Operational Management chapter 4 PDF

Preview

Summary

This is a thorough summary for chapter 4 of operational management. It contains detailed key notes and graphics to help students better understand and breakdown the course....

Description

Efficient: if a process is able to achieve a high flow rate with few resources Costs of direct labor: 1st measure of labor efficiency is the labor cost associated with serving one customer

- high costs of direct labor are associated with low labor efficiency Labor content: 2nd efficiency measure measuring how much work is required in serving one flow unit - high number is less desirable than a low number

Average Labor utilization: average labor utilization across resources, measure of efficiency. Have to pay employees whether they are working or not. (unutilized worker creates unnecessary expense) Average labor utilization = average utilization across employees

Idle time: amount of time per flow unit for which a resource is paid but is not working - measures how long the resource is idle for each flow unit it serves (units of time per flow unit)

Labor content comparison (in %):

same value as average labor uti...