2 Outline1. Case Introduction 2. Question Discussion 3. Questions and Answers
3 1. Case Introduction – “Your Garden Gloves” Company Background:Gardening businessEstablished 5 years agoSubstantially business growthEach year 10 new clients and a new employeeCurrently 8 seasonal employees
4 1. Case Introduction – “Your Garden Gloves” Company Background:Assign crew to do tasksCrew size range from 2 to 4 workersLargest job took longer timeTake a investigation
5 Average Productivity per Crew 2. Question DiscussionQuestion 1Which crew size had the highest productivity? Which crew size had the lowest productivity? What are some possible explanations for these results?Crew SizeAverage Productivity per Crew24,234 square feet per day35,352 square feet per day47,860 square feet per day
6 Average Productivity per Crew Productivity Ratios𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦= 𝑂𝑢𝑡𝑝𝑢𝑡 𝐼𝑛𝑝𝑢𝑡 = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 𝑝𝑒𝑟 𝐶𝑟𝑒𝑤 𝐶𝑟𝑒𝑤 𝑆𝑖𝑧𝑒Productivity ratiosCrew SizeAverage Productivity per CrewProductivity Ratio24,234 square feet per day2,117 ↑35,352 square feet per day1,784 ↓47,860 square feet per day1,965 →
7 Explanation Productivity Ratios Productivity ParadoxNew workers(Grouping of employees with different experience level)2. Quality of tools
8 2. Question Discussion Question 2 After a recent storm, a customer called in a panic, saying that she had planned a garden party for the upcoming weekend and her garden was shambles. The owner decided to send a crew of four workers, even though a two-worker crew would have a higher productivity. Explain the rationale for this decision.
9 PrioritizationCritical activity with high importance and urgency
10 Average Productivity per Crew Rational ExplanationTime pressure4 people have the highest total output per day4 workers should complete the work asapCrew SizeAverage Productivity per CrewProductivity Ratio24,234 square feet per day ↓2,117 ↑35,352 square feet per day →1,784 ↓47,860 square feet per day ↑1,965 →
11 Illustration Assumption: Garden size 20,000 square feet Case 1 Case 2 Crew size 24,234 ft²/dayDuration: 4.7 daysCase 2Crew size 47,860 ft²/dayDuration: 2.5 days
12 2. Question Discussion Question 3 What is a possible qualitative issue that may very well influence productivity levels that the productivity ratios fail to take into account?
13 Qualitative Issues 1. New company: Founded only 5 years ago Low employee loyaltySolutions:Offer long-term contractsProvide a career pathDevelop relationships
14 Qualitative Issues 2. Seasonal work: (weather conditions, location) 6 month operating timeNo continuous work flow through the whole yearEmployees may look for permanent jobs → drop outs
15 Qualitative Issues 3. Standardization: Standardized processes increase the productivity level of employeesSolution: Introduction of standard operation proceduresIn long term, employees may feel less motivated and reduce productivity levelSolution: Assign different tasks from time to time
16 Qualitative Issues 4. Incentive plans that reward productivity can increase productivityProductivity level influenced by structural division between management and laborGoal: Willingness that workers give their bestSolution: Performance related wages
17 Qualitative Issues 5. Experience of workers Employees with longer experience have usually a higher productivity level than less experienced workers6. Quality of toolsHas an impact of the productivity level