ISDS 3115 EVALUATION EXAMS ANSWERS AND
QUESTIONS SET A+
✔✔service pay - ✔✔perception that services are low-paying
42% of service workers receive above average wages
14 of 33 service industries pay below average
retail trade pays only 61% of national average
overall average wage is 96% of the average
✔✔productivity - ✔✔the ratio of outputs (goods and services) divided by the inputs
(resources such as labor and capital)
THE OBJECTIVE IS TO IMPROVE PRODUCTIVITY!
✔✔production is a measure of the.... - ✔✔output only and NOT a measure of efficiency
✔✔the economic system - ✔✔inputs: labor, capital, management
transformation: the U.S. economic system transforms inputs to outputs with annual
productivity increasing by about 2.5%. the productivity increase is the result of
contributions from capital (38%), labor (10%), and management (52%)
outputs: goods and services
✔✔productivity formula - ✔✔productivity = units produced / inputs used
measure of process improvement
represents output relative to input
only through productivity increases can our standard of living improve
,✔✔labor productivity= - ✔✔units produced divided by labor hours used
one resource input -> single factor productivity
✔✔multifactor productivity - ✔✔multifactor = output /
(labor+material+energy+capital+miscellaneous)
also known as total factor productivity
outputs and inputs are often expressed in dollars
multi resources inputs -> multi factor productivity
✔✔measurement problems: quality - ✔✔quality may change while the quantity of inputs
and outputs remain constant
✔✔measurement problems: external elements - ✔✔external elements may cause an
increase or decrease in productivity
✔✔measurement problems: precise units of measure - ✔✔precise units of measure
may be lacking
✔✔productivity variables - ✔✔labor - contributes about 10% of the annual increase
capital - contributes about 38% of the annual increase
management - contributes about 52% of the annual increase
✔✔key variables for improved labor productivity - ✔✔1. basic education appropriate for
the labor force
2. diet of the labor force
3. social overhead that makes labor available
- challenge is in maintaining and enhancing skills in the midst of rapidly changing
technology and knowledge
✔✔maintaining and enhancing the skills of labor - ✔✔major challenge in developed
nations
about one third of american job applications tested for basic skills were deficient in
reading, writing, or math
, implications for nation's competitiveness
better utilized labor with a stronger commitment is necessary
✔✔management - ✔✔ensures labor and capital are effectively used to increase
productivity
- use of knowledge
- application of technologies
knowledge societies
- labor has migrated from manual work to technical and information-processing tasks
more effective use of technology, knowledge, and capital
✔✔productivity improvement in services is difficult because: - ✔✔1. typically labor
intensive
2. frequently focused on unique individual attributes or desires
3. often an intellectual task performed by professionals
4. often difficult to mechanize and automate
5. often difficult to evaluate for quality
✔✔current challenges in operations management - ✔✔globalization
supply-chain partnering
sustainability
technological change
mass customization
lean operations
✔✔ethnics, social responsibility, and sustainability:
challenges facing operations managers - ✔✔develop and produce safe, high-quality
green products
train, retrain, and motivate employees in a safe workplace
honor stakeholder commitments
✔✔stakeholders - ✔✔those with a vested interest in an organization, including
customers, distributors, suppliers, owners, lenders, employees, and community
members
QUESTIONS SET A+
✔✔service pay - ✔✔perception that services are low-paying
42% of service workers receive above average wages
14 of 33 service industries pay below average
retail trade pays only 61% of national average
overall average wage is 96% of the average
✔✔productivity - ✔✔the ratio of outputs (goods and services) divided by the inputs
(resources such as labor and capital)
THE OBJECTIVE IS TO IMPROVE PRODUCTIVITY!
✔✔production is a measure of the.... - ✔✔output only and NOT a measure of efficiency
✔✔the economic system - ✔✔inputs: labor, capital, management
transformation: the U.S. economic system transforms inputs to outputs with annual
productivity increasing by about 2.5%. the productivity increase is the result of
contributions from capital (38%), labor (10%), and management (52%)
outputs: goods and services
✔✔productivity formula - ✔✔productivity = units produced / inputs used
measure of process improvement
represents output relative to input
only through productivity increases can our standard of living improve
,✔✔labor productivity= - ✔✔units produced divided by labor hours used
one resource input -> single factor productivity
✔✔multifactor productivity - ✔✔multifactor = output /
(labor+material+energy+capital+miscellaneous)
also known as total factor productivity
outputs and inputs are often expressed in dollars
multi resources inputs -> multi factor productivity
✔✔measurement problems: quality - ✔✔quality may change while the quantity of inputs
and outputs remain constant
✔✔measurement problems: external elements - ✔✔external elements may cause an
increase or decrease in productivity
✔✔measurement problems: precise units of measure - ✔✔precise units of measure
may be lacking
✔✔productivity variables - ✔✔labor - contributes about 10% of the annual increase
capital - contributes about 38% of the annual increase
management - contributes about 52% of the annual increase
✔✔key variables for improved labor productivity - ✔✔1. basic education appropriate for
the labor force
2. diet of the labor force
3. social overhead that makes labor available
- challenge is in maintaining and enhancing skills in the midst of rapidly changing
technology and knowledge
✔✔maintaining and enhancing the skills of labor - ✔✔major challenge in developed
nations
about one third of american job applications tested for basic skills were deficient in
reading, writing, or math
, implications for nation's competitiveness
better utilized labor with a stronger commitment is necessary
✔✔management - ✔✔ensures labor and capital are effectively used to increase
productivity
- use of knowledge
- application of technologies
knowledge societies
- labor has migrated from manual work to technical and information-processing tasks
more effective use of technology, knowledge, and capital
✔✔productivity improvement in services is difficult because: - ✔✔1. typically labor
intensive
2. frequently focused on unique individual attributes or desires
3. often an intellectual task performed by professionals
4. often difficult to mechanize and automate
5. often difficult to evaluate for quality
✔✔current challenges in operations management - ✔✔globalization
supply-chain partnering
sustainability
technological change
mass customization
lean operations
✔✔ethnics, social responsibility, and sustainability:
challenges facing operations managers - ✔✔develop and produce safe, high-quality
green products
train, retrain, and motivate employees in a safe workplace
honor stakeholder commitments
✔✔stakeholders - ✔✔those with a vested interest in an organization, including
customers, distributors, suppliers, owners, lenders, employees, and community
members
