Measuring

Productivity
Support
Function
Expert Club Indonesia – Dicussion –
12 July 2022

Zoom : 13:15 – 14:15 wib

Introduction
Productivity
is the efficiency of production of
goods or services expressed by some
measure. Measurements of
productivity are often expressed as a
ratio of an aggregate output to a
single input or an aggregate input
used in a production process, i.e.
output per unit of input, typically
over a specific period of time.
Effective
Is producing a result that is wanted.
Efficient
is capable of producing desired
results without wasting materials,
time, or energy.
Labor productivity
is a concept used to measure the worker’s efficiency. It is
calculated as the value of output produced by a worker
per unit of time, such as an hour.
By comparing the individual productivity with average, it
can be identified whether a particular worker is
underperforming or not.
Organizational
effectiveness
is how effective they are at reaching
intended outcomes. Organization
effectiveness embodies the degree to
which firms achieve the goals they have
decided upon, a question that draws on
several different factors. Among those
are talent management, leadership
development, organization design and
structure, design of measurements and
scorecards, implementation of change and
transformation, deploying smart
processes and smart technology to
manage the firms' human capital and the
formulation of the broader Human
Resources agenda.
Measuring Productivity Of Support Function
Support functions Support Function Productivity
Are a functions which support and indirectly contribute to the
main purpose and include, but are not limited to, human
resources, training and development, salaries, IT, auditing,
marketing, legal, accounting/credit control and
communications.

They are key enablers to an organization's success, but they are

an overhead and their activities need to be aligned to support
the efficient and effective delivery of organizational goals.

Support function Dept Support functions

example: guarantee smooth and How to measure it:
1. Finance seamless operation of a
core business. In parallel
Support function has to identify main
2. Internal Audit
3. Procurement with this role, the support goals and success metrics and
4. Logistics function protect the comparing the inputs (Expectation)
5. Security organization from going
6. Customer Services wrong, by guiding the
business, indicating and
following the internal “Plan vs Target”
procedures. Target = Expectation
Understanding Main Goals Mill
(factory) productivity of OEE

OEE
Overall Equipment Effectiveness
is a “best practices” metric that identifies the percentage of
planned production time that is truly productive. An OEE
score of 100% represents perfect production: manufacturing
only good parts, as fast as possible, with no downtime. Benchmark OEE Score

Focus improvement:
Unplanned Stops, Planned Stops, Small Stops, Slow Cycles,
Production Defects, and Startup Defects. They are aligned
with OEE and provide an excellent target for improvement
actions.
 OEE diaplikasikan ke Support Function?
IT Division (Main goals To develop enterprise architecture system)

OEE on IT 2022 Objectives 2023 Objectives 2024 Objectives

Performance rate target 3 / 10 projects go live 7/ 10 projects go live 10/10 projects go live

Quality Rate target Customer engagement Customer engagement Customer engagement

index 3.5 out 4 index 3.5 out 4 index 3.5 out 4

Availability rate target 30 Minutes Server 25 Minutes Server 20 Minutes Server

Shutdown/ Year Shutdown/ Year Shutdown/ Year

PxQxA 100% x 80% x 80% 100% x 90% x 80% 90% x 90% x 100%
(Actual result) = 64% = 76% = 81%

Productivity equal to OEE 64% 76% 81%

*OEE in Mill refer to Overall Equipment Effectiveness, formula : Performance x Quality x Availability
Thanks