PRODUCTIVITY AND PRODUCTION MANAGEMENT
In economics,
productivity is the amount of output created (in terms of goods produced or
services rendered) per unit input used. For instance, labor productivity is
typically measured as output per worker or output per labor-hour.
Production, however,
is the act of making things; in particular the act of making products that will
be traded or sold commercially. Production decisions concentrate on what goods
to produce, how to produce them, the costs of producing them, and optimizing
the mix of resource inputs used in their production.
Productivity and
production management is the art of conducting and directing, through the
application of frameworks and techniques, all aspects and operations of
developing, creating, and innovating products. Productivity and production
management's ultimate goal is the efficient consumption and allocation of
resource inputs to maximize the quality and quantity of goods produced or
services rendered. To improve productivity and production management,
organizations should use forecasts on demand to preordain production plans.
Through it, miscalculations could be sidestepped. Businesses that produce to
order would be able to supervise the backlog of unfilled orders, while those
that produce to stock would be enabled to observe and control the level of
inventory. Forecasting capabilities could be enhanced by way of incorporating
excellent information technology.
Another tool for
enhancement is standardization--a necessary foundation on which innovations can
be focused. Standardizing methods can be implemented by prognosticating
revolution on product and on process. These involve methodologies such as
process reengineering and major product redesign, both requiring process
automation. Some enterprises choose to do small upgrading at a time to minimize
the cost of these processes.
Another way to improve
productivity and production management is keeping managers vigilant of the
factors that constitute problems regarding quality, cost and time in the
production area. The most popular approaches are lean manufacturing and
workplace improvement. Both approaches encourage worker and management
collaboration emanating mutual respect; and straightforward and transparent
improvement methodologies.
Lean marketing is the
methodical extermination of wastes that are the root of productivity and
production incompetence and slow advancements. These wastes may include:
overproduction; inaccurate inventory; slow-paced transportation; product
defects; and unnecessary processes.
Workplace improvement
involves activities such as developing good relationships circling around the
workers, management, suppliers and consumers; acquiring proper and
state-of-the-art technology; empowering workers to make improvements; improving
production scheduling, quality assurance, inventory, manufacturing methods and
efficiency control; and conserving materials, energy and time.
To gain productivity
and production management advantage, the aforementioned can be organizationally
applied. If not, researching on ways on developing this field could be
conducted. One point is vital: total restructuring of productivity and
production ways is harder than maintaining good and tested practices.
Copyright 2007 Ismael
D. Tabije
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