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Chapter - 1 - Inroduction
Chapter - 1 - Inroduction
Support Functions
• Accounting
• Information Systems
• Human Resources
Operations • Engineering Marketing
Translates Generates sales
materials and of outputs
service into
outputs
Product &
Figure 1.1 Service Outputs
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1–7
A Process View
External environment
Inputs Outputs
Processes and
• Workers operations • Goods
• Managers • Services
• Equipment 1 3
• Facilities
5
• Materials
• Land 2 4
• Energy
Information on
performance
Figure 1.2
Figure 1.3
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
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The Supply Chain View
Support Processes
New
Customer
External customers
service/
External suppliers
product relationship
development management
Supplier Order
relationship fulfillment
process process
Figure 1.4
-A typical example would be a machine shop, which may make parts for
local industrial machinery, farm machinery and implements, boats and
ships, or even batches of specialized components for the aircraft
industry. continuous flow manufactures such as textile, steel, food
manufacturing and manual labor.
Batch production occurs when many similar items are produced together.
Each batch goes through one stage of the production process before moving
onto next stage. Good examples include:
Cricket bat manufacture
Baking / meal preparation
Clothing production
SOLUTION
Policies processed
a. Labor productivity =
Employee hours
600 policies
= = 5 policies/hour
(3 employees)(40 hours/employee)
SOLUTION
Value of output
a. Multifactor productivity =
Labor cost + Materials cost
+ Overhead cost
= $37,500/class
Output $37,500/class
Multifactor productivity = = = 1.25
Input $30,000/class
14 hours 16 weeks
Labor hours of input =
week class
= 224 hours/class
Output $45,000/class
Labor productivity = =
Input 224 hours/class
= $200.89/hour
SOLUTION
= $20,680
Output $20,680
Labor productivity = =
Input 360 hours