Productivity Measurement refers to the
systematic process of quantifying the
efficiency and effectiveness of an
organization's operations or processes.
- assessing the relationship between outputs
(goods or services produced) and the inputs
(resources such as labor, time, and capital)
used to generate those outputs.
Key Elements of Productivity
Measurement
Outputs: The tangible or intangible results of
a process, such as the number of units
produced, services delivered, or tasks
completed.
Inputs: The resources consumed during the
production process, including labor,
materials, energy, and time.
Units of Measurement
Productivity can be measured using various
units, such as output per hour, output per
employee, or output per dollar invested.
Productivity measurement provides a
quantitative basis for assessing work
processes.
Bottlenecks refer to points or stages in a
process where the flow of work is impeded or
slowed down, leading to a reduced overall
efficiency of the system.
Key Characteristics of Bottlenecks
Constriction of Flow: causing a slowdown in
the overall process.
Limited Capacity: preventing the system from
handling higher volumes efficiently.
Impact on Throughput: directly affects the
overall throughput or output of the entire
system, leading to longer cycle times and
potential delays in meeting deadlines.
Varied Causes: can result from a variety of
factors, including equipment limitations,
resource constraints, inefficient work
processes, or mismatches in workloads.
Critical Points: Identifying and addressing
bottlenecks is critical for optimizing
processes and improving overall system
performance. Failure to manage bottlenecks
can lead to decreased productivity, increased
costs, and customer dissatisfaction.
Sales Effort
Prospecting - Identifying and reaching out to
potential customers or leads. Conducting
market research to find new business
opportunities.
Cold Calling and Outreach - Initiating
contact with potential customers through
phone calls, emails, or other communication
channels. Presenting products or services to
generate interest and potential sales.
Client Meetings and Presentations -
Holding meetings with clients to understand
their needs and present solutions. Delivering
product or service demonstrations to
showcase value.
Follow-Up and Relationship Building -
Following up with leads and clients to
maintain engagement. Building and nurturing
relationships to enhance customer loyalty.
Sales Calls and Visits - Making in-person or
virtual sales calls to potential clients.
Conducting site visits or presentations to
showcase products or services.
Sales Proposals and Quoting - Creating
and presenting proposals outlining product
or service offerings. Providing quotes or
estimates for pricing and contract terms.
Key Performance Indicator (KPI) is a
measurable value that reflects the
performance or effectiveness of a business,
department, project, or individual in
achieving specific goals or objectives. Critical
metrics used to assess progress and
success in various areas of an organization.
Time and Motion Study - is a systematic
method used to analyze and improve work
processes.
- aims to increase efficiency, productivity,
and effectiveness by closely examining how
tasks are performed and how much time
each task takes.
- often applied in manufacturing, services,
and other industries to optimize workflows
and resource utilization.
Key components of a Time and Motion
Study
Observation: The study begins by carefully
observing and recording each step of a
particular job or process. Involves
documenting the sequence of tasks, the
movements involved, and the time taken for
each activity.
Time Measurement: Accurate timing is a
critical aspect of a Time and Motion Study.
Researchers use various tools, such as
stopwatches, to measure the time it takes to
complete specific tasks or the entire process.
Data Analysis: After gathering data, analysts
review and analyze the information to identify
inefficiencies, redundancies, and areas for
improvement. This analysis may involve
calculating average times, identifying
bottlenecks, and evaluating the overall
effectiveness of the process.
Standardization: The goal of a Time and
Motion Study is often to establish
standardized procedures and best practices.
This helps streamline operations and
ensures that tasks are performed in the most
efficient and effective way possible.
Improvement Recommendations: Based on
the findings, the study provides
recommendations for improving the
workflow. This could involve redesigning
processes, introducing new equipment,
training workers differently, or implementing
other changes to enhance productivity.
Methods-Time Measurement (MTM)- is a
predetermined motion time system used in
industrial engineering to analyze and set
standards for the time it takes to perform a
specific task.
- focuses on breaking down tasks into basic
elements and assigning predetermined times
to each element based on careful analysis.
MTM Steps
Task Analysis: Breaking down a job or task
into its basic elements, which are the
smallest meaningful motions or actions.
Each element is identified and classified.
Code Assignment: Assigning
predetermined codes to each basic element
based on the nature of the motion or action.
These codes are standardized and represent
specific types of movements.
Time Values: Associating predetermined
time values with each code. The goal is to
have a standard time for each type of motion.
Calculating Total Time: Summing up the
time values associated with the codes to
calculate the total time required for the entire
task.
Factors that affect Productivity:
• Technology and Automation
• Employee Engagement and
Motivation
• Workforce Skill and Training
• Workplace Environment
• Management Practices
• Resource Availability
• Health and Well-being
• Quality of Inputs
• Economic Conditions
• Regulatory Compliance
• Communication and Collaboration
Process Charts – are visual representations
that depict the steps, activities, and
relationships within a workflow or process.
They help in understanding, analyzing, and
communicating complex procedures in a
simplified and standardized manner.
• Flow Charts
• Gantt Chart
• Swimlane Diagram
• Value Stream Maps
• Pert chart
Importance of Process Charts
Clarity and Visualization - Process charts,
such as flowcharts, Gantt charts, and swim
lane diagrams, offer a clear and visual
representation of the steps involved in a
workflow.
Communication - Process charts serve as a
common language for teams and
stakeholders, facilitating effective
communication.
Identification of Bottlenecks - By mapping
out the workflow, process charts make it easy
to identify bottlenecks or areas of
inefficiency.
Process Optimization- Understanding the
workflow through process charts enables
organizations to identify redundant steps and
areas for improvement.
Quality Improvement - Process charts aid
in maintaining and improving the quality of
outputs by highlighting critical checkpoints
and quality control measures.
Project Management - In project
management, Gantt charts help visualize
project timelines, dependencies, and
resource allocation.
Training and Onboarding - Process charts
serve as valuable training tools, especially
for new employees or those unfamiliar with
specific workflows.
Decision-Making- Well-constructed process
charts assist in informed decision-making by
offering a comprehensive understanding of
the workflow and its potential impacts.
PROCESS CHARTS
Flowchart - a visual representation of a
process or system, using standardized
symbols and shapes to depict the sequence
of steps, decision points, and interactions
within that process.
Gantt chart - is a visual representation of a
project schedule that illustrates the planned
tasks, durations, start and finish dates, and
dependencies between tasks over time.
Bars and Timeline: Tasks are represented by
horizontal bars along a timeline, showing
when each task starts and ends.
Task Dependency: Gantt charts depict the
dependencies between tasks, indicating
which tasks must be completed before others
can begin.
Milestones: Important project milestones,
representing key events or achievements,
are often marked on the Gantt chart.
Resources: Resource allocation can be
visualized by assigning different colors or
symbols to tasks associated with specific
team members or resources.
Progress Tracking: Gantt charts allow for the
tracking of actual progress against the
planned schedule. Completed tasks can be
shaded or marked, and any deviations from
the original plan can be easily identified.
Swimlane diagram - also known as a cross-
functional flowchart or swimlane flowchart, is
a type of process flow diagram that organizes
information visually by categorizing it into
"lanes" or "swimlanes."
Key features of swimlane diagrams include:
Swimlanes - Horizontal or vertical divisions
that separate different participants or
functional areas. Each swimlane typically
represents a specific role, department, or
entity.
Processes - Boxes or rectangles within the
swimlanes represent individual tasks,
activities, or steps in the process
Arrows - indicate the flow of the process,
showing the direction in which activities or
information move between the swimlanes.
Decision Points - Diamonds are used to
represent decision points in the process,
indicating where different paths may be
taken based on certain conditions.
Interaction - Swimlane diagrams emphasize
the interactions and handoffs between
different entities, providing a comprehensive
view of how responsibilities are distributed.
Value Stream Map (VSM) - is a visual
representation of the end-to-end processes
involved in delivering a product or service to
a customer. This tool is commonly used in
Lean and Six Sigma methodologies.
Current State Map: Represents the existing
state of the value stream, detailing each step,
process, and the time it takes to complete
each activity.
Future State Map: Envisions the ideal or
optimized state of the value stream after
improvements have been implemented.
Process Boxes: Boxes or rectangles
represent specific processes or steps in the
value stream.
Inventory Icons: Triangles or rectangles
represent various forms of inventory, such as
raw materials, work-in-progress, or finished
goods.
Information Flow: Arrows indicate the flow of
information, materials, and products
throughout the value stream.
Lead Time and Cycle Time: Lead time
represents the time it takes for a product or
service to be delivered from the beginning to
the end of the value stream.
Data Boxes: Additional information boxes
may include key metrics, production
volumes, or other relevant data to provide
context and analysis
PERT Chart - which stands for Program
Evaluation and Review Technique, is a
project management tool used to plan and
schedule tasks within a project. PERT charts
are network diagrams that visually represent
the flow and dependencies of various project
tasks.
Nodes: Nodes represent individual tasks or
activities within the project. Each node is
labeled with the task name and estimated
completion time.
Arrows: Connect nodes and represent the
flow or sequence of tasks. The direction of
the arrow indicates the order in which tasks
must be performed.
Event Points: Circles or ovals, known as
event points, represent milestones or key
events in the project. They are often used to
mark the start and end of the project.
Estimation Times: Each task is associated
with estimated durations for optimistic,
pessimistic, and most likely scenarios. These
estimates are used to calculate the expected
time for each task.
Critical Path: The critical path is the longest
path through the network and represents the
minimum time needed to complete the
project. Tasks on the critical path have zero
slack or float time.
Float/Slack: Float or slack time is the amount
of time a task can be delayed without
delaying the entire project. Non-critical path
tasks have float time
DMAIC Roadmap
DMAIC methodology - is central to Six
Sigma process improvement projects.
provides a problem-solving process where-
by specific tools are employed to turn a
practical problem into a statistical problem. Is
usually implemented for a process that is
underperforming, not a process in the design
stage
Six Sigma:
- A set of techniques and tools for
process improvement widely used
in various industries to enhance
operational efficiency and reduce
defects
- Developed by Motorola in the
1980s and later popularized by
companies like General Electric
- Aims to minimize variability and
improve overall quality.
- The goal is to achieve a process
performance where defects occur
at a rate of fewer than 3.4
occurrences per million
opportunities, corresponding to a
Six Sigma level of quality.
D: Define Phase - The purpose of this phase
is to clearly identify the problem, the
requirements of the project, or its objectives.
Key Questions for Define Phase:
- What matters to the customer?
- What defect are we trying to
reduce?
- By how much?
- By when?
- How much are defects costing
right now?
- Who will be in the project team?
- Who is going to support this
project implementation?
- At this point in implementation,
visual charts (pareto, trend,
process flow,) are useful to see
the development of defects.
M: Measure Phase - The purpose of this
phase is to fully understand the process and
its current performance by identifying how to
best measure performance.
Key Questions for Measure Phase:
- What is the process? How does it
function?
- Which outputs effect CTQ the
most?
- Which inputs effect outputs the
most?
- Is the ability to measure/detect
sufficient?
- How is the current process
performing?
- What is the “best” the process was
designed to do?
A: Analyze Phase - the information collected
in the measure phase is analyzed.
Hypotheses on root cause of variations in
measured values are developed.
Key Questions for Analyze Phase:
 - Which inputs actually affect CTQ’s
most (based on actual data)?
- By how much?
- Do combinations of variables
affect inputs?
- If an input is changed, does the
output really change in the desired
way?
- How many observations are
required to draw conclusions?
- What is the level of confidence?

I: Improve Phase – this phase focuses on

developing ideas to remove root causes of
variation, testing & standardizing these
solutions.
Key Questions for Improve Phase:

- Once it is known which inputs

affect the outputs most, how can
they be controlled?
- How many trials do we need to
ensure optimal settings have been
achieved?
- Should the old process be
improved, or should a new
process be designed?
- By how much has the defects per
million opportunities decreased?

C: Control Phase –
Key Questions for Control Phase:

- Once defects have been reduced,

how to ensure the improvement is
sustained?
- What systems need to be in place
to check that the improved
procedures stay implemented?
- How can these improvements be
shared with the rest of the
company?