Ch02 p2 ppt
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This document discusses productivity, including definitions, types of measures, and factors that affect productivity. It defines productivity as a ratio of outputs to inputs, and describes partial, multi-factor, and total measures. Productivity growth is calculated as the change from the current period to the previous. Examples are given for labor, machine, energy, and capital productivity. Process yield and factors influencing productivity such as technology, management, and work environment are also covered.
Ch02 p2 ppt
- 1. McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. 22 Competitiveness, Strategy, and Productivity
- 2. 2-2 ProductivityProductivity Productivity A measure of the effective use of resources, usually expressed as the ratio of output to input Productivity ratios are used for Planning workforce requirements Scheduling equipment Financial analysis
- 3. 2-3 ProductivityProductivity Partial measures output/(single input) Multi-factor measures output/(multiple inputs) Total measure output/(total inputs) Productivity = Outputs Inputs
- 4. 2-4 Productivity GrowthProductivity Growth Current Period Productivity – Previous Period Productivity Previous Period Productivity Productivity Growth =
- 5. 2-5 Measures of ProductivityMeasures of Productivity Table 2.4 Partial Output Output Output Output measures Labor Machine Capital Energy Multifactor Output Output measures Labor + Machine Labor + Capital + Energy Total Goods or Services Produced measure All inputs used to produce them
- 6. 2-6 Units of output per kilowatt-hour Dollar value of output per kilowatt-hour Energy Productivity Units of output per dollar input Dollar value of output per dollar input Capital Productivity Units of output per machine hour machine hour Machine Productivity Units of output per labor hour Units of output per shift Value-added per labor hour Labor Productivity Examples of Partial Productivity MeasuresExamples of Partial Productivity Measures Table 2.5
- 7. 2-7 Example 3Example 3 7040 Units Produced Cost of labor of $1,000 Cost of materials: $520 Cost of overhead: $2000 What is the multifactor productivity? Ans. 2.0 units per dollar of input
- 8. 2-8 Example 3 SolutionExample 3 Solution MFP = Output Labor + Materials + Overhead MFP = (7040 units) $1000 + $520 + $2000 MFP = 2.0 units per dollar of input
- 9. 2-9 Process YieldProcess Yield Process yield is the ratio of output of good product to input Defective product is not included in the output Service example: Ratio of cars rented to cars available to rent
- 10. 2-10 Factors Affecting ProductivityFactors Affecting Productivity Capital Quality Technology Management
- 11. 2-11 Standardization Quality Use of Internet Computer viruses Searching for lost or misplaced items Scrap rates New workers Other Factors Affecting ProductivityOther Factors Affecting Productivity
- 12. 2-12 Safety Shortage of IT workers Layoffs Labor turnover Design of the workspace Incentive plans that reward productivity Other Factors Affecting ProductivityOther Factors Affecting Productivity
- 13. 2-13 OutsourcingOutsourcing Higher productivity in another company is a key reason organizations outsource work Improving productivity may reduce the need for outsourcing
- 14. 2-14 Improving ProductivityImproving Productivity Develop productivity measures Determine critical (bottleneck) operations Develop methods for productivity improvements Establish reasonable goals Get management support Measure and publicize improvements Don’t confuse productivity with efficiency