Assessment of Productivity

In: Business and Management

Submitted By rsbara
Words 16307
Pages 66
Assessment of Productivity At Exotic Design Company Limited

Presented by:

In partial fulfillment of the course Bsc (Hons) Management

University of Mauritius

[pic]

Faculty of Law and Management

Submission date: March 2009 TABLE OF CONTENTS Page Numbers

List of Tables v List of Figures vi Acknowledgement viii Declaration Form Dedication Abstract ix List of Abbreviations x

Chapter One: Introduction 1.1 Introduction 1 1.2 Company Profile 1 1.3 Background of the Research 3 1.4 Problem Statement 4 1.5 Research Objectives 4 1.6 Research Questions 5 1.7 Aims of the Study 5 1.8 Significance of the Research 5 1.9 Phases of the Dissertation 6 1.10 Conclusion 7

Chapter Two: Literature Review 2.1 Introduction 8 2.2 Concept of Productivity 8 2.2.1 What is Productivity? 9 2.2.2 Importance of Productivity 11 2.2.3 Measurement of Productivity 11 2.3 Productivity Improvement 13 2.3.1 Productivity Improvement Factors 14 2.3.1.1 Internal Factors 15 2.3.1.1.1 Hard Factors 16 2.3.1.1.2 Soft Factors 17 2.4 Factors Affecting Productivity 19 2.5 Productivity Improvement Techniques 20 2.5.1 Work Study 20 2.5.1.1 Method Study 21 2.5.1.2 Work Measurement 21 2.5.1.2.1 Time Study 22 2.5.2 Work Simplification 22 2.5.3 Material Handling 23 2.5.4 Pareto Analysis 23…...

Similar Documents

Incentives and Productivity

...Incentives and Productivity Karen N. Chavis BUS 642 Instructor: Ruizhen Hardin October 15, 2012 Incentives and Productivity Background and Introduction Over the past several years, I have been employed by two companies that specialize in healthcare revenue cycle management. My particular job function focuses on eligibility for benefits. On a small-scale level, I work with patients who are uninsured to determine what type of benefits they may be eligible for to pay their hospital bills. On a larger scale, my job helps generate revenue for the hospital at which I am stationed. It also helps reduce the hospital’s allowance for bad debt, which in turn makes the hospital look more profitable to the corporation who owns us as well as potential investors. Although I have performed the same job function for both companies, the methods of management and motivation employed by these companies have been drastically different. One difference that I found particularly interesting was the utilization of incentives as a motivational tool. Generally the term “incentive” refers to “outcomes of value that are provided to employees based on their levels of performance,” (Pritchard, 2004). The first eligibility organization that I was employed by did not offer incentives, but the company that I currently work for does. Every month that we generate revenue above our goal, a certain percentage of that revenue is returned to us in a bonus. This policy has led me to wonder if......

Words: 1212 - Pages: 5

Productivity

.... From your knowledge of restaurants and from the case itself, identify how each of the 10 decisions of operations management (from PowerPoint 1) is applied at Hard Rock Cafe. 2. How would you determine the productivity of the kitchen staff and wait staff at Hard Rock? Hard Rock Café is a chain of theme restaurants that was founded in 1971 by Peter Morton and Isaac Tigrett. After the café started covering its restaurant walls with rock ‘n’ roll memorabilia by 1979 it became a tradition that would expand quickly on to other chains throughout the Nation. In 2006, Hard Rock Café was sold to Seminole Tribe of Florida and its largest café and headquarters is now located in Orlando, Florida. There are currently 149 Hard Rock Café locations in 53 countries. The Hard Rock Café has brought the concept of the 'experience economy' to its cafe operation. The innovation is similar to mass customizing in manufacturing. At the Hard Rock Café, the experience concept is not to just offer a custom meal from their menu, but to a customer’s dining event that includes a distinctive visual and sound that cannot be experienced and/or replicated anywhere else. The Hard Rock Café has had a very high brand of recognition percentage throughout the world because of its operations management. Its decisions of operational management consist of the Service and Product Design; Quality; Process and Capacity Design; Location; Layout Design; Human Resource; Supply Chain Management; Inventory;...

Words: 829 - Pages: 4

Productivity

...Productivity One primary responsibility of a manager is to achieve productive use of an organization’s resources. The term productivity is used to describe this. Productivity is an index that measures output (goods and services) relative to the input (labor, materials, energy, and other resources) used to produce it. It is usually expressed as the ratio of output to input. Although productivity is important for all business organizations, it is particularly important for organizations that use a strategy of low cost, because the higher the productivity, the lower the cost of the output. A productivity ratio can be computed for a single operation, a department, an organization, or an entire country. In business organizations, productivity ratios are used for planning workforce requirements, scheduling equipment, financial analysis, and other important tasks. Productivity has important implications for business organizations and for entire nations. In nonprofit organizations, higher productivity means lower costs; for profit-based organizations, productivity is an important factor in determining how competitive a company is. In the case of a nation, the rate of productivity growth is of great importance. Productivity growth is the increase in productivity from one period to the next relative to the productivity in the preceding period. Service productivity is more problematic than manufacturing productivity. In......

Words: 1386 - Pages: 6

Productivity

...1. To me, productivity is how efficient that you can be with the tasks that you do. 2. The book defines productivity as a measure of performance that indicates how many inputs it takes to produce or create an output. The fewer inputs it takes to create an output, the higher the productivity. 3. For me, I try to keep myself motivated by thinking about what I will have accomplished at the end of my tasks, or the reward that I will obtain. I like to use helpful mental reminders of why I was doing that tasks in the first place. For example every time I feel like giving up on school I remind myself that doing this will help me get a better life in the future. Or maybe I will say to myself just get this work done so that I can go out with my friends. When I am having difficulties at work either will someone that I work with or a hard task I just like to remind myself I do it so that I can save money for school and so I can have a better life. 4. ISO is the International Organization for Standardization and they are an organization that helps set up standards for 151 countries. The purpose of this agency is to develop and publish standards that facilitate the international exchange of goods and services. 5. TQM is the Total quality management and is an integrated organization-wide strategy for improving product and service quality. It is not a specific tool but a philosophy or overall approach to management that is characterized by three principles: customer focus,......

Words: 543 - Pages: 3

Labor Productivity

...National Bureau of Economic Research, the start of this last recession was in the December of 2007 and ended in June of 2009 (The Greek, 2010). Many Economists point towards the failure of the banking system and an overload on bad loans that caused the financial meltdown, affecting the rest of the Economy. Whatever the cause of the recession, the effects are clear to see. Labor productivity in durable goods, non-durable goods, and retail have been negatively affected. This paper provides a look at the drop in productivity of the American worker. The statistics for this paper is mainly provided by the Federal Bureau of Labor Statistics (BLS). In this paper, and according to the BLS, labor productivity is measured by the output of goods and services produced per hour. Additional inputs from experts in each industry’s field will explain the direct causes of lower productivity. The baseline reference used in this paper comes from the BLS's change in labor productivity studies from the years 2006 to 2007, 2007 to 2008 and 2008 to 2009. The productivities of goods used in measuring labor productivity are wholesale trade goods and retail trade goods. Wholesale trade goods consist of durable and non-durable goods. Durable goods include such items as vehicles, vehicle parts, furniture, lumber, construction supplies, commercial equipment, metals and minerals, and other miscellaneous durable goods. Non-durable goods items include paper products, chemicals, farm products,......

Words: 3081 - Pages: 13

Productivity

...increased demand of uniforms and is experiencing huge back logs as a result. For manufacturing companies the centre of everything is the production function, thus proper management of this function is of paramount importance. There are two ways of increasing the amount of uniforms produced; either employ more people or increase productivity to meet the increased demand. The later will be the focus of this study, whereby more uniforms will be produced as much as possible with a given set of resources. This is basically what productivity is about. Productivity can be measured against several factors. These factors spread through out the company’s inputs and other resources. Examples can here be given as labour, material resource input, capital and space. There are other implicit factors from which productivity can be derived which are sufficiently indicative of the company with regards to resource utilisation. The interest in the increase in productivity stems from the fact that is associated with various benefits. World wide increases in productivity have far reaching results, and as a result everyone is seeking to attain high productivity levels. A highly productive economy has a bearing on the standard of living achieved in a country. The greater the amount of goods and services produced in any community, the higher its average standard of living will be. 1.2 Statement of the problem. Clothing company output is failing to meet demand, as......

Words: 1329 - Pages: 6

Productivity

...process. He believes that he can buy a better quality raw cotton, which will enable him to produce 1200 square yards per ton of raw cotton with the same labor hours. What will be the impact on productivity (measured in square yards per labor-hour) if he purchases the higher quality raw cotton? Productivity improves 20% = ( 240 - 200 ) / 200 = .2 Productivity improves 20% = ( 240 - 200 ) / 200 = .2 Solution Problem #2 Joanna French is currently working a total of 12 hours per day to produce 240 dolls. She thinks that by changing the paint used for the facial features and fingernails that she can increase her rate to 360 dolls per day. Total material cost for each doll is approximately $3.50; she has to invest $20 in the necessary supplies (expendables) per day; energy costs are assumed to be only $4.00 per day; and she thinks she should be making $10 per hour for her time. Viewing this from a total (multifactor) productivity perspective, what is her productivity at present and with the new paint? Solution Currently | Using the new paint | Labor | 12 hrs * $10 | = $120 | 12 hrs * $10 | = $ 120 | Material | 240 * $3.50 | = $840 | 360 * $3.50 | = $1260 | Supplies |   | = $ 20 |   | = $ 20 | Energy |   | = $ 4 |   | = $ 4 | Total Inputs |   | = $984 |   | = $1404 | Productivity | 240/984 | = 0.24 | 360/1404 | = .26 | ...

Words: 268 - Pages: 2

Task Productivity

...Introduction Management Information System (MIS) enables small business organization to focus on solving business problems and creating new opportunity with technology. In his article titled “The impact of Management Information System effectiveness on task productivity”, Trivellas explains that “management information system (MIS) is the basic tool to support planning and controlling functions of the managers in small business organization” (2013). He states that MIS touches almost all areas of business, such as manufacturing, accounting & finance, human resource and marketing. Trivellas conducted a survey to investigate the impact of MIS in small business sector such as banking. According to his survey, MIS provides necessary information for managers so that they can able to monitor the organization’s activities and make important decisions accordingly. On the other hand, many other authors state that while MIS provides several benefits to the organization, Trivellas fails to mention the issues and the challenges associated with implementing the MIS technology. The authors find that installing MIS can be expensive for small business organization. The organization should create a separate budget to ensure that the system is current. Trivellas ignore the fact that maintenance of the system is another issue that comes along with installing MIS. Companies should hire someone to keep the system operating effectively. This increases labor cost. Moreover,......

Words: 2382 - Pages: 10

Productivity

...Why is productivity important for a nation? Productivity growth is a crucial source of growth in living standards. Productivity growth means more value is added in production and this means more income is available to be distributed. It also provides the discretionary income necessary to finance social/environment programs.  With higher productivity growth, it helps improve the outlook for all of these issues.  It helps keep inflation in check and makes it easier for American businesses and workers to compete. It also raises the standards of living, and reduces the difficulty of meeting long –run demographic challenges by increasing the total amount of resources available.  Productivity in a nation is a reflection of what both domestic and foreign firms choose to do in that location.  According to Stevenson (2009) states “productivity levels are also important for industries and companies.  For companies, a higher productivity relative to their competitors gives them a competitive advantage, in the market place.  With a higher productivity, they can afford to undercut competitor’s prices to gain market share, or charge the same prices but realize greater profits.  For an industry, higher relative productivity means it is less likely to be supplanted by foreign industry”.   Why do you suppose that service jobs have a lower productivity than manufacturing jobs? Service jobs have lower productivity than manufacturing jobs.  Because services represent an increasing share......

Words: 1149 - Pages: 5

Trend Productivity

...Question: Discuss the trend productivity in all sectors in Malaysia. In Malaysia, basically there are four main sectors which is the services sector, the manufacturing sector, the agriculture sector, and the construction sector. The Malaysia’s labor productivity as measured by real added value per employee in 2014 improved by 3.5% at RM61,708 from RM59,622 in 2013. The growth in productivity was a contributing factor to the higher growth in Gross Domestic Product (GDP) at 6.0%. Trend Productivity in Services Sector Labor productivity within the services sector grew at 2.2% to RM63,897 per employee in 2014, compared with RM62,492 per employee in 2013. Most sub-sectors recorded higher productivity growth, although declines were recorded in accommodation and food and beverage service activities, information and communication (ICT), financial and insurance/takaful activities and real estate and business services. Despite its key role as the largest contributor to GDP in the Malaysian economy, the services sector has much to do before it can become the primary driver of future job creation and productivity growth. At the international level, the productivity of Malaysia’s services sector lags far behind other countries. Apart from that, one of the challenges facing Malaysia’s services sector is that it has failed to successfully diversify into export-oriented sub-sectors such as financial and ICT services. Trend Productivity in Manufacturing Sector As the country progresses......

Words: 943 - Pages: 4

Productivity

...Week 1 DQ 1 Why Productivity Matters It is sometimes easy to overlook the importance of productivity. National figures are often reported in the media. They may seem to be ho-hum; there’s nothing glamorous about them to get our attention. But make no mistake; they are key economic indicators—barometer, if you will, that affect everybody. How? High productivity and high standard of living go hand-in-hand. If a country becomes more service-based, as the United States has become, some (but not all) high-productivity manufacturing jobs are replaced by lower-productivity service jobs. That makes it more difficult to support a high standard of living. Productivity levels are also important for industries and companies. For companies, a higher productivity relative to their competitors gives them a competitive advantage in the marketplace. With a higher productivity, they can afford to undercut competitors’ prices to gain market share, or charge the same prices but realized greater profits? For an industry, higher relative productivity means it is less likely to be supplanted by foreign industry.  1. Why is high productivity important for a nation? 2. Why do you suppose that service jobs have lower productivity than manufacturing jobs? 3. How can a company gain a competitive advantage by having higher productivity than its competitors have?  Answer questions 1 to 3 in 200 words. Respond to at least two of your classmates’ postings. Businesses stays on......

Words: 724 - Pages: 3

Productivity

...www.thetimes100.co.uk Using research and development to improve agricultural productivity Introduction The population of the Earth is growing at a fast pace. In 1950, 2 billion humans lived on the planet. By 2006, this had increased to 6.5 billion and by 2025, the world’s population is expected to reach 8 billion people. This growth in population is expected to be in urban areas, not rural. This leads to a higher calorie demand per person associated with dietary changes. It puts a heavy burden upon the world’s limited resources and further increases pressure on rural communities in the struggle to increase agricultural productivity. In 1960 one hectare of agricultural land was required to grow food to feed two people. By 1995 one hectare was required to feed four people and by 2025 the same area will need to feed five people. Feeding this growing demand requires sustainable solutions for agriculture across the world. This involves balancing the need to produce food with concerns for the environment. Sustainability is a ‘virtuous circle’. If agriculture uses sustainable solutions it will be able to meet the needs of future generations and become the type of farming which future generations want to inherit. As sustainable businesses grow, they develop better methods and solutions to support farmers and growers around the world. Both communities and businesses benefit and local economies grow. CURRICULUM TOPICS • Research and development • Market and product orientation......

Words: 2050 - Pages: 9

Productivity Measurement

...Productivity measurement Productivity is a measure of output from a production process per unit of input. Productivity is a measure of the effective use of resources, usually expressed as the ratio of output to input. Productivity is the value of outputs produced (Goods & Services) divided y the value of input resources. It is the quantitative relationship between what we produced and the resources used. So in shortly we can say: Productivity = [pic] In general sense productivity is an economic measure of efficiency that summarizes the value of outputs relative to the value of inputs used to create them. In economic sense, productivity is a measure of production output per unit of production input. This refers, to the ratio of output and input in the production process. Importance of Productivity 1. Productivity is an important device for comparison of performance for various organizations. 2. Productivity increases the rate of low cost per unit and results in lower price. 3. Education, Research and Development, technology are positively correlated to productivity 4. reduction of poverty 5. It helps companies in measuring their strength and weakness. 6. it helps to know the contribution of different input factor used in conversion process 7. it is an indicator of how well the factors the production are utilized 8. it is an indicator of competitive position of an organization 9. it partially determines the......

Words: 3061 - Pages: 13

Productivity

...Workshop One: Productivity Juan Gonzalez Ana G. Mendez University MANA-340 Professor: Ramon Rondon 07/24/12 Table of Content: 1. Introduction. 2. Productivity definition. 3. How to measure productivity. 4. Labor productivity of employees vs. managerial productivity 5. Conclusion. Introduction: By way of introduction of this subject is to understand how we define productivity, how we measure it according to the efficiency in the making process, and factors which influence to increase it according to that goal that are pursue for its wide application spectrum. The objective of this research is focused on reaching an answer in which can be shown that labor productivity is essential, but productivity management is the key to the productive development of any industry. The concept of productivity is seem as a factor that determine the efficiency of an individual, equipment, industry, system, etc. to convert efforts and participation into useful amount produced. Productivity is measured dividing average of amount produced per period by the total costs of resources like capital, personal, materials and energy implemented in a period of time that determine the cost efficiency. We have to develop strategies that would improve productivity of the employees at the workplace. Some factors influence in the employee productivity which are: Accountability, which mean that each employee is responsible for their actions and decisions that......

Words: 760 - Pages: 4

Productivity Measurement

...Productivity measurement Productivity is a measure of output from a production process per unit of input. Productivity is a measure of the effective use of resources, usually expressed as the ratio of output to input. Productivity is the value of outputs produced (Goods & Services) divided y the value of input resources. It is the quantitative relationship between what we produced and the resources used. So in shortly we can say: Productivity = In general sense productivity is an economic measure of efficiency that summarizes the value of outputs relative to the value of inputs used to create them. In economic sense, productivity is a measure of production output per unit of production input. This refers, to the ratio of output and input in the production process. Importance of Productivity 1. Productivity is an important device for comparison of performance for various organizations. 2. Productivity increases the rate of low cost per unit and results in lower price. 3. Education, Research and Development, technology are positively correlated to productivity 4. reduction of poverty 5. It helps companies in measuring their strength and weakness. 6. it helps to know the contribution of different input factor used in conversion process 7. it is an indicator of how well the factors the production are utilized 8. it is an indicator of competitive position of an organization 9. it partially determines the peoples standard of living within a......

Words: 3053 - Pages: 13