Productivity Measurement and Improvement Quiz

Measurement Problems

• Quality of inputs and outputs may change while the quantity remains constant
• External elements may impact productivity
• Precise units of measure may be lacking

Productivity Variables

• Labor contributes about 10% to the annual increase in productivity
• Capital contributes about 38% to the annual increase in productivity
• Management contributes about 52% to the annual increase in productivity

Key Variables for Improved Labor Productivity

• Basic education is crucial for the workforce
• Diet of the labor force influences their performance
• Social overhead needs to support labor availability
• Maintaining and enhancing skills are essential with evolving technology

Investment and Productivity

• There is a positive relationship between investment and productivity
• As investment increases, productivity increases

Service Productivity

• Services are typically labor-intensive
• Services often focus on unique individual attributes or desires
• Services are often intellectual tasks performed by professionals
• Services are often difficult to mechanize
• Services are often difficult to evaluate for quality

New Trends in OM

• Global focus is a growing trend in operations management
• Just-in-time performance is increasingly adopted
• Supply chain partnering is becoming more common
• Rapid product development is sought after
• Mass customization is a new trend
• Empowered employees are key to success
• Environmentally sensitive production is a critical factor
• Ethics are increasingly important

Productivity Challenge

• Productivity is the ratio of outputs (goods and services) to inputs (resources such as labor and capital)
• The objective is to improve productivity
• Production is a measure of output only, not efficiency

The Economic System

• The U.S. economic system transforms inputs to outputs
• The U.S. economic system averages a 2.5% annual increase in productivity
• Capital, labor, and management contribute to this productivity increase

Improving Productivity at Starbucks

• A team of analysts identifies ways to save time
• Improvements have resulted in an average 4.5% annual increase in productivity
• Increased productivity has led to increased revenue per outlet for Starbucks

Productivity

• Productivity is a measure of process improvement
• Productivity represents output relative to input
• Increased productivity is essential for improving our standard of living

Productivity Calculations

• Labor productivity is measured as units produced divided by labor-hours used
• Single-factor productivity considers only one resource input
• Multi-factor productivity considers multiple resource inputs

Collins Title Productivity

• The company implemented a new system to improve productivity
• The new system resulted in an increase in titles processed per day
• The new system resulted in a higher multifactor productivity value

Break-Even Analysis

• The break-even point is where total revenue equals total costs
• The break-even point can be calculated for multiple products
• The break-even point can be used to determine the required sales volume to achieve a desired profit
• Step costs require calculating break-even points for each range of output
• A multi-product case requires calculating a weighted average break-even point

Test your knowledge on the key variables influencing productivity in various sectors. This quiz covers aspects such as labor, capital investment, and the impact of education and health on workforce efficiency. Challenge yourself to understand the intricate relationship between inputs and outputs in productivity.