1. 1 Productivity is a Measure of Performance Individual -- Group -- Organization -- Nation Productivity = Output Inp ut

2. 2 Profitability Effectiveness Efficiency Cycle time Quality Quality of Work life Innovation Utilization Productivity Sink et al. (1984)

3. 3 Objectives -- Goals Method -- Path Achievement Are we really up here? As a manager, what needs to know ?

4. 4 Historical comparison Compared with a base year (Index) Compared with competitors Compared with some certain standards Benchmarking

5. 5 Perspectives of productivity NarrowPerspective B r o a dPerspective Process Input ??

6. 6  Partial Productivity  Multi Factor Productivity  Normative Performance  Multi Criteria Performance

7. 7 Productivity = Output Inp ut Labor Productivity Capital Productivity PROs CONs VS “Capital-labor substitution”

8. 8 Consider all output & input at the same time and Convert things to price-based unit Two models Total Productivity Total Factor Productivity

9. 9 Define & Calculate Inputs Define & Calculate Outputs Develop data collection system Total tangible inputs Total Productivity = Total tangible outputs

10. 10 Outputs = Finished goods + WIP + All incomes (such as interests, dividends, rents, etc.) Inputs = Capitals (fixed & working) + Materials + Energy + Human + Other expenses Total tangible inputs Total Productivity = Total tangible outputs PROs CONs VS

11. 11 Work Sheet for Output / Input Collections

12. 12 Output is total gain from operation Value Added = Net sales - Cost of good sold - Outsource services Value Added = Net profit + Salary + Retained earning + Interest + Tax + Rent + Depreciation PROs CONs VS Total Factor Input Total Factor Productivity = Total Value Added

13. 13 Quality Cost Delivery for customers Ethics Environmentfor everyone Safety Moralefor employee สถาบันเพิ่มผลผลิตแห่งชาติ : QCDSMEE

14. 14 Structured group process Delphi Technique Broad view PROs CONs VS

15. 15 PRO s CONs VS Aggregate various measures created by Normative approach in an integrated fashion Develop a new scale (Index) For example: Objectives Matrix, Balanced Scorecard

16. 16 Construction Steps Determine all possible measures Rate the importance of measures Develop overall Performance Index Output is a Family of Measures (a weighted index of performance)

17. 17 Objectives Matrix by Carl G. Thor

18. 18 Accountant Cook Student Lecturer Delivery Boy Home Service

19. 19 Dimensions for classification TD1: Unit of Analysis TD2: Time Frame for Measurement Select the right model

20. 20 WM Ind. Firm Plant Dept Group Indv’l MinHrs Days WkMthQtr Year MF MF MF MC MC MA