You are a consultant who specializes in productivity measurement. Company BBB has hired you to determine which productivity measurement should be used in its organization. The company describes itself as an automotive supplier that has been in business for more than 20 years. Managers are seeking your guidance to determine which measurement tool would give them the most information about the productivity of their operation.
Give a complete definition of total measurement and multifactor measurement.
Would you recommend that the company use total measurement or multifactor measurement?
Explain your position in detail.
Total measurement is a comparison of total units of output within an economy to the total units of input within an economy. This measurement gives an indication of the ability of the economy to expand. The Bureau of Labor Statistics carries out total measurement.
Multifactor measurement means the changes in output per unit of combined set of inputs. Indices of multifactor productivity are developed for private business, private nonfarm business, and manufacturing sectors of the ...
The answer to this problem explains the difference between total measurement of productivity and multifactor measurement of productivity. The references related to the answer are also included.