Answer for the Case-Enhancing Productivity: a Key to Success

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1. Was the approach to productivity improvement the correct way to implement such a program? No. It was not the correct way.
Productivity studies analyze technical processes and engineering relationships such as how much of an output can be produced in a specified period of time. It is related to the concept of efficiency. While productivity is the amount of output produced relative to the amount of resources (time and money) that go into the production, efficiency is the value of output relative to the cost of inputs used. Productivity improves when the quantity of output increases relative to the quantity of input. Efficiency improves, when the cost of inputs used is reduced relative the value of output. A change in the price of inputs might lead a firm to change the mix of inputs used, in order to reduce the cost of inputs used, and improve efficiency, without actually increasing the quantity of output relative the quantity of inputs. A change in technology, however, might allow a firm to increase output with a given quantity of inputs; such an increase in productivity would be more technically efficient, but might not reflect any change in allocative efficiency. Nancy was very new to All-right manufacturing company. Even though she knows how the productivity data were collected and analysed, she doesn’t have any experience in implementation of any productivity improvement activities with previous employer.

2. Was the time frame he gave reasonable for achieving meaningful results?
No. The time frame he gave is not enough for the implementation for such a program.
As we have already said, a production function is a function that specifies the output of a firm, an industry, or an entire economy for all combinations of inputs. It compares the practice of the existing entities converting inputs X into output y to determine the most efficient practice production function of the existing entities, whether the most efficient feasible practice production...
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