TDZ06

OPERATIONAL MANAGEMENT
 Capaian Pembelajaran Mata Kuliah
• Mahasiswa mampu menjelaskan prinsip dasar manajemen operasi dalam mengelola
sumber daya perusahaan (C2, A2)
• Mahasiswa mampu menerapkan prinsip manajemen operasi dalam perencanaan,
implementasi, pengawasan, dan evaluasi dalam manajemen operasional perusahaan (C3,
A3)
OPERATIONAL AND
PRODUCTIVITY
1st Meeting
Diadopsi dari sumber :

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 Sub-CPMK
Mahasiswa mampu menjelaskan konsep manajemen operasi dan produktivitas (C2, A2)
Materi
1. What is Operations Management?
2. Organizing to Produce Goods and Services
3. Productivity Measurement
4. Productivity Variables Identification
1. What Is Operation Management ?
 What Is Operation Management ?
 The techniques of OM apply throughout the world to virtually all productive enterprises is in an
office, a hospital, a restaurant, a department store, or a factory
 The production of goods and services requires operations management.
 The efficient production of goods and services requires effective applications of the concepts, tools,
and techniques of OM.
 Operation management can apply in :
1. An economy in which both customers and suppliers are located throughout the world.
2. An array of informative examples, charts, text discussions, and pictures illustrates concepts and
provides information.
3. Create the goods and services that enrich our lives.

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 What Is Operation Management ? (Cont’d)

Production is the creation of goods and services.

Operations management (OM) is the set of activities that creates value in the form of goods
and services by transforming inputs into outputs.

Value Added

Input transformation Output

Figure 1.1 Operation Process

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 What Is Operation Management ? (Cont’d)

Why study OM ?
1. To study how people organize themselves for productive enterprise .
2. Tto know how goods and services are produced .
3. To understand what operations managers do.
4. OM provides a major opportunity for an organization to improve its
profitability and enhance its service to society.

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What Is Operation Management ? (Cont’d)

Figure 1.2 Options For Increasing Contribution

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2. Organizing to Produce Goods and Services
 Organizing to Produce Goods and Services
Basic function of organization :
1. Marketing
Generates the demand, or at least takes the order for a product or service (nothing
happens until there is a sale).
2. Production/operations
Creates, produces, and delivers the product.
3. Finance/accounting
Tracks how well the organization is doing, pays the bills, and collects the money.

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Organizing to Produce Goods and Services
(Cont’d)

Figure 1.3 Organization Charts For An Commercial Bank

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Organizing to Produce Goods and Services
(Cont’d)

Figure 1.4 Organization Charts For An Airline

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Organizing to Produce Goods and Services
(Cont’d)

Figure 1.5 A manufacturing Organization Chart

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 Organizing to Produce Goods and Services
(Cont’d)
 Through the three functions—marketing, operations, and finance—value for the
customer is created.
 However, firms seldom create this value by themselves.
 Instead, they rely on a variety of suppliers who provide everything from raw materials
to accounting services.
 These suppliers, when taken together, can be thought of as a supply chain.
 A supply chain is a global network of organizations and activities that supply a firm
with goods and services.

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Organizing to Produce Goods and Services
(Cont’d)

Figure 1.6 Soft Drink Supply Chain

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 Organizing to Produce Goods and Services
(Cont’d)

Figure 1.7 Differences Between Goods and Services

3. Productivity Measurement
 Productivity Measurement
 Measurement of productivity is an excellent way to evaluate a country’s ability to
provide an improving standard of living for its people.
 Only through increases in productivity can the standard of living improve.
 Only through increases in productivity can labor, capital, and management receive
additional payments. If returns to labor, capital, or management are increased without
increased productivity, prices rise.
 Downward pressure is placed on prices when productivity increases because more is
being produced with the same resources.

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 Productivity Measurement (Cont’d)

Figure 1.7 U.S Economic System Adds Value by Transforming Inputs to Outputs

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 Productivity Measurement (Cont’d)
 Productivity is the ratio of outputs (goods and services) divided by the inputs
(resources, such as labor and capital)

Unit Produced
Productivity =
Input Used

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 Productivity Measurement (Cont’d)

Single-factor Output Output Output Output

productivity Labor Material Capital Energy

Multifactor Output
productivity Labor + Material + Energy + Capital + Energy
(total factor Productivity)

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 Productivity Measurement (Cont’d)
Example 1.1: 4 workers installed 720 square yards of carpeting in 8 hours,
What is the labor productivity in square yards per hour?
Productivity = Yards of carpet installed
Labor-hours worked
Productivity = 720 square yards
4 workers * 8 hours/worker

= 720 square yards

32 hours
= 22.50 yards/hour
 Productivity Measurement (Cont’d)
Example 1.2: A machine produced 68 usable pieces in two hours, What is
the single-factor productivity of machine in pieces per hour?

Productivity = Usable pieces

Production time
Productivity = 68 pieces
2 hours
= 34 pieces/hour

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 Productivity Measurement (Cont’d)
Example 1.3: 7040 units produced, sold for $1.10/unit
Cost of labor: $1,000
Cost of materials: $520
Overhead: $2000
What is the multifactor productivity in dollars per dollar?

MFP = Price of all units

Labor + Materials + Overhead
MFP = (7040 units)*($1.10/unit)
$1000 + $520 + $2000
MFP = 2.20 dollar/dollar
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 Productivity Measurement (Cont’d)
• Productivity increase rate is more appropriate than productivity itself as an index of an
organization’s operation efficiency over time.

Productivity Increase Rate

New Productivity – Old Productivity

Old Productivity

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 Productivity Measurement (Cont’d)
Example 1.4: Collins Title Insurance Ltd. wants to evaluate its labor and multifactor
productivity with a new system. The company has a staff of four, each working 8 hours per
day (for a payroll cost of $640/day) and overhead expenses of $400 per day. Collins
processes and closes on 8 titles per day. The new system will allow the processing of 14
titles per day. Although the staff, their work hours, and pay are the same, the overhead
expenses are now $800 per day.

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 Staff of 4 works 8 hrs/day Payroll cost = $640/day
Old System:
8 titles/day Overhead = $400/day
New System:
Productivity 14 titles/day Overhead = $800/day
Measurement Old labor
=
8 titles/day
= .25 titles/labor-hr
productivity 32 labor-hrs
(Cont’d)
New labor 14 titles/day
= = .4375 titles/labor-hr
productivity 32 labor-hrs

Productivity Increase 0.4375 – 0.25

= = .75
Rate 0.25
75% increase in labor Productivity
 Staff of 4 works 8 hrs/day Payroll cost = $640/day
Old System:
8 titles/day Overhead = $400/day
New System:
Productivity 14 titles/day Overhead = $800/day

Measurement Old multifactor

=
8 titles/day
= .0077 titles/dollar
productivity $640 + 400
(Cont’d)
New multifactor 14 titles/day
= = .0097 titles/dollar
productivity $640 + 800

Productivity Increase 0.0097 – 0.0077

= = .26
Rate 0.0077
26% increase in multi-factor Productivity
4. Identification of Productivity Variables

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 Productivity Variables
1. Labor
 Improvement in the contribution of labor to productivity is the result of a healthier,
bettereducated, and better-nourished labor force.
 Three key variables for improved labor productivity are:
 Basic education appropriate for an effective labor force.
 Diet of the labor force.
 Social overhead that makes labor available, such as transportation and sanitation.

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 Productivity Variables (Cont’d)
2. Capital Human beings are tool-using animals.
 Inflation and taxes increase the cost of capital, making capital investment
increasingly expensive.
 When the capital invested per employee drops, we can expect a drop in productivity.
 Using labor rather than capital may reduce unemployment in the short run, but it
also makes economies less productive and therefore lowers wages in the long run.
 Capital investment is often a necessary, but seldom a sufficient, ingredient in the
battle for increased productivity

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 Productivity Variables (Cont’d)
3. Management
 Management Management is a factor of production and an economic resource.
 Management is responsible for ensuring that labor and capital are effectively used to
increase productivity.
 Management accounts for over half of the annual increase in productivity.
 This increase includes improvements made through the use of knowledge and the
application of technology.
 Using knowledge and technology is critical in postindustrial societies.

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 Productivity Measurement (Ex in Class)
• At Modern Lumber, Inc., Art Binley, president and producer of apple crates sold to
growers, has been able, with his current equipment, to produce 240 crates per 100
logs.
• He currently purchases 100 logs per day,
• and each log requires 3 labor-hours to process.
• He believes that he can hire a professional buyer who can buy a better-quality log
at the same cost. If this is the case, he can increase his production to 260 crates
per 100 logs. His labor-hours will increase by 8 hours per day.
• What will be the impact on productivity (measured in crates per labor-hour) if the
buyer is hired?

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 SUMMARY

 Operations, marketing, and finance/accounting are the three functions basic to

all organizations.
 The operations function creates goods and services.
 Operations managers are key players in the battle to improve productivity.
 Productivity improvements and a sustainable environment are difficult to
achieve, but operations managers are the primary vehicle for making
improvements.

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THANK YOU