February 12, 2016

Productivity Control - Productivity Management

Productivity is a major concern in 1990s and will be one of the major concerns in the future also.

Productivity implies measurement and thus is connected to control in which also measurement is important.

Industrial engineering is the profession with focus on efficiency and productivity. IIE's describes itself as the global asseociation of efficiency and productivity professionals.

Productivity of knowledge workers is yet to be operationalized for measurement and improvement.

Koontz and O'Donnell and Weirich covered Operation related productivity improvement techniques in this chapter.

Operations research
Time event networks
Value engineering
Work simplification
Quality circles

In some editions of the book on Management, Koontz, O'Donnell and Weirich said, in reality, the entire book of management is about productivity.

14th Edition

In 14th Edition, Chapter 20 is titled as  Productivity, Operations Management, and Total Quality Management.

The authors, say in a real sense, this whole book is about the improvement of productivity. How it will receive special attention in this chapter.

Undoubtedly, productivity is one of the major concerns of managers in the 21st century.

Productivity is the output-input ratio within a time period with due consideration for quality. Measurement of skill work is relatively easy, but it is more difficult for knowledge work.

Good management results in improvement of productivity.

Tools and Techniques for Improving Productivity

Value Engineering

Specific Steps:

1. Divide the product into parts.
2. Identify the costss for each part.
3. Identify the relative value of each part with respect to the  lowest cost design alternative for a similar function.
4. Find a new approach for those items that appear to have a high cost and low value.

Work Simplification

This is a process of obtaining the participation of workers in simplifying their work. Training sessions are conducted to teach concepts and principles of techniques such as time and motion studies, work flow analyses, and the layout analysis methods.

Just-in-Time Inventory System

In this inventory system, safety stocks are drastically reduced. , Set up cost or ordering cost is also drastically reduced giving low batch quantities for production and ordering. There is emphasis on zero defects, and any defective part found during the subsequent operation is immediately sent back to the earliest state for repair and the reasons for the defect occurrence is investigated and corrected. For the system to work, dependable relations with suppliers are required and also well planned transport arrangement that collect parts frequently in a day from many suppliers in small quantities is required. Japanese companies have made successful implementation of JIT systems and rest of the world is now redesigning its systems to implement JIT system and improve productivity.

Lean Manufacturing

A study by MIT team on American, Japanese and European car manufacturers showed that Japanese were more productive as they use fewer workers, a shorter development time, lower inventories, few suppliers, less production space, and less investment to produce more models. Their delivery times are also small. MIT team named the Japanese systems as Lean Systems and popularised Lean manufacturing.

Lean manufacturing is creative application of industrial engineering by the Japanese IEs and managers and is now a popular productivity improvement methodology all over the world.

Updated 12 Feb 2016,  12 Feb 2014

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