Improved Productivity And Profitability Case Study
2.7.3 Improved productivity and profitability
According to Tangen (2005:728) profitability is most of time confused with productivity. It is described that profitability considers the monetarily effects, while productivity considers the real progression that takes place among purely physical phenomena. Profitability can be defined as the relationship of money between the output and input, thus including the influence of price-factors. Pekuri, Haapasalo and Herrala (2011:41), states that profitability is a critical indicator, as it illustrates whether the company is making money.
Over a long period, productivity is considered to be more appropriate than profitability, since profits is influenced in the short-term by a large number of factors and may be a misleading indication of long-term success. According to Pekuriet al. (2011:41), productivity is purely how much, and how good we produce from the resources utilised. Productivity can also be described as the production of products and services in the most efficient and effective manner, The European Association of National Productivity Centres (EANPC), (2005). It was further indicated that efficiency refers to “doing things right” and focusses on the process involved. …show more content…
It was further indicated that client satisfaction within the construction industry, could be determined by the extent to which a physical facility (product) and the construction process (service) meet the client’s expectations. Amanori and Lawal (2014:115), added client satisfaction is essential when it comes to the construction process development and client relationship. Their findings indicated that client satisfaction involves the quality of a construction project within budget, and affects the future of the company as well as increasing
According to Tangen (2005:728) profitability is most of time confused with productivity. It is described that profitability considers the monetarily effects, while productivity considers the real progression that takes place among purely physical phenomena. Profitability can be defined as the relationship of money between the output and input, thus including the influence of price-factors. Pekuri, Haapasalo and Herrala (2011:41), states that profitability is a critical indicator, as it illustrates whether the company is making money.
Over a long period, productivity is considered to be more appropriate than profitability, since profits is influenced in the short-term by a large number of factors and may be a misleading indication of long-term success. According to Pekuriet al. (2011:41), productivity is purely how much, and how good we produce from the resources utilised. Productivity can also be described as the production of products and services in the most efficient and effective manner, The European Association of National Productivity Centres (EANPC), (2005). It was further indicated that efficiency refers to “doing things right” and focusses on the process involved. …show more content…
It was further indicated that client satisfaction within the construction industry, could be determined by the extent to which a physical facility (product) and the construction process (service) meet the client’s expectations. Amanori and Lawal (2014:115), added client satisfaction is essential when it comes to the construction process development and client relationship. Their findings indicated that client satisfaction involves the quality of a construction project within budget, and affects the future of the company as well as increasing