Applications of Productivity Technique The productivity technique concepts can be applied to all the functional areas without exception Functional Areas IT Materials Production Marketing Finance Personnel JIT Purchasing Materials Management and Control Inventory Models Operation Research Method Study Plant Layout JIT Production Accuracy of Demand Forecasting Servicing Speed and Effectiveness Product Mix OTIF Competitor’s Analysis (Value) Reduce Working Capital Requirements Reduction in Inventory Training Working Environment Work Satisfaction Attrition Reduction Job Evaluation Job Enrichment Management Information Service ERP MRP

Causes of Poor Productivity Lack of Productivity Measures Faulty Appraisal System Complex Organization Low Employee Involvement Organizational Expansion Improper Production Planning Human Conflicts Lack of training and education Legislative Instructions Technological Changes Specialized Processes Lack of latest information Idle Time

Sumanth’s Five Pronged Approach to Productivity Improvement Technology Based Employee Based Product Based Task Based Material Based CAD TQM VE Work Measurement Inventory Control CAM Financial Incentives Product Diversification Job Design Supply Chain Management Integrated CAM Fringe Benefits Product Standardization PPC Quality Assurance Control Robotics Education and Training Research and Development Material Handling Energy Conservation Technology Learning Curve Benchmarking and Emulation Material Recycling Flexible Manufacturing System Ergonomics Advertising and sales promotion JIT Manufacturing and Purchasing Time Management

ILO Approach to Productivity Improvement A1. Bad Design of Product A2. Lack of Standardisation A3. Incorrect Quality Standards A4. Excess Materials B1. Wrong Machine B2. Process Not Operated Correctly B3. Wrong Tools B4. Bad Layout B5. Operator’s Bad Working Methods Basic Work Content Total Work Content of the Product Work Content added by defects in design of the product Work Content added by inefficient methods of operation Total Work Content Classic ILO APPROACH was Task Based Ineffective Time Work Content due to the product and processes

Hard Factors of Production The tangible factors of production are known as the hard factors of production Design of Machines In proper condition for the material to be processed as well as the jobs to be performed Correct use of Machines Usage of right machines for the right job gives better productivity on the machine as well as better quality Proper Maintenance To keep machines in running condition one needs to properly maintain the machines Raw Materials Raw materials need to be checked as per standard specification to enable smooth processing on the m/c Wage Bill and Conversion Cost Comparable to the industry and if feasible should be lower than the compensation Should be as per organizations technical and manufacturing capability so as to attain the highest level of productivity and efficiency in manufacturing and the product quality should be as good as the best in the market Design of the products

Soft Factors of Production The soft factors of production are those related to the work force Employee Morale Has a direct effect on the productivity of a firm,along with better quality of the product Workers Participation Participation of workers in problem solving or quality improvement activities like Kaizen Gemba and Quality Circles Enhanced worker involvement Increases profits for the organization by reduction in wastages and rejections Mention about Toyota..Gurukul Incentive schemes Fair wages and incentive schemes rewarding good performance act as an impetus for higher productivity Self Motivated Self motivated work force gives the best all round performance in an organization Solving problems on their own and keep on continuously improving their performance Innovative workforce

Reference Book/Page No. 5S and 7 types of Waste –Gemba Kaizen by Masaaki Imai Chapter Five: 65-93

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