Productivity Improvement Techniques

These twelve productivity improvement techniques are explained as follows:- 1. Value Engineering (VE) : Value Engineering (VE) is the process of improving the value of a product at every stage of the product life cycle. At the development stage, VE improves the value of a product by reducing the cost without reducing quality. At the maturity stage, VE reduces the cost by replacing the costly components (parts) by cheaper components. VE also tries to improve the value and quality of the product. Value is the satisfaction which the consumer gets by using the product. VE tries to give maximum value for a lowest price. 2. Quality Circles (QC) : The concept of Quality Circles (QC) was introduced in 1960 in Japan. QC is a small group of employees who meet regularly to identify, analyse, and solve problems in their department. The QC members advise the management to implement new methods to solve work-related problems. QC increases the productivity. 3. Financial and Non-Financial Incentives : The organisation must motivate the employees by providing financial and non-financial incentives. The financial incentives include better wages and salaries, bonus, etc. The non-financial incentives include better working conditions, welfare facilities, worker's participation in management, etc. 4. Operations Research (OR) : Operations Research (OR) uses mathematical and scientific methods to solve management problems, including problems of productivity. QR technique uses a scientific method to study the alternative courses of actions and to select the best alternative. OR uses techniques such as linear programming, game theory, etc., to make the right decision. Thus, QR helps to improve productivity. 5. Training : Training is a process of increasing the knowledge and skills of the employees. Training is a must, for new employees and experienced employees. Training increases the efficiency of the employee. Thus, training results in high productivity. 6. Job