Om 1

Operations Management (Merged -
MBAZG526_QMZG526)(S2-23) - Prof. SANDEEP SINGH-

20240120_140558-Meeting Recording
January 20, 2024, 8:36AM
1h 26m 23s
Sandeep Singh . 0:11

Is the screen is built to all of you.
AVI JAIN . 0:19

Yes, Sir.

OK.
OK. OK.
ANURAG ANUPAM . left the meeting
MS TEAMS ONLINE LECTURES left the meeting

So we completed these things with.
A particularly OM my operations managers take what are the job opportunities we
have significance of OM heritage.
And then we discussed the operation, the productivity, how productivity increases,
what are the different factors we have for productivity.
MOHAMMED AZHAR A . left the meeting

Can somebody recall what different factors we discussed?
PRATHIMA SWEETY S . joined the meeting

Anyone.
OK.
Normally we discussed that there are three factors.
Which we take into account for measuring the productivity of any firm, any
organization or any factory or even at the personal front also.
Like.
Labor productivity.
Resource.
MOHAMMED AZHAR A . joined the meeting

Productivity.
Capital productivity.
So mostly we talk about the and then there are certain miscellaneous.
SIVASANKARAN K left the meeting

Like in which it includes like energy, sorry.
And other things, right?
So mostly we have four different categories of productivity.
These are the factors.
Normally we take into account to measure the productivity of the system.
Right now, we were supposed to do the calculations.
How we do basically so this is the formula which normally we use.
We discussed about the units and all, so whenever we take only one input for
measuring the productivity, it is called a single factor productivity.
And when we take more than one factors or more than one uh resources or inputs
for measuring productivity, it is called as multi factor productivity, right like this.
So how many different factors we have?
Labor, material, energy, capital N, miscellaneous right miscellaneous means like the.
Overhead costs, supply chain cost and many other costs which are incurred while
manufacturing the goods or services.
So that thing we take into in into account of miscellaneous, right, so this is the
things.
So now let us do the numericals.
These are a few examples which are given.
I will see the PPT.
I was not able to share it.
Last week I was quite busy with some other tasks.
So let us do the numeric.
The question you will get like there's a company which is involved in manufacturing
of certain goods or services.
OK, now in an time period.
It is producing let's say.
503 hundred products in a day or in a shift, or in a week, right?
Or in a month.
So this kind of output you will get and then to produce these units or these goods or
these services companies or the farming or the factory is utilizing this much
resources this much capital, this much labor hours and this much energy.
DIVESH KALE . joined the meeting

OK.
So normally energy, we account in terms of rupee or in terms of dollars, not in terms
of units consumed.
However, you one can take units, but because as we have also discussed in our last
session, that normally the dollar term is quite.
ANJU RANI . left the meeting
KIRAN KUMAR ANUMOLU left the meeting

Good to take the productivity into account, right? So.
ANJU RANI . joined the meeting

Or did we discuss productivity in our last session?
Anyone.
PRIYANKA GUPTA . 6:32

Sir.
Good afternoon Priyanka here.

Yeah.

Sarah Blank Slide is available is being shown on the screen.

Yes, please.

Is it like?
Yeah, yeah, this.

Yeah.
Yeah.
So I am I.
Am going to do the numerical over here.

OK, Sir. OK.

OK.
Yes, I'm asking that whether we started this discussion of productivity in last session
or not.
JAYARAJ.P.S . 6:59
We started, Sir, but I don't think we.
We covered too many details.

OK, OK.
So we discussed these productivity factors.
What are the different productivity factors?
We didn't come come to the unit, so we'll discuss today these units, how the units
are important while finding the productivity, OK.
So let us let me start with the simple questions.
Let's say there is a company.
Which is manufacturing wooden boxes.
So product is.
Wooden boxes.
Which is used to ship.
Motorcycles.
OK.
J ASHWINI . joined the meeting

Now the company has three employees.
And all together they are investing 40 labour hours per day.
So the labor input is 40 hours per day.
SENTHILKUMAR S left the meeting

And they are making.
How many boxes?
120 boxes.
J ASHWINI . left the meeting

Buddy, then what is the productivity?
The company per day or what?
A question will be like what is they live reactivity.
Now one more thing, you have to keep in mind that when you are comparing
product, let's suppose you are comparing productivity of two or three different firms
or two or different three different factories of the same company.
Then you either you go for the steam time period, the time period should be
constant.
OK means if you are going for daily basis hourly basis, weekly basis so that time
period should be constant for all the.
Candidates of the analysis, right.
So what is daily productivity over here?
The formula is P is equal to.
I'll put you added by input.
SUCHISMITA RATH . joined the meeting

What is the output?
Daily output is 120 boxes and daily input is 40 hours.
So it is coming out to be 3 boxes.
4 hour.
OK.
And how this unit has came?
You have boxes per day.
And here it is, 40 hours per day.
The day day got cancelled, box per hour is the unit of the productivity.
No.
What is the explanation of this that company?
Is able to.
Produce.
3 boxes.
Bar.
Labor.
Our invested.
Daily.
OK.
Now in the same question, if we can increase that the daily.
Veg?
Or did they leave?
We ament.
Off employees is let's say.
$20 per hour.
RAJENDRA KR. DEEPAK . joined the meeting

OK.
And they are able to sell.
The boxes.
That.
$100 butterbox.
Then what is the productivity in?
Dollar drops.
Now what will be the output?
120 boxes per day multiplied by $100 per box.
So coming out to be.
Dollar.
Butter day.
Similarly, what is the input in dollar terms for two hours multiplied by 20?
See, so $800.00 per day and then again putting the productivity formula output
divided by input.
So it will be.
Makes sense?
So.
So productivity is $15 per dollar.
Now, what is the explanation of this unit?
We can somebody tell me their own hunch?
AVI JAIN . 14:23

Hello Sir I have a doubt how is a productivity $15 per dollar like?

Yeah, yeah, yeah.
AVI JAIN . 14:29

Right.

So here, here you have.
What is the in unit of this output dollar per day?
AVI JAIN . 14:38

Yes.

Similarly here output we have $800.00 per day.
AVI JAIN . 14:45

Yes.

No day in day we cancel out.
Now we can also cancel out this dollar term also, but because of certain a
significance, we keep it as dollar per dollar.
AVI JAIN . 14:51

OK.
Umm.
OK, alright.
Now can somebody can somebody tell me the meaning or the significance of this
dollar per dollar unit?
SAMBIT SAHA . 15:09

Yeah, for for $1.00, we're getting $15.
YARRA RAMU . 15:10

That all.

Yes.
SAMBIT SAHA . 15:15

But $1.00 of input we are getting $15.00 of output.

Very good.
Somebody this is what the significance of this unit is that company.
Is able to generate $15 by investing or spending any.
Any anywhere you can use, let's say by spending.
$1.00 butterfly.
MANASH SARMA . joined the meeting

Or let's say daily.
So this is the significance.
OK.
The point here is that whenever we are working on.
Productivity.
You need to keep or you need.
Specify.
The correct.
Productivity.
Unit.
Without this unit, your productivity is of no use.
If I say that productivity is 515, let's suppose instead of writing $15 per dollar, if I say
that productivity is 15, what is the meaning of this expression?
Any person who is new, can he identify the significance of this?
JAYARAJ.P.S . 17:09
For one unit of input, you can generate 15 units of output, right?

But this is not true.
If you go by box by box, right or box by you, your box by our thing here.
In this case it is quite different.
Either have three boxes per hour unit, right?
So the moment you change the context, the whole things will change.
So this was the case of single factor productivity.
OK, let me take the example for multifactor productivity.
Body.
JAYARAJ.P.S . 18:30
To $15.00 the capital productivity.
Right, Sir, when you convert that into a label, productivity will be different.

Not capital productivity.
We can say capital productivity, we will be like when we are taking account of the
money.
Spend, for example, for machinery and.
All right.
For example, you are purchasing a machine, then they amount invested into it will be
taken in under this thing capital thing, OK.
JAYARAJ.P.S . 19:10
OK, so this is OpEx, not CapEx.
Yeah, got it.

Yeah.
So that.
Yeah, yeah, yeah.
I'm just coming to your point.
Also, I'm going to take an example for Capital X.
Capital expenditure, right?
So there's a company.
Who is manufacturing?
Bowling walls.
Balls so good is this.
OK.
So the data of the company is like number of unit produced.
Let's say 1000.
Labor hours.
300.
THAMIZHAZHAGAN M . joined the meeting

Resource or raw material?
50.
So this is in bound or let's say kg, then capital invested.
Dentals, now this capital is basically.
PAVITHRA V L . left the meeting

Is a big expenditure against the purchase of machinery or purchase of any new
equipment or purchase of any fixed asset which will be with the company for long
duration, right?
Energy.
Unit.
Basically in this case it is Unit 3000 unit.
They are using OK.
Now in this case, how many different factors we have in account?
We have labor factor, raw material factor, capital factor, N energy factor, OK?
No.
Ideally, when you are working for single factor right.
You can keep.
These units different.
Because.
Like, keep the unit of output and input different.
But when you are working.
MOHAMMED AZHAR A . joined the meeting

For multifactor productivity?
So what problem will arise?
Let's suppose you have to Add all these points because when you have to find out
cumulative or the overall input, what will happen?
It will be like labor plus raw material plus Capital plus energy.
AJNERIYA MINAKSHI MANOJ . joined the meeting

Now labor is in hours.
MOHAMMED AZHAR A . 23:01

Yeah.

Raw material is in, let's say, Casey or pound.
Capital is in the dollars.
Energy is in, let's say, BTU, the unit number of units now because the units are
different over here, you cannot add up all these values, right?
So when you are working for multiple multi factor productivity.
You you require to change the units or you have to keep the units same for units for
the input.
But.
So either you like to keep them in dollar terms, right?
Mostly when we are working for multi factor productivity, we normally find out the
productivity in dollar terms, right?
Or let's say in.
Hmm.
Ohh, we cannot convert raw material in hours.
We cannot convert the number of units into KG or in other terms, so better is go for
dollar term, right?
We can have the rate of conversion of all these units into dollar terms or rupee
terms.
PRABHA PANDEY . left the meeting

So better to go for dollar terms when we are working for multi factor productivity.
Right.
PRABHA PANDEY . joined the meeting

OK.
So single factor productivity we can find out easily.
That's the what will be the labor labor productivity.
SUMIT KUMAR GAUTAM . left the meeting

1000 / 300 hours.
Somewhere around 3.33 units per hour, right?
Similarly, raw material.
1000 divided by.
50.
2020 units per found or kg.
Whatever unit there is, it is.
Capital.
1000 divided by.
10,000 so .1 unit per dollar.
This is your capital productivity, OK now.
What is the last energy productivity?
1000 / 3000 somewhere .33 units per BT.
No.
What question comes in your mind so far?
Is there any question in your mind all of you?
SAMBIT SAHA . 26:31

Sir, can you multiply all these productivity and come into one common factor of
productivity by using all the raw materials to just?

No, no, no, no, we cannot do this.
Because you can see over here that all these single factor productivities are signifying
totally at different or telling a totally different story.
So we cannot multiply them if you are multiplying them your.
What will happen?
Let's suppose if I am multiplying them OK.
You have to multiply these units also, right?
So let's say we have 1234 units.
So what will be the unit of productivity unit key power 4 divided by?
Ours.
Multiplied by pound multiplied by dollar, multiplied by BTU not explaining this.
Dimension or unit is little difficult and this is the reason why multiplication is not
allowed or not used in order to find out finding this multi factor productivity cause
summit.
SAMBIT SAHA . 27:51

The.
Any other question which comes in your mind?
SAMBIT SAHA . 27:55

This is.

Said what is the full form of video?
SAMBIT SAHA . 27:57

The only question is that how we can factor in all the resources and come out one
single measurement factors where I can assess what is the inflation factor of our raw
materials.
AJITH KUMAR M . left the meeting

Can you repeat your question?
SAMBIT SAHA . 28:13

Yeah.
Like uh, what could be the measurement factor by combining all of our resources to
measure that in the longer term out whether that is improving or not?

Mm-hmm.
SAMBIT SAHA . 28:27

Measure.

Yeah.
Yeah.
So that we can do by collecting this data on different time horizons.
For example, this can be the data for, let's say big one.
OK, now again you go to beat to collect this data and see if there is any
improvement.
OK, let's suppose you have invested in your machinery.
Your process.
OK, by that, what had happened that the requirement for the labor hours required
for requirement of the raw material requirement of energy has gone down.
OK, let's suppose in this example only.
Uh, and the next part of this example was like.
It was in the last year and the company has did some improvement in the processes
they have, bring some new technology for manufacturing of this bowling balls and
this year data is like number of units they produce is 1000 only.
No change in the where.
Output, however, labor hour has come down to 275, then raw material required was
from 5245 pounds.
Capital investment has gone up to 11,000, obviously because they have to bring new
technology.
So we have they have to in spend more.
But.
MUZEEBUR RAHMAN MOHAMMAD joined the meeting

Time they have gone.
Oh sorry, energy requirement has gone down to 28150 units.
OK, now when you have this data you can easily compare whether your productivity
is going up or down.
So one very good question was this second question which may arise in your mind is
like.
How I'm performing on each front?
Like how I'm performing on a in the case of Labor input, how companies performing
in case of utilization of raw material, how companies were performing in case of
capital expenditure, right?
How companies performance there is in a utilization or consumption of energy?
OK.
Because nowadays, if you see companies are more focused toward reducing the
carbon footprint and that will come only if OK carbon footprint and reducing the
emissions, the pollutions and many other things like sustainability, green operations,
so many things are in.
Ohh in discussion in today's era, so that will.
JAYARAJ.P.S . left the meeting

We achieved only if company is able to perform well in terms of energy expenditure,
OK.
So these single factor, the point to explain over here is that these single product
factor productivity is give you more clear uh representation of all the factors.
All the inputs which you have in your factory right?
Make sense?
PRABHA PANDEY . left the meeting

Yes or no.
SAMBIT SAHA . 32:14

It's a, it's.

Alright, so this is the case now.
PRABHA PANDEY . joined the meeting

I will leave this the kind deer data for you all.
Just go and check whether there was any improvement in the productivity in current
year or not, OK.
I'll move to multi factor productivity over here.
SARATH MOHAN K left the meeting
SAMBIT SAHA . 32:50

Uh said just one question.
Even if you move first, second year, uh, so capital expenditure.

Yes, please.
Yeah.
Yes, please.
SAMBIT SAHA . 32:56

In that case, depreciation, we need to consider.

No, capital expenditure is whatever expenditure company has did for.
SAMBIT SAHA . 33:09

But we won't be buying new message, right?

Just a minute.
SAMBIT SAHA . 33:11

I mean that whatever.

Yes, yes, yes, yes, yes, yes, yes, yes.
OK, so now let us move to multi factor productivity of the same case, OK.
The.
The exchange rate.
JAYARAJ.P.S . joined the meeting

Labor.
Is paid.
$10 per hour.
Raw material.
Price per pound is, let's say, $5 per pound.
Capital expenditure is 1% per month off total investment.
Energy.
Is.
Point $5 per BTU.
OK, now what is the data we have?
Unit.
1000 labor 300 hours raw material 50 bound capital investment for that year is
10,000.
Energy consumed is, let's see 3000.
RAHUL LOKANATHAN. R . joined the meeting

OK.
So this is basically a monthly data, OK.
This is Leo monthly data.
RAHUL LOKANATHAN. R . left the meeting

If you take this book so this this question you will find there in the exercise OK.
Now I need to find out the monthly multi factor productivity.
NEELADRI PRADHAN . joined the meeting

So first of all I need to find out the input output.
We can easily find out, right?
Or even if you don't want to convert that output into dollar terms, that is also pretty
fine.
HARSHA GUPTA . joined the meeting
SHABEERALI. T.K. . joined the meeting

OK, but you need to find out the input into one single unit.
So what will be input?
Labor will become now.
Uh 300 * 10, so $3000 four month, OK.
THAMIZHAZHAGAN M . left the meeting
HARSHA GUPTA . left the meeting
MUZEEBUR RAHMAN MOHAMMAD left the meeting
SYED A K JEELANI BASHA . joined the meeting

Plus, raw material 15 to 5.
How much, 250?
Dollars per month.
Plus capital expenditure total expenditure is $10,000 on on that particular year.
Now her monthly expenditure it will be 1% of that.
So that is somewhere around how much.
SHABEERALI. T.K. . left the meeting
SYED A K JEELANI BASHA . left the meeting

$100.
And energy expenditure.
How many?
You know three 1000 in unit in 2.5, so somewhere around.
CN¥1500 dollars.
Now the unit will be dollars one month and here it is.
Unit per month.
OK, So what is the total value over here?
358 Fifty 4800 and.
D dollars.
JAYARAJ SHANKAR . joined the meeting

Payment.
No productivity is output divided by input.
Output is 1000 units per month, divided by 4000.
He didn't. He didn't.
50 and what will be the unit over here?
Units per dollar.
No.
Whatever value comes is your multi factor productivity.
HARSHA GUPTA . joined the meeting

All right.
No.
Again, let's suppose one ball is sold at around.
HARSHA GUPTA . left the meeting

$10 then what will be the productivity in dollar terms?
Productivity in dollar terms, will become.
So.
Somewhere 10,000 / 450.
Please check the.
Automatics the calculations.
If these are correct or not, please check.
VANSH TAYAL . joined the meeting
TANU SHREE . joined the meeting

Please check the calculations if they're correct.
To all of you.
So these are the different type of questions which we will find there for productivity
or even if you are go trying to analyze the productivity of your company in which you
are working or even if you want to find out the your individual productivity, you can
frame the problem in a way that what are your outputs, what are your inputs and
then find the productivity just by obtaining the ratio of our input and output. OK.
GOPI R . left the meeting
NEHA . left the meeting
SAMBIT SAHA . 42:27

So it is supposed.

Alright, yeah.
SAMBIT SAHA . 42:31

Uh, I'm able to sell on a high prices?
Maybe in another two or three months then a of course the product in terms of
dollar will be more.
Hmm.
Umm.
SAMBIT SAHA . 42:42

But if I'm using more resources then I will be able to take a call whether my resources
are optimum or not, right?

I'm sure.
Umm.
Exactly.
And This is why we we go for all different combinations of productivity like we are
also we are finding it in unit terms then we are finding it in dollar terms, OK, no, this
is the simple question.
MD IMRAN left the meeting
ATUL VISHAL . joined the meeting

OK. Of productivity.
Now what?
Where variations you will find in it now variations will come is like you have three
years, three different data points, let's say uh.
Month one, month two month 3 and you have data off all these factors F1F2F3F4F5
and then you have to compare whether productivity is improving.
Thing.
Or going down.
So this is 1 variation of these problems.
Second can be like you have three different companies bottom 1 from 2 from 3 and
then you have to find out which form.
Is more productive.
2nd right third can be.
Identifying the competition.
Or let's see.
Working on.
If this thing.
Not this the competition, but it will be like.
Identifying the areas of improvement, OK.
PRATHIMA SWEETY S . left the meeting

Let's suppose you have to improve the productivity.
And you don't know on which front I have to work, right?
Whether I had I need to train my labor force, whether I need to broke your good raw
material so that waste ages can be reduced.
Whether you need to deploy totally a new technology, for example earlier you are
using conventional lathe but now because CNC is also available in the market,
probably CNC can increase your production by many fold.
So to take that decision also, these productivity values help you a lot.
So let's suppose you have three month data point go for identifying single factor
productivities.
Now you check whether labor productivity is going down, whether raw material
productivity is going down, whether capital productivity is going down, whether
energy productivity is going down.
So accordingly you can decide in which area you need to work more or you need to
work fast, right?
So these are the three different variations which normally we can see.
Yes, join me please.
JOMY JOSE . 46:15

Stay in case of companies manufacturing multiple products, this could be used to
look at which products are better and which might need to be dropped.
PAWAN KUMAR VERMA . joined the meeting

Right.
GOPI R . joined the meeting
JOMY JOSE . 46:29

Like you know, you know which are the better products for the company, right?
Looking at the productivity.

I don't think so, because whether company want to drop a product from the portfolio
or not is basically decided by the marketing team.
Uh, it's specifically because company will produce the goods only if they are in the
demand, isn't it?
JOMY JOSE . 47:03

Yeah.

If they are not able to sell that particular product in the market there is there, then
there is no point in producing those products here underlying assumption here in
productivity is that whatever you are producing here, let the 1000 units, 50 units, 100
boxes or so you are able to sell all these producers in the market completely.
This is the underlying assumption of productivity.
JOMY JOSE . 47:29

Yeah, with that assumption, if I'm able to sell all the three products, then maybe if I
have a vacation on my utilize my, you know OpEx efficiently, then maybe I can focus
more on products which can give me better results.

Mm-hmm.
Umm.
JOMY JOSE . 47:49
That is the point.

Yeah, basically.
Uh, yes, you are right that you can compare your productivity for different products.
That is true, but I think there are more factors are needed in order to decide whether
you need to focus on production.
JOMY JOSE . 48:05

Like.
Yeah.

Or let's suppose there is a company FMCG company which is producing sanitizers
which is producing soap, which is also producing mask, right?
JOMY JOSE . 48:17

Yeah.

No, all these three products are required.
Dedicated labor force.
Dedicated capital dedicated raw material. OK.
In that case, company need other factors also.
JOMY JOSE . 48:29

Yeah.

For example, the requirement or the demand of mass.
JOMY JOSE . 48:34

Yeah.
Let's suppose productivity of mask is quite low.
Let's suppose, right?
But because of pandemic in the in the Ohh environment, company has to produce
the mask and they have to find the ways by which they can improve the productivity
of mass production.
JOMY JOSE . 48:45

Yeah.
GOEL SAANCHI PANKAJ . left the meeting

So either by deploying new technology or so like that.
JOMY JOSE . 49:00

Yeah.

So we have all together for your question.
JOMY JOSE . 49:06

Yeah.

We have another problem that is 2.
Decide what product mix company has to produce.
AJNERIYA MINAKSHI MANOJ . left the meeting

That is the optimization problem and that also we will discuss in detail, don't worry.
RAJENDRA KR. DEEPAK . left the meeting

JOMY JOSE . 49:21
OK, Sir, one more quick questions, Sir.
In a company manufacturing multiple things and the inputs might be shared.

Umm.
JOMY JOSE . 49:30

So for example, energy, right?
So then when you look at the productivity, the input has to be apportioned
accordingly, right?

Yes, yes.
JOMY JOSE . 49:40

And so, and they may not have the exact data for some of these things, for example,
energy, you know, is it consumed for this or the other one, et cetera? Right.

Right.
JOMY JOSE . 49:51

So how does companies manage this sort of situation to calculate the productivity?
If they're manufacturing multiple things.

Oh, in that case basically see.
Yeah.
Any other point?
JOMY JOSE . 50:09

Nothing else.
See in this case what happens?
Because nowadays companies are not producing things, uh on the smaller scale,
right?
Let's say if a company is producing a four different product, probably they are
producing in batches right now.
This is batches may last for a sift may last for a, let's say whole day.
Right now, when they have this kind of segregation like on sift basis or on the daily
basis.
JOMY JOSE . 50:38

Yeah.

So whatever conjunction happened in that particular shift will be accounted for that
particular product.
JOMY JOSE . 50:53

OK.

And then they can easily go for identifying the productivity.
JOMY JOSE . 50:59

OK.
Thank you.

Alright.
Sorry.
Yes, yes, city please.
CHODANKAR JAYASHREE RANGANATH . 51:19

Sir, when the resources or the label or the manpower is cross functional and working
on multiple lines at that time, how do we calculate the productivity?

Uh, we will see every here if you see if you and look on the structure of the problem
productivity here it is not taking account whether labor force is working on three
different lines of four different lines.
Here we are only accounting the amount of time he has invested or he has spent in
production of that particular product, right?
So the moment he has entered on a particular line for production of product X,
suppose or product product Y, whatever amount of time is spent there will be
accounted for that product X or Y.

OK.
Umm OK.

Simple is this and when he will move to the next line, the same thing will happen
there also.
AJNERIYA MINAKSHI MANOJ . joined the meeting
HILDA. B. JOSSY . left the meeting

OK, understood.

Because nowadays, with the help of that, that, that you evolution of those time study
motion study and all it is quite easy to account the time spent by any worker or any
employee on a particular job.
NIKUNJ SINGH . left the meeting

In fact, even employees working on laptop on different project you know because of
those login and logout time in different project you can account the how much time
I spend with the employee on a particular on a project 1234 or so on.

Mm-hmm.
NIKUNJ SINGH . joined the meeting

Understood.

OK, so before.
S. T. P. UPENDRA BHARADWAJ . 53:11

They don't have this.
The third, usually some of the fields, we consider that the uh, I mean when coming to
the resource human resource perspective, we consider that some of the resources
get exhausted as as as it goes in the day, right.

Umm.

So the probably the productivity of a human resource is not the same the the second
part of the day that he has provided in the first half of half of the day, right.

Hmm hmm.
Umm.

So Will will that have any impact on the overall productivity when?
Ohh though it is a multi multi product.
The sorry multi line productivity.
So will it have?

Ideally, ideally what happens that companies may not, uh, employ the person on
multiple lines in the same shift.

Will good evening.

For example, if a man has joined sift one and he started producing, let's suppose in H
UL basically they have multiple products producing one in the same factory, right?
Our Procter and Gamble in this case, So what happens that whenever a person enters
into the company and has started his job and now suppose in at UL they are
producing let's say surface excel I I I am little confused about their brands.
So let us take the example.
They are producing detergent.
They are producing washing powder.
They are producing, producing, let's say these biscuits and all.
Right now, if a man entered into factory on a particular day and he started producing
washing powder or like this soap or detergent.
He is supposed to devote his whole shift time in production of that particular
product only.
OK.
So no matter what productivity downfall he may have in at the end of the time, the
average production will be taken into account at that point of time.

OK, good.

So there will be no conflict in that multi product productivity calculations.
Thank you.

See in this productivity framework is totally product specific.
It don't account into the other products manufacturing or production.
NIKUNJ SINGH . left the meeting

The whole product TV productivity concept is focusing only on single output, not
multiple outputs.
RAMESH S . left the meeting
RAMESH S . joined the meeting

OK, so there is no point of conflict over here.

So that you also takes into consideration the allowance.

OK, Sir.
Thank you.

Yes, yes, yes, we all, we take all the consideration, all the allowances are there in that
time.
So basically that, let's say whatever example we have did so far that forty hour 2 or
300 hours all these time is basically considering all the allowances given to them.
Yeah.

So in a sift, let's say if it is starting from, it's an 8 hour shift, right?
So that eight hour is taken into consideration, no matter how much time he has
devoted to produce the product.

Yes.

And these allowances are basically the one which give you a scope for
improvements.
Let's suppose earlier the there was an break of 1 hour for tea and lunch and every
other things or snacks and all.
No company has can take time.
To order can take some of the the this time from that ohh bricks to devote for
production but increase the production time on the line.
But what best they can go.
They can automate the line so that they requirement of human time become less so
that more men are available for different other tasks or more.
More labor hours are available for different other tasks, so these are different.
Other measures which come after identifying the productivity, OK.
For example, quality.
The reliability and repeatability, other things artist before.
Do you have any question?
Before are you there?
VIBHOR KHANNA . 57:56

Hello there I'm audible.

Yeah, but yes, yes, you are audible.
VIBHOR KHANNA . 58:01
Uh, sorry.
Is there any textbook for this subject?

But yeah, I have a mentioned this textbook in our previous lecture also.
So if you have the course outline, if not, I will upload this course outline by today.
I'm sorry.
I was not able to upload it previously.
The textbook is quite sufficient, OK.
NIKHIL KUMAR . left the meeting

So can you provide the presentation also on the?

Yeah, yeah, yeah.
From from this big onwards, everything will be in line, don't worry.

Thank you so.

OK, so shall we proceed?
KARTHIK S . 58:43
The said I just have a question.
So when they when we when we compare the productivity usually the organization
do they take a the single factor productivity or the multi factor productivity?

Yes, quarterly.
Depending upon what kind of what.
RAMESH S . left the meeting

Basically objective is.
Let's suppose they want to find out what is the performance or let's say what is the
energy productivity of the company?
OK, because they have to go for this thing.
They have to go for carbon trading and any other many other things, so probably
they have to show that my energy productivity is quite high.
So what they will do, that they will go for an data for energy productivity of past
1234 years, right.
If they have to find out how my labels are performing, then probably they go for
labor.
RAMESH S . joined the meeting

Productivity point is single productivity, but when they have to find out the what is
overall production.
NIKHIL KUMAR . joined the meeting

For overall performance of the company, taking all the things together, then they go
for multi factor productivity.
OK.
KARTHIK S . 59:59
OK.
Yeah, got it.
Sandeep Singh . 1:00:00

Yeah.
And similarly when you have to compare two different forms, the same thing works.
So this point will be given whether you need to compare on multi factor basis or on
single factor basis.
Or according according to the situation, you have to take the decision whether you
have to go for multi factor productivity or single factor productivity in real world. OK.
KARTHIK S . 1:00:27
Yeah, got it.
So thank you.

OK.
Let us take the break of five minutes and then we'll back me.
Take some water, OK?
NEELADRI PRADHAN . left the meeting

OK, let's start.
ANKIT JAISWAL . left the meeting

How comes different other things right in productivity?
Which we call as the measurement problem.
Let's suppose you are taking the data points you are producing the quantity.
The quantity here is 1000.
Here is 1000.
Here is also thousand.
OK then here is the.
Invite.
What may happen?
The degradation of quality quality is 1 which you cannot measure over here in
productivity.
What remains productivity?
Did the the doesn't count.
They're gone for quality.
Similarly, some external elements may cause an increase or decrease in productivity,
just as one of our friend has just quoted that.
What if?
In a particular month.
And.
I can sell.
My product.
At $100, just think of the COVID situation.
The mask, which would be usually get free at hospitals when we visit or normal time
they were sold somewhere at around 50 per pieces, isn't it?
And people made huge money or out of that similar case was with the paracetamol.
Right.
So these are the external elements which may increase or decrease your productivity.
KAMAL NAYAN SHARMA . left the meeting

So.
MANASH SARMA . left the meeting

What is the major or what are the things which we can do over here so that these
things make it avoided?
How to account?
Whether productivity is due to some external element or some internal element.
Ohh sorry.
Or is it is the.
Continuous improvement happening because of the efforts taken by the company.
What can we do?
SAMBIT SAHA . 1:05:20

So we need to measure the factors which can impact productivity and probably need
to have a continuous data.
And I mean, it could be discrete data as well.
So we need to find a the relationship with the OR like this factors whether this is
having any impacts on productivity or sorry the output and if those are discrete data
probably hypothesis testing would be required to establish is elemental factors.

Yeah, quite true.
So basically, in order to avoid the to go into the trap, whether the productivity is
increasing or decreasing.
So for example, as you said, you need to find out the productivity on continuous
interval or.
On on on the short interval per say depending upon what type of product life cycle
you have a product life cycle is very sort.
Then if you are going to, let's say product life cycle is of one day eight for example,
the case of the daily consumables like milk, bread and other things.
SANGA VYSHNAVI . joined the meeting

And now if you are poor, identifying productivity on quarterly basis, well that is 2
long time to identify the productivity because the conjunction scenario are changing
quite fast for all these daily consumables vegetables.
Also, on some particular day because of strike.
Because of strike, the price of, let's say tomato or onion or any other vegetable suit
very high on that particular day.
SANGA VYSHNAVI . left the meeting
SANDIP SARKAR [ CVBU, Operations, Jamshedpur ] joined the meeting

Let's say if you gather the data, you will find that productivity is quite high, but when
the things become normal, the price will go down drastically.
To normalize the do as the situation and then the productivity data which you have
in your hand may may not explain the.
SANGA VYSHNAVI . joined the meeting

Actual performance.
So in that case you need to go for, let's say either weekly basis or every third day 4th
day kind of thing.
If you have a product whose life cycle is.
Six month year basis.
In that case, monthly productivity or quarterly productivity may be sufficient to
analyze the situation.

On set, we might also need to measure.

OK.

I mean, we need to.
Uh, uh.
Find out whether the measurement devices are right or not to have repetitive Ness
and the biasness of whether there or not.
Otherwise that can also have an impact on productivity.

Exactly.
Exactly.
So that biases we will discuss in detail, there is a kind of there is an effect we call as
bullwhip effect.
So when we will be discussing the supply chain part, we'll discuss this also, OK.
Billy.
3rd measurement problem is precise.
Units of measurement may be lacking.
For example, there was the requirement of identifying the number of units you are
using Dollar tab.
Similarly, like how much amount of tomato was sold on a particular day.
Better example will be these.
Nowadays, these blockbuster movies, if you see if you compare these ticket prices,
they are quite high.
No, now they always show that a movie is hit because it has dinner that did a
business of, let's say 100 crores, 400 crores and there are different breakups they
have created.
But in actuals, how many number of viewers were there?
Is quite.
Uh, that you can say is in is in the Gray area, right?
MS TEAMS ONLINE LECTURES joined the meeting

Ideally, whether the movie is for hit or not should have been just or assist on the
basis of how many people have went in theaters and was that movie.
If you are, uh, lunch, if you are.
What do you say that release of the movie?
Uh, the price of the tickets?
One movie is offering their tickets at, let's say ₹100.
At the same time, there is another movie which is offering a ticket at ₹500.
Now the movie, too, has been watched by 1,00,000 people.
But as movie one was watched by let's say 4,00,000 people, if you go in dollar terms
or in the rupee terms, the business done by Movie 2 is 5 lakh 500 lakhs right?
Whereas the business done by movie one is just 400 lap in this case you will say you
will say that productivity of movie two was quite higher than movie one, but that is
not the case because the number of viewer, the viewership of movie one was quite
high.
Hmm.
So you need to take the precise units while going for measuring the productivity.
The variables we have discussed, labor Capital Management.
Now here are certain things which we have already discussed.
The key variables for improved labor productivity, basic education, appropriate for
labor force, diet of the labor force, social overhead that makes labor available.
Challenge is in the maintaining and enhancing the skills in the midst of rapidly
changing technology and knowledge.
So company has to take the call whether they want to invest, you know, let's suppose
there is a company which is totally working in AI or blockchain and RTQ these
machine learning and coding and all in that case they are bound to improve the
skillset of their employees on frequent frequently because these technologies are
changing quite fast.
OK.
And there is no other options, they have to force their employees too, improve their
skill sets on a I'm very short period, where as if there is a construction company
going on or construction company or there is a a, umm conventional manufacturing
companies, they say there is a foundry in that case probably company may not
required dashboard that much frequent training and skill enhancement of their
employee.
OK, so that decision has to come from company whether they want to keep their
employees.
Ready for future or not, though, many time it bounce back also right?
What happens with the?
Let me take quote an example like for example in case of the PSU right, they have
very good training and uh.
But typically, training opportunities for their employees, they give them an
opportunity to go for, let's say PG.
They give an opportunity to go for MBA.
They give opportunity to join any certification executive executive programs they
themselves organize these training programs for their employees.
And so now what happens?
The company is PS's like, for example, Coal India, for example.
Steel Authority, for example, NTPC and many other companies, dear Modus operandi
is quite conventional.
So whatever is skillset they are creating for their employees, probably they're not
able to utilize that.
And in that case, those bell or high learner employees get a job dissatisfaction alone
because there is still that is not getting utilized.
And in that case, company has to lose their uh, what we say valuable.
A human resource.
So Cordingly company has to decide on this.
Well, how to improve the labor productivity and when to improve, OK.
So.
The role of management in the productivity it ensures your labor and capital are
effectively used to increase productivity.
For example, uh.
How the use of knowledge is there?
How?
Well, there the the labor force is to produce the things without, uh, when I can say
without waste creating much vestiges in the system application of new technologies
to management has to keep an eye on the development of the technologies which
they are using in their processes, right?
CHODANKAR JAYASHREE RANGANATH . left the meeting

If you know there are different type of technologies, we can categorize them in case
in terms of let's say product technologies, process technologies and management
technologies, right.
So management has to keep an eye on on these all three segments so that they can
bring these technologies in House whenever there is a requirement.
Now let us discuss the productivity in thought.
It was sector.
When we are discussing about goods production, we have different productivity
measure like in terms of unit, in terms of dollars, right?
What can be the measure of productivity in service sector?
Can anybody guess?

That would be the first one.
SANGA VYSHNAVI . left the meeting

But I'm in service limited.
I mean, as I was ligament.

OK.

Uh.

Can you little elaborate more about this?

OK.
Uh, I'm in turn around time I'm in.
Is the the deliverable time probably.

Yes, yes, yes.
Turn around time.
Yes, you're right.
CHODANKAR JAYASHREE RANGANATH . joined the meeting

So one can be like this done around time.
So since service sector, basically the productivity is focused more on time saving, OK,
if you know the delivery, what we say lead time, no.
What is lead time?
Do you know anyone of, you know, lead time?
Start to end the total delivery I mean completion time.

So it is basically.
The time period.
Bit to bean order placement.
Two order.
Delivery.
OK.
In service sector, this lead time is very important.
SARATH MOHAN K joined the meeting

If we discussed the case of this Hard Rock cafe, the case which I did.
Submitted or I shared with you all they were focusing on this productivity front and
they bring certain changes and they started saving their time or on persons.
It means they saved time per serve.
SARATH MOHAN K left the meeting

So what?
They change their operational?
The man on the in the operating method modus operandi, they changed and they
started saving all time per serve and which turn into.
NIKHIL KUMAR . left the meeting

So much millions of dollars every year, somewhere around 21% increase in
productivity happened in case of Hard Rock Cafe.
People who and read that case.
OK, so basically it's service sector focuses more on saving time for that you can
utilize that time in serving your next cost. OK.
Because here the output is totally customer or you can say consumer oriented.
You cannot quantify the output in terms of units in terms of dollar terms.
So basically we focus on time over here, OK.
So it is the another example over here productivity at Taco Bell so.
They were also focusing on improving their services.
So what they did, they revised their menu designed meal for easy preparation, sifted
some preparations to suppliers.
Jane's their layout and bring automation into their system.
They trained their employee far better.
Awareness of new technologies and improve their work efficiency.
Wait.
They bring new grills which were efficient towards consumption of water and energy,
and what happened in terms of it.
They were able to cut down their preparation time to 8 seconds.
Management is span of control increased from 5 to 30, meaning is earlier they used
to control 5.
Let's say yeah, employees.
Now they can have access to 30 employees in sort label.
Sorry, in stored labor cut by 15 hours per day.
So because of the new technologies they bring in house, the labor requirement has
been cut down.
The floor is space reduced by more than 50%.
Floor space basically means the flow required for preparation of their meal or their
goods.
Storage stores average 164 seconds per customer from drive up to pull out OK pins
in just 164 seconds, they were able to know they were able to fulfill all the
requirements of the customers on an average water and energy saving grills
conserve 300,000,000 gallons of water and 200,000,000 kilowatt hours means
200,000,000 units of electricity every year.
Now you can see over here, this is the huge saving and green inspired cooking
method.
UDAY KUMAR PATEL . joined the meeting

Saved 508,000 somewhere dollars per restaurant, resulting in two $17 million per
year.
SANDIP SARKAR [ CVBU, Operations, Jamshedpur ] left the meeting

Now you see that just by making small small changes in your.
Uh system.
This much huge savings you can.
Achieve.
OK, so another learning from productivity concept is that you don't require much or
don't you don't require intensive capital expenditure in order to improve
productivity.
Rather, just by changing your day to day activities, just by improving or enhancing
your skill sets and.
Prioritizing your tasks, you can improve your productivity.
OK.
These are the new challenges in operations management nowadays because of
globalization, because of small.
All ohh you can say due to data connectivity.
Watch what is happening there in America.
You can easily come to know here in India right, even if there is a very long distance
between these two countries to because of these these advancements, there are new
challenges arising in operations management.
UDAY KUMAR PATEL . left the meeting

Now the person who are consuming your product which you are producing here in
India especially let's say in.
KUNALSINGH RAJWAR left the meeting

Different economic zones situated in, let's say Himachal, but the in but hyala in
Uttarakhand.
Let's see Rudrapur and Haridwar somewhere in West Bengal, Gujarat, Maharashtra,
Karnataka, Vishakhapatnam like urshan.
There are so many economic zones.
So from where you were producing the goods, everything is visible.
So companies, yes, yes, 3.
CHODANKAR JAYASHREE RANGANATH . 1:25:11

Sir uh.
Another lecture will be starting in 2 minutes, so we have to join the another lecture
also.

OK.
OK.
OK.
OK, OK.
So sorry.
So what I do that we have completed our productivity part, I will share this PPT with
you all and if you get time do practice these productivity questions alright from the
book itself.
PRIYANKA GUPTA . left the meeting

If you have purchased, if not, then you can find it on Internet.
Also, there will be so much questions available there.
OK, so in next session, yeah, next session will start.
CHODANKAR JAYASHREE RANGANATH . 1:25:50

His thank you, Sir.
Our next topic that is global strategy.
And operations and strategy the inter interconnection of operation strategy with the
global strategy global strategy basically means company strategy, your corporate
state.
SRIHARI B . left the meeting

OK.
SUSAN JAIN . left the meeting
ANJU RANI . left the meeting
SHIVAM CHAUDHARY . left the meeting
Sandeep Singh . stopped transcription

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Operations Management (Merged -

MBAZG526_QMZG526)(S2-23) - Prof. SANDEEP SINGH-

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