Contents Introduction ....................................................................................................................................... 5 The aim of this guide ....................................................................................................................................... 5 Who this guide is for ........................................................................................................................................ 5 How to use this guide ..................................................................................................................................... 5 1. What is productivity? .................................................................................................................. 9 Production .............................................................................................................................................................. 9 Service Operations ......................................................................................................................................... 10 Productivity ......................................................................................................................................................... 11 Improving Productivity ................................................................................................................................ 12 Section Review ................................................................................................................................................. 13 Agenda for Action........................................................................................................................................... 13 2. How productivity is measured ..............................................................................................15 Single Resource Productivity (SRP)....................................................................................................... 15 Standards.............................................................................................................................................................. 17 Productivity Index ........................................................................................................................................... 17 Total Resource Productivity (TRP) ......................................................................................................... 19 Section Review ................................................................................................................................................. 20 Agenda for Action........................................................................................................................................... 20 3. What inuences productivity? ..............................................................................................21 Utilization ............................................................................................................................................................. 21 Eciency .............................................................................................................................................................. 25 Psychological Inuences ............................................................................................................................ 26 Section Review ................................................................................................................................................. 27 Agenda for Action........................................................................................................................................... 28 4. How to measure utilization and eciency .......................................................................29 Activity Sampling ............................................................................................................................................ 29 Work Sampling.................................................................................................................................................. 31 Time Study........................................................................................................................................................... 32 Work Rating......................................................................................................................................................... 33 Basic Time............................................................................................................................................................. 33 Relaxation Allowances ................................................................................................................................. 34 Process and Special Allowances ............................................................................................................ 35 Standard Time ................................................................................................................................................... 35 Section Review ................................................................................................................................................. 36 Agenda for Action........................................................................................................................................... 37 5. Ways to improve productivity ...............................................................................................39 Method Study.................................................................................................................................................... 39 Value analysis ..................................................................................................................................................... 43 Loss control ......................................................................................................................................................... 44 Motivation ........................................................................................................................................................... 44 Economic feasibility ....................................................................................................................................... 45 Redundancy ....................................................................................................................................................... 45 Section review ................................................................................................................................................... 46 Agenda for action ........................................................................................................................................... 46 6. How to measure and improve clerical productivity ......................................................47 Dening tasks .................................................................................................................................................... 47 Measuring clerical utilization ................................................................................................................... 48 Measuring clerical eciency .................................................................................................................... 49 Putting the measurements to work ................................................................................................... 50 Improving clerical productivity .............................................................................................................. 51 Keeping it going .............................................................................................................................................. 53 Section review ................................................................................................................................................... 54 Agenda for action ........................................................................................................................................... 54 7. Measuring the utilization and eciency of cash............................................................57 Measurement of input ................................................................................................................................. 57 Fixed assets.......................................................................................................................................................... 58 Current assets .................................................................................................................................................... 58 Return on assets managed (ROAM)..................................................................................................... 59 Measuring stock turnover .......................................................................................................................... 60 Measuring debtor levels ............................................................................................................................. 60 Measuring cash utilization ......................................................................................................................... 61 Improving the productivity of assets .................................................................................................. 61 The Bottom line ................................................................................................................................................ 63 Section review ................................................................................................................................................... 63 Agenda for action ........................................................................................................................................... 64 8. Setting up a productivity programme ...............................................................................65 Gaining commitment ................................................................................................................................... 66 Choosing the projects .................................................................................................................................. 68 Maintaining progress .................................................................................................................................... 68 The bottom line................................................................................................................................................ 68 Section review ................................................................................................................................................... 68 Agenda for action ........................................................................................................................................... 69 Quick cost reduction checklist ..................................................................................................72 The fundamentals ........................................................................................................................................... 72 In connection with Materials ................................................................................................................... 72 In connection with Labor Costs ............................................................................................................. 73 In connection with Expenses .................................................................................................................. 73 In connection with Delivery Costs ....................................................................................................... 73 Examine Sales Costs....................................................................................................................................... 74 Examine Oce Expenses ........................................................................................................................... 74 Causes of poor productivity .......................................................................................................75 Waste of Time .................................................................................................................................................... 75 Waste of Ideas.................................................................................................................................................... 75 Waste of Methods and Supplies ............................................................................................................ 75 Waste of Machinery and Equipment .................................................................................................. 76 Waste of Manpower ...................................................................................................................................... 77 Waste of Accidents ......................................................................................................................................... 77 Waste of Non-cooperation....................................................................................................................... 78 Waste of Space.................................................................................................................................................. 78 Ergonomics .......................................................................................................................................79 Indicators of the Need for Human Factors Evaluation ............................................................. 79 Need for Task Design ..................................................................................................................................... 79 Need for Workplace Redesign ................................................................................................................. 79 Special Considerations in the Working Environment ............................................................... 80 Introduction The aim of this guide My aim in producing this guide is to provide a basic understanding of how to improve productivity in any business organization. I wanted to give it a provocative \"In search of productivity\