Productivity of white-collar worker is no less important than that of direct labor or manufacturing employees. Indeed, in terms of numbers and expense, non-production employees outnumber production employees by a wide margin. Yet the problem of measurement of output is more elusive. Measuring the units assembled per man-hour is not too difficult, but how many reports should an accountant prepare, not to mention the most difficult of all measure–managerial productivity. (more…)
January 15, 2010
September 12, 2008
Some questions about relationship of quality and productivity
Are productivity and quality related?
Are they two sides of the coin?
Can you have both?
The answer is YES
The productivity has come to mean more output for the same or less cost. Productivity has become a tactical short-term approach associated with the cost reduction, greater efficiency, better use of resources, and organizational restructuring.
Some misconceptions about relations of productivity and quality
Despite a growing body of evidence that indicates a positive correlation, the misconception exists that productivity and cost must be sacrificed if quality is to improve.
There may be some justification for the belief that increased quality means decreased productivity, but it seems to be the view of those who rank production ahead of quality as a top priority.
It is argued that a program to improve quality causes disruptions and delay result in reduced output
Reengineering/Business Process Reengineering
According to the authors of the book, “Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed.
Reengineering is done by analyzing and redesigning of workflow within and between enterprises. engineering reached its heyday in the early 1990’s when Michael Hammer and James Champy published their best-selling book, “Reengineering the Corporation”
The authors promoted the idea that sometimes radical redesign and reorganization of an enterprise (wiping the slate clean) was necessary to lower costs and increase quality of service. (more…)