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Operations Management Aspects 1
Operations Management Aspects
Student Name
Middle East College
Operations Management
BUSS1501
Date
Operations Management Aspects 2
Operations Management Aspects
Introduction
For the success of any company, there should be efficiency in the management of all
resources within the firm. This is enhanced by making sure that all departments in the company
are kept into consideration. Operations management is one of the departments in an organization
that contributes towards the development of a company since its aspects help an organization
gain its operational advantage that places it in an excellent position on the market. This paper
aims to explain the implication of productivity, Total Factor Productivity (TFP), and Single
Factor Productivity (SFP) of an organization that affects its organization's competitive advantage
among existing competitors. The paper also provides an explanation of concepts MRP and ERP
in the contemporary context and the significance of IT in operation management. The concepts
of ABC classifications and inventory management together with their disadvantages and
advantages are also discussed. A succinct explanation of life cycle of project management is
among the core discussions provided.
Meaning of Productivity, Total Factor Productivity (TFP), and Single Factor Productivity
Productivity
The productivity of an organization refers to the efficiency at which inputs are converted
into output (Chad, 2011, p. 326). In simple terms, the productivity of an organization means that
efficiency of what the organization produces at any given time (Chad, 2011, p. 329). It is a
measure of how much yield is gained an organization's inputs. The productivity of a company is
expressed as a ratio of output to input. The firm's labor productivity determines the productivity
of a company. Labor productivity is determined by dividing the total amount of money the
Operations Management Aspects 3
products or services of an organization by the total number of hours taken to produce the services
or products (De Meulenaere, et al., 2016, pp. 193-212). For example, according to 2016 financial
report for Millennium & Copthorne Hotels plc, the total value of service and product for the year
is £ 926 million for the whole year (Millennium & Capthorne Hotels, 2016, p. 74).
𝐶𝑜𝑝𝑚𝑎𝑛𝑦 ′ 𝑠 𝑜𝑢𝑡𝑝𝑢𝑡
Productivity = Productivity = 𝐶𝑜𝑚𝑝𝑎𝑛𝑦 ′ 𝑠 𝑖𝑛𝑝𝑢𝑡
=
926
24∗365 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 ℎ𝑟𝑠
= £ 0.1057 million per hr.
Single Factor Productivity
Single-factor productivity is also a form of partial factor productivity because only one
factor is considered as essential and played a great role in the production of a given organization.
Here, there exist a factor that is suitable for comparison. Single-factor productivity is a ratio
utilized in ...
