Operations Management and Productivity

Flashcards covering key terms and concepts related to Operations Management and Productivity.

Operations Management (OM)

The set of activities that creates value in the form of goods and services by transforming inputs into outputs.

Production

The creation of goods and services.

Productivity

The ratio of outputs (goods and services) divided by the inputs (resources such as labor and capital).

Efficiency

The measure of how well inputs are converted into outputs.

Inputs

Resources used in the production of goods and services, such as labor and capital.

Outputs

The goods and services produced as a result of the production process.

Gross Margin

The difference between sales and the cost of goods sold, representing the profit from core business activities.

Contribution

The amount remaining from sales after variable costs have been deducted, used to cover fixed costs and generate profit.

Labor Productivity

A measure of the amount of goods and services produced for every hour of labor.

Capital Productivity

A measure of the output generated per unit of capital.

Management Productivity

A measure of the output attributed to effective management practices.