dr. suyanto, se, mm, mak

© 2006 Prentice Hall, Inc. 1 – 1

DR. SUYANTO, SE, MM, MAkDR. SUYANTO, SE, MM, MAkALAMAT :ALAMAT :Perumahan : Perumahan : Kota Kembang Depok RayaKota Kembang Depok Raya Sektor Melati Blok F1 No. 3Sektor Melati Blok F1 No. 3 RT 05/05 Jatimulya, RT 05/05 Jatimulya, SukmajayaSukmajaya, , Kota Depok 16413Kota Depok 16413

TelTelephone :ephone : 021-87913345, Fax. 021-87913347 021-87913345, Fax. 021-87913347 Mobile Phone :Mobile Phone : 0811-952956, 0813-14222230 0811-952956, 0813-14222230Flexi Flexi : : 021-021-33500900, 7027 799733500900, 7027 7997E-mail : E-mail : [email protected]

[email protected]@cbn.net.id

mailto:[email protected]


MANAJEMEN OPERASI DAN STRATEGI MANAJEMEN OPERASI DAN STRATEGI DALAM MENGHADAPI PERSAINGANDALAM MENGHADAPI PERSAINGAN

(Studi Kasus : ……………………………)(Studi Kasus : ……………………………)

• BAB I : PENDAHULUANBAB I : PENDAHULUAN

I.1. Latar Belakang MasalahI.1. Latar Belakang MasalahI.2. I.2. PermasalahanPermasalahanI.3. Ruang LingkupI.3. Ruang Lingkup

BAB II : PEMBAHASANBAB II : PEMBAHASAN

II.1. Landasan TeoriII.1. Landasan TeoriII.2. II.2. Analisa Masalah (SWOT Analysis)Analisa Masalah (SWOT Analysis)II.3. II.3. Pemecahan Masalah (Problem Solving)Pemecahan Masalah (Problem Solving)

PENUTUPPENUTUP

III.1. KesimpulanIII.1. KesimpulanIII.2. SaranIII.2. Saran

Daftar PustakaDaftar PustakaLampiranLampiran


Good Corporate GovernanceGood Corporate Governance

• Governance: Mengatur/Mengelola -- accountableGovernance: Mengatur/Mengelola -- accountable• Bad Governance – rendahnya akuntabilitas Bad Governance – rendahnya akuntabilitas • Good Governance – accountableGood Governance – accountable• Definisi: Definisi:

– Komite Cadburry: keseimbangan antara kekuatan & Komite Cadburry: keseimbangan antara kekuatan & kewenangan – akuntabilitas kpd share/stakeholderskewenangan – akuntabilitas kpd share/stakeholders

– OECD: akuntabilitas kpd shareholders via proses OECD: akuntabilitas kpd shareholders via proses pengambilan keputusan yg bernilai tambah pengambilan keputusan yg bernilai tambah (transparan, responsible, accountable, dan fairness).(transparan, responsible, accountable, dan fairness).

– ADB: accountability, transparency, predictability, & ADB: accountability, transparency, predictability, & participationparticipation


Key aspect GCGKey aspect GCG

• Struktur yg mengatur hubungan yg harmonis Struktur yg mengatur hubungan yg harmonis tentang Dekom, Direksi, RUPS, & stakeholederstentang Dekom, Direksi, RUPS, & stakeholeders

• Sistem check & balance ttg perimbangan Sistem check & balance ttg perimbangan kewenangan atas pengendalian perusahaan utk kewenangan atas pengendalian perusahaan utk mencegah pengelolaan yg salah & mencegah pengelolaan yg salah & penyalahgunaan assetpenyalahgunaan asset

• Proses yg transparan atas Proses yg transparan atas penentuan/pencapaian tujuan perusahaan & penentuan/pencapaian tujuan perusahaan & pengukuran kinerja. pengukuran kinerja.


Tujuan GCGTujuan GCG

• Melindungi hak & Melindungi hak & kepentingan kepentingan share/stakeholdersshare/stakeholders

• Meningkatkan nilai Meningkatkan nilai perusahaanperusahaan

• Meningkatkan efisiensi & Meningkatkan efisiensi & efektifitasefektifitas

• Meningkatkan mutu Meningkatkan mutu hubungan berbagai hubungan berbagai elemen organisasi di elemen organisasi di perusahaanperusahaan


Manfaat GCG:Manfaat GCG:

• Mengurangi agency costMengurangi agency cost• Mengurangi cost of capitalMengurangi cost of capital• Meningkatkan nilai saham perusahaanMeningkatkan nilai saham perusahaan• Menciptakan dukungan dari para stakeholdersMenciptakan dukungan dari para stakeholdersLingkup:Lingkup:• Extern – sistem hukumExtern – sistem hukum• Intern – Budaya perusahaanIntern – Budaya perusahaan


Prinsip GCG (OECD):Prinsip GCG (OECD):

• TransparencyTransparency• Accountability Accountability • ResponsibilityResponsibility• IndependencyIndependency• FairnessFairness


Learning ObjectivesLearning ObjectivesWhen you complete this chapter, When you complete this chapter, you should be able to:you should be able to:

Identify or DefineIdentify or Define::

Production and productivityProduction and productivity Operations management (OM)Operations management (OM) What operations managers doWhat operations managers do ServicesServices


Learning ObjectivesLearning ObjectivesWhen you complete this chapter, When you complete this chapter, you should be able to:you should be able to:Describe or ExplainDescribe or Explain ::

A brief history of operations A brief history of operations managementmanagement

Career opportunities in operations Career opportunities in operations managementmanagement

The future of the disciplineThe future of the discipline Measuring productivityMeasuring productivity


The Hard Rock CafeThe Hard Rock Cafe First opened in 1971First opened in 1971

Now – 110 restaurants in over 40 countriesNow – 110 restaurants in over 40 countries Rock music memorabiliaRock music memorabilia Creates value in the form of good food Creates value in the form of good food

and entertainmentand entertainment 3,5003,500++ custom meals per day in Orlando custom meals per day in Orlando How does an item get on the menu?How does an item get on the menu? Role of the Operations ManagerRole of the Operations Manager


What Is Operations What Is Operations Management?Management?

ProductionProduction is the creation of is the creation of goods and servicesgoods and services

Operations management (OM)Operations management (OM) is the set of activities that is the set of activities that

creates value in the form of creates value in the form of goods and services by goods and services by

transforming inputs into transforming inputs into outputsoutputs


Organizing to Produce Organizing to Produce Goods and ServicesGoods and Services

Essential functions:Essential functions: Marketing – generates demandMarketing – generates demand Production/operations – creates Production/operations – creates

the productthe product Finance/accounting – tracks how Finance/accounting – tracks how

well the organization is doing, pays well the organization is doing, pays bills, collects the moneybills, collects the money


Organizational ChartsOrganizational Charts

OperationsTeller SchedulingCheck ClearingCollectionTransaction processingFacilities design/layoutVault operationsMaintenanceSecurity

FinanceInvestmentsSecurityReal estate

Accounting

Auditing

MarketingLoans Commercial Industrial Financial Personal Mortgage

Trust Department

Commercial Bank

Figure 1.1(A)Figure 1.1(A)



OperationsGround support equipmentMaintenanceGround Operations Facility maintenance Catering Flight Operations Crew scheduling Flying Communications DispatchingManagement science

Finance/ accountingAccounting Payables Receivables General LedgerFinance Cash control International exchange

Airline

Figure 1.1(B)Figure 1.1(B)

MarketingTraffic administration Reservations Schedules Tariffs (pricing)SalesAdvertising


MarketingSales promotionAdvertisingSalesMarket research


OperationsFacilities Construction; maintenanceProduction and inventory control Scheduling; materials controlQuality assurance and controlSupply-chain managementManufacturing Tooling; fabrication; assemblyDesign Product development and design Detailed product specificationsIndustrial engineering Efficient use of machines, space, and personnelProcess analysis Development and installation of production tools and equipment

Finance/ accountingDisbursements/ credits Receivables Payables General ledgerFunds Management Money market International exchangeCapital requirements Stock issue Bond issue and recall

Manufacturing

Figure 1.1(C)Figure 1.1(C)


Why Study OM?Why Study OM? OM is one of three major functions OM is one of three major functions

(marketing, finance, and operations) (marketing, finance, and operations) of any organizationof any organization

We want (We want (and needand need) to know how ) to know how goods and services are producedgoods and services are produced

We want to understand what We want to understand what operations managers dooperations managers do

OM is such a costly part of an OM is such a costly part of an organizationorganization


Options for Increasing Options for Increasing ContributionContribution

SalesSales $100,000$100,000 $150,000$150,000 $100,000$100,000 $100,000$100,000Cost of Goods Cost of Goods –– 80,000 80,000 –– 120,000 120,000 –– 80,000 80,000 –– 64,000 64,000Gross MarginGross Margin 20,00020,000 30,00030,000 20,00020,000 36,00036,000Finance CostsFinance Costs –– 6,000 6,000 –– 6,000 6,000 –– 3,000 3,000 –– 6,000 6,000SubtotalSubtotal 14,00014,000 24,00024,000 17,00017,000 30,00030,000Taxes at 25%Taxes at 25% –– 3,500 3,500 –– 6,000 6,000 –– 4,250 4,250 –– 7,500 7,500ContributionContribution $ 10,500$ 10,500 $ 18,000$ 18,000 $ 12,750$ 12,750 $ 22,500$ 22,500

Finance/Finance/MarketingMarketing AccountingAccounting OMOM

OptionOption OptionOption OptionOption

IncreaseIncrease ReduceReduce ReduceReduceSalesSales FinanceFinance ProductionProduction

CurrentCurrent Revenue 50%Revenue 50% Costs 50%Costs 50% Costs 20%Costs 20%


What Operations What Operations Managers DoManagers Do

PlanningPlanning OrganizingOrganizing StaffingStaffing LeadingLeading ControllingControlling

Basic Management FunctionsBasic Management Functions


Ten Critical DecisionsTen Critical DecisionsTen Decision AreasTen Decision Areas Chapter(s)Chapter(s)

Service and product designService and product design 55 Quality managementQuality management 66

6 Supplement6 Supplement Process and capacity Process and capacity 77

design design 7 Supplement7 Supplement LocationLocation 88 Layout designLayout design 99 Human resources, Human resources, 1010

job design job design 10 Supplement10 Supplement Supply-chain Supply-chain 1111

management management 11 Supplement11 Supplement Inventory managementInventory management 12, 14, 1612, 14, 16 SchedulingScheduling 13, 1513, 15 MaintenanceMaintenance 1717 Table 1.2Table 1.2


The Critical DecisionsThe Critical Decisions Service and product designService and product design

What good or service should we What good or service should we offer?offer?

How should we design these products How should we design these products and services? and services?

Quality managementQuality management How do we define quality?How do we define quality? Who is responsible for quality?Who is responsible for quality?

Table 1.2 (cont.)Table 1.2 (cont.)


The Critical DecisionsThe Critical Decisions Process and capacity designProcess and capacity design

What process and what capacity will What process and what capacity will these products require?these products require?

What equipment and technology is What equipment and technology is necessary for these processes?necessary for these processes?

LocationLocation Where should we put the facility?Where should we put the facility? On what criteria should we base the On what criteria should we base the

location decision?location decision?Table 1.2 (cont.)Table 1.2 (cont.)


The Critical DecisionsThe Critical Decisions Layout designLayout design

How should we arrange the facility How should we arrange the facility and material flow?and material flow?

How large must the facility be to meet How large must the facility be to meet our plan?our plan?

Human resources and job designHuman resources and job design How do we provide a reasonable work How do we provide a reasonable work

environment?environment? How much can we expect our How much can we expect our

employees to produce?employees to produce?



The Critical DecisionsThe Critical Decisions Supply-chain managementSupply-chain management

Should we make or buy this component?Should we make or buy this component? Who are our suppliers and who can Who are our suppliers and who can

integrate into our e-commerce program?integrate into our e-commerce program? Inventory, material requirements Inventory, material requirements

planning, and JITplanning, and JIT How much inventory of each item should How much inventory of each item should

we have?we have? When do we re-order?When do we re-order?



The Critical DecisionsThe Critical Decisions Intermediate and shortIntermediate and short––term term

schedulingscheduling Are we better off keeping people on Are we better off keeping people on

the payroll during slowdowns?the payroll during slowdowns? Which jobs do we perform next?Which jobs do we perform next?

MaintenanceMaintenance Who is responsible for maintenance?Who is responsible for maintenance? When do we do maintenance?When do we do maintenance?



New Challenges in OMNew Challenges in OM

Global focusGlobal focus Just-in-timeJust-in-time Supply chain Supply chain

partneringpartnering Rapid product Rapid product

development, development, alliancesalliances

Mass Mass customizationcustomization

Empowered Empowered employees, teamsemployees, teams

ToToFromFrom Local or national focusLocal or national focus Batch shipmentsBatch shipments Low bid purchasingLow bid purchasing

Lengthy product Lengthy product developmentdevelopment

Standard productsStandard products

Job specializationJob specialization


Characteristics of GoodsCharacteristics of Goods Tangible productTangible product Consistent product Consistent product

definitiondefinition Production usually Production usually

separate from separate from consumptionconsumption

Can be inventoriedCan be inventoried Low customer Low customer

interactioninteraction


Characteristics of ServiceCharacteristics of Service Intangible productIntangible product Produced and Produced and

consumed at same timeconsumed at same time Often uniqueOften unique High customer High customer

interactioninteraction Inconsistent product Inconsistent product

definitiondefinition Often knowledge-basedOften knowledge-based Frequently dispersedFrequently dispersed


Industry and Services as Industry and Services as Percentage of GDPPercentage of GDP

ServicesServices ManufacturingManufacturing

Aus

tral

iaA

ustr

alia

Can

ada

Can

ada

Chi

naC

hina

Cze

ch R

epC

zech

Rep

Fran

ceFr

ance

Ger

man

yG

erm

any

Hon

g K

ong

Hon

g K

ong

Japa

nJa

pan

Mex

ico

Mex

ico

Rus

sian

Fed

Rus

sian

Fed

Sout

h A

fric

aSo

uth

Afr

ica

Spai

nSp

ain

UKUK

USUS

90 90 −80 80 −70 70 −60 60 −50 50 −40 40 −30 30 −20 20 −10 10 −

00 −


Goods Versus ServicesGoods Versus Services

Table 1.3Table 1.3

Can be resoldCan be resoldCan be inventoriedCan be inventoriedSome aspects of quality Some aspects of quality measurablemeasurableSelling is distinct from Selling is distinct from productionproductionProduct is transportableProduct is transportable

Site of facility important for costSite of facility important for cost

Often easy to automateOften easy to automateRevenue generated primarily Revenue generated primarily from tangible productfrom tangible product

Attributes of GoodsAttributes of Goods(Tangible Product)(Tangible Product)

Attributes of ServicesAttributes of Services (Intangible Product) (Intangible Product)

Reselling unusualReselling unusualDifficult to inventoryDifficult to inventoryQuality difficult to measureQuality difficult to measure

Selling is part of service Selling is part of service

Provider, not product, isProvider, not product, isoften transportableoften transportableSite of facility important forSite of facility important forcustomer contactcustomer contactOften difficult to automateOften difficult to automateRevenue generated primarily Revenue generated primarily from the intangible servicefrom the intangible service


Goods and ServicesGoods and ServicesAutomobile

ComputerInstalled carpeting

Fast-food mealRestaurant meal/auto repair

Hospital careAdvertising agency/

investment managementConsulting service/

teachingCounseling

Percent of Product that is a GoodPercent of Product that is a Good Percent of Product that is a ServicePercent of Product that is a Service

100%100% 7575 5050 2525 00 2525 5050 7575 100%100%|| || || || || || || || ||

Figure 1.4Figure 1.4


Organizations in Each SectorOrganizations in Each Sector

Service SectorService Sector ExampleExample% of all % of all

JobsJobs

Professional Professional Services, Services, Education, Education, Legal, MedicalLegal, Medical

Notre Dame University, Notre Dame University, San Diego Zoo, Arnold San Diego Zoo, Arnold Palmer HospitalPalmer Hospital

25.525.5

Trade (retail, Trade (retail, wholesale)wholesale)

Walgreen’s, Wal-Mart, Walgreen’s, Wal-Mart, Nordstrom’sNordstrom’s

20.620.6

Utilities, Utilities, TransportationTransportation

Pacific Gas & Electric, Pacific Gas & Electric, American Airlines, Santa American Airlines, Santa Fe R.R., Roadway Fe R.R., Roadway ExpressExpress

7.17.1

Table 1.4Table 1.4


Organizations in Each SectorOrganizations in Each SectorService SectorService Sector ExampleExample

% of all % of all JobsJobs

Business and Business and Repair ServicesRepair Services

Snelling and Snelling, Snelling and Snelling, Waste Management, Waste Management, Pitney-BowesPitney-Bowes

6.96.9

Finance, Finance, Insurance, Insurance, Real EstateReal Estate

Citicorp, American Citicorp, American Express, Prudential, Express, Prudential, Aetna, Trammel CrowAetna, Trammel Crow

6.76.7

Food, Lodging, Food, Lodging, EntertainmentEntertainment

McDonald’s, Hard Rock McDonald’s, Hard Rock Café, Motel 6, Hilton Café, Motel 6, Hilton Hotels, Walt Disney, Hotels, Walt Disney, Paramount PicturesParamount Pictures

5.45.4

Public Public AdministrationAdministration

U.S., State of Alabama, U.S., State of Alabama, Cook CountyCook County

4.54.5

Table 1.4Table 1.4


Organizations in Each SectorOrganizations in Each SectorManufacturing Manufacturing SectorSector ExampleExample

% of all % of all JobsJobs

GeneralGeneral General Electric, Ford, General Electric, Ford, U.S. Steel, IntelU.S. Steel, Intel

13.313.3

ConstructionConstruction Bechtel, McDermottBechtel, McDermott 7.17.1

AgricultureAgriculture King RanchKing Ranch 2.52.5

MiningMining Homestake MiningHomestake Mining 0.40.4

SectorSector Percent of all jobsPercent of all jobs

ServiceService 76.7%76.7%

ManufacturingManufacturing 23.3%23.3%Table 1.4Table 1.4


ServicesServices

Manufacturing

Manufacturing

Development of the Development of the Service EconomyService Economy

Figure 1.5 (A)Figure 1.5 (A)

AgricultureAgriculture

100100909080807070606050504040303020201010

0018001800 18501850 19001900 19501950 20002000



Figure 1.5 (B)Figure 1.5 (B)

30 30 –

25 25 –

20 20 –

15 15 –

10 10 –

5 5 –

0 0 –19501950 19701970 19901990 20102010

– 150150

– 125125

– 100100

– 7575

– 5050

– 2525

– 00

Empl

oym

ent (

mill

ions

)Em

ploy

men

t (m

illio

ns)

Inde

x:

Inde

x: 1

997

= 10

019

97 =

100

Manufacturingemployment

Industrial production

Estimate



Figure 1.5 (C)Figure 1.5 (C)

United StatesCanadaFrance

ItalyBritainJapan

W. Germany

1970 2005

| | | | |

40 50 60 70 80Percent


New Trends in OMNew Trends in OM

Local or Local or national national focusfocus

Low-cost, reliable Low-cost, reliable worldwide communication worldwide communication and transportation and transportation networksnetworks

Global focusGlobal focus

Batch (large) Batch (large) shipmentsshipments

Short product life cycles Short product life cycles and cost of capital put and cost of capital put pressure on reducing pressure on reducing inventoryinventory

Just-in-time Just-in-time shipmentsshipments

Low-bid Low-bid purchasingpurchasing

Quality emphasis requires Quality emphasis requires that suppliers be engaged that suppliers be engaged in product improvementin product improvement

Supply-Supply-chain chain partners, partners, Enterprise Enterprise Resource Resource Planning, Planning, e-commercee-commerce


PastPast CausesCauses FutureFuture



Lengthy Lengthy product product developmentdevelopment

Shorter life cycles, Shorter life cycles, Internet, rapid international Internet, rapid international communication, computer-communication, computer-aided design, and aided design, and international collaborationinternational collaboration

Rapid product Rapid product development, development, alliances, alliances, collaborative collaborative designsdesigns

Standardized Standardized productsproducts

Affluence and worldwide Affluence and worldwide markets; increasingly markets; increasingly flexible production flexible production processesprocesses

Mass Mass customization customization with added with added emphasis on emphasis on qualityquality

Job Job specializationspecialization

Changing socioculture Changing socioculture milieu; increasingly a milieu; increasingly a knowledge and information knowledge and information societysociety

Empowered Empowered employees, employees, teams, and teams, and lean lean productionproduction





Low-cost Low-cost focusfocus

Environmental issues, ISO Environmental issues, ISO 14000, increasing disposal 14000, increasing disposal costscosts

Environmentally Environmentally sensitive sensitive production, production, green green manufacturing, manufacturing, recycled recycled materials, materials, remanufacturingremanufacturing




Productivity ChallengeProductivity Challenge

Productivity is the ratio of outputs (goods Productivity is the ratio of outputs (goods and services) divided by the inputs and services) divided by the inputs

(resources such as labor and capital)(resources such as labor and capital)

The objective is to improve this The objective is to improve this measure of efficiencymeasure of efficiency

Important Note!Production is a measure of output

only and not a measure of efficiency


FeedbackFeedback looploop

OutputsOutputs

Goods and

services

ProcessesProcesses

The U.S. economic system transforms inputs to outputs

at about an annual 2.5% increase in productivity per

year. The productivity increase is the result of a

mix of capital (38% of 2.5%), labor (10% of 2.5%), and

management (52% of 2.5%).

The Economic SystemThe Economic SystemInputsInputs

Labor,capital,

management



Increasing Productivity – Increasing Productivity – The LA Motor PoolThe LA Motor Pool

Before:Before: Cost Cost $120$120 million annually million annually 21,00021,000 vehicles vehicles 30%30% of the of the 900900 trash trucks were in repair trash trucks were in repair 11%11% of police cars were in repair of police cars were in repair

Actions:Actions: Created team assignmentsCreated team assignments Assigned parking places for trucksAssigned parking places for trucks Tires checked and trucks emptied each nightTires checked and trucks emptied each night Standard customer pickups establishedStandard customer pickups established Computerized fleet managementComputerized fleet management Mechanics moved to night shiftMechanics moved to night shift


Increasing Productivity – Increasing Productivity – The LA Motor PoolThe LA Motor Pool

Cost $120 million annuallyCost $120 million annually 21,000 vehicles21,000 vehicles 30% of the 900 garbage trucks were in repair30% of the 900 garbage trucks were in repair 11% of police cars were in repair11% of police cars were in repair

Before:Before:

Actions:Actions: Creating team assignmentsCreating team assignments Assigned parking places for trucksAssigned parking places for trucks Tire checked and trucks emptied each nightTire checked and trucks emptied each night Standard customer pickups establishedStandard customer pickups established Computerized fleet managementComputerized fleet management Mechanics moved to night shiftMechanics moved to night shift

Results: Total fleet reduced by 500 vehicles Parts inventory dropped 20% reducing

cost by $5.4 million annually Standardized pickups reduced costs by

$12 million annually Out of service garbage trucks dropped

to 18%


Measure of process improvementMeasure of process improvement Represents output relative to inputRepresents output relative to input Only through productivity increases Only through productivity increases

can our standard of living improvecan our standard of living improve

ProductivityProductivity

Productivity =Productivity =Units producedUnits produced

Input usedInput used


Productivity CalculationsProductivity Calculations

Productivity =Productivity =Units producedUnits produced

Labor-hours usedLabor-hours used

= = = = 44 units/labor-hour units/labor-hour1,0001,000250250

Labor ProductivityLabor Productivity


Multi-Factor Productivity Multi-Factor Productivity

OutputOutputLabor + Material + Energy Labor + Material + Energy + Capital + Miscellaneous+ Capital + Miscellaneous

Productivity =Productivity =

Also known as total factor productivityAlso known as total factor productivity Output and inputs are often expressed Output and inputs are often expressed

in dollarsin dollars


Collins Title ProductivityCollins Title Productivity

Staff of Staff of 44 works works 8 8 hrs/dayhrs/day 88 titles/day titles/dayPayroll cost = Payroll cost = $640$640/day/day Overhead = Overhead = $400$400/day/day

Old System:Old System:

==Old labor Old labor productivityproductivity

88 titles/day titles/day3232 labor-hrs labor-hrs



Staff of Staff of 44 works works 88 hrs/day hrs/day 88 titles/day titles/dayPayroll cost = Payroll cost = $640$640/day/day Overhead = Overhead = $400$400/day/day



==Old labor Old labor productivityproductivity = = .25.25 titles/labor-hr titles/labor-hr



Staff of Staff of 44 works works 8 8 hrs/dayhrs/day 88 titles/day titles/dayPayroll cost = Payroll cost = $640$640/day/day Overhead = Overhead = $400$400/day/day


1414 titles/day titles/day Overhead = Overhead = $800$800/day/dayNew System:New System:


==Old labor Old labor productivityproductivity

==New labor New labor productivityproductivity

= .25 titles/labor-hr= .25 titles/labor-hr








==Old labor Old labor productivityproductivity = = .25.25 titles/labor-hr titles/labor-hr

14 14 titles/daytitles/day3232 labor-hrs labor-hrs

==New labor New labor productivityproductivity = = .4375.4375 titles/labor-hr titles/labor-hr






==Old multifactor Old multifactor productivityproductivity

88 titles/day titles/day$640 + 400$640 + 400







==Old multifactor Old multifactor productivityproductivity = = .0077.0077 titles/dollar titles/dollar








==New multifactor New multifactor productivityproductivity

= = .0077.0077 titles/dollar titles/dollar










==New multifactor New multifactor productivityproductivity




Measurement ProblemsMeasurement Problems

QualityQuality may change while the may change while the quantity of inputs and outputs quantity of inputs and outputs remains constantremains constant

External elementsExternal elements may cause an may cause an increase or decrease in productivityincrease or decrease in productivity

Precise unitsPrecise units of measure may be of measure may be lackinglacking


Productivity VariablesProductivity Variables

LaborLabor - contributes about - contributes about 10%10% of of the annual increasethe annual increase

CapitalCapital - contributes about - contributes about 32%32% of the annual increaseof the annual increase

ManagementManagement - contributes about - contributes about 52%52% of the annual increase of the annual increase


Key Variables for Improved Key Variables for Improved Labor ProductivityLabor Productivity

Basic education appropriate for the Basic education appropriate for the labor forcelabor force

Diet of the labor forceDiet of the labor force Social overhead that makes labor Social overhead that makes labor

availableavailable Maintaining and enhancing skills in the Maintaining and enhancing skills in the

midst of rapidly changing technology midst of rapidly changing technology and knowledgeand knowledge


Labor SkillsLabor SkillsAbout half of the 17-year-olds in the US cannot About half of the 17-year-olds in the US cannot correctly answer questions of this typecorrectly answer questions of this type



Investment and Productivity Investment and Productivity in Selected Nationsin Selected Nations

USUS UKUKCanadaCanada

ItalyItaly

BelgiumBelgium

FranceFrance

NetherlandsNetherlands

JapanJapan

1010

88

66

44

22

00Perc

ent i

ncre

ase

in m

fg p

rodu

ctiv

ityPe

rcen

t inc

reas

e in

mfg

pro

duct

ivity

Percentage investmentPercentage investment1010 1515 2020 2525 3030 3535


Service ProductivityService Productivity

Typically labor intensiveTypically labor intensive Frequently focused on unique Frequently focused on unique

individual attributes or desiresindividual attributes or desires Often an intellectual task performed by Often an intellectual task performed by

professionalsprofessionals Often difficult to mechanizeOften difficult to mechanize Often difficult to evaluate for qualityOften difficult to evaluate for quality


Productivity at Taco BellProductivity at Taco BellImprovements:Improvements:

Revised the menu Revised the menu Designed meals for easy preparationDesigned meals for easy preparation Shifted some preparation to suppliersShifted some preparation to suppliers Efficient layout and automationEfficient layout and automation Training and employee empowermentTraining and employee empowerment


Productivity at Taco BellProductivity at Taco BellImprovements:Improvements:

Revised the menu Revised the menu Designed meals for easy preparationDesigned meals for easy preparation Shifted some preparation to suppliersShifted some preparation to suppliers Efficient layout and automationEfficient layout and automation Training and employee empowermentTraining and employee empowerment

Results: Preparation time cut to 8 seconds Management span of control

increased from 5 to 30 In-store labor cut by 15 hours/day Stores handle twice the volume with

half the labor Fast-food low-cost leader


Ethics and Social ResponsibilityEthics and Social Responsibility

Challenges facing Challenges facing operations managers:operations managers:

Developing safe quality productsDeveloping safe quality products Maintaining a clean environmentMaintaining a clean environment Providing a safe workplaceProviding a safe workplace Honoring community commitmentsHonoring community commitments

dr. suyanto, se, mm, mak

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