productivity final

7/28/2019 Productivity Final

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Pro uct vty


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Contents

What is it?

How do we measure it?

What factors affecting to the

productivity?

How do we improve it?

10

8

6

4

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10 15 20 25 30 35


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Definition

Productivity is measure ofperformance

Productivity = Output

Input

For any type of organization


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Types of productivity measures

Single Factor productivity (L)

Multi Factor Productivity (L+M, L+P,

L+O)

Total Factor Productivity(L+M+P+O)


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Resources for Productivity

Productivity can be measured against 4 mainresources ( 4 Ms )

Money or Cost

Manpower

MachineryMaterials


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Factors affecting productivity

Project Size, Type, phase & Location

Management limitations,

Employee & Labour attitudes and skills,

Supervision intensity, knowledge of work

Labour Availability, skill, facilities to labour

Time Schedule & sequencing of activities Weather conditions

Mechanization

Government regulations & rules

j Si h &


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Project Size, Type, phase &Location

Project Size- Different locations, single location

Type of the project-only labour, with material

Phases of project- initial phase, peak stage, tapering

stage

Location of the project- accessibility, hilly area, rural

area, city area.


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Management limitations

Mixed messages, withholding permission toimprove methods of doing the work.

Employees must believe that management is trulycommitted to this objective.

To assure jobs are done right the first time, it is

necessary to have trained employees who haveadequate information available

E l & L b i d


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Employee & Labour attitudesand skills

Employee & Labour attitudes and skills

Employees: unable or unwilling to meetstandards.

Improving productivity involves making changes.

If you always do what you always did, youllalways get what you always got.

S i i i t it k l d f


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Supervision intensity, knowledge ofwork

Supervisors should set a good example by

demonstrating through actions and words thatthey are interested in the departments

productivity.

J obs that are done right the first time and theeffective use of resources.

S i i i t it k l d f


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Supervision intensity, knowledge ofwork Contd.

Supervisors should be aware of what resources areneeded and how effectively they are utilized.

Must communicate both up and down theorganization to assure adequate resources areavailable.

Employees need to be informed about the use andcare of resources.


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Time Schedule & sequencing ofactivities

Time schedule: Fast track projects, slow projects

like Govt. Projects Sequencing of activities: Exact Time for

individual activities, dependencies, required

material

h di i


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Extreme Hot weather

Extreme cold weather

Rainy season

Polluted areas

Weather conditions

h i i


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Use of modern equipments

Use of new techniques

Use of new methods

Minimising time killers

Proper flow of material ( J IT) Avoid stoppage of intermittent activities, micro

planning

Mechanization

W I P d i i


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Ways to Improve Productivity

CostControl.

Increase Output.

Improve Methods. Reduce Overhead.

Minimize Waste.

Regulate or Level the Work Flow &Housekeeping

Install modern equipment.

Train and motivate employees,MIG cycle

O hi


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Productivity starts with

YOU !

Ownership

C t C t l St t i


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Cost-Control Strategies

Productivity improves when

the department or organization can do asmuch work at a lower cost or

when output rises without a cost increase.

When starting a cost improvement approach toproductivity, the supervisor must know what thecosts are.

I O t t


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Increase Output

Be sure employees are working up to their

potential. Usually employees dont go around asking for

more work.

Supervisors need to be aware of the work thatneeds to be done and see to it that employees

are working up to speed.

S tti l d hi


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Setting goals and ownership

When employees are asked to do more they

may become unhappy.

Setting goals for higher production ratesshould be made with targets that are

reasonable and perhaps include employees

in the decision-making process.

The supervisor must also communicate the

new goals carefully.

I M th d


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Improve Methods

A less stressful way to do more with a given amount ofresources is to improve methods.

Major improvements result from finding a better wayto do the job.

Supervisors should constantly look for ways toimprove methods.

Employees see the problems of their jobs and oftenhave excellent ideas on how to improve them.

Therefore, supervisors should keep lines ofcommunication open and actively seek newideas.

R d O h d


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Reduce Overhead

Overhead includes such things as

Rent/ hire, utilites

staff support

company cafeteria

janitorial services, and

other indirect expenses

expenses not directly related to producinggoods and services.

Mi i i W t


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Minimize Waste

Waste occurs in all kinds of operations.

- Poor manufacturing processes

- Poor material handling.

- Machine is shut down for repairs

- Employees are waiting for instructions.

- Detour behavior, or tactics for postponing oravoiding work.

Mi i i W t


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Another form of wasted time results from detourbehavior, or tactics for postponing or avoiding

work.Time is wasted when supervisors and

employees stop to talk or go get a cup of coffeeat times other than when breaks are

scheduled.

Minimize WasteContd


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Regulate or Level the Work Flow

An uneven flow of work can be costly.

At low times, employees are idle.

When demand is up employees have to workextra hours to keep up resulting in the need topay overtime.

Have better housekeeping so that work flowwill be smooth and time can be minimised.

I t ll d i t


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Install modern equipment

Work may be slowed because employees are

using worn or outdated equipment.

If that is the case, the supervisor may find itworthwhile to replace it with modern

equipment.

Hire Vs Purchase


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Hire Vs Purchase

A supervisor needs to determine whether the expense of

buying new equipment, or recommending its purchase, isworthwhile.

One way to do this is to figure out how much money peryear the new equipment will save.

Consider such things as lower repair costs, less downtime, and more goods produced.

Hi V P h


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Then compute the number of years it will

take before the savings will offset the costof buying the equipment.

This is known as the payback period.

Hire Vs PurchaseContd.


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Train and motivate employees

For employees to work efficiently, they need a

good understanding of how to do their jobs.

Training alone does not lead to superiorperformance;

employees also must be motivated to do goodwork.

THE MIG cycle


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MEASURE

IMPROVE

GAIN SHARE

THE MIG cycle


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Do it smart, right in singletime

Thank You

productivity final

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