SUMARYOperations, marketing, and finance/accounting are three functions basic to all organizations. The operations function creates goods and services. Much of the progress of opreations management has been made in the twentieth century, but since the beginning of time, humankind has been attempting to improve its material well-being. Operations managers are key players in the battle to improve productivity.As societies become increasingly affleuent, more of their resource are devotes to services. In the U.S , more than 85% of the workforce is employed in the service sector. Productivity improvement and a sustainable environment are difficult to achieve, but operations managers are the primary vehicle for making improvementKey terms Production (p.4)Operations management (OM) (p.4)Supply-chain (p.6)10 strategic OM decisions (p.7)Services (p.11)Service sector (p.12)Productivitty (p1.3)Single-factor productivity (p.14)Multifactor productivity (p.14)Productivity variables (p.15)Knowledge society (p.16)Stakeholders (p.19) Ethical DilemmaThe American car battery industry boasts that its recycling rate now exceeds 95%, the highest rate for any commodity. However, with changes brought about by specialization and globalization, parts of the recycling system are moving offshore. This is particularly true of automobile batteries, which contain lead. The Environmental Protection Agency (EPA) is contributing to the offshore flow with newly implemented standards that make domestic battery recycling increasingly difficult and expensive. The result is a major increase in used batteries going to Mexico, where environmental standards and control are less demanding than they are in the U.S. One in five batteries is now exported to Mexico. There is seldom difficulty finding buyers because lead is expensive and in worldwide demand. While U.S recycle operate in sealed, mechanized plants, with smokestacks equipped with scrubbers and plants surroundings monitored for traces of lead, this is not the case in most Mexican plants. The harm from lead is legendary, with long-run residual effects. Health issues include high blood pressure, kidney damage, detrimental effects on fetuses during pregnancy, neurological problems, and arrested development in children.Given the two scenarios below, what action do you take?a) You own an independent auto repair shop and trying to safely dispose of a few old batteries each week. (Your battery supplier is an auto parts supplier who refuses to take your old batteries).b)You are manager of a large responsible for disposal of thousands of used batteries each day.Discussion question1. Why should one study operations management?2. Identify four people who have contributed to the theory and techniques of operations management3. Briefly describe contributions of the four individuals identified in the preceding question.4. Figure 1.1 outlines the operations, finance/accounting, and marketing functions of three organizations. Prepare a chart similar to Figure 1.1 outlining the same functions for one of the following:a) A newspaperb) A drugstorec) A college libraryd) A summer campe) A small costume-jewelry factory5. Answer question 4 for some other organization, perhaps an organization where you have worked.6. What are the three basic functions of a firm?7. Identify the 10 strategic operations management decisions8. Name four areas that are significant to improving labor productivity9. The U.S, and indeed much of the rest of the world, has been described as a “knowledge society”. How does this affect productivity measurement and the comparison of productivity between the U.S and other countries?10. What are the measure problems that occur when one attempts to measure productivity?11. Mass customization and rapid product development were identified as challenge to modern manufacturing operations. What is the relationship, if any, between these challenges? Can you cite any examples?12. What are the five reasons productivity is difficult to improve in the service sector?13. Describe some of the actions taken by Taco Bell to increase productivity that have resulted on Taco Bell’s ability to serve “twice the volume with half the labor”
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