At the level of the firm, productivity is simply a measure of output per unit of input for a production process. Examples of productivity include;
• Product produced per number of employee hours
• Product produced per square foot space
• Product produced per machine hour
It can be a measure of the efficiency of an operator, machine, factory, system, etc., in converting inputs into useful outputs and is a critical determinant of cost efficiency. C&G International prefers to see productivity in terms of Total Productivity.
In Total Productivity we are trying to consider important inputs that will contribute to the interrelated outputs of; productivity, cost, quality and delivery and then to set Key Performance Indicators (KPI’s) to facilitate continuous improvement. Examples of such KPI’s include;
• The productivity of operators
• Right first time quality
• Value added per operator
• Factory floor space use
• Inventory turns
• Delivery schedule achievement
• The productivity of key machines.
By setting these KPI’s and monitoring them we can get a richer picture of how they contribute both directly and indirectly to overall productivity, cost, quality and delivery.
C&G International has worked with a number of companies in the Eastern Caribbean across a number of industries (breweries, distilleries, flour milling, condiments and processing), with a view to introducing the KPI’s in a systematic way.
In a group of eight companies in the OECS five key KPI’s were established, short and long term targets were set and a training programme was constructed for each company. The programme concentrated on using the KPI’s to drive improvements. Initial measurements for all of the KPI’s were then obtained.
Over a 90 day period companies reported back bi-monthly on their KPIs. After the 90 days an audit revealed that there were across the board improvements in all eight companies. These improvements ranged from 5.3% to an impressive 77.7%.
If you need assistance to advance the Total Productivity within your company then Contact C&G International Inc.