MGT 402 OM Chapter 1

The set of activities that create value in the form of goods and services by transforming inputs into outputs

• Production

• Operations Management

• Products

• Services

The essential Functions of any organizations:

• Marketing

• Operations

• Finance

• Globalization

Given a chocolate factory

Units produced = 100 chocolate box/ month

Number of Labors = 2 labors

Working hours = 5 hours/ labor

Calculate the Labor Productivity per month.

• 2 chocolate box/ labor hour

• 10 chocolate box/ labor hour

• 5 chocolate box/ labor hour

Given an insurance company

Customer service = 60 customer service/ day

Number of labors = 5 labors

Working hours = 4 hours/ labor

Calculate the Labor Productivity per day.

• 3 customer service/ labor hour

• 60 customer service/ labor hour

• 20 customer service/ labor hour

We can always warrantee productivity. There are no external factors that may affect it.

• TRUE

• FALSE