1. Productivity Engg & Management
By Engr Dr. Ali Sajid
Special Presentation for
Pakistan Engineering Council
Leadership & Management
Development Associates (LMDA)
28 Jan, 2009
Tel: (off)

2. By Enhancing capacity of Engineers
LMDA
A vision to make
Pakistani Industry
More Competitive
By Enhancing capacity of Engineers

3. "Don't curse the darkness -- light a candle."
Shakwa a Zulmat Shab
"Don't curse the darkness -- light a candle."
Chinese proverb.

4. “The will to win, the desire to succeed, the urge to reach your full potentials are the keys to unlock the doors to the personal excellence” Confucius

5. - this was his entire speech.
Commencement address by Sir Winston Churchill at a graduation ceremony: "Never give up. Never give up. Never, never, never."
- this was his entire speech.

6. Good Mgmt
Good management consists of showing average people how to do the work of superior people."
(John D Rockerfeller, , US oil magnate and philanthropist.

7. "Difficulty is not an obstacle, it is merely an attribute".

8. "The stone age didn't end because they ran out of stones."

9. Start viewing the probable as possible
Start viewing the probable as possible. You'll be surprised at what you can accomplish.

10. All this will not be finished in the first one hundred days
All this will not be finished in the first one hundred days. Nor will it be finished in the first thousand days, nor in the life of this administration, nor even perhaps in our lifetime on this planet. But let us begin. - John F. Kennedy

11. The best & most beautiful things in the world cannot be seen or even touched.
They must be felt
with the heart.

12. Self-actualized people are independent of the good opinion of others
Self-actualized people are independent of the good opinion of others. - Wayne Dyer

13. The greatest discovery of our generation is that a human being can alter his life by altering his attitudes. - William James

14. Nature present us with an infinite variety of Attitudes - from gloomy mist to glorious sunshine. Our own moods, whether gloomy or bright, radiate to those around us.

15. We may affirm absolutely that nothing great in the world has ever been accomplished without passion. - George Hegel

16. Two Parts of Empathy:
Skill (tip of iceberg)
& Attitude
(mass of the iceberg).

17. Eighty percent of success is related to ATTITUDE rather than competency.

18. Your attitude determines
your altitude.

19. Pride is a personal commitment; it is an attitude which separates excellence from mediocrity.

20. Attitude is a little thing that makes a big difference.

21. Logic will not change an emotion,
Action
Logic will not change an emotion,
but action will.

22. The difference between a successful person and others is not a
“Lack of Strength”, not a
“Lack of Knowledge”,
but rather in a
“Lack of Will”.

23. The mold of a man's fortune
is in his own hands. - Francis Bacon

24. Passion
We may affirm absolutely that nothing great in the world has been accomplished without passion. - Georg Wilhelm Friedrich Hegel

25. If you do not believe in yourself ...
chances are nobody
else will.

26. You can have a positive attitude without talent and you can have talent without a positive attitude, but things really start happening when you have a positive attitude combined with talent.

27. To be conscious that you are ignorant is a great step to knowledge
To be conscious that you are ignorant is a great step to knowledge. - Benjamin Disraeli

28. Leaders Are … in a Hurry

29. Whatever is flexible ….will grow;
Flexibility
Whatever is flexible ….will grow;
what ever is rigid
& blocked
will die
Lao Tzu

30. Goodness “Goodness is the Only Investment that
Never Fails”
Henry David

31. Proj Mgmt Good Practices
"I Praise Loudly.
Blame Softly."
(Catherine The Great, )

32. “Nothing can stop man with “Right Mental Attitude”
Attitude in Projects
“Nothing can stop man with “Right Mental Attitude”
from achieving his goals:
Nothing on earth
can help man with
“Wrong Mental Attitude”
- Thomas Jefferson

33. Importance of Ethics in Org
In law, a man is guilty
when he violates the
right of another.
In Ethics, he is guilty,
if only he thinks
of doing so
Immanuel Kant

34. Personal Integrity in Org
I look for three things in hiring People.
The first is Personal Integrity,
Second is Intelligence
Third is a High Energy Level.
But if you don’t have the first,
other two will kill you.
Warren Buffett,
CEO Berkshire Hathaway

35. Rethinking in Industry
The complacent company
is a dead company.
Success today requires
“The Agility &
“Drive to Constantly Rethink,
Reinvigorate,
React, & Reinvent”.
Bill Gates, Chairman Microsoft

36. Never to suffer would never to have been blessed.
Edgar Allan Poe ( ) 36

37. Although the world is full of suffering,
it is full also of the overcoming of it.
Helen Keller ( ) 37

38. To do right is wonderful. To Teach others to “Do the Right”
is even more wonderful –
& much easier. - Mark Twain 38

39. “Self-pity is our Worst enemy & if we yield to it, we can never do
anything wise in
this world”
- Helen Keller 39

40. “Main Means of Influencing” “the only means”. - Albert Einstein
“Setting An Example”
is not the
“Main Means of Influencing”
Others, it is
“the only means”. - Albert Einstein 40

41. Education & Training in PM
"A person who graduated, yesterday & stops studying today
is uneducated tomorrow."

42. Competitiveness
Ability to get customers to choose your product or service over competing alternatives on sustainable basis.

43. Competitiveness-
“Degree to which a country can, under free & fair market conditions, produce goods & services which meet the test of intl’ markets,
while simultaneously maintaining & expanding the real incomes of its people over the long-term“.
OECD

44. Competitiveness
Competitiveness ---- continually sustained increases in productivity resulting in higher wages & living standards --- characterized by increasing export market shares.
Competitiveness ---- demonstrated by "ability to meet, rest of free intl markets while expanding real income."

45. Investment in productive facilities (Factors, R&D, technology)
High
standard of living
Trade
Productivity
(Quality should exist)
Investment in productive facilities
(Factors, R&D, technology)
Competitiveness Pyramid
Source: Based on US Council on Competitiveness, 1995.

46. Competitiveness depends on Productivity
"Standard of living is determined by the productivity of a nation's economy, which is measured by the “Value of goods & services (products) produced per unit of the nation's human, capital &
Natural resources".
Porter & Christensen, Harvard Business School

47. What is Productivity “Ratio between o/p of wealth produced
Ratio of output to input by large number of professionals.
ILO Definition:
“Ratio between o/p of wealth produced
& i/p resources used up in process of production”.
Comparative tool for mgrs, industrial engrs, economists, & politicians.
Contd…

48. Operation Management System
Outputs
Products, services, &
other (pollution)
Inputs
Raw materials, human resources, capital (land, buildings, equipment), technology information.
Feedback
Product/ Service Design & Facilities
Transformation Process
Control Processes

49. Indicators of Competitiveness
Productivity is efficiency with which goods & services are produced & provided.
Determined by previous “investments & by quality & performance of workforce, technological innovation, quality of plant & equipment, & effectiveness” with which these factors of production are utilized.

50. Definition of Productivity
Successful Tech Org create surplus through productive operations.
Productivity, is output-input agreement on true meaning of due consideration for “Quality & Time”.
Productivity = Outputs
Inputs
(within time period, quality considered)

51. Concepts of Productivity
Comparison b/w:
“Quantity of goods or services produced”
& “Quantity of Resources Employed”
in turning out these goods or services.
Stress is on productivity being
Concern of production function only.

52. Relationship b/w output generated by production or service system
& input provided to create this output.
Efficient use of resources –
Labor, capital, land, materials, energy, information –
In production of various goods & services.

53. Concepts of Productivity
“Ratio of o/p to inputs -expanded inputs to include technology besides labor, materials, machine utilization.”
Siegel Considers Productivity as:
“Class conceivable measure depicting output per unit of associated input in sequence of compared period”.

54. Some Recent Attempt to Define Productivity
Mali - Rational departure to define productivity as:
“Productivity is measure of how well resources are brought together in organizations & utilized for accomplishing set of results.
Productivity is reaching higher level of performance with least expenditure of resources”.
Further Elaborates as.
“Productivity is combination of effectiveness & efficiency” & “ Effectiveness related to performance, efficiency to resource utilization”.

55. Some Recent Attempt to Define Productivity
Concept of Productivity Must:
“Serve as a tool in the hands of mgt to take corrective steps for productivity improvement & also should provide ready reference & comparison of performance with performance objectives of org.”
Productivity Perceived as:
“Indicator of how well goals or performance objectives or mission have been achieved.”

56. Concepts of Productivity
Faraday -Productivity as “Ratio of prescribed output to resources”.
Ramsay - Productivity as ratio of output to inputs based on concept of value addition.
Formal definition of productivity:
“Productivity is Optimization (or maximization of economic resources & generation of new resources through creative thinking, research & development, & by use of all possible improvement techniques & methods”.

57. Some Recent Attempt to Define Productivity
“Productivity is measure of how well resources are brought together in organizations & utilized for accomplishing set of results.
Productivity is reaching higher level of performance with least expenditure of resources”.
Further Elaborates as.
“Productivity is combination of effectiveness & efficiency” & “ Effectiveness related to performance, efficiency to resource utilization”.

58. Some Recent Attempt to Define Productivity
Concept of Productivity Must:
“Serve as a tool in the hands of mgt to take corrective steps for productivity improvement & also should provide ready reference & comparison of performance with performance objectives of org.”
Productivity Perceived as:
“Indicator of how well goals or performance objectives or mission have been achieved.”

59. Term ‘Productivity’ encompassed everything, which concerns an org
Term ‘Productivity’ encompassed everything, which concerns an org. Different meaning, definitions, interpretations & concepts emerged as experts working in various fields have looked at it from their own emphasis, perceptions & reference point they have before them.

60. Difference b/w Production & Productivity
Production is concerned with Activity of Producing goods & or services.
Productivity is efficient utilization of resources (inputs) in producing goods or services (outputs).
Production is quantity of output produced.
Productivity is ratio of output produced in input (s) used.

61. Achieving higher output in terms of volume & quality for same input.
Higher productivity means accomplishing more with same amount of resources or
Achieving higher output in terms of volume & quality for same input.

62. Evolution of Productivity Concept in Modern Era
Frederick Taylor: Father of Scientific Mgt
Mech Engr – invented high speed steel cutting tools
Got opportunity to know:
First Hand Problems & Attitude of Workers.
“Major Concern”
To increase efficiency in production,
to lower cost,
Raise profits through higher productivity,
possible increase in pay.
To be Contd.

63. “Concept of Economic Man”, - worker is motivated primarily by economic gain & o/p maximized only thru financial incentives.
Differential Piece-Rate system, - workers receive higher rate of pay per piece produced after a fix number.

64. Taylor’s Message of Productivity
Various pay plans based on output for “surplus”.
Give People their best opportunity to be productive, reward workers for individual productivity.
Increase labor productivity not possible w/o:
a) Providing ample reward,
b) Adequate training,
C) or Managerial help.
Careful advance Planning by Manager
Managers to design work systems for
worker to do their best.

65. Fredrick Concluded: “Low Productivity is matter of ignorance on part of “Labor & Mgt”. Ignorance? “Fair day’s work” & “Fair day pay” Not enough inc in surplus to get more compensation. Productivity enhancement – answer to hi wages/profits.

66. Problem faced in LDC is problem not of underdevelopment but rather of under mgt. Actually productivity is most serious challenge confronting mgt. Peter Drucker

67. Productivity can be improved:
Contd…
Productivity can be improved:
1. By increasing outputs to with same inputs.
2. By decreasing inputs but maintaining same output
3. By increasing outputs & decreasing inputs to change ratio favorably.

68. Productivity-Manager’s Perspective
Use accounting ratios in achieving objectives of general mgt, which is usually interested in productivity measures that enable it to easily assess the present profitability of the company.

69. Productivity-Engineer’s Perspective
Seek measures of Physical assets & other resources, such as
“Production per hr.,
man hrs. per unit,
material requirements per unit,
machine utilization,
and space utilization”,
but they may fail to relate these to overall productivity.

70. Productivity- Behaviorist’s Perspective
View productivity of people in organization, in terms of “time they spend at work vs. total time available”.
A misleading measure.

71. Productivity-Accountant’s Perspective
Costing & budgeting approach to productivity.
When budget figures, rather than optimum achievable values, are used as standards,
Could be a false impression of high productivity.

72. Productivity-Economist’s Perspective
Partial measures, such as Labor productivity, Primary measures employed by economists.
Total Factor & total productivity measures proposed, but again definitions do not agree.

73. Misunderstanding about Productivity Myth # 1
Profitability is Measure of Productivity.
Profit – Difference of some calculation of output value & some calculation of input costs.
Function of several factors:-
Status of demand & supply:
Value of output:-
Value of output can rise because of hi market prices resulting from more aggressive marketing, improved quality of product, influence with buyers.
c) Input Costs:-

74. Company may raise profit by:
Profit is not solely result of increased production efficiency. At expense of the LT objectives, it can be obtained by curtailing:
(a) Training / HRD, (b) Maintenance, (c) Advertisement. (d) SHE (e) QWL (f) BMR
Company may raise profit by:
(a) Production building monopoly power,
(b) Bribing purchasing agents,
(c) Hypnotizing consumers,
(d) Undermining a union or getting public subsidy. /export rebate
Conclusion : Profitability can not be equated with productivity.

75. When you increase Quality,
Myth # 2
When you increase Quality,
You decrease Productivity as Cost of Input increases.
Quality & productivity go hand in hand
Deming circle
Quality is a specific dimension of productivity.
A high productivity is not outcome of lowered specifications of products manufactured or services rendered.

76. Quality & Productivity Go Together

77. Productivity & Managerial Performance
Productivity is a summary measure of the quantity & quality of work performance, with resource utilization considered.
It can be measured at the individual, group, or organization level.

78. THE QUALITY PRODUCTIVITY RELATION SHIP
Less
Re-Work
More
Productivity
Lesson
Re-work
Improve
Quality
Contd…

79. Deming’s Chain Reaction
COST DECREASE
BECAUSE OF LESS
REWORK, FEWER
DELAYS, BETTER
USE OF RESOURCES
Improve Quality
PRODUCTIVITY
IMPROVES
CAPTURE MORE
BUSINESS WITH
BETTER QUALITY
AND LOWER PRICE
Less Production COST
JOBS, MORE PROFIT
STAY IN
BUSINESS

80. Quality is All Consuming Focus
Deming’s Chain Reaction
Improve
quality
Decrease
costs
Improve
productivity
Decrease
prices
Increase
market
Stay in
business
Provide jobs
& more jobs
Return on
investment
Org which seeks to decrease costs, improve productivity, decrease prices, increase market share & increase return on investment - without first building quality into systems – is gambling its long-term survival for short-term advantage.

81. Positive Relationship b/w Quality & Productivity
Reduced productivity is caused by quality defects, rework, & scrap.
“Improvement of quality transfers waste of man hours & of machine time into manufacture of good products & better service”.
(Dr. Edward Deming)

82. Positive Relationship Between Quality & Productivity
Reduced productivity is caused by “Quality Defects, Rework, & Scrap.
“Improvement of quality transfers waste of man hours & of machine time into manufacture of good products & better service”.
(Dr. Edward Deming)
Contd…

83. Certain “hidden” & “Non-productive Plant exists to rework & repair defects & returns, & if quality is improved, this hidden plant would be available for increased productivity.
Any Quality Improvement that reduces defects - improvement in productivity.
Same can be said, for services & for those firms in services businesses. Cost of quality improvement rarely exceeds savings from increased productivity.
(Feigenbaum)
Contd…

84. Myth # 3 Productivity Can Be Judged by Output
Output may be rising without increase in productivity e.g. input cost risen, disproportionately
Increase in o/p compared with last year should also consider like price hike/inflation.
Such an approach is result of being process oriented at the expense of paying attention to final results.

85. Productivity is Applied only in Manufacturing & Production alone.
Myth # 4
Productivity is Applied only in Manufacturing & Production alone.

86. Myth # 5 Cost cutting always improves productivity
When done in an indiscriminately make matters worse in long run
Cut on info Tech use, Ban on Training etc.

87. Productivity is “Labour Efficiency or Labour Productivity
Myth # 6
Productivity is “Labour Efficiency or Labour Productivity
False assumption - single factor productivity analysis.
, UK Productivity in Agri Labor :
Rose to 60% due to breeding, fertilizers sprays, land & tech (yield/hectare also increased)
One Unit of Energy (fertilizer) grew less wheat in 83 than (Surprise)
More appropriate yardstick of efficiency is then yield produced for each monetary unit spent.
Productivity - much more than labour alone & take into account cost of energy, raw material & concern for unemployment / QWL.

88. Myth #7
Productivity improvement requires billions of Rs and millions of trained persons.
Common sense
Short courses/formal train.
Top level commitment
Principles of TQM

89. “Greatest opportunity for increasing productivity is surely to be found in knowledge worker itself, & especially in mgt”.
Peter F. Drucker

90. Financial & social benefits of productivity improvement strategy should be greater than implementation cost, in long run.

91. Definition of Effectiveness & Efficiency
Productivity implies effectiveness & efficiency individual & organizational performance.
Effectiveness-Achievement of Objective.
Efficiency: Achievement of ends
“with least amount of resources”.

92. Efficiency is concerned with means Effectiveness with ends.

93. Efficiency is ratio of actual output attained to standard output
expected. Example
Output of machine is 120 units per
hours while standard rate is 180
pieces per hour, machine's
efficiency is 120/180 = or
66.67 percent.

94. Efficiency Extent of useful output compared to input.
Least amount of resources must be used to achieve useful output.
Wastage reduction.

95. Efficiency -relationship between inputs & outputs and its comparison
Efficiency -relationship between inputs & outputs and its comparison . If you get more output for a given input, you have increased efficiency.
Managers deal with input resources that are scarce money people, equipment they are concerned with the efficient use of these sources.
Mgmt- concerned with minimizing resource costs. (Efficiency).
Mgt concerned with getting activities completed- (effectiveness).
When managers achieve their org goals- effective.

96. Balancing Effectiveness & Efficiency
Effectiveness entails promptly
achieving stated objectives.
Efficiency enters picture when
resources required to achieve an objective
are weighed against what was actually accomplished.
Mgrs are responsible for balancing
effectiveness & efficiency.
Too much emphasis in either
direction leads to mismgt.

97. Efficiency & Effectiveness
Mgt, is concerned with minimizing resource costs w/o chances of failure.
Efficiency is “doing things right”.
Mgt is also concerned with getting activities completed, so it seeks effectiveness.
Effectiveness is:
“Doing right things”
So efficiency is concerned with means & effectiveness with ends.

98. extremely inefficient.
It is easier to be effective if one ignores efficiency. Some Production org- reasonably effective
but
extremely inefficient.
They get their jobs done, but at a very high cost.

99. By doing wrong thing well !
Mgt in Engg Org must be concerned, then not only with
Getting activities completed (effectiveness),
but also with doing so as
Efficiently as possible.
Can organizations be efficient & yet not effective?
Yes,
By doing wrong thing well !

100. Management Seeks Efficiency & EffectivenessO A L T I N M E
Ends: Effectiveness R S U C
Means:
Efficiency
Goals
High
attainment
Low
Waste

101. Effectiveness/Efficiency Peter Drucker
Doing things right
Effectiveness
Doing the right thing

102. Productivity Index = Output Obtained Input expended. = Effectiveness
Productivity Index = Output Obtained Input expended = Effectiveness Efficiency Productivity Index= f (Effectiveness) F (Efficiency)
Performance achieved
Resource consumed

103. Efficiency & effectiveness are interrelated.
It is easier to be effective if one ignores efficiency.
Federal Govt. in Islamabad are reasonably effective -extremely inefficient jobs done but at a very high cost.

104. Major Issues of Productivity in Pakistan
Inability to understand the basic concept of productivity.
Inability to measure & manage productivity of white collar employees- main reason for PS inefficiencies.

105. Major Issues of Productivity in Pakistan
Considering productivity enhancing initiative as an additional overhead.
Across the board Rewards / benefits disregarding - equivalent in productivity.

106. Major Issues of Productivity in Pakistan
Diffused and unclear authority under institutional setup & inefficiency in complex organizations, cause delays and time lags.
Low labor productivity in Pakistan is causing –”competitive imbalance”.

107. Major Issues of Productivity in Pakistan
Manufacturing -we are losing competitiveness, due to higher costs of production as customers turn to low cost product.

108. Productivity in Pakistan: Issues & Lessons
Financial & social benefits of Productivity Improvement Strategy are far
greater than implementation cost in the long run.

109. Increasing Productivity can break Vicious Circle of Poverty, Low Productivity & Unemployment

110. Low Productivity Trap in Pakistan
Low productivity growth (compared with input prices esp. labor and energy).
Conditionalities of donors.
Lagging capital formation (insufficient capital-labor ratio).
Rising prices (domestic and export goods).
Rising per unit (labor and energy) costs.
Lower utilization of domestic plant capacity.
Sluggish sales (in domestic and foreign markets). Unintended inventory in warehouses.

111. Low Productivity in Pakistan
This vicious cycle of poverty & unemployment can be broken by increased productivity.
Increased productivity results in:
Optimal use of resources.
Better balance between different stakeholders of society.

112. Productivity Improvement in Pakistani Environment
Productivity improvement will cause direct increase in standard of living.
Pakistani GNP can grow without adding more input factors when productivity is improved.
Productivity improvement will trigger economic growth.

113. Lessons for Pakistani Industry
Caterpillar has achieved 27% greater sales, through investments in productivity enhancement of its workforce & technology.

114. Difference B/W Production & Productivity
Production is concerned with the activity of producing goods and or services.
Productivity is efficient utilization of resources (inputs) in producing goods or services (output)
Production is the quantity of output produced; productivity is the ratio of the output produced to the input (s) used.
Efficiency is the ratio of actual output attained to standard output expected. Example
Output of a machine is 120 units per hours while the standard rate is 180 pieces per hour, the machine's efficiency is 120/180 = or percent
Effectiveness is the degree of accomplishment of objectives.
How well a set of result is accomplished reflects effectiveness, whereas how well the resources are utilized to accomplish the results refers to the efficiency.
Productivity is a combination of both effectiveness and efficiency, since effectiveness is related to performance while efficiency is related to resource utilization.

115. Rising & improving quality of working life do tend to go hand in hand.
Efficient & effective use of resources – labour, capital, land, materials, energy, time, information, etc. in production of goods & services that meet users, needs & requirements.
“Productivity is combination of effectiveness & efficiency” while “Effectiveness is related to performance & efficiency to resource utilization”.
Rising & improving quality of working life do tend to go hand in hand.

116. How can Orgs Improve Their Productivity
Productivity is composite of people & operations variables.
To improve productivity, mgt needs to focus on both.

117. Mississippi State University
Productivity does not just happen by “trying harder”. It must be planned.
But how do you plan for productivity, & what factors are involved?
Frank. E. Cotton, Jr.
Mississippi State University

118. Task of mgt is to evaluate those factors with have bearing on productivity & take appropriate measures to use effectively.

119. Increase Productivity Is Key To Global Competitiveness
Japan’s prosperity in 1980s -due to growth in manufacturing productivity.
Between
Japan’s productivity increased - 5.5%
U.S productivity gained only 2.8% annually.
US firms responded over in 1990s -dramatic improvements.
Caterpillar investments in productivity (workforce & its tech) resulted in:
Higher customer satisfaction.
Increasing market share
27% greater sales
With 29% fewer employees.

120. Critical Barriers/Problems Affecting Productivity Improvement Application on South Asia
Family-controlled industry leading to earning easy money.
Some Segments have monopolistic market, some hi competitive one.
Erratic inflow of orders.
Lack of productivity/quality culture.
Shortage of funds & codification are at low level.
Automation is not encouraged.
Contd…

121. Critical Barriers/Problems Affecting Productivity Improvement Application on South Asia Contd…
Low priority of marketing & commercial activities, poor after service.
Complicated govt. policy, rules & regulations.
Inadequate communication facilities, particularly road transport.
Energy shortage.
Poor working conditions (light, ventilations, safety, housekeeping).
Non availability of some basic material & components (to be imported), unreliable suppliers.

122. Causes of Productivity Decline in Org
Inability to measure, evaluate, & manage productivity of white collar employees. This causes shocking waste of resources.
Rewards & benefits given without requiring equivalent in productivity & accountability. This causes spiraling inflation.
Diffused authority & inefficiency in complex org, thereby, causing delays & time lags.
Org expansion that lowers productivity growth. results in soaring costs.
Low motivation among rising number of affluent workers with new attitudes.
Late deliveries caused by schedules that have been disrupted by scarce materials.
Contd…

123. Causes of Productivity Decline in Projects
Unresolved human conflicts & difficulties in teamwork, resulting in firm’s ineffectiveness.
Increased legislative intrusions or antiquated laws, resulting in constrained mgt options & prerogatives.
Specialization in work processes resulting in monotony & boredom.
Rapid technological changes & high costs, resulting in decline in new opportunities & innovations.
Increasing demand of leisure time causing disruption of time commitments.
Practitioner’s inability to keep pace with latest information & knowledge.

124. Critical Barriers to Productivity Improvement in any Project
Too many hierarchical levels.
Poor utilization of old factory & machinery.
Skilled worker shortage. Overloaded engineering & design groups.
Lack of time for development work.
Trade unions adversity to productivity.

125. Critical Barriers to Productivity Improvement
Inadequate human resource development.
Poor industrial relations.
High absenteeism.
Inefficient materials-handling facilities.
Rigid & authoritarian management style.
Excessive diversification.
Poor documentation of technical problems.
High social orientation.

126. +
TOTAL WORK CONTENT = +

131. Productivity Thru Time and Motion Study

132. Time and Motion Study: Defined
A method created to determine the ‘correct time’ it takes to complete a certain task
A method to establish ‘the one best way to perform a task’
Tine and Motion Study Defined:
All of the motions in a job need to be established so a sequence of motions can be determined to ensure that the task is being preformed in the most efficient and effective way.

133. Time and Motion Study: Purposes
To end ‘goofing off’ and to establish what constituted a fair days work
To make sure that the job being evaluated does not include any unnecessary motion by the worker

134. Functions of Time Studies
Establish work standards: e.g. recommended times in which tasks should be completed by qualified, trained operators, without excessive fatigue,
Set expectations which are fair to both employee and company.
Identify sources of error, difficulty, sub-optimality,
Improve an existing process, tool, or work environment,

135. Functions of Work Standards
Establish reasonable productivity targets for experienced workers,
Provide productivity goals for training purposes,
Eliminate waste,
Make processes more consistent,
Reduce product variability, improve quality.

136. Time and Motion Study: History
Frederick W. Taylor and his followers developed and refined the Time Study
Frank B. Gilbreth and his wife Lillian developed and refined the Motion Study
Historically the two studies are discussed individually, today they generally are discussed as one

137. Time and Motion Study
Historically: T&M Studies were used in the manufacturing industry to evolve pay scales with the thought that money was the only motivation for work
This idea, that people are only motivated by money, has been disproved. Things like job satisfaction and environment are more important to employees than pay.

138. Time and Motion Study Today:
T&M Studies can be effective for performance evaluations
T&M Studies can be used for planning purposes in order to predict the level of output that may be achieved
T&M Studies can be used to uncover problems and create solutions
T&M Studies can be used for time cost analysis
The effective cost of an employee, per unit of time for the task they are primarily responsible for.
The allocation of time to various ‘productive’ and ‘non-productive’ tasks.
Review of alternatives to make the best use of time.

139. Time and Motion Study: Objective
The objective of the Time and Motion Study is to determine a ‘normal’ or average time for a job, by using observers to record exactly how much time is being devoted to each task.

140. SCOPE ENHANCEMENT In 60s measurement alone found of little use
Method Improvement made an integral part of TMS
Now called Work Study
Complete step one by analyze the job using methods analysis, this will allow you to be sure the best method is being used.
Complete step two by breaking the job down into short tasks with ‘break points’ in between.
Complete step three by conducting the actual timing of each job element with the traditional stopwatch attached to a clipboard or a hand held electronic time-study machine.
Complete step four by using a performance rating factor of 100 percent. 100 percent reflects a normal work performance, less than 100 percent means a below average performance, greater than 100 percent means better then a normal performance.

141. Work Measurement Divided into Two parts
Method Study
Work Measurement
5. To complete step five a sufficient number of job cycles need to be observed, and then an average time.
6. After computations are made for the normal time, the normal cycle time needs to be computed before step 7. This is done by summing the elemental normal times. The directions for finding the rating factor can be found in step 4.
7. An allowance factor is inserted into the formula for work delays like mechanical breakdowns, personal delays, and normal fatigue.

142. METHOD STUDY Systematic Recording & Critical Examination of
existing and proposed processes as a means of
applying easier and effective methods
5. To complete step five a sufficient number of job cycles need to be observed, and then an average time.
6. After computations are made for the normal time, the normal cycle time needs to be computed before step 7. This is done by summing the elemental normal times. The directions for finding the rating factor can be found in step 4.
7. An allowance factor is inserted into the formula for work delays like mechanical breakdowns, personal delays, and normal fatigue.

143. OBJECTS OF METHOD STUDY
Improvement of Processes and Procedures
Improvement of Shop-floor layout
Economy in human effort and reduction in fatigue
Improvement in use of machines, material and manpower
Development of better physical environment
5. To complete step five a sufficient number of job cycles need to be observed, and then an average time.
6. After computations are made for the normal time, the normal cycle time needs to be computed before step 7. This is done by summing the elemental normal times. The directions for finding the rating factor can be found in step 4.
7. An allowance factor is inserted into the formula for work delays like mechanical breakdowns, personal delays, and normal fatigue.

144. There are two major categories of productivity
External (Not controllable)
Internal (Controllable)

145. External Factors Affecting Enterprise Productivity
External factors include government polices and institutional mechanisms: political, social and economic conditions; the business climate; the availability of finance, power water, transport, communications and raw materials. They affect individual enterprise productivity, but the org’s concerned cannot actively control them.

146. Internal Factors require different institutions, people, techniques & methods.
External Factors – during planning phase.
First step towards improving productivity in Services is to identify problem areas.
External Factors are internal to govts, regional institutions, associations & pressure groups.
Contd…

147. Model of Internal Productivity Factors
Soft Factors
Hard Factors
Service or Product
People
Plant and Equipment
Organization and Systems
Technology
Work Methods
Materials and Energy
Management

148. Productivity Simple Rule# 1
How can Organizations Improve Their Productivity?
Productivity is composite of people & operations variables.
To improve productivity, mgt needs to focus on both.

149. THANKS