Purchase Solution

Measuring Productivity as an Operations Manager

Not what you're looking for?

Ask Custom Question

Productivity is measured by the ratio of outputs to inputs. Some organizations use a partial measure of productivity to measure actual operations, such as a restaurant using a number of customer meals per labor hour.
Assume that you are the operations manager of a local restaurant. You currently measure the following data:

Labor hours
Raw materials
Customer meals
Capital investments

Based on the above information, how would you measure productivity at the restaurant? Be sure to include single-factor and multifactor measures. What are some simple ways you would use to improve productivity? As an operations manager, why is productivity important to you?

Purchase this Solution

Solution Summary

The following posting helps with a problem that involves measuring productivity as an operations manager.

Solution Preview

Let us look at some single-factor productivity measures in this scenario. Single-factor productivity measures are also termed partial productivity measures and measure productivity based on a single input. The manager can measure:

Customer Meals/labor hours - this would determine the speed of throughput.

Customer meals/ raw materials - this would determine how much ingredients are needed for a meal to be produced. This number is beneficial as the less raw materials that can be used without reducing the value of the meal, the more cost efficient the firm.

Customer meals/capital investments - this measures the efficiency with which fixed capital is used to produce meals. The operations manager can review how the quality of the kitchen equipment impacts the ...

Purchase this Solution

Free BrainMass Quizzes
Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.