IMPROVING THE PRODUCTIVITY

Productivity is taking more and more the meaning of excellence, which has to come about in all types and levels of jobs and responsibilities. Improving productivity means would mean encouraging excellence.
JOHN.W.GARDNER

Productivity is a state of mind Japanese Productivity Center

Productivity: is the relative measure of output per labour hour or machine hour, often expressed as ratio of output to input.
Efficiency: is a measure that shows the relationship between the use of resources (input) and the resulting output. Effectiveness: is a measure of how well an organization (or system of functional area) accomplishes its goals.

current plant productivity ratio =

100
100

=1.00

New plant productivity ratio =

100 80 100 120

=1.25 (increased productivity)

Revised plant productivity ratio =

=0.833 (decreased productivity)

PRODUCTIVITY CYCLE
Improved flexibility and/or Improved productivity

Can lead to Reduced operating costs Invested in to

Reduced product Or service price

and/or

Improve product or service quality

Can lead to Competitive advantage Can lead to Increased product or service sales Can lead to Increased profit Invested in new OM human, technology and system resources

Which is successfully integrated into the OM system

Productivity in an organization can be improved by better application of materials, improved processes and machinery, faster production lines and application of more energy from the workers. But these are not enough productivity is not only based on time, method, scheduling, inventory control it is also efficiency oriented.

If the prime motive is efficiency rather than effectiveness, the productivity improves. Lasting productivity can be achieved through the change in the attitudinal aspects of the people in the organization.

The attitude of the lower levels of the people has to be tuned to that of the higher levels of management. So that the right message is picked up. A right direction leaves a prolonged impact on productivity. Productivity is a vector and not a scalar quantity.

MEASURES TO INCREASE PRODUCTIVITY

Be clear about organizations mission.

( Contribution to society, target customer, corporate objective etc) Customer orientation, Know and understand your customer. Be proactive, chart out organizations direction to provide service to the customer. Care and concern for customer and concern for all employees who contribute to the value chain. Goals and values of common consent. Needs of the individual and organization should be similar, sense of belongingness, team work. Employees awareness about individual potential, potential of family. Empowerment Creativity Value based decisions Care and concern for employees, vendors, dealers and people interested in company. Relevant productivity techniques and measures like BPR, benchmarking etc. Right people, right job, skilled people in specific tasks.

Learn from failure and allow others to learn from their failures.
Avoid complexity and confusion in functioning. Flexible organization Learning organization.