Topics: Productivity, Operations management, Management Pages: 6 (1506 words) Published: December 2, 2012
Chapter one – A
The U.S, and indeed much of the world, has been described as a “knowledge society.” How does this affect productivity measurement and comparison of productivity between the U.S. and other countries? Illustrate with an example.

Productivity is the ratio of out puts (goods and services) divided by inputs (resources and capital). The creation of goods and services requires changing resources into goods and services; the more efficiently we make this change, the more productive we are, and the more value is added to the good or services provided. By applying the ten decisions of operation management (om) help us to be efficient: developing and using the correct strategy helps us to be effective. The measurement of productivity is an important way to evaluate a country’s ability to provide a high stander of living for its people. Only through the increase of productivity, improve the stander living, and labor, capital and management receive high salary. When productivity increase using the same resources, the prices will go down, and if labor and capital increase without increase in productivity raises the prices. The U.S has been able to increase productivity at an average rate of almost 2.55 per year which has double the U.S. ‘s wealth every 30 years. Three factors are important in improving the productivity; such as, labor, capital, and management.

In order to improve the labor productivity, the labor force should be better utilized with a stronger commitment; training, motivation, team building and human resource strategies, and improved education are some of the techniques which contribute to increase productivity. The effective sue of capital increase the productivity, and management accounts for over half of the annual increase productivity.

The postindustrial societies are known as knowledge societies, and using knowledge and technology are essential in postindustrial societies. In these societies much of the labor force has migrated form manual work to technical and information processing tasks require on going education. Compare to other industrialized countries, the U.S. remains the world leader in overall productivity and services productivity; despite having the same problems with service productivity as other countries.

The productivity challenge is difficult. A country cannot be world class competitor with second class inputs such as poorly educated labor insufficient capital, and dated technology. High productivity and high quality out puts require high quality inputs, including good operation managers. Since education is foundation to efficient operation in a technological society, countries are focusing on highly skilled workforce which is essential for global competitiveness.

Example: From the text
Siemens, the multi-billion-dollar German conglomerate, has long been known for its apprentice programs in its home country. Due to education is often the key to efficient operations in a technological society, Siemens has spread its apprentice-training programs to its U.S. plants. These programs are laying the foundation for the highly skilled workforce that is essential for global competitiveness.

Chapter One – B
David Upton is president of Upton Manufacturing, a producer of G0-kart tires. Upton makes 1,000 tires per day with the following resources:

Labor:400 hours at $12.50 per hour
Raw Material:20,000 pounds per day at $1 per pound
Energy:$5,000 per day
Capital:$10,000 per day
a. What is the labor productivity for these tires at Upton manufacturing?

Productivity = units of output
hours of labor
Productivity = 1,000
= 2.5 units per labor hours
b. What is the multi-factor productivity for these tires at Upton manufacturing?

400 * 12.50 = $5,000 a day

Productivity = _______ _Output__________________ _______...
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