session 1- productivity and quality

8/3/2019 Session 1- Productivity and Quality

1/17

Productivity and quality in the

workplace

1


2/17

Candle exercise

2

Shop A Shop B

- 2 volunteers to act as shop-owners

- 2 participants to act as observers

- The rest of the participants will be customers- Each participant kindly take your instruction sheet


3/17

Instructions for shopkeepers

You are the owner of candle shop A or B and

have 20 candles to sell. Customers will come

to buy candles from you. Each candle costs

one rupee and you should devise a strategyto sell as many candles as you can.

The winner at the end of the same will be the

one who has sold more candles and made

more profits.

3


4/17

Instructions for customers

You are a customer who wants to buy

candles. Two shops are available which sell

candles- shop A and shop B.

Each candle costs one rupee. You have to goto both shops, inspect the candles thoroughly,

decide from whom to buy the candle and

actually buy at least one candle by giving one

rupee to the respective shopkeeper

4


5/17

Instructions for observers

As an observer, try to note down as many

salient points as you can which will be

shared with the group.

Give particular attention to what are thefactors which attract or repel the customers

to each shop.

5


6/17

Technical definition of productivity

- The ratio of outputs produced ( which contribute to the

accomplishment of the mission), per unit of resources

consumed ( Input) , compared to a similar ratio from a

base period with the same or increased quality.

6

PRODUCTIVITY= OUTPUT

-------------

INPUT


7/17

Social Concept of Productivity

Above all else, productivity is an attitude of mind. It ismentality of progress, of the constant improvement of thatwhich exists.

It is the certainty of being able to do better todaythan yesterday, and tomorrow is betterthan today.

It is the will to improve on the present situation,no matter how good it may seem, no matter how good it mayreally be.

It is the constant adaptation of economic and social life tochanging conditions, it is the continual effort to apply new

techniques and new methods; it is the faith in humanprogress.

The European Productivity Agencys Rome Conference,The Concept of Productivity and Aims of the National Centres in 1958


8/17

Economic and management concept

of productivity

Economic concept

- Creation of more value for the customer

Management concept of productivity

PRODUCTIVIITY= +EFFICIENCY EFFECTIVENESS

Doing things

rightsDoing the right

things


9/17

An Integrated definition

PRODUCTIVITY= Output x Satisfaction

----------------------------

Input x Sacrifice

As an objective: technical concept

As a means: social concept

9


10/17

10

PRODUCTIVITYCHAIN

HIGHPRODUCTIVITY

EFFICIENT,EFFECTIVE ANDECONOMICALUSE OFRESOURCES

SUPERIORITY INMARKETCONDITION

ECONOMICDEVELOPMENTAND GROWTH

BETTERSTANDARD OFLIVING ANDHUMAN

WELFARE

HIGHPRODUCTIVITY

EFFICIENT,EFFECTIVE ANDECONOMICALUSE OFRESOURCES

SUPERIORITY INMARKETCONDITION

ECONOMICDEVELOPMENTAND GROWTH

BETTERSTANDARD OFLIVING ANDHUMAN

WELFARE

LOWPRODUCTIVITY

WASTEFUL USEOF RESOURCES

INFERIORITY INMARKETCOMPETITION

ECONOMICSLOWDOWN

SOCIALINSTABILITY


11/17

Productivity Measurement

Productivity

Measure

Physical

Productivity

Value Productivity

Material Productivity Volume of Output

-----------------------

Volume of Material

Input

Value of Output

--------------------

Value of Material

Input

Labor Productivity Volume of Output

----------------------

WorkerHour

Value of Output

--------------------

Value of Labor

Machine

Productivity

Volume of Output

----------------------Machine Hour

Value of Output

--------------------Value of Machine

Hour

11


12/17

Ways to increase productivity

Reduce Cost Output

-----------

Input

Manage Growth Output

-----------

Input

Work Smarter Output

-----------

Input

Pare Down Output

-----------Input

Work Efficiently Output

-----------

Input

12


13/17

Some definitions of quality

Absence of variation ( Deming)

Freedomreedom fromfrom deficienciesdeficiencies

DoingDoing itit rightright thethe firstfirst timetime

Meeting customer need (Crosby)Meeting customer need (Crosby) Fitness for purpose (Juran)

Conformance to specification

Continously improvingContinously improving performanceperformance

QualityQuality ISO DefinitionISO Definition

The totality of features and characteristics of a product or service that

bears its ability to satisfy stated or implied needs.


14/17

Quality Chain

14

Improve quality Decrease cost because

of less rework, fewer

mistakes.

Productivity improves

Stay in

business

Long-term

competitive

strength

Capture the market

with better quality

and reduced cost.


15/17

The cost of 99.9 % quality

Three newborns will be given to the wrong patient every minute

480 pieces of mail will be mishandled every hour

One short or long landing every two days

147 erroneous transactions per day in Motor Vehicle Registration

14 incorrect court decisions will be issued per day

ITS ALWAYS BESTTO HAVE 100 % QUALITY


16/17

Who is responsible for improving

productivity and quality

CEO

SNR MGT

MANAGEMENT

SUPERVISORS

OPERATORS

CONTROL

COACH

MASS PRODUCTIVITY /

SCIENTIFIC MANAGEMENT

CEO

SNR MGT

MANAGEMENT

SUPERVISORS

OPERATORS

CUSTOMER FOCUSED /

CONTINUOUS IMPROVEMENT


17/17

Promoting participative management

ESS

5S QCC

Employee

involvement

session 1- productivity and quality

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