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Productivity Measurement Parameters in the 21st Century, by Latiff Sher
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INTRODUCTION
The simplest definition that I know of is the traditional measurement of how efficiently the output is produced:
Productivity = Total output
Total Input
Assuming the efficiency increases, does this mean that you have a more productive labor force? If you use only the “labor barometer” this may indeed be so but, in truth, the improvement may not be passed on to the organization if such increase is eaten up by increases in wages/benefits and/or higher cost of materials. Costs therefore are a measure of the resources used to produce a unit of output..No organization can survive without increasing productivity, whether this be in production, sales and service. For example the key production ratios are:
Efficiency=Standard units of output produced
Resources used
Utilization= Resources used
Resources available
Productivity= Efficiency x Utilization
= Standard of output produced
Resources available
Utilization refers to how much of the theoretical capacity (or sometimes practical capacity) was actually used during a given period.
Productivity is the ratio of output to input for a given period, where input can consist of labor, material, capital, and/or support services.
Efficiency also describes the relationship between inputs and outputs. The fewer inputs (resources) used to obtain a given output, the greater the efficiency.
What are some of these costs that you should consider in measuring your productivity?
•Cost of Labor including overtime, benefits and incentives.
•Materials & Supplies. If this is a critical item in the costing of the product, you would lay emphasis on how to reduce costs/improve yields rather than introduce labor-savings methods which may reduce yields by high wastage of materials.
•Quality of the product(s) which is often reflected in customer satisfaction or the number of complaints from customers.
•Utilization of Machinery. What is the downtime of your equipment?
Effective Management plays an important part in motivating workers to achieve higher productivity. Various indicators, including feedback from successful Companies around the world have shown that good management accounts for 80 to 90% of productivity increases, against 10 to 20% expected from the direct efforts of workers left on their own.
It is people who create the other resources hence, efficiency cannot be maximized unless the people are motivated and trained to give their best. As you know, morale is not built upon instantly - it is a planned approach requiring the direct interaction of the top decision makers of the Organization.
If you want productivity and the financial rewards that go with it, you must treat your people as your most important asset.
The statements, questionnaires and checklists presented in this book should be useful for any organization which is contemplating productivity improvements but would initially like to ascertain their readiness for such change.
Determining the best Training schedule
. An important scheduling decision is whether to offer the program on a concentrated basis – for example, as a solid week of training – or to spread it out over weeks or months.
Learning
Learning can be defined as the extent to which participants change attitudes, improve knowledge, and/or increase skill as a result of attending the training program.
Training programs on topics like leadership, motivation, and communication can focus at all these objectives.
This book is not a treatise on the above parameters. The focus of the book is simplistic: by providing several checklists and questionnaire, it is hoped that those who use the learning approach by knowing where they are strong and weak (and take corrective action) will fast track their efforts to improve productivity
- Sales Rank: #2592254 in eBooks
- Published on: 2013-12-22
- Released on: 2013-12-22
- Format: Kindle eBook
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