Stevenson - Productivity Management - Improving Productivity
Stevenson in his book "Operations Management" discussed the importance of productivity in operations, factors affecting productivity and steps to improve productivity. Productivity improvement gives more output from the same resource inputs and thus gives reduced costs without affecting quality. Productivity improvement systems advocated by F.W. Taylor and L.D. Miles explicitly assure that quality is maintained after the product and process redesigns to increase productivity.
Factors That Affect Productivity
Important factors that affect productivity.
Technology (Patents),
Equipment,
Organization and Layout,
Quality (performance specifications and defects)
Methods (Process plan)
Methods (Operator methods and motions),
Management (production plans and schedules, motivation, job evaluation, wage and salary incentives, use of industrial engineering).
Adoption of the above technologies increased productivity in production - distribution systems.
There is a dip in productivity that results while employees learn to use new equipment or procedures that will eventually lead to productivity gains after the learning phase ends.
Use of the Internet can lower costs of a wide range of transactions, thereby increasing productivity. It is likely that this effect will continue to increase productivity in the foreseeable future.
Computer viruses can have an immense negative impact on productivity.
Searching for lost or misplaced items wastes time, hence negatively affecting productivity.
Scrap rates have an adverse effect on productivity, signaling inefficient use of resources.
New workers tend to have lower productivity than seasoned workers. Thus, growing companies may experience a productivity lag.
Accidents can take a toll on productivity. Safety has to be improved.
Labor turnover has a negative effect on productivity; replacements need time to get up to speed.
Design of the work space can impact productivity. For example, having tools and other work items within easy reach can positively impact productivity.
Incentive plans that reward productivity increases can boost productivity.
Equipment breakdowns and shortages of parts or materials.
The education level and training of workers and their health can greatly affect productivity.
A commonly held misconception is that workers are the main determinant of productivity. But the fact is that many productivity gains in the past have come from technological improvements. Familiar examples include:
Fax machines, Automation, GPS devices, Copiers, Calculators, Smart phones, The Internet, search engines, Computers, Apps, Voice mail, cellular phones, E-mail, 3-D printing, Software, Medical imaging.
Adoption of the above technologies increased productivity in production - distribution systems.
However, buying technology or technology assets alone won’t guarantee productivity gains; it must be used wisely and thoughtfully. Careful planning (process planning) is required to determine the productivity provided by the new technology to the systems of the organization after ascertaining the it is a feasible technology for the organization.
There is a dip in productivity that results while employees learn to use new equipment or procedures that will eventually lead to productivity gains after the learning phase ends.
Other factors that affect productivity include the following:
Standardizing processes and procedures wherever possible to reduce variability can have a significant benefit for both productivity and quality.
Quality differences may distort productivity measurements. One way this can happen is when comparisons are made over time, such as comparing the productivity of a factory now with one 30 years ago. Quality is now much higher than it was then, but there is no simple way to incorporate quality improvements into productivity measurements.
Use of the Internet can lower costs of a wide range of transactions, thereby increasing productivity. It is likely that this effect will continue to increase productivity in the foreseeable future.
Computer viruses can have an immense negative impact on productivity.
Searching for lost or misplaced items wastes time, hence negatively affecting productivity.
Scrap rates have an adverse effect on productivity, signaling inefficient use of resources.
New workers tend to have lower productivity than seasoned workers. Thus, growing companies may experience a productivity lag.
Accidents can take a toll on productivity. Safety has to be improved.
A shortage of technology-savvy workers hampers the ability of companies to update computing resources, generate and sustain growth, and take advantage of new opportunities.
Layoffs often affect productivity. The effect can be positive and negative. Initially, productivity may increase after a layoff, because the workload remains the same but fewer workers do the work—although they have to work harder and longer to do it. However, as time goes by, the remaining workers may experience an increased risk of burnout, and they may fear additional job cuts. The most capable workers may decide to leave.
Labor turnover has a negative effect on productivity; replacements need time to get up to speed.
Design of the work space can impact productivity. For example, having tools and other work items within easy reach can positively impact productivity.
Incentive plans that reward productivity increases can boost productivity.
Equipment breakdowns and shortages of parts or materials.
The education level and training of workers and their health can greatly affect productivity.
The opportunity to obtain lower costs due to higher productivity elsewhere is a key reason many organizations turn to outsourcing. Hence, an alternative to outsourcing can be improved productivity.
Moreover, as a part of their strategy for quality, the best organizations strive for continuous improvement. Productivity improvements can be an important aspect of that approach.
Improving Productivity
A company or a department can take a number of key steps toward improving productivity:
1. Develop productivity measures 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.
3. It is overall productivity that is important. Managers need to reflect on the value of potential productivity improvements before okaying improvement efforts. The issue is effectiveness of productivity improvement efforts.
There are several aspects of this. One is to make sure the result will be something customers want. For example, if a company is able to increase its output through productivity improvements, but then is unable to sell the increased output, the increase in productivity isn’t effective. Second, it is important to adopt a systems viewpoint: A productivity increase in one part of an operation that doesn’t increase the productivity of the system would not be effective. For example, suppose a system consists of a sequence of two operations, where the output of the first operation is the input to the second operation, and each operation can complete its part of the process at a rate of 20 units per hour. If the productivity of the first operation is increased, but the productivity of the second operation is not, the output of the system will still be 20 units per hour.
4. Develop systems for achieving productivity improvements, such as soliciting ideas from workers (perhaps organizing teams of workers, engineers, and managers), studying how other firms have increased productivity, and reexamining the way work is done.
5. Planning productivity - Establish reasonable goals for improvement.
6. Make it clear that management supports and encourages productivity improvement. Provide incentives for doing productivity improvements in all departments at all levels in the organization.
7. Measure productivity improvements and publicize them so that others in the organization recognize the opportunity for improvement.
One more revision to be done.
Ud. 24.8.2022, 17.2.2022
Pub. 30.9.2016
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