Every company attempts to improve its productivity and there are three types of productivity
1 – Technological productivity, 2- Managerial productivity and 3- employee productivity.
Technological productivity refers to more efficient equipment such as robots, computers and other technologies. Managerial Productivity refers to the simple fact that managers must do a better job of running the company. A good manager will have learned to use a reward system for his/her employees, increase employee involvement and to utilise team work to improve productivity. Employee productivity can be produced simply by implementing better training, changing some of the work practices or in some cases a simple alteration of remuneration types and levels will increase a company’s output within the same time frame.
Any operations management strategy adopted by a company must be one to support the successful implementation of the company’s overall plan.
The development of an effective & efficient system for any company is based on management drawing up suitable solutions for:
1. Strategic Planning Decisions:
Ø Capacity (How many items can be made?)
Ø Location (Where to produce the items?)
Ø Process (Which method should be used to produce the item?)
2. Tactical Planning Desisions:
Ø Aggregate Planning ( Annual production plan)
Ø Master schedule (Quantity of items to be made & specific time frame)
Ø Material requirement planning ( What is needed to meet the master schedule)