Project Management in Operations Management (Grade A)

Summary:

Chapter 1 of BMIS360: Operations Management focuses on operations and productivity. The chapter’s learning objectives include defining operations management, distinguishing between goods and services, understanding production and productivity, and calculating single-factor and multifactor productivity.

The chapter provides an outline that covers various topics, such as the role of operations management, organizing the production of goods and services, the significance of studying operations management, operations in the service sector, and the productivity challenge.

Productivity is defined as the ratio of outputs (goods and services) to inputs (resources like labour and capital). The objective is to improve productivity by increasing output relative to input. The chapter emphasizes that production is a measure of output only and does not indicate efficiency.

Examples are provided to demonstrate how productivity can be improved. Starbucks, for instance, implements various measures to save time, such as eliminating credit card signatures for small purchases, changing the size of ice scoops, and using new espresso machines. These improvements have increased Starbucks’ revenue per outlet and improved productivity by 27%.

The chapter also introduces the concept of single-factor productivity, which measures output relative to a single resource input, and multifactor productivity, which considers multiple resource inputs. Examples and calculations are given to illustrate these concepts.

Overall, Chapter 1 of BMIS360 provides an overview of operations management and the importance of productivity. It highlights the relationship between output and input, discusses real-life examples of productivity improvements, and introduces different productivity measures.

Excerpt:

Project Management in Operations Management

BMIS360: Operations Management
BMIS360 – CHAPTER 1

School of Business – Department of Management Information Systems

Operations & Productivity

Learning Objectives
Define operations management
Explain the distinction between goods and services
Explain the difference between production and productivity
Compute single-factor productivity
Compute multifactor productivity
Identify the critical variables in enhancing productivity

⮚ What Is Operations Management?
⮚ Organizing to Produce Goods and Services
⮚ Why Study OM?
⮚ Operations in the Service Sector
⮚ The Productivity Challenge
◦ Productivity Measurement
◦ Productivity Variables
◦ Productivity and the Service Sector