...National Bureau of Economic Research, the start of this last recession was in the December of 2007 and ended in June of 2009 (The Greek, 2010). Many Economists point towards the failure of the banking system and an overload on bad loans that caused the financial meltdown, affecting the rest of the Economy. Whatever the cause of the recession, the effects are clear to see. Labor productivity in durable goods, non-durable goods, and retail have been negatively affected. This paper provides a look at the drop in productivity of the American worker. The statistics for this paper is mainly provided by the Federal Bureau of Labor Statistics (BLS). In this paper, and according to the BLS, labor productivity is measured by the output of goods and services produced per hour. Additional inputs from experts in each industry’s field will explain the direct causes of lower productivity. The baseline reference used in this paper comes from the BLS's change in labor productivity studies from the years 2006 to 2007, 2007 to 2008 and 2008 to 2009. The productivities of goods used in measuring labor productivity are wholesale trade goods and retail trade goods. Wholesale trade goods consist of durable and non-durable goods. Durable goods include such items as vehicles, vehicle parts, furniture, lumber, construction supplies, commercial equipment, metals and minerals, and other miscellaneous durable goods. Non-durable goods items include paper products, chemicals, farm products, petroleum...
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...Group Assignment Topic: Productivity in Service Sector BRAC University BRAC Business School Spring 2016 Course: Production Operations Management (MSC301) Section: 001 Instructor: Md. Tamzidul Islam Assistant Professor, BRAC Business School Group Members Name ID Tasnia Jebin 12204103 Navid Anjum Khan 13104192 Rifat Shahrukh 13104047 Mohammad Muqtadir Ullah 13104061 Sadia Kamal 12204102 Atik Ilman Hossain 13104205 Date: April 4th, 2016 Question: What is Productivity? How do we measure productivity in a service environment such as restaurant? What are the factors that affect productivity? How does one can improve it? Answer: Introduction Goods and services are the products which have a demand in the market and generate enough revenue to make profit. Goods are tangible products which we can use, consume or otherwise have in our life. For example, cars, batteries, tables and everything which can be easily quantified by units of length, weight, volume. However, services are somewhat different products which are more intangible in nature. These products are usually ones which are rendered by human labor but also have some goods aspect to it. For example, A Hospital has syringes, medicines, MRI machines and lots of other goods. And they also have nurses and doctors who use these goods to give the patients (consumers) satisfaction as a total product package of both goods and services. One useful characterization...
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...Competitiveness, Strategy, and Productivity McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to: 1. List the three primary ways that business organizations compete 2. Explain five reasons for the poor competitiveness of some companies 3. Define the term strategy and explain why strategy is important 4. Discuss and compare organization strategy and operations strategy, and explain why it is important to link the two 5. Describe and give examples of time-based strategies 6. Define the term productivity and explain why it is important to organizations and countries 7. Provide some reasons for poor productivity and some ways of improving it Instructor Slides 2-2 Better quality, higher productivity, lower costs, and the ability to respond quickly to customer needs are more important than ever and… the bar is getting higher Instructor Slides 2-3 This chapter focuses on three separate, but related that are vitally important to business organizations Competitiveness Strategy Productivity Instructor Slides 2-4 Competitiveness: How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services Organizations compete through some combination of their marketing and operations functions • What do customers want? • How can these customer needs best be satisfied? Instructor Slides 2-5 Identifying...
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...MANAGING EFFICIENCY AND PRODUCTIVITY Week 11 Dr Pieris Chourides Productivity • A measure of performance. • Broadly a ratio of output to input, i.e. comparing amount produced (output) with resources used (input) • Materials, machinery, labour, capital, energy --- a combination • What improvements have there been over the last 50 years in – construction productivity – payroll processing – Car servicing – banking • How do we evaluate productivity levels and identify areas for improvement? Managing Productivity • Productivity – An economic measure of efficiency that summarizes the value of outputs relative to the value of the resources used to produce them. Levels of Productivity • The unit of analysis used to calculate or define: – Aggregate productivity—the total level of productivity for a country. – Industry productivity—the total productivity of all the firms in an industry. – Company productivity—the level of productivity of a single company. – Unit productivity—the productivity level of a unit or department. – Individual productivity—the productivity attained by a single person. Forms of Productivity • Total factor productivity–an overall indicator of how well an organization uses all of its resources (i.e., labor, capital, materials, and energy) to create all of its products and services. Outputs Productivity = Inputs Forms of Productivity • Labor productivity–a partial productivity ratio that uses only one...
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...Does It Affect Canadian Economy Table of Contents Introduction 3 1. Labor Market 3 1.1 Employment and unemployment rate 6 1.2 Employment rate and unemployment rate in long run 8 3. The Effects on Government’s Health Care Spending 14 4. Education 16 5. Standard of living 17 5.1 Increase productivity 19 6. Pension Plans 19 Conclusion 20 * Introduction The term baby-boomers refers to everyone who were born during the post-World War II, during the years 1947 to 1968, during which time there was a dramatic increase in the birth rate. It is estimated that 97% of the baby-boomers are still alive, which is about 8.5 million individuals. For a past decades, these baby-boomers have controlled and shaped many aspects of our economy, environment, and culture. But as this aging population is coming close to retirement, it could have serious impact on our society. In the coming years, there will be more retirees than worker, which could pose as a great issue in our economy. This paper will analyze the impact of this phenomenon on Canadian labor market and the level of investment, how this could reshape the government budget, and how it is going to affect the Canadian’s standard of living. 1. Labor Market It is quite clear that the retirement of baby-boomers has a big impact on the labor market. Some describes this as a “ demographic time bomb” for the nation’s labor force. Baby-boomers make up one-third of Canadian population, and a large portion...
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.../ 305 University of Phoenix Taylor Inc is manufacturing the Widget X that requires a special assembly line. At this point re-evaluation of labor productivity is needed due to the difference between the regular Widgets and the Widget X. With careful consideration of this project, operations-management must compare the current labor productivity to two alternative methods that would help them with the increase. A cost-benefit matrix will be provided to show comparison of current labor productivity, alternative one and alternative two labor productivity as well as, the effects the alternatives would have, and what the benefits of networking strategies to streamline operational procedures would be. Taylor Inc Cost Benefit Matrix | |Current |Alternative 1 |Alternative 2 | |Wasted Motion |27% |1% |7% | | Physical Lifting |42 |12 |23 | |People Required |17 |6 |9 | |Productivity |208 |392 |288 | |Worker's Comp Claims...
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...Manufacturing Unit 4: Uttar Pradesh Manufacturing Unit 5 : Uttar Pradesh Manufacturing Unit 6: Uttar Pradesh Manufacturing Unit 7: Uttar Pradesh Manufacturing Unit 8: Uttar Pradesh Manufacturing Unit 9: Delhi Manufacturing Unit 10: Delhi Manufacturing Unit 11: Uttar Pradesh Manufacturing Unit 12: Delhi Manufacturing Unit 13: West Bengal Manufacturing Unit 14: West Bengal Manufacturing Unit 15: Karnataka Summary of Industry Requirements Study Team 1 2-10 11-13 14-16 17-18 19-20 21-24 24-27 28-30 31-32 33-34 35-38 39 40-41 42-43 44-45 46-48 49 Case Study Report Productivity and Competitiveness of Indian Toy Manufacturing Sector Diagnostic Case Studies Introduction This report contains diagnostic case studies of fifteen toy manufacturing units selected from seven different toy product categories. The study focuses on unit specific problems related to production, raw material availability, marketing, finance, productivity, export performance etc. These case studies also throw light on other aspects of the working of these units such as product range, market scenario, taxation structure etc. Though the manufacturing units produce a wide range of toy products, for the study purposes the units have been broadly grouped under seven major product categories. Number of manufacturing units taken up for detailed case study based on the seven major product categories are given below. Product categories and the manufacturing units studied: S. No Product category Manufacturing units 1. Manufacturing...
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...PRELIMINARY NOT FOR QUOTATION Increasing Global Competition and Labor Productivity: Lessons from the US Automotive Industry MCKINSEY GLOBAL INSTITUTE Martin Neil Baily Diana Farrell Ezra Greenberg Jan-Dirk Henrich Naoko Jinjo Maya Jolles Jaana Remes November 7, 2005 Preliminary Not for quotation 1. Introduction Increasing global competition is changing the environment facing most companies today. As trade barriers fall and transaction costs decline, new global competitors are entering previously more isolated domestic markets. In response to this intensified competitive pressure, local companies are pushed to enhance performance by innovating and adopting process and product improvements. This domestic sector dynamic leads to higher productivity, which, in turn, can create sustainable competitive advantages for companies, as well as being the most important driver of job creation and per-capita income growth for the economy. This link has been established in McKinsey Global Institute’s extensive country productivity research. Our new study goes further than previous research by focusing on how increasing global competition leads to productivity growth, using the US automotive manufacturing sector as a case example. More specifically, we have focused on the production of new vehicles in the US, including parts assembly. We have chosen this example because of the globally competitive nature of the automotive market and the size of the US...
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...Workshop One: Productivity Juan Gonzalez Ana G. Mendez University MANA-340 Professor: Ramon Rondon 07/24/12 Table of Content: 1. Introduction. 2. Productivity definition. 3. How to measure productivity. 4. Labor productivity of employees vs. managerial productivity 5. Conclusion. Introduction: By way of introduction of this subject is to understand how we define productivity, how we measure it according to the efficiency in the making process, and factors which influence to increase it according to that goal that are pursue for its wide application spectrum. The objective of this research is focused on reaching an answer in which can be shown that labor productivity is essential, but productivity management is the key to the productive development of any industry. The concept of productivity is seem as a factor that determine the efficiency of an individual, equipment, industry, system, etc. to convert efforts and participation into useful amount produced. Productivity is measured dividing average of amount produced per period by the total costs of resources like capital, personal, materials and energy implemented in a period of time that determine the cost efficiency. We have to develop strategies that would improve productivity of the employees at the workplace. Some factors influence in the employee productivity which are: Accountability, which mean that each employee is responsible for their actions and decisions that either...
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...countries are at the top of the rankings. The gap between China and the U.S. in overall manufacturing cost before transportation is less than five points. The report therefore highlights a significant reordering or shift in global manufacturing competitiveness amongst the world’s top twenty-five export economies over a ten year period where Mexico and the United States showed the most improved competitiveness versus all others, while Australia and Brazil experienced the greatest declines. BCG analyzed the manufacturing costs of the world’s twenty-five leading manufacturing economies against four key variables including manufacturing wages, labor productivity, energy costs and exchange rates. The twenty-five economies account for nearly ninety percent of global exports of manufactured goods. The rapid changes in wages, labor productivity, energy costs, and exchange rates drove the changes in relative manufacturing-cost structures. Of these, wages most differentiated manufacturing economies. These changes led to four categories of relative competitiveness wherein most manufacturing-centric economies fall. The first category is Under Pressure, which include...
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...STUDENT NAME: ANAS ASWAT BIN YAHYA ID STUDENT: 2014415066 COURSE: OPERATION MANAGEMENT CASE STUDY 1: LEMAN ETHICS CASE STUDY 2: VENUS PAPER PRODUCTIONS CASE STUDY 3: MORTON AEROSPACE LECTURER: DR. ALWI SHABUDIN SUBMITTED: 19.12.2015 Case 1: Leman Ethics 1. Identify and discuss the major issue(s) in the case. i) Leman’s dilemmas on unusual opportunity vs. ethics of Leman’s organization. ii) Leman’s proposal to make-to-hold arrangement, with result approximately 10% saving. 2. What are the key facts of the case? i) Perjawa Steel is one of the distributors ii) There is a luxurious treatment offered by the Perjawa Steel on the trip iii) Perjawa Steel is taking an advantage on the trip by giving the luxurious treatment to the buyers. 3. What is the main problem in the case? i) The ethical problem is as opposed to the process in determining the best solution for the best operation management. 4. What alternatives should you consider when addressing this problem? i) Same proposal should be addressed to other distributors. ii) The balance between the right ethical conduct and the personal interest in that come to conflicting Leman in making wise decision. 5. How would you decide on the issue? i) The decision making should be based on the economic viability and...
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...MSA University MGT320 Project Competitiveness & Productivity Company Name: Commercial International Bank ‘CIB’ Presented to: Instructor: Dr. Ghada Aly Assistant: Mohamed Salah Group: ‘A’ By: Amir Menesy ............................................. 094283 Sarah Mazen …......................................... 093081 Sherif Gabriel …......................................... 086119 Abstract Competitiveness and productivity will give any organization a benefit over it’s rivals in the industry. This research aims to show the importance of competitiveness and productivity and how to excel at making the most of them. It also explains the vague terms and ideas within these concepts to give a better understanding of them. New advancements and technologies and their consequences and outcomes, in addition to what industries employ these issues in the most effective and efficient way will be discussed. Labor productivity and its essentials are broken down into detail. Competitive concepts and how to make the best use of competition is very difficult. Introduction Productivity is a measure of output from a production process per unit of input. Productivity is designed for use in economic analysis and public and private policy planning. Production is a process of combining various material inputs and immaterial inputs in order to make something for consumption. The methods of combining the inputs of production...
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...Productivity One primary responsibility of a manager is to achieve productive use of an organization’s resources. The term productivity is used to describe this. Productivity is an index that measures output (goods and services) relative to the input (labor, materials, energy, and other resources) used to produce it. It is usually expressed as the ratio of output to input. Although productivity is important for all business organizations, it is particularly important for organizations that use a strategy of low cost, because the higher the productivity, the lower the cost of the output. A productivity ratio can be computed for a single operation, a department, an organization, or an entire country. In business organizations, productivity ratios are used for planning workforce requirements, scheduling equipment, financial analysis, and other important tasks. Productivity has important implications for business organizations and for entire nations. In nonprofit organizations, higher productivity means lower costs; for profit-based organizations, productivity is an important factor in determining how competitive a company is. In the case of a nation, the rate of productivity growth is of great importance. Productivity growth is the increase in productivity from one period to the next relative to the productivity in the preceding period. Service productivity is more problematic than manufacturing productivity. In many...
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...served 300 meals at an anniversary celebration last week using eight workers. The week before, six workers prepared and served 240 meals at a wedding reception. .For which event was the labor productivity higher? Explain.300/8= 37.5240/6= 40The productivity for the first week was higher because they made more meals with less people.b.What are some possible reasons for the productivity differences?The workers could have been trained better or worked faster a. | | For which event was the labor productivity higher? Explain. | b. | | What are some possible reasons for the productivity differences? | | 2. | | The manager of a crew that installs carpeting has tracked the crew's output over the past several weeks, obtaining these figures: Compute the labor productivity for each of the weeks. On the basis of your calculations, what can you conclude about crew size and productivity? | 3. | | Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. What do the productivity figures suggest? Assume 40-hour weeks and an hourly wage of $12. Overhead is 1.5 times weekly labor cost. Material cost is $6 per pound. | 4. | | A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who produced an average of 80 carts per hour. Workers receive...
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...Chapter 2 StRATEGY Discussion Questions 1. What is meant by a “triple-bottom-line” strategy? Give an example of a company that has adopted this type of strategy. A triple-bottom-line strategy places emphasis on a company’s environmental and social responsibilities as well as the traditional bottom line of economic prosperity. It recognizes that the long-term health of the firm is interdependent with the health of the environment and the betterment of society. There are many examples – one if Kraft Foods. For details see their 2010 report: http://www.kraftfoodscompany.com/SiteCollectionDocuments/pdf/kraftfoods_responsibility_report.pdf 2. Find examples where companies have used features related to environmental sustainability to “win” new customers. Car companies use environmental concerns in marketing ads. The development of hybrid and flex-fuel cars is one way they have operationalized those concerns. Consumer goods companies display the “made with recycled material” logo on the packaging. Bottled water manufacturers are using and advertising bottles made with less plastic. 3. What are the major priorities associated with operations and supply chain strategy? How has their relationship to each other changed over the years? The four major imperatives are cost, quality, delivery, and flexibility. In the sixties, these four imperatives were viewed from a tradeoffs perspective. For example, this meant that improving quality would result in higher cost...
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