SETTING UP A FORMAL

PRODUCTIVITY IMPROVEMENT
PROGRAM
SUBMITTED TO:Dr. M.L. Meena
Mech Engg Deptt.
MNIT Jaipur

SUBMITTED BY:Mohit Vats

2013PIE5090
Vishal Kumar
2013PIE 5123

Organizational Structures for Productivity

Program

Depending on how large a company or

organization is, productivity program can
be set up at the company (corporate and
firm) level, the division/plant level or the
product/customer level.

Planning Aspect
The Magnitude and extent of detail in planning the
productivity program largely depend on the
organizational level at the which the program is to
be set up.
1. At the corporate level:- the top management in
the corporate headquarters has consider several
things, including the appointment of a productivity
manager publicizing the importance of the
productivity program to all the division of company,
making an economic justification and projecting the
benefit employees. An information flow mechanism
must be planned to obtain the productivity picture
from each of the division directors.

Productivity
Director Manager
Productivity
Productivity
research and development

At the division level:- the president or

general manager at each of the division
has to plan the appointments of a
productivity director and productivity
coordinators for each product group. In
addition ,merging the existing industrial
engineering functions with those of the
productivity coordinators may have to be
considered ,since
there are many
overlapping interests.

President
Productivity
Director
Productivity
Coordinator

At the product customer level:- The

productivity
coordinator
for
each
product/customer
group
should
plan
the
requirements of the productivity analysis who
would be working with functional personnel, such
as foreman of the manufacturing ,purchasing
,sales and quality control supervisors. The
installation of new equipment ,methods and
procedures in a given time period must be
planned from a logistical point of view. Economic
justifications for a new plant and equipment must
be based on the total productivity and partial
productivity.

Director
Productivity
Productivity
Productivity
Coordinator
analyst

Human Aspect

All mangers know that a productivity

program a can be successful if all the
workers participate in it wholeheartedly.
However ,very few mangers believe that
workers would want to do that. Contrary
to this belief, most workers would give
their complete support to a productivity
program if the management sincerely
wanted it.

Implementation Schedule
Any activity planned well can be
implemented
relatively
easily.
The
implementation schedule either in the
form of gantt chart or as a critical path
network must be prepared inn
advance. The implementation schedule
for a corporate level productivity
program must be tie with that at the
division/plant level, which in turn ,should
be linked to the product/customer-level
program.

Evaluation of the effectiveness of a formal

productivity program
The valuation criteria for a formal productivity
program will depend on whether a company is
evaluating productivity trends over a long term or a
short term.

1.
2.

3.

Evaluation criteria for a short term

Percent change in total productivity.
Percent change in ratio of total expenses to total
sales.
Percent change in partial productivities with respect
to human material, capital energy and other expense
inputs.

Evaluation criteria for a long term

1. Percent change in total productivity
2. Percent change in unit costs of products
3. Percent change in profits
4. Percent change in market share.

Common problems encountered and ways

to counter them

Resistance to change
Inadequate Planning
Modification in Data Collection
Its Not My Program Syndrome

Unwillingness to share productivity gains

The management of a company should
realize that, unless the productivity gains
are shared with the employees, the long
term effect of a productivity program
may
be
high
employees
turnovers,strikes,decline in quality , and
other negatively impact factors If a
productivity program has to work
effectively , employees should be
recognized as the first greatest asset.

Tendency to compromise quality for

productivity
Many Managers and supervisors have
the notion that quality and productivity
cannot go together when a productivity
program is underway. Contrary to this
belief quality improvement actually
result in productivity improvement.

THANK YOU