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Productivity Challenge in Organisations
Productivity is the ratio of outputs (goods and services) divided by the inputs (resources: labour, capital and services). It is one of the prime functions of the operations manager to increase productivity.
There are two ways to achieve and improve:
Productivity therefore tends to be used as a measure of the efficiency with which the resources employed by the organisation (ie human resources, materials or capital resources) are converted into the goods or services sold by the company. Increasing organisational efficiency, in terms of improving the output achieved for a similar input, is the most common way in which productivity will be raised.
) A time study analyst observes a worker over a period of time and calculates that the worker required 90.0 minutes per unit produced. The worker was rated at a 105 percent perfor
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