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1.Operations&Productivity ch01
1.Operations&Productivity ch01
Productivity 1
PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition
© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 1-1
Outline
▶ Global Company Profile: Hard Rock Cafe
▶ Planning
▶ Organizing
▶ Staffing
▶ Leading
▶ Controlling
Figure 1.4
© 2014 Pearson Education, Inc. 1 - 26
The Heritage of OM
▶ Division of labor (Adam Smith 1776; Charles
Babbage 1852)
▶ Standardized parts (Whitney 1800)
▶ Scientific Management (Taylor 1881)
▶ Coordinated assembly line (Ford/ Sorenson 1913)
▶ Gantt charts (Gantt 1916)
▶ Motion study (Frank and Lillian Gilbreth 1922)
▶ Quality control (Shewhart 1924; Deming 1950)
80 –
Percent of Workforce
60 –
40 –
20 –
| | | | | | | | |
0–
1825 1875 1925 1975 2025 (est.)
1800 1850 1900 1950 2000
Important Note!
Production is a measure of output only
and not a measure of efficiency
Feedback loop
Figure 1.6
1,000
= = 4 units/labor-hour
250
1,000
= = Rs 4/units
250
Figure 1.7
© 2014 Pearson Education, Inc. 1 - 60
Capital
10
Percent increase in productivity
0
10 15 20 25 30 35
Percentage investment