Operation Management
Operations Management
Many times trade-offs are necessary to increase productivity. What are important trades-offs involving the inputs to productivity?
The companies and all other entities in the real world are limited by the scare resources. Thus, in order to have more of one good, some other good is sacrificed. The organization cannot hire all the assets, human resource, equipment, machinery and raw material for production of all the possible goods it can manufacture. It can employee only a certain number of people that will work on limited machines or land and will consume limited supply of energy to produce a quantity of goods (Trade-offs between inequality, productivity, and employment, 2012). Thus, the company trades-off between the possible options as well as resources. It can either hire ten people and ten machines or two people and eight automatic machines that will carry out tasks in the production department. Thus the company traded off between the available resources or input to productivity. Also the company has to decide in which asset or land to invest. The company can invest in any of...
either to purchase a building alone or to hire the building on rent and to purchase equipment with the money left.
The companies can suffer from the consequences of a wrong decision when they chose a wrong option while making trade-off. Thus, manager should understand what is important for the organization so that he selects the right option. For example, if a company is better at producing sports goods than manufacturing fabric items, it should choose between the options that are more productive in making sports goods. Thus the company will be more efficient in its operations and will profit more (Silveira and Slack, 2001). The company can also increase its productivity based on the costs of the input and the amount of productivity these increase. Hence, making trade-off requires knowing about the importance of operation activity and the costs associated.
2. What important organizational activities enable a firm to build quality into its products? Explain each of these along with its benefits.
It is job of an organization, particularly one in manufacturing and production, to ensure the quality of…
