Productivity measures

As you increase complexity you will find that performance management has to be looked at more seriously. Simple measures have to be replaced with baskets of KPIs and analysed in context, because different aspects of operations will impact on each other. You can still measure an overall efficiency rate based on output per hour (total units / total attended hours), but to understand the factors that drive variation in this measure you will have to dig a bit deeper. Selecting your KPIs will depend on what levels of information you are capturing and reporting, and what your key business requirements are. There is a list of commonly used indicators but I would advise that a brief discussion with an expert would allow you to put together a more meaningful and effective performance management system to fit your environment.

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Regards

Well, I'm a newbie here. Interesting discussion is going on here. I too want share some things in regard to improving the productivity. Hope u allow me to do that. Thanks in advance. online recruitment

An excellent productivity measure if standard minute value (SMV). This works when you have many SKU's with differing labour requirements as you describe. Basically every single product code will have a standard minute value (ie how many units can be processed in 1 minute). You then work out what quantity has been processed over a shift against what should have been processed against the SMV. So it doesn't matter that things may take longer than others as you get an overall efficiency number at the end. Have used this and it works well. Only draw back is a lot of measuring and data collection up front to establish what the SMV's are for each product.

Hi Mate

As Self Directed Teams are meant to improve performance of the company,it should be under a Controlled Self Directed Team rather than independent itself.



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