Chapter 1 Operations and productivity

Gustavo Herrera
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Gustavo Herrera
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Chapter 1 Operations and productivity
1 Definitions
1.1 Operations managment

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  • Set of activities that creates value in the form of goods and services by transforming inputs into outputs
1.2 Supply Chain

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  • Is a global network of organizations and activities that supply a firm with goods and services.
1.3 Value Chain
2 Primary functions of all organizations
2.1 Marketing

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  • Generates demand or at least takes the order for a product or servic.
2.2 Production/operations

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  • Creates the product
2.3 Finance/Accounting

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  • Tracks howis the organization doing, pays the bills and collects the money.
3 GOODS VS SERVICES
3.1 Services

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  • Economic activities that tipically produce an intangible product such as education, entretainment. 
3.2 Similarities
3.2.1 Quality standards
3.2.2 Designed and produced on a schedule that meets the customer demand.
3.2.3 Made in a facility where people are amployed
4 Productivity

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  • The ratio of outputs/goods and services divided by one or more inputs (labor, capital, managment). Improvement:  -Reducing inputs/constant output -Increasing outputs/constant input
4.1 Single

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  • Indicates the ratio of resource (input) to the goodsand services produced (output)
4.2 Multifactor

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  • indicates the ratio of many or all resources (inputs) to the goods and services produced (output)
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