Mary Lourdes Bonnici MBA

  Chapter 10 – Operations Management Part 6 – Productivity, Lean Operations and Waste Reduction Business Administration Learning Academy Introduction – From Managing Capacity to Creating More Value In Part 5 – Capacity Planning, Scheduling and Resource Management , we examined how organisations determine the resources they need, schedule work, manage constraints and coordinate people, equipment, facilities and time. However, having sufficient capacity does not automatically mean that an operation is productive. An organisation may have enough employees, equipment and available working hours and still lose valuable resources through unnecessary movement, waiting, errors, excess inventory, inefficient processes or activities that customers do not value. This leads us to an important question: How can an organisation create more value from the resources it already has while reducing unnecessary waste? This is the central concern of productivity and Lean operations . Producti...