Total Posts: 13 Joined: 09 Jul 07 Location: Reading Member #7
Does anyone have any good examples of productivity measures in relatively complex environments?
We are starting to use 'packs per head' (Pharmaceuticals) but the product mix makes trending difficult as some of our products use a lot of labour while others are very simple.
John Hardwick FIOM
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.