Your company is looking for ways to increase productivity. It has manufactured tires for 20 years, and it is looking for areas of improvement. You have been asked by senior management to explain the concept of productivity analysis and how this analysis will allow the organization to see patterns. You need to identify such items of importance as trending and aberrancy. You should also discuss whether the analysis should be done by department (e.g., budgeting, inventory control, or production rates). Your presentation should also include how often the reporting should be done (e.g., weekly, monthly, yearly, or a combination).
This should include the following;
- Describe to the management team the importance of productivity analysis to the overall health of the organization. Define key terms.
- Describe the importance of trending and aberrancy and why they are important to the organization.
- Tell the management team the frequency in which the analysis should be done.
Productivity analysis refers to comparison of the actual data over the estimated data of output measurement and presentation. Productivity means output production per unit of input. The efficiency of the production when compared to the allocation of resources of enterprises is measured by productivity analysis.
To remain competitive most organizations have the goal of increasing productivity. Enterprise must produce more with the same level of input. This is essential for the enterprise to remain competitive. Productivity analysis is necessary for improving productivity. Improving productivity is required for reducing costs and increasing profitability. In several industries cost leadership is the strongest competitive position in the market. Productivity analysis ...
This posting gives you a step-by-step explanation of the use of productivity analysis for increasing productivity. The response also contains the sources used.