Chapter 7 - Managing operations. After completing this chapter, students will be able to: Explain how operational excellence can lead to competitive advantage; describe different operating strategies managers can pursue; explain the role of operations in an enterprise; outline how the design of production systems and strategies for asset utilization, improving product quality, managing inventory, managing supply chains, and developing products can all improve the efficiency of an organization; | chapter 7 Managing Operations McGraw-Hill/Irwin Principles of Management © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Learning Objectives Explain how operational excellence can lead to competitive advantage. Describe different operating strategies managers can pursue. Explain the role of operations in an enterprise. Outline how the design of production systems and strategies for asset utilization, improving product quality, managing inventory, managing supply chains, and developing products can all improve the efficiency of an organization. Describe the methodologies for improving operating processes, and explain how improvements in processes over time can lead to competitive advantage. Operations Operations: The different activities involved in creating an organization’s products and services. Operations managers: People who manage operations. Learning Objective 1: Explain how operational excellence can lead to competitive advantage. See Text Page: 158 Productivity . | chapter 7 Managing Operations McGraw-Hill/Irwin Principles of Management © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Learning Objectives Explain how operational excellence can lead to competitive advantage. Describe different operating strategies managers can pursue. Explain the role of operations in an enterprise. Outline how the design of production systems and strategies for asset utilization, improving product quality, managing inventory, managing supply chains, and developing products can all improve the efficiency of an organization. Describe the methodologies for improving operating processes, and explain how improvements in processes over time can lead to competitive advantage. Operations Operations: The different activities involved in creating an organization’s products and services. Operations managers: People who manage operations. Learning Objective 1: Explain how operational excellence can lead to competitive advantage. See Text Page: 158 Productivity and Efficiency Productivity: The output produced by a given input. Productivity = Output/Input Productivity of labor: Unit output divided by some measure of labor input. Productivity of capital: Sales divided by the total capital (money) invested in a business. Learning Objective 1: Explain how operational excellence can lead to competitive advantage. See Text Page: 158 . Productivity Third Quarter, 2006 In manufacturing, revised productivity increases were: percent in manufacturing, percent in durable goods manufacturing, and percent in nondurable goods manufacturing Source: Bureau of Labor Statistics, December 5, 2006 Learning Objective 1: Explain how operational excellence can lead to competitive advantage. . Productivity This slide presents the . Productivity numbers as revised by the Bureau of Labor Statistics (BLS) in December 2006. BLS reports these numbers every quarter and its revisions. Ask the students – what are the implications of productivity gains? .
