Concept of Productivity & Productivity Management

Definition of Productivity

1. The definition of Productivity appeared in different decades based on the social and economic changes subjects to the utility of the human civilization.
2. 1766: The concept of productivity appeared first time in the world.
3. 1979: Ratio of tangible output to tangible inputs over a period of time.
4. 1990: Productivity is the ration of output over inputs.
5. 1997: Productivity: (Output × Quality with Customer Satisfaction) / (Inputs × Commitment at all levels)
6. 1998: Productivity: (Output with pollution-free products) / (Inputs with pollution-free managed)
7. Recent Development of Productivity concept: Productivity is creating wealth through generation and application of knowledge management.
8. To make products available and service that meet the need of the users and are consistent with social, environmental and economic goals of the society.
9. Human mind is the main source of productivity improvement.

Philosophy of Productivity

1. Productivity means attitude of mind.
2. Productivity means team work.
3. It is a conviction that one can better today than yesterday, and that tomorrow shall be better than yesterday.
4. Productivity is a never-ending process.

Productivity Measurement

1. Productivity = Output/Input = 10,000/ (50 × 8 × 25) = 1 calculator per man hour.
2. Suppose this company is 2004 increased production to 12,000 calculator by hiring 10 additional workers at 8 hour per day for 25 days. Then,
   -Productivity = Output/Input = 12,000/ (60 × 8 ×25) = 1 calculator per man hour.
   -It is clear that production of calculator has gone up in 2004 by 20 percent, but productivity remains unchanged.

Basic difference between Production & Productivity

Production	Productivity
How Much	How Well
Quantity Produced/ Service Rendered	Quantity, Quality, Minimization of Cost & Efficient use of all Inputs.
Only Efficiency Concept	Combination of both Efficiency & Effectiveness.
Profit Oriented.	Both Employers, Workers, Government, Consumers Equally Benefited.

Value Creation of Just –in- Time (JIT)

1. To realize the value of One Year - Ask a student who has failed in a final year.
2. To realize value of One Month - Ask the Editor of weekly newspaper.
3. To ask value of One Hour - Ask the lovers who are waiting to meet.
4. To ask value of One Minute - Ask the person who missed the train, bus, or plane.
5. To realize value of One Second - Ask the person who survived an accident.
6. To realize value of One Millie Second - Ask the person who has own a gold medal of the Olympic.
7. Time waits for No One - Treasure every moment you have and share it someone special.

5-Steps of Productivity Management

1. Create a productivity oriented plant/corporate culture and values.
2. Constantly evaluate and redesign goods and service and their production process.
3. Change the structure.
4. Improve individual and group relation.
5. Managing productivity.

Step-1:

Create a productivity oriented plant/corporate culture and values;

Action-1:

Develop a Plan/Corporate culture that everybody will say Productivity is Important.

Action-2:

Everybody will say that Productivity is a question of Survival.

Action-3:

Everybody will say that Productivity is a question of Changing Mindset.

Action-4:

Make a network with the people who are Productive.

Step-2:

Constantly evaluate and redesign goods and service and their production process.

Action-1:

Customer satisfaction.

Action-2:

Increase the listening to the product/ service personnel.

Step-3: Changes the structure

Action-1:

Minimize the formalities.

Action-2:

Reduce the process of centralization.

Action-4:

Reduce complexity.

Action-5:

Review the personal set.

Step-4:

Improve Individual and Group Relation

Action-1:

Motivation.

Action-2:

Build Productivity expectation.

Action-3:

Change behavior patterns.

Action-4:

Build a culture that productivity is a status of system.

Step-5:

Managing Productivity

Action-1:

Build productivity improvement plan.

Action-2:

Organize people for productively Improvement.

Action-3:

Develop people and system.

Action-4:

Develop productivity norm.

The 3 Different Types of Workplaces

1. A 3^rd class workplace: With people throwing rubbish around but none to clean up.
2. A 2^nd class workplace: With people throwing rubbish around and another group of people cleaning up.
3. A 1^st class workplace: Without anybody throwing any rubbish around, and yet everybody is cleaning up.

Some popular Tools for Productivity

Improvement and Management

Productivity through 5S

Japanese Meaning of 5S:

Principles for Creating Awareness to the Establishments of Linking Wages with Productivity

1. High Wages with Low Productivity is Charity.
2. Low wages with High productivity is Exploitation.
3. Low wages with Low Productivity is Suicide.
4. High Wages with High Productivity is Progress and Prosperity.

My name is Machine X

1. I love you because you care for me, Master.
2. Please wash my body and joints regularly before I become dirty and feel itchy.
3. I will whisper to you when I feel uncomfortable. So please listen to me carefully and fix me before I become seriously ill.
4. I like to work hard for you, Master. I also like to live a long life.
5. Master, please understand me a bit more, so that I can enjoy working with you.
6. Thank you for your kind considerations, master.

Importance of 5S

1. A clean workplace is high in Productivity.
2. A clean workplace has high Quality.
3. A clean workplace keeps Cost down.
4. A clean workplace ensures Delivery on time.
5. A clean workplace is Safe for people t work.
6. A clean workplace is high in  Morale.