The development of science related to productivity improvement, and modifying engineering and management systems to utilize productivity science in engineering activities and organizations are the major activities of industrial engineers. We can say productivity science, productivity engineering and productivity management are the major components of industrial engineering. - Narayana Rao.
Principles of Industrial Engineering, Proceedings of the 2017 Industrial and Systems Engineering Conference, K. Coperich, E. Cudney, H. Nembhard, eds., pp. 890-895.
Industrial Engineering Philosophy, https://nraoiekc.blogspot.com/2021/04/industrial-engineering-philosophy.html
Productivity Management- Principle of Industrial Engineering
Every industrial engineer is a productivity manager.
He has to plan for productivity and achieve productivity improvement year after year.As a part of productivity management, he has to assess management actions of the organization for effect on productivity and has to recommend changes if they have an adverse effect on productivity or if there is scope for increasing productivity by modifying them.
Principles of Industrial Engineering, Proceedings of the 2017 Industrial and Systems Engineering Conference, K. Coperich, E. Cudney, H. Nembhard, eds., pp. 890-895.
In this article, I am trying to develop principles of productivity management. In this endeavor, principles of management provide the basic direction. In addition, the related principles are also to be included appropriately.
Productivity science is the foudation for productivity planning.
Productivity Management Related Principles from Literature
Harrington Emerson - Twelve Principles of Efficiency - Productivity Management
1. Clearly defined ideals.
2. Common sense
3. Competent counsel
4. Discipline
5. The fair deal
6. Reliable, immediate and adequate records
7. Despatching
8. Standards and schedules
9. Standardized conditions
10. Standardized operations
11. Written standard-practice instructions
12. Efficiency-reward
2. Common sense
3. Competent counsel
4. Discipline
5. The fair deal
6. Reliable, immediate and adequate records
7. Despatching
8. Standards and schedules
9. Standardized conditions
10. Standardized operations
11. Written standard-practice instructions
12. Efficiency-reward
1. Clearly defined ideals.
Every organization must have defined ideals that align its employees and guide their behavior. We are today using the terms, objectives, goal, mission, purpose, value etc. for the term ideals used by Emerson.
2. Common sense
Emerson talks of higher level understanding of persons in higher levels of management to promote efficiency.
3. Competent counsel
Efficiency improvement is a specialized knowledge area, and companies have to appoint specialists to develop the efficiency develop function in the organization and take their help in announcing programs and practices.
4. Discipline
The organization has to make plans and run its operations according to the plan.
5. The fair deal
In the organization, every body must perceive fairness in dealings.
Reliable records are required for good plans including good efficiency plans.
7. Despatching
What is to be done at each machine needs to be determined by planning department and is to be communicate to the workman.
There needs to be a schedule planned for each machine and operator in the organization based on customer deliveries promised and the associated criteria. Standard times for doing various operations are to be developed to help in developing schedules.
In the organization all facilities and environmental conditions have to be planned to meet specified objectives. A planned facility is termed standard facility.
The movements of machine components, the motions of operators, the transport and handling of materials are to be planned to meet specified objectives.
Standardized conditions and standardized operations are communicated to concerned persons in the organization through standard practice instructions. The efficiency expected will come about only when all activities are performed as per standard practice instructions.
Efficiency improvement has to result in benefit to all involved to sustain it. Employees have to receive efficiency reward as the efficiency in organization goes and the financial benefits are realized.
Principles of Productivity Growth
Given by Prof Paul Mali in the year 1978 in Improving Total Productivity, John Wiley & Sons, New York.
1. Principles of Ratio Time Measurement
Productivity is more likely to improve when expected results are measured and made greater in the same time frame that expected resources are measured and made less.
2. Principles of Shared Gain
Productivity increases rapidly when its expected benefits are shared with those who will produce it.
3. Principle of Expectancy Alignment
The greater the alignment of employee expectancies (needs) with organizational objectives (targets), the greater the motivation to accomplish both.
4. Principle of Worker Accountability
Accountability for productivity is more likely to happen when employees understand, participate in, and are held responsible for productivity objectives, measurement, and evaluation.
5. Principles of Focus
The greater the focus toward productivity objectives on a time scale, the greater the likelihood of achieving these objectives.
6. Principle of Creating Potential Productivity
Productivity gains are more likely to be achieved from situations where the potential for productivity gain is created.
7. Principle of Continuance
Productivity tends to continue when achieving an objective does not incapacitate or destroy any of the factors which produced it.
8. Principle of Work Justice
Productivity is more likely to continue when employees are given equal pay for equal work; when employers are given equal work for equal pay.
9. Principle of Elasticity
Productivity tends to increase when the same amount of work is achieved in a shorter period of time.
10. Principle of Resource Priority
Productivity increases when objectives for productivity set the priorities for resource allocation.
1. Principles of Ratio Time Measurement
Productivity is more likely to improve when expected results are measured and made greater in the same time frame that expected resources are measured and made less.
2. Principles of Shared Gain
Productivity increases rapidly when its expected benefits are shared with those who will produce it.
3. Principle of Expectancy Alignment
The greater the alignment of employee expectancies (needs) with organizational objectives (targets), the greater the motivation to accomplish both.
4. Principle of Worker Accountability
Accountability for productivity is more likely to happen when employees understand, participate in, and are held responsible for productivity objectives, measurement, and evaluation.
5. Principles of Focus
The greater the focus toward productivity objectives on a time scale, the greater the likelihood of achieving these objectives.
6. Principle of Creating Potential Productivity
Productivity gains are more likely to be achieved from situations where the potential for productivity gain is created.
7. Principle of Continuance
Productivity tends to continue when achieving an objective does not incapacitate or destroy any of the factors which produced it.
8. Principle of Work Justice
Productivity is more likely to continue when employees are given equal pay for equal work; when employers are given equal work for equal pay.
9. Principle of Elasticity
Productivity tends to increase when the same amount of work is achieved in a shorter period of time.
10. Principle of Resource Priority
Productivity increases when objectives for productivity set the priorities for resource allocation.
Principles of Productivity Management - Narayana Rao
Principles of Productivity Planning
Related to Purpose and nature
Principle of contribution to objectives
Every plan created by productivity managers at various levels has to contribute positively toward the productivity improvement of the enterprise.
Principle of efficiency of plans
Efficiency is measured by the contribution of the plan to objectives of the enterprise minus the costs and unsought for consequences in formulating and implementing the plan. Productivity plans and projects have to satisfy the principle of efficiency. They have to provide the ROI specified by the organization.
Principle of primacy of planning
Planning is the primary prerequisite for all other functions of management. Every action of the productivity manager must be based on a plan.
Principles Applicable to Structure of plans
Principle of planning premises
If more people in an organization use common and consistent planning premises, the enterprise planning will be more coordinated. Productivity managers have to provide various facts related to productivity within the organization, productivity related ideas and products available in the market place, and facts related to productivity in competitor organizations. Wide dissemination of this information will make productivity activity in the organization more coordinated.
Principle of policy framework
If more policies, appropriate to the organization, are expressed in clear terms and form and if managers understand them, the plans of the enterprise will be more consistent. Productivity policies have to be expressed in terms and form desired by managers, supervisors, and operators.
Principle of timing
If plans are structured to provide a network of derivatives plans in sequence, there will be more effectiveness in attainment of enterprise objectives. Productivity plans have to developed for various time periods and various sections or departments within the organization.
Principles Applicable to Process of Planning
Principle of alternatives
Select the plan which is the most effective and the most efficient to the attainment of a desired goal. Development of alternatives is an important step of planning. Alternative productivity plans have to developed and choice has to be made.
Principle of limiting factor
Consider limiting factor in generating alternatives and selection from alternatives. What is the limiting factor for productivity improvement? Plan around it.
The commitment Principle
Planning can cover a period over which commitment of resources can be clearly visualized. Productivity plans approved and released must have the provision for resources approved by the budget committee of the organization.
The flexibility Principle
Building flexibility in planning is beneficial and profitable flexibility alternatives have to be included in plans. Plans must have flexible features. For illustration, if internal resources cannot be provided, external consultants can be employed to support productivity improvement.
The Principle of navigational change
Productivity managers need to periodically check events of the plan and redraw plans to maintain the move toward a desired goal.
Principle of competitive strategies
In a competitive arena, it is important to choose plans in the light of what competitor will or will not do and navigate based on what competitors are doing or not doing. Productivity achievements of competitors have to be monitored and creative efforts and learning efforts are to be initiated to understand and improve.
Principles of Organizing
Principles in Relation to Purpose
Principle of unity of objectives
An organization structure is effective if it as a whole, and every part of it, make possible accomplishment of individuals in contributing toward the attainment of enterprise objectives. Productivity management as a function, has to ensure that every individual is part of productivity maintenance and improvement activity.
Principle of efficiency
An organization or organization structure is efficient if it is structured to make possible accomplishment of enterprise objectives by people with minimum unsought consequences or costs. Productivity managers have to foresee the effects of productivity engineering changes. The issues bothering the persons who have to implement them have to be addressed.
Principles in Departmentizing Activities
Principle of division of work
The better an organization structure reflects a classification of the tasks and activities required for achievement of objectives and assists their coordination through creating a system of interrelated roles; and the more these roles are designed to fit the capabilities and motivations of people available to fill them, the more effective and efficient an organization structure will be. Productivity is everybody's activity in an organization. There are productivity management staff, but their direction is to everybody in the organization through formal as well as informal methods.
Principle of functional definition
The more a position or a department has clear definition of results expected, activities to be undertaken, organization authority delegated, and authority and informational relationships with other positions, the more adequately individual responsible can contribute toward accomplishing enterprise objectives. The results expected from each productivity manager has to be clearly specified.
Principles in the Process of organizing
Principle of balance
The application of principles or techniques must be balanced in the light of the over-all effectiveness of the structure in meeting enterprise objectives.
Principle of flexibility
The task of managers is to provide for attaining objectives in the face of changing environments. The more provisions are made for building organization flexibility, the more adequately organization structure can fulfill its purpose.
Principle of leadership facilitation
The more an organization structure an authority delegations within it make possible for various managers to design and maintain an environment for performance, the more it will facilitate leadership abilities of managers.
Staffing Principles
Related to the Purpose of Staffing
Principle of staffing objectives
The positions provided by the organization structure must be staffed with personnel able and willing to carry out the assigned functions. Productivity department has to be staffed with persons with education in productivity improvement, in industrial engineering in engineering organizations and enthusiasm for the task.
The process of staffing
Principle of managerial appraisal
Performance must be appraised against the management action required by superiors and against the standard of adherence in practice to managerial principles. Productivity managers need to have targets for productivity improvement and they need to be appraised for results and processes used.
Principle of management development
The objective of management development is to strengthen existing managers. The most effective means of developing managers is to have the task performed primarily by a manager's superior.
Principle of universal development
The enterprise can tolerate only those managers who are interested in their continuous development. Productivity have to develop their knowledge of technology on a continuous basis.
Principles of Directing
Related to the Purpose of Directing
Principle of harmony of objectives
Effective directing depends on the extent to which individual objectives in cooperative activity are harmonized with group objectives. Productivity as an organizational objective has to be harmonized with individual's objectives. Taylor said productivity has to offer higher income to operators and higher profits to the organization simultaneously. It is genius of Taylor, that he proposed the principle through implementation of the principle first in a machine shop and then in other departments and areas.
Principles Applicable to Process of directing
Principle of unity of command
The more completely an individual has a reporting relationship to a single superior, the less the problem of conflict in instructions and the greater the feeling of personal responsibility for results. The instructions to the operator are mainly given through instruction cards who are given to the operator by his foremen. The foreman is facilitated in this task by production planning departments of the shop.
Principle of direct supervision
Effective direction requires that management supplement objective methods of supervision with direct personal contact.
Principle of supervisory techniques
Since people, tasks, and organizational environment vary, techniques of supervision will be most effective if appropriately varied.
Principles of Delegation
Principle of functional delegation
The more a position or department has clear definitions of results expected, activities to be undertaken, organization authority delegated, and authority and informational relationships with other positions, the more adequately individuals responsible can contribute toward accomplishing enterprise objectives.
Principle of delegation by results expected
The authority delegated to an individual managers should be adequate to assure his ability to accomplish the results expected of him.
Principle of absoluteness of responsibility
No superior can escape, through delegation, responsibility for the activities of subordinates, for it is he who delegated authority and assigned duties. If the expected productivity does not materialize, the productivity manager cannot get away from his responsibility.
Principle of parity of authority and responsibility
The authority delegated has to be consistent with the responsibility assigned to a subordinate.
Principles of Control
Related to the purpose of control
Principle of assurance of objective
The task of control is to assure accomplishment of objectives by detecting potential or actual deviation from plans early enough to permit effective corrective action. Productivity targets must be capable of being measured periodically.
Principle of efficiency of controls
The more control approaches and techniques detect and illuminate the causes of potential or actual deviations from plans with the minimum of costs or other unsought consequences, the more efficient these controls will be. Productivity controls have to be cost effective and should not cause dissatisfaction in operators.
Principle of control responsibility
The primary responsibility for the exercise of control rests in the manager charged with the execution of plans.
Principle of direct control
The higher the quality of managers and their subordinates, the less will be the need for indirect controls.
(The principle may termed as principle of reduced controls. A superior can spend less time in control activities if he has more higher quality managers and their subordinates in his department.)
Productivity education and training are important. Productivity managers themselves have to demonstrate productivity in certain select activities done by operators.
Principles related to Structure of control
Principle of reflection of plans
The more controls are designed to deal with and reflect the specific nature and structure of plans, the more effective they will serve the interests of the enterprises and its managers.
Principle of organizational suitability
The more controls are designed to reflect the place in the organization structure where responsibility for action lies, the more they will facilitate correction of deviation of events from plans.
Principle of individuality of controls
Controls have to be consistent with the position, operational responsibility, competence, and needs of the individuals who have to interpret the control measures and exercise control.
Process of control
Principle of standards
Effective control requires objective, accurate, and suitable controls.
Principle of critical-point control
Effective control requires attention to those factors critical to appraising performance against an individual plan.
The exception Principle
The more a manager concentrates his control on exceptions, the more efficient will be the results of this control.
Principle of flexibility of controls
If controls are to remain effective despite failure or unforeseen changes in plans, flexibility is required in the design of controls.
Principle of action
Principle of Action
Control is justified only if indicated or experienced deviations from plans are corrected through appropriate planning, organizing, staffing and directing.
Measure only those which are monitored by the concerned and corrected. Don't make people fill forms for no purpose.
Practices of Productivity Management
Productivity Management - Management Function-Wise Explanation
Productivity Planning
Origin of Industrial Engineering and Productivity Management - Shop Management by Taylor - Summary
The New Shop Floor Management - Kiyoshi Suzaki - Summary
Motorola Participative Productivity Management
Total Productivity Management
Total Productivity Management - Coca Cola Success Story
References
(C) Narayana Rao K.V.S.S. 2021
Please give your suggestions and comments. What needs to be added to make it comprehensive?
Updated 9 March 2023, 13 July 2021
Pub 29 June 2021
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