Computing process improvement cost savings can often be a challenge. In my opinion, Total Resource Productivity (TRP) is a great way to compute project savings. Other methods, such as the Cost of Poor Quality are also great ways to compute projects savings. But, the Cost of Poor Quality requires some accounting maturity to track. It […]
Productivity
Measuring Productivity in Manufacturing | Learn How!
Measuring productivity in manufacturing isn’t that difficult. It starts with some basic knowledge of the inputs: Machinery, Manpower, and Materials! Individual Resource Productivity, or IRP, is a basic ratio of the output per individual resource. It is the calculation of the output per machinery, manpower, and material resources. The Output is a quantity of units […]
The 5 Ways to Improve Business Productivity
The cost of any product is the sum of the resource costs used to produce it. By manipulating the resources and/or improving the work process the lower the unit cost to produce a product will be. By lowering the unit cost, demand will increase and drive more sales. More sales will generate more profit and […]
Why is Business Productivity Important? Learn Why!
Why is business productivity important? The simple answer is productivity benefits everyone! When productivity increases, the cost to produce the output decreases. This widens the margin between the cost to produce a product and the price it’s sold at. Wider margins mean higher profits for a company. Profits lead to investment in R&D, dividends to […]
Measure Productivity in the Workplace – It’s Simple!
Measure productivity in the workplace today. All you need to understand are a few key terms and concepts! The goal for any organization is to produce products or services that meet the needs of the customer at the lowest possible cost. To meet this goal, you first need to know how to measure productivity in […]