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  • BPE Lec3 Productivity

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    Productivity is a measure of output per unit of input such as worker hours, capital investment, machine hours or energy usage. It is important for controlling costs of production factors and quality of products. While U.S. productivity has grown steadily since the 1970s, other nations like Japan saw faster growth. Reasons for slowing productivity include less investment in R&D, shift to services, and management issues. Remedies include improving production education, promoting R&D, better measurement, technology adoption, goal setting and labor relations. Individuals should measure their own productivity, communicate goals, and continuously seek improvements.

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    Productivity in Business Process Engineering

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    Productivity is a measure of output per unit of input such as worker hours, capital investment, machine hours or energy usage. It is important for controlling costs of production factors and quality of products. While U.S. productivity has grown steadily since the 1970s, other nations like Japan saw faster growth. Reasons for slowing productivity include less investment in R&D, shift to services, and management issues. Remedies include improving production education, promoting R&D, better measurement, technology adoption, goal setting and labor relations. Individuals should measure their own productivity, communicate goals, and continuously seek improvements.

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    5 views11 pages

    BPE Lec3 Productivity

    Uploaded by

    sukust767
    Productivity is a measure of output per unit of input such as worker hours, capital investment, machine hours or energy usage. It is important for controlling costs of production factors and quality of products. While U.S. productivity has grown steadily since the 1970s, other nations like Japan saw faster growth. Reasons for slowing productivity include less investment in R&D, shift to services, and management issues. Remedies include improving production education, promoting R&D, better measurement, technology adoption, goal setting and labor relations. Individuals should measure their own productivity, communicate goals, and continuously seek improvements.

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    © All Rights Reserved
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    of 11

    What is Productivity ?

    What is Productivity ?
    • Labor Productivity
    -Output per Worker Hour (Output/Worker
    Hours)
    -Real Gross Domestic Product per Employee

    • Capital Productivity (Output/ $ Input)

    • Machine Productivity (Output/ Machine Hours)

    • Energy Productivity (Output/ Kilowatt Hours)


    What is Productivity ?
    • Cost of Factors of Production
    -Labor
    -Materials
    -Overhead

    • Quality of Product
    Productivity Crisis:
    Change in Labor Output per Hour
    Average Annual Per Cent Change (1992 = 100)

    1975/79 1979/85 1985/90


    1990/99
    U.S. 1.8 3.5 2.4 3.8
    Japan 6.9 3.5 4.3 3.2
    France 4.8 3.0 3.4 3.6
    Ger. 3.8 2.1 2.1 3.2*
    U.K. 1.4 4.1 4.1 2.2

    SOURCE: U.S. Bureau of Labor * 1990/98


    Reasons for Productivity Crisis

    1. Conscious Social Decisions, Increased Regulation

    2. Inadequate Capital Formation

    3. Emphasis on Short-Term Performance and Fall in


    Long-Term Research and Development
    (Drop from 3.0% to 2.5% of GNP During 1970/97)
    Reasons for Productivity Crisis

    4. Shift to More Flexible Service Production Systems


    (Services Less Productive than Manufacturing)

    5. General Management Problems (E.G. Emphasis on


    Marketing and Finance but Not Production in
    Industry and Education)

    6. Labor Problems
    Remedies

    1. Improve Production Education in Universities and


    Businesses

    2. Promote Research and Development

    3. Find Methods to Measure a Firm’s Productivity


    Remedies
    4. Brainstorm for Ways to Deliver Productivity,
    Particularly at Bottlenecks

    • Soliciting Ideas from Workers

    • Reexamine How Work is Done

    • Introduce New Technology


    (Robots, CAD/CAM, Computers, Etc.)

    • Learn from the Competition


    Remedies

    5. Establish Clear Goals for Increasing Productivity

    6. Measure, Support, and Publicize Productivity


    Increases

    7. Promote Better Labor Relations


    What Does this Mean to Me ??
    1. Make an Effort to Learn Production Technology

    2. Measure Productivity of Yourself and Any Groups


    You Lead

    3. Make These Measures Visible as a Standard -


    Communicate

    4. Try to Improve Productivity Using Measures as a


    Guide
    What Does this Mean to Me ??

    5. Educate Yourself and Others on Relation of Work


    to Goals

    6. Establish Clear Lines of Authority, But Promote


    Good Labor Relations

    7. Learn to Use “High-Tech” Equipment if Available

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