Productivity Management Teddy
Definition of Productivity
Productivity: Definition
Productivity is the relationship between the outputs generated from a system and the inputs that are used to create those outputs. Mathematically
P =
O
I
PRODUCTIVITY
is a broader concept that pertains to effective use of overall resources. One of the primary responsibilities of an operations manager is to achieve
PRODUCTIVE USE of an organization’s resources. Systems Concept inputs Land people capital facilities equipment tools energy materials information
transformations
SYSTEM
O
I
productivity
outputs
Goods
and services Customers
Mathematically, How Can We
Increase Productivity?
Productivity Improvement
Productivity Improvement (PI) is the result of managing and intervening in transformation or work processes.
PI will occur if:
O
I
Productivity Improvement
Key Steps in Improving Productivity
1. Develop productivity for all operations; measurement is the first step in managing and controlling an operation.
2. Look at the system as a whole in deciding which operations are most critical; it is overall productivity that is important.
3. Develop methods for achieving productivity improvements. Productivity Improvement
Key Steps in Improving Productivity
-Solicit ideas from workers
-Studying how other firms increased productivity and -Reexamining the way work is done.
4. Establish reasonable goals for improvement.
5. Make it clear that management supports and encourages productivity improvement. Consider incentives to reward workers for contributions.
Productivity Improvement
Key Steps in Improving Productivity
6. Measure improvements and publicize them.
7. Don’t confuse productivity with efficiency.
EFFICIENCY- is a narrower concept that pertains to getting the most out of a given set of resources.
PRODUCTIVITY- is a broader concept that pertains to effective use of overall resources
Measuring Productivity
PRODUCTIVITY
measures can be based
on:
A Single Input (partial
Productivity: Definition
Productivity is the relationship between the outputs generated from a system and the inputs that are used to create those outputs. Mathematically
P =
O
I
PRODUCTIVITY
is a broader concept that pertains to effective use of overall resources. One of the primary responsibilities of an operations manager is to achieve
PRODUCTIVE USE of an organization’s resources. Systems Concept inputs Land people capital facilities equipment tools energy materials information
transformations
SYSTEM
O
I
productivity
outputs
Goods
and services Customers
Mathematically, How Can We
Increase Productivity?
Productivity Improvement
Productivity Improvement (PI) is the result of managing and intervening in transformation or work processes.
PI will occur if:
O
I
Productivity Improvement
Key Steps in Improving Productivity
1. Develop productivity for all operations; measurement is the first step in managing and controlling an operation.
2. Look at the system as a whole in deciding which operations are most critical; it is overall productivity that is important.
3. Develop methods for achieving productivity improvements. Productivity Improvement
Key Steps in Improving Productivity
-Solicit ideas from workers
-Studying how other firms increased productivity and -Reexamining the way work is done.
4. Establish reasonable goals for improvement.
5. Make it clear that management supports and encourages productivity improvement. Consider incentives to reward workers for contributions.
Productivity Improvement
Key Steps in Improving Productivity
6. Measure improvements and publicize them.
7. Don’t confuse productivity with efficiency.
EFFICIENCY- is a narrower concept that pertains to getting the most out of a given set of resources.
PRODUCTIVITY- is a broader concept that pertains to effective use of overall resources
Measuring Productivity
PRODUCTIVITY
measures can be based
on:
A Single Input (partial
References: http://en.wikipedia.org/wiki/Productivity# National_productivity http://www.referenceforbusiness.com/ma nagement/Pr-Sa/Productivity-Concepts-a nd-Measures.html