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Productivity Analysis and Improvement Initiatives

Research an organization of your choice, and describe its productivity analysis and improvement initiatives. Your description should include a discussion of the following topics:

· Productivity analysis concepts

· Productivity measurement tools

· Information technology contributions to operations productivity

· General productivity measures (utilization, efficiency, etc.)

· Best practices for measuring business performance and productivity

· Productivity measures appropriate for this organization and its industry.

Solution Preview

Productivity can be defined as the ratio of output production per unit of input. Productivity analysis refers to the process of comparing actual data of production over estimated data of output. It is the measure of technical efficiency of production relative to the allocation of resources (Miller, n.d). The ultimate aim of productivity analysis is to increase productivity per unit of input.
Dell uses two methods for measuring productivity. The first method uses comparison of Dell's productivity to other organizations in its industry and the second method uses time of the same operations to compare productivity.
There are four measures of performance- productivity, efficiency, utilization and operation time performance measures. Productivity measures are important for operational management as they indicate how well an organization is utilizing resources to produce output. Since Dell operates in computer manufacturing industry it uses efficiency measures like receivables turnover to measure how quickly it receives payment for products sold. Utilization is the time for which Dell's resources have been actively used. It is calculated by ...

Solution Summary

The solution discusses the productivity analysis and improvement initiatives.