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JUNAYED AHMED RAFIN
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29 views

Lecture_02

Uploaded by

JUNAYED AHMED RAFIN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 2

Productivity, Strategy and


Competitiveness
Productivity
🞆 Partial measures
●output/(single input)
🞆 Multi-factor measures
●output/(multiple inputs)
🞆 Total measure
●output/(total inputs)
Measures of Productivity

Partial: Output/Labor Output/Machine


Output/Energy

Multifactor: Output/(Labor+Machine)
Output (Labor+Energy)

Total: All outputs / All inputs


Example
10,000 Units Produced

Sold for $10/unit

500 labor hours


What is the
labor productivity?
Labor rate: $9/hr

Cost of raw material: $5,000

Cost of utilities: $25,000


Example--Labor Productivity

🞆10,000 units/500hrs = 20
units/hour
or we can arrive at a unitless figure

🞆(10,000 unit* $10/unit)/(500hrs*


$9/hr) =
22.22

Can you think of any advantages or


disadvantages of each approach?
Example--Multifactor Productivity

MFP = Output
Labor + Materials+Utilities

MFP = (10,000 units)*($10)


(500)*($9) + ($5000) + ($25000)

MFP =
2.90
Factors Affecting Productivity

Capita Qualit
l y

Technology Managemen
t
Improving Productivity

🞆 Develop productivity measures


🞆 Determine critical operations
🞆 Develop methods for productivity
improvements
🞆 Establish reasonable goals
🞆 Get management support
🞆 Measure and publicize improvements
🞆 Don’t confuse productivity with efficiency
Competitiveness

Fl
Pric ex
ibi
e lity

Qualit
Di y
ffe
ren
tia Time
tio
n
Mission/Strategy/Tactics

Mission Strategy Tactics

How does mission, strategies and tactics relate


to
decision making and distinctive competencies?
Strategy

🞆 Mission
● The reason for existence for an
organization
🞆 Mission Statement
● A clear statement of purpose
🞆 Strategy
● A plan for achieving organizational
goals
🞆 Tactics
● The actions taken to accomplish
strategies
Strategy Example

Rita is a high school student. She would like to


have a career in business, have a good job, and
earn enough income to live comfortably
Mission: Live a good life
🞆Goal: Successful career, good income
🞆Strategy: Obtain a college education
🞆Tactics: Select a college and a major
🞆Operations: Register, buy books, take
courses, study, graduate, get job
Strategy Formulation

🞆 Distinctive Competencies
●The special attributes or abilities
that give an organization a
competitive edge.
🞆 Environmental Scanning
●The considering of events and
trends that present threats or
opportunities for a company.
New Strategies
🞆 Quality-based strategies
● Focuses on quality in all
phases of an organization
● Quality at the source
🞆 Time-based strategies
● Focuses on reduction of
time needed to accomplish
tasks
Production

🞆 Craft Production - Highly skilled


workers use simple flexible tools to
produce small quantities of customized
goods.
🞆 Mass Production - Lower-skilled
workers use specialized machinery high
volumes of standardized goods.
🞆 Lean Production - Uses minimal
amounts of resources high volume of
high-quality goods.

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