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    Berra Mkh
    The document is an assignment submission containing discussion questions and problems related to operations management. It includes two discussion questions about competitive priorities and core competencies. It also includes four problems analyzing productivity and labor productivity data over multiple weeks.

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    OM

    Uploaded by

    Berra Mkh
    17 views5 pages
    The document is an assignment submission containing discussion questions and problems related to operations management. It includes two discussion questions about competitive priorities and core competencies. It also includes four problems analyzing productivity and labor productivity data over multiple weeks.

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    The document is an assignment submission containing discussion questions and problems related to operations management. It includes two discussion questions about competitive priorities and core competencies. It also includes four problems analyzing productivity and labor productivity data over multiple weeks.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    17 views5 pages

    OM

    Uploaded by

    Berra Mkh
    The document is an assignment submission containing discussion questions and problems related to operations management. It includes two discussion questions about competitive priorities and core competencies. It also includes four problems analyzing productivity and labor productivity data over multiple weeks.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    Assignment no: 1

    Submitted to:

    Naveed mushtaq

    Submitted by:

    Birrah mazhar.

    Rollno:015

    Subject:

    Operations management.

    Session:

    2022-2024

    UNIVERSITY OF SARGODHA.
    DISCUSSION QUESTIONS 6,7
    6.

    It is often not a good idea for a company to try to excel in all of the competitive priorities
    because it is generally impossible to do so. Mediocrity is a predictable result. The choice and
    the minimum level of one or more of the competitive priorities are set by the order qualifiers
    for the particular product or service. The choice of the competitive priorities that the company
    should emphasize is usually governed by the company’s strategy driven by its mission
    statement and the core competencies that the company wants to harness to seek the best
    competitive advantage.

    7.

    Core processes should link to a firm’s core competencies. Core processes are those processes
    that provide the firm the best competitive advantage. Essential to the definition a firm’s core
    processes is the concept of “interaction costs.” These costs include the time and money that
    are expended whenever people and companies exchange services, products, or ideas. If the
    transaction costs are higher to retain a process within the firm’s organization than to outsource
    the process, the process should be outsourced.

    PROBLEMS:
    NO : 2

    WEEK NO OF WORKERS INPUT OUTPUT OUTPUT/INPUT


    1 2 24 68 2.83 shirts/hour
    2 2 42 130 2.83 shirts/hour
    3 3 62 152 2.45 shirts/hour
    4 3 51 125 2.45 shirts/hour
    5 2 45 131 2.91 shirts/hour

    b. Output per person does not vary much whether it is Sud, Dud, or Jud working. Productivity
    declines when all three are present. Perhaps there isn’t enough work to keep three persons
    occupied, or perhaps there is not enough work space or equipment to accommodate three
    workers.
    NO:4

    The output of a process is valued at $100 per unit. The cost of labor is $50 per hour including benefits.
    The accounting department provided the following information about the process for the past four
    weeks.

    Week 1 Week2 Week 3 Week4


    Units Produced 1124 1310 1092 981
    Total Value 112,400 131,000 109,200 98,100
    Labor ($) 12,735 14,842 10,603 9526
    Labor (hrs) 254.7 296.8 212.1 190.5
    Material ($) 21,041 24,523 20,442 18,364
    Overhead ($) 8,992 10,480 8,736 7,848
    Multifactor 2.63 2.63 2.75 2.75
    Productivity
    Labor Productivity 4.41 units/h 4.41units/hr 5.15 units/hr 5.15 units/h
    a. Use the multifactor productivity ratio to see whether recent process improvements had any effect
    and, if so, when the effect was noticeable.

    Value of output:

    1124units x $100 = $112,400

    Value of input:

    labor + material + overhead

    12,735 + 21,041 + 8,992 = $42,768

    Productivity ratio:

    Labor Productivity = Output/ Input

    Week 1 Productivity

    112,400 / 42,768

    =2.628

    Week 2 Productivity

    131,000/49,845
    = 2.628

    Week 3 Productivity

    109,200 /39,781

    =2.745

    Week 4 Productivity

    98,100/35,738

    =2.745

    Improved 4.45% - noticeable in Week 3

    b. Has labor productivity changed?

    Labor-hours of input:

    Labor 50/hour

    Labor costs

    Week 1 = 12,735/50 = 254.7

    Week 2 = 14,842/50 = 296.84

    Week 3 = 10,603/50 = 212.06

    Week 4 = 9,526/50 = 190.52

    Productivity ratio:

    Labor Productivity = Output/Input

    Week 1 = Labor Productivity

    1124 / 254.7 hours

    = 4.4130 / hour

    Week 2 = Labor Productivity

    t 1310 /296.84 hours

    4.413/ hour

    Week 3 = Labor Productivity


    1092 / 212.06 hours

    =5.1495/ hour

    Week 4 = Labor Productivity

    981/ 190.52 hours

    = 5.1491/ hour

    5.1491 - 4.4130 /4.4130 x100%

    =16.68%

    Improved 16.68%

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