a ratio of output to input, i.e. comparing amount produced (output) with resources used (input) • Materials, machinery, labour, capital, energy --- a combination • What improvements have there been over the last 50 years in – construction productivity – payroll processing – Car servicing – banking • How do we evaluate productivity levels and identify areas for improvement? Managing Productivity • Productivity – An economic measure of efficiency that summarizes the value of outputs relative to the value of the resources used to produce them. Levels of Productivity • The unit of analysis used to calculate or define: – Aggregate productivity—the total level of productivity for a country. – Industry productivity—the total productivity of all the firms in an industry. – Company productivity—the level of productivity of a single company. – Unit productivity—the productivity level of a unit or department. – Individual productivity—the productivity attained by a single person. Forms of Productivity • Total factor productivity–an overall indicator of how well an organization uses all of its resources (i.e., labor, capital, materials, and energy) to create all of its products and services. Outputs Productivity = Inputs Forms of Productivity • Labor productivity–a partial productivity ratio that uses only one...
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...The creation of Q global village 2. Workforce diversity 3. Improving quality and productivity 4. Improving People skills 5. Management control to empowerment 6. Stability and flexibility 7. Improving ethical behavior. There are a lot of challenges and opportunities today for managers to use Organizational behavior concepts. The critical issues for which Organization behavior offers solutions are: 1. The creation of a global village The world has truly become global village. As multinational companies develop operations world wide, as workers chase job opportunities across national borders, managers have to become capable of working with people from different cultures. 2. Workforce diversity Workforce diversity addresses differences among people within given countries. It means that Organizations are becoming more heterogeneous in terms of gender, race and ethnicity. When diversity is not managed properly, there is potential for higher turnover, more difficult communication and more interpersonal conflicts. So workforce diversity has important implications for management practice. 3. Improving quality and productivity Toward Improving quality and productivity, managers are implementing programs such as TQM (Total Quality Management) and Reengineering programs that require extensive employee involvement. The Organizational behavior offers important insights into helping managers work through those programs. 4. Improving people skills Organizational behavior represents relevant concepts...
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...ASSIGNMENT ON MANAGEMENT OF TECHNOLOGY RAJESWARI.G ID NO. 2010HZ58075 ASSIGNMENT ON In your opinion, what are some important criteria which the firms should take to increase the quality and productivity of their products and service? Assignment on Productivity Improvement Page 2 Important criteria which the firms should take to increase the quality and productivity of their products and services There are few things to be considered for a Firm to increase the market value/productivity by improving the quality of the product, This is generally can be achieved, By improving the existing product, By introducing new products, Product launching / Advertising the same By improving the services for the newly or existing products, Immediate response for the complaints , querries Cost effective , easy accessible products etc., Let we discuss the points in detail, 4 Quick Steps to Improve an Existing Product You may have a niche marketing website that just isn’t producing sales for you at the rate at which you had hoped it would…..or maybe it isn’t producing any income for you at all or it could be that you haven’t actually figured out that what you are selling is, in fact, a niche market product. You might need to do a little ‘tweaking’ and modify your strategies somewhat to get the site performing better. There really are some things that you can do to improve your existing product. Step #1: Bill Cosby, the famous entertainer, once said, “I don’t know what...
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...Benchmarking Productivity in Nursing is Useful Benchmarking is a quality improvement tool that determines who the best is, who sets the standard, and what the standard is. There are two main purposes for benchmarking. The first is to identify best practices to be applied in measuring and improving performance in an organization. The second purpose is to seek ways to improve the delivery of service through the efficient use of staff. For health care managers who are responsible for a variable expense cost center or department, maintaining appropriate levels of productivity is one of the greatest and ongoing challenges of the management process and requires constant research and advice regarding relevant productivity standards. Comparing one’s departmental operations with other successful operations of another organization is a useful source of benchmarking data and many health care managers depend on associates or outside consultants to provide data to assist in implementing new and effective strategies to improve staff productivity. There are three sources of productivity standards. The first source is internally developed historical standards where standards are based on past performances but do not provide information about relative efficiency. The second source is engineered standards where internal staff or outside consultants conduct a study of the work environment and define normal standards of productivity. The third source is a comparative group standard...
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...UNIT4 IMPACT OF THE USE OF IT ON BUSINESS SYSTEMS P2-D1 The impact changes that will have on Tesco's are: -Cost -Impact on procedures -Impact on staff -Interrogation of legacy systems -Security -Legal requirements EXTERNAL PRESSURES It is very important to keep up with competitors, this is important because if ASDA has better offers than Tesco’s people will stop going to Tesco and start going to ASDA this will have a bad impact on Tesco. This will have an impact on Tesco’s because they will start to lose profit so it is important for Tesco’s to have better offers then ASDA so that the costumers will stay at Tesco’s and more people will start to shop at Tesco leading to an increase in profit. ENHANCED BUSINESS OPERTUNITY Costumers want new products the companies that are not able to demand the costumers request could start to lose profit. An example is if Tesco’s didn’t respond to the request of the public and ASDA did then all the people that shopped in Tesco’s will go to ASDA therefore Tesco will start to lose costumers leading to less profit. So it is important that Tesco’s improves costumer service so that these demands are responded to. COST When Tesco's purchase new IT systems like self checkout tilts it is a positive impact on Tesco. It is a positive impact on Tesco's because they don’t have to pay there staff because they are being replaced by these self checkout tilts therefore Tesco will save money because staff are not being paid. Another reason...
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...Affiliation Deming’s 14 points and Deming’s Paradigms The first point talks about one having a purpose towards improving their products and services ,aiming to stay in business and become competitive. In management, leaders should have missions to improve their services and be competitive. The second point says that leaders must have and adapt to the new philosophy. In managing effectively, leaders must learn their responsibilities to help in better management. In the third point, Deming asks the leaders to stop depending on inspection. This would help in quality management since it would give the employees freedom and less inspection, thus quality products. In point four, Deming states that one should trust a single supplier for a long-term relationship for trust and loyalty. This would help in minimizing the total cost, and hence more profit. In point five, the manager should improve the production system. In management, this will help in improving productivity and quality. This would reduce the costs in the company. Point six talks about the training on the job by the institute. In management, this would help in increasing the productivity in the labor and profits. In point seven, a manager should supervise to help the employees to do a good job. Supervision of workers in management would help in knowing when the employees are having problems and thus increase productivity. In point eight, for better management, the manager should drive out fear, which may result to the employees...
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...maintain a staff that is skilled, experienced and satisfied in their jobs. Unfortunately, so much was required of each employee it didn’t seem worth it as salaries were low. As a result, people were leaving to other companies that could pay more for their hard labor. The budget cuts on the supply department made it difficult for standards and quality to be maintained, yet higher management was coming down on Ted’s because his department was not improving with production and its quality. •A narrative discussion pointing out the major problem Once the corporation began to cut funding from the supply department, quality went down which was to be expected as ted now had to purchase supplies of lower quality. Also, paying his staff less led to people resigning which forced others to have cover down on the labor for those empty positions. Ted budget was cut by 20 percent and he was still expected to maintain and keep improving numbers; In order for that to happen he needed to figure out ways to keep improving supply productivity. Additional issues involved miscommunication with the cost to purchase machinery for more efficient productivity in the maintenance department. For example, quotes were being made for new machinery cost estimate of 5.5 million dollars and the actual starting cost was 7.2 million dollars. Lastly, upper management was coming down on him for results and other departments were complaining about the supplies...
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...FORM B: COURSE PLAN |Course Code & Course Title: ABDT3243 Services Marketing |Programme(s): 2DMK, 2drm | | | | |Semester: [ ( ] May [ ] September [ ] January |Academic Year: 2015/2016 | |(please tick “(”) | | |Hours/Week: Lecture __2__ , Tutorial __1.5__ , Laboratory/Practical ___-____ | |Week | |Topics |Reference Material |Remarks* | | | | ...
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...have special characteristic and service quality can vary. Therefore, satisfaction is harder to achieve and service recovery and customer’s retention is key service management tasks. ervices have special characteristic and service quality can vary. Therefore, satisfaction is harder to achieve and service recovery and customer’s retention is key service management tasks. ------------------------------------------------------------------------------------------------------------------------------------- Abstract: Customer expectations play a crucial role in shaping satisfaction evaluation. The expectations are formed through past experiences, brand image, word of mouth, advertising or promotions. Customer expectations need to be thoroughly explored by the management for several reasons, it gives them accurate picture of the customer wants, and how the expectations are formed, how the company can influence or manage the expectation. The expectations can also change with cultural roots of the customer. In today’s global market it is beneficial to develop and market the company to diverse market segment. Introduction: In today’s fast paced world the biggest challenge faced by service industry is to retain its customer loyalty. It is easy to see why customer loyalty is of utmost importance, simply put it guarantees future revenue and shareholder value. Customer loyalty is strongly linked to customer satisfaction and service quality. In order to be competitive in today’s world...
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...Who is primarily responsible for productivity in an organization? List some factors that can affect productivity and some ways that productivity can be improved. Productivity is described as a measure of the effective use of resources, usually expressed as the ratio of output to input. This ratio can be computed for a single operation, a department, an organization, or even an entire country. In an organization, the operations manager is the one primary responsible to achieve productive use of an organization’s resources but I would argue that productivity is the responsibility of all within an organization since it only makes sense to have everyone pulling in the same direction for the organization to be as productive as possible. There are multiple factors that affect productivity. Among them are methods, capital and technology, quality, and management. Before starting the improvement process, an organization needs to develop productivity measures for all operations and look at the system as a whole to decide which operations are most critical. Developing methods for achieving productivity improvements can be done by soliciting ideas from workers, studying the competition and other firms to see how they have increased productivity and reexamining how work is done. Reasonable goals must be established for improvement. Considering the multiple factors that affect productivity, there are many steps that can be taken in order to improve it, both in the short term and...
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...The main task of this essay is to enhance & illustrate importance of scientific management , human relations & socio technical perspectives in organization. Henri Fayol (1841-1925): To manage is to forecast plan, organize, command to coordinate and control. Fredrick Winslow Taylor (1856-1915): known as father of management. He invented the scientific way of organizing companies. Management : coordinated activites ( planning, forecast, organize, decide, command) to direct and control. Scientific management: A work study technique to design & organization of work inorder to get maximum output which increases productivity. There are six best ways designed to increase productivity, 1. 2. 3. 4. 5. 6. job design and practice. Repetitive work cycles. Detailed . Prescribed task sequences. Separation of task conception from execution. Motivation based on economic rewards. Productivity : it is a measure of efficiency which summarizes value of output relative to input. The main principles of scientific management : 1. 2. 3. 4. 5. Develop for each operation to replace opinion & rule of thumb. Determine correct time and method for each job....
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...is the new strategy for applying with business models that how business can use technology to increase profitability and efficiency of business’ operation. There are two main types of emerging applications, including information and analysis, and automation and control as the tools for develop and improve technology to increase values and opportunities’ companies. As Information and Analysis, it is using networks to collect and link all information and data among consumers and producers for gaining and improving decision making of organization or management processes of production. There are three applications of information and analysis, which consists of tracking behavior, enhanced situational awareness, and sensor-driven decision analytics. Tracking behavior, it is using tracking product to identify details, status, and movement among products, customers, and locations. As a consequence, companies can take advantages from this application for enhancing and develop the quality of production and logistic. Second, enhanced situational awareness that is the security of networks application by using sensors, including video, audio, vibration detector, etc. as security personnel to prevent persecution in real time....
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...Group Assignment Topic: Productivity in Service Sector BRAC University BRAC Business School Spring 2016 Course: Production Operations Management (MSC301) Section: 001 Instructor: Md. Tamzidul Islam Assistant Professor, BRAC Business School Group Members Name ID Tasnia Jebin 12204103 Navid Anjum Khan 13104192 Rifat Shahrukh 13104047 Mohammad Muqtadir Ullah 13104061 Sadia Kamal 12204102 Atik Ilman Hossain 13104205 Date: April 4th, 2016 Question: What is Productivity? How do we measure productivity in a service environment such as restaurant? What are the factors that affect productivity? How does one can improve it? Answer: Introduction Goods and services are the products which have a demand in the market and generate enough revenue to make profit. Goods are tangible products which we can use, consume or otherwise have in our life. For example, cars, batteries, tables and everything which can be easily quantified by units of length, weight, volume. However, services are somewhat different products which are more intangible in nature. These products are usually ones which are rendered by human labor but also have some goods aspect to it. For example, A Hospital has syringes, medicines, MRI machines and lots of other goods. And they also have nurses and doctors who use these goods to give the patients (consumers) satisfaction as a total product package of both goods and services. One useful characterization...
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...What is Strategy? – Michael E. Porter I. Operational effectiveness is not strategy So in the quest to beat competition managers focus on improving quality, speed and productivity all related to operational effectiveness. But in this way, they move further away from viable competitive positions which can only be achieved by an appropriate strategy. Positioning which was once the way to go about beating competition is now rejected, since its too static. Rivals can easily copy the market position and competitive advantage. However, that is not entirely true as hypercompetition is a self-inflicted wound. It is important to watch out for what your competitors are doing, but improving operational effectiveness alone is not enough, and that cannot be your only strategy. Operational effectiveness and strategy are both important for superior performance which is what a firm aims for. A company can beat rivals if it can stand out, establish a difference it can preserve. Basically a company can either provide greater value to customers or comparable value at low prices, or both. Delivering greater value means higher unit prices, greater efficiency means lower unit costs. Cost arises from performing activities and cost advantage comes from performing activities more efficiently than your competitors. This can be in the choice of the activity or how the activity is performed. So activities are what creates competitive advantage. Operational effectiveness means performing similar...
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...their own quality management system. In the early 80’s, business organizations had already began to build their quality management system based upon the principles of Total Quality Management. A less known but very successful quality management system, Achieving Competitive Excellence (ACE) operating system is one of the successfully evolved systems. This system was developed and is practiced by United Technologies Corporation (UTC) until today. ACE primary uses the principles of productivity improvement and waste reduction. The fundamental of ACE is to cater that every person should strive with continuous improvement. This paper provides a rough analysis on how quality management practices may affect productivity in UTC. INTRODUCTION Quality management and productivity improvement is definitely of a central consideration in all of the sectors revolving around the world economy. As quality is an important factor for customer satisfaction, it is thereby the most critical part of strategy of most, if not all in businesses. In some industries, quality might goes beyond customer satisfaction and into critical sectors such as customer and public safety. Examples of these types of industries are of the building system and the aerospace industries. Quality management is the most basic practices in any kind of strategy implemented by any businesses. It aims to achieve on the ultimate goal of customer satisfaction through its products or services. Within quality management...
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