resources tactfully is known as productivity´ Resources include: Time Money Material Machine Men Energy
Productivity Conceptual Model
Increased Volume (Able to reach wider Market) Improved Services (Better delivery, quality, output, benefits to customers) Reduced costs (Lower unit costs, more profit and more sales) Output Conversion Process Input
How is productivity Improved?
Achieving more output for the same input Achieving the same output from less input Achieving much more output for slightly
more input Getting slightly less output for much less input «contd
Six lines of attack to improve the productivity ratio of an organization
Improve basic process by research and development
(long term) Improve and provide new plant, equipment, and machinery (long term) Simplify product and reduce variety (medium term) Improve existing methods and procedures (short term) Improve the planning of work and the use of manpower (short term) Increase the overall effectiveness of employees (short term)
The fundamentals of productivity improvement
Applicable for all types of organizations. Productivity is a state of mind More involvement of employees, greater will be the
success. Productivity is a continued program; there is no end. Concentration should be made on controlling the controllable. Historically, Productivity has come by improved methods and improved equipments Improving productivity is the real key to organizational and national wealth. Productivity leadership flows from top to down. Improving productivity requires resourcefulness, creativity and enthusiasm.
CHECK LISTS
Time Utilization Ideas Methods and Supplies Interpersonal Relations Manpower utilization Health & Safety Machine Utilization Space Utilization
Wastage of Time
Lack of proper planning, keeping workers waiting
between jobs or waiting for material Failure on the supervisor's part to thoroughly understand orders and instructions received Lack of knowledge of what constitutes a full day's work Failure to make orders and instructions clear to workers Failure to insist that tools supplies, and portable equipment be kept in proper places Ordering overtime work that could be avoided Not seeing that workers are supplied with proper tools and equipment for every job Allowing workers intentionally to do less work than they can Failure to inform human resources department when more labor is required
Keeping too many workers Failure to write records and requisitions intelligibly Failure to question and correct workers who lay off Allowing workers to get habit of talking, visiting, killing time Failure to get workers to start on time, slack supervision Delay in making decisions Unnecessary absenteeism or tardiness on the supervisor's part Being late with reports Not investigating immediately when repairs are needed Unnecessary visiting and conversation on the job Failure on the supervisor's part to organize his / her time and work Lack of proper planning, keeping workers waiting between jobs or waiting for material
Ignoring Potentially Good Ideas
Ignoring Potentially Good Ideas
Failure to listen and comment when workers offer
suggestions. Failure to encourage workers to offer suggestions. Not asking workers advice on problems. Failure to read and study about the work and about business methods. Failure to get from new employees helpful ideas which they may bring from previous employment. Not consulting enough with other departments, such as engineering, etc. Failure to consider or refer to the proper person all usable suggestions no matter where they come from. Failure to take proper interest in meetings. Failure to benchmark performance of organization with other similar organizations and the sector as a whole.
Waste of methods and resources
Failure to explain money value of materials and
supplies to employees Inadequate supervision resulting in spoilage of material New employees not instructed properly Employees not instructed on new work Procedures, blueprints, sketches, diagrams, etc. torn or illegible Machines out of order or not adjusted or out of date Failure to follow each job through Failure to give clear instructions and orders Permitting improper or rough handling of material and supplies. Not paying attention to workers' eyesight and health as possible cause of spoiled work
Lack of discipline among workers, thereby
encouraging carelessness and sub standard work Allowing employees to use supplies unsuited to work; too good or not good enough Inability to trace defective work to the person who did it so that it can be corrected Taking employees ability for granted; not making sure employees are qualified for the work they are doing, especially new ones Not knowing the right kind of supplies to order
Ordering more materials and supplies than
necessary and not returning excess stock Failure to see materials are stored appropriately Failure to investigate all bare wires, leaky valves, pipes, fittings on steam, water, gas, electric, and compressed air lines, etc. Allowing workers to use oil, compressed air, small tools, chemicals, etc. for personal use Letting defective material go through as standard Lack of system to control outgoing supplies to prevent loss / theft Scrapping material that could be salvaged Permitting the waste or abuse of such supplies as brooms, stationary, oilers, light bulbs, shovels, rubber hose etc.
Failure to Cooperate
With other others at the same level in other
departments With clerical, engineering, sales, personnel departments, etc. Lack of a thorough understanding of company policies and failure to explain them to employees Failure to deal with gossip and rumors Passing the buck; up, across or down the organization Not adequately representing the employees Permitting disgruntled employees to agitate and unsettle other employees Failure to give support to unpopular company policies Failure to promote friendliness and cooperation among employees Thoughtless criticism by the supervisor himself/ herself of any company policy or of any individual in the organization
Failure to get the best efforts of which employees are capable
Failure to commend exceptional
performance Failure to explain as much about the work so as to make it interesting Lack of interest in employees progress and affairs Failure to admit mistakes Lack of attention to employees ability and temperament in assigning work Failure to view employees as individuals in order to motivate them
Rating employees on any grounds but
competence; racial, religious, fraternal, etc. Keeping an employee in a job for which he is not mentally of physically suitable Permitting employees to work when they are sick Not giving employees the support and help they need Failure to promote an employee when it is possible and appropriate Lack of due consideration of problems affecting wages and working conditions Failure to train an understudy
Common causes of accidents
Failure to recognize accident prevention
as part of the business process Failure to give all employees thorough instruction in safe practice Failure to install and maintain safeguards Allowing employees to work with guards out of place Failure to display safety signs and keep them legible Failure to thoroughly understand accident costs Poor housekeeping Lack of understanding of what constitutes an accident hazard
Failure to keep accident records, to
analyze them, and to use the information Not setting a good example in safe practice Lack of regular and conscientious safety inspections Failure to enforce consistently all safety rules and regulations Allowing employees to work without the necessary safety apparel Failure to recognize personal responsibilities for accidents Failure to stimulate and maintain interest of employees in accident prevention Lack of compliance in respect of statutory regulations
Causes of poor equipment / machinery utilization and or efficiency
Failure to plan work so that effective and efficient
utilization is made of all available machinery Failure to inspect machinery to keep it in good condition and to prevent breakdown Foreman's lack of knowledge on possible use and capacity of machines Failure to make regular examination of wire ropes, belts, chain drives, gear drives, conveyors, lubrication systems, valves etc Using unnecessary large and powerful machine for small work Lack of cooperation with maintenance department; upkeep, repairs, painting etc. Not protecting idle machinery from weather, dust, dirt, rust, fumes etc Allowing machinery to stay dirty by lack of periodic cleaning
Failure to inspect for proper lubrication of all moving
parts Failure to make needed repairs promptly Lack of instruction to employees on the proper operation of machinery Lack of proper discipline to prevent abuse of machinery and equipment Allowing employees to make "shoestring" repairs Failure by the foreman to keep informed on the latest technology Failure to pay attention to workers opinions on value and condition of machinery. Abusing small machines on large work Repairing machinery that should be scrapped; may cost more than replacing
Causes of poor space utilization
Improper stacking and storage of
materials Not enough attention to routing of materials through processes Wrong placement of machines and other permanent equipment Allowing employees to leave portable tools, ladders, etc., in the way of other employees Failure to keep passage ways clear Keeping materials which should be scrapped
Lockers, oil tanks, stock supplies, etc.,
in inconvenient places Letting unused machinery and equipment take up valuable space Leaving needed space unused for want of needed repairs to roof floor, etc. Allowing dark spots in plant and office; ineffective lighting Failure to maintain order and good housekeeping Keeping unnecessary materials at the workplace
Productivity Measurement
Measurement of Labor Productivity
Smith & Beeking Formulae
Output/Man Year = Sales Output Total No of Employees x Average earnings per man per annum +(capital + other expenses)
Net Output per employee
Net Output per employee = Added Value (Sales Price ± Cost Price) Total No. of employees
Value Added Concept
Value Added= Sales Value ± Cost of inputs other than labor Number of employees
Overall productivity index C = Total Cost, P = Profit, M = Material Cost Overall productivity indices = C+P-M C-M C+P-M C C+P C-M