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Productivity and quality in the
workplace
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Candle exercise
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Shop A Shop B
- 2 volunteers to act as shop-owners
- 2 participants to act as observers
- The rest of the participants will be customers- Each participant kindly take your instruction sheet
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Instructions for shopkeepers
You are the owner of candle shop A or B and
have 20 candles to sell. Customers will come
to buy candles from you. Each candle costs
one rupee and you should devise a strategyto sell as many candles as you can.
The winner at the end of the same will be the
one who has sold more candles and made
more profits.
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Instructions for customers
You are a customer who wants to buy
candles. Two shops are available which sell
candles- shop A and shop B.
Each candle costs one rupee. You have to goto both shops, inspect the candles thoroughly,
decide from whom to buy the candle and
actually buy at least one candle by giving one
rupee to the respective shopkeeper
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Instructions for observers
As an observer, try to note down as many
salient points as you can which will be
shared with the group.
Give particular attention to what are thefactors which attract or repel the customers
to each shop.
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Technical definition of productivity
- The ratio of outputs produced ( which contribute to the
accomplishment of the mission), per unit of resources
consumed ( Input) , compared to a similar ratio from a
base period with the same or increased quality.
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PRODUCTIVITY= OUTPUT
-------------
INPUT
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Social Concept of Productivity
Above all else, productivity is an attitude of mind. It ismentality of progress, of the constant improvement of thatwhich exists.
It is the certainty of being able to do better todaythan yesterday, and tomorrow is betterthan today.
It is the will to improve on the present situation,no matter how good it may seem, no matter how good it mayreally be.
It is the constant adaptation of economic and social life tochanging conditions, it is the continual effort to apply new
techniques and new methods; it is the faith in humanprogress.
The European Productivity Agencys Rome Conference,The Concept of Productivity and Aims of the National Centres in 1958
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Economic and management concept
of productivity
Economic concept
- Creation of more value for the customer
Management concept of productivity
PRODUCTIVIITY= +EFFICIENCY EFFECTIVENESS
Doing things
rightsDoing the right
things
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An Integrated definition
PRODUCTIVITY= Output x Satisfaction
----------------------------
Input x Sacrifice
As an objective: technical concept
As a means: social concept
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PRODUCTIVITYCHAIN
HIGHPRODUCTIVITY
EFFICIENT,EFFECTIVE ANDECONOMICALUSE OFRESOURCES
SUPERIORITY INMARKETCONDITION
ECONOMICDEVELOPMENTAND GROWTH
BETTERSTANDARD OFLIVING ANDHUMAN
WELFARE
HIGHPRODUCTIVITY
EFFICIENT,EFFECTIVE ANDECONOMICALUSE OFRESOURCES
SUPERIORITY INMARKETCONDITION
ECONOMICDEVELOPMENTAND GROWTH
BETTERSTANDARD OFLIVING ANDHUMAN
WELFARE
LOWPRODUCTIVITY
WASTEFUL USEOF RESOURCES
INFERIORITY INMARKETCOMPETITION
ECONOMICSLOWDOWN
SOCIALINSTABILITY
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Productivity Measurement
Productivity
Measure
Physical
Productivity
Value Productivity
Material Productivity Volume of Output
-----------------------
Volume of Material
Input
Value of Output
--------------------
Value of Material
Input
Labor Productivity Volume of Output
----------------------
WorkerHour
Value of Output
--------------------
Value of Labor
Machine
Productivity
Volume of Output
----------------------Machine Hour
Value of Output
--------------------Value of Machine
Hour
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Ways to increase productivity
Reduce Cost Output
-----------
Input
Manage Growth Output
-----------
Input
Work Smarter Output
-----------
Input
Pare Down Output
-----------Input
Work Efficiently Output
-----------
Input
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Some definitions of quality
Absence of variation ( Deming)
Freedomreedom fromfrom deficienciesdeficiencies
DoingDoing itit rightright thethe firstfirst timetime
Meeting customer need (Crosby)Meeting customer need (Crosby) Fitness for purpose (Juran)
Conformance to specification
Continously improvingContinously improving performanceperformance
QualityQuality ISO DefinitionISO Definition
The totality of features and characteristics of a product or service that
bears its ability to satisfy stated or implied needs.
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Quality Chain
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Improve quality Decrease cost because
of less rework, fewer
mistakes.
Productivity improves
Stay in
business
Long-term
competitive
strength
Capture the market
with better quality
and reduced cost.
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The cost of 99.9 % quality
Three newborns will be given to the wrong patient every minute
480 pieces of mail will be mishandled every hour
One short or long landing every two days
147 erroneous transactions per day in Motor Vehicle Registration
14 incorrect court decisions will be issued per day
ITS ALWAYS BESTTO HAVE 100 % QUALITY
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Who is responsible for improving
productivity and quality
CEO
SNR MGT
MANAGEMENT
SUPERVISORS
OPERATORS
CONTROL
COACH
MASS PRODUCTIVITY /
SCIENTIFIC MANAGEMENT
CEO
SNR MGT
MANAGEMENT
SUPERVISORS
OPERATORS
CUSTOMER FOCUSED /
CONTINUOUS IMPROVEMENT
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Promoting participative management
ESS
5S QCC
Employee
involvement