productivity in difficult times

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PRODUCTIVITY IN DIFFICULT TIMES KUNAL CHOUDHARY (2011IPG-054) ANKIT JHAROTIYA (2012IPG-013) ANIL GOYAL (2012IPG-108) SATISH KUMAR (2012IPG-126)

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Page 1: Productivity in Difficult Times

PRODUCTIVITY IN DIFFICULT TIMES

KUNAL CHOUDHARY (2011IPG-054)ANKIT JHAROTIYA (2012IPG-013)

ANIL GOYAL (2012IPG-108)SATISH KUMAR (2012IPG-126)

Page 2: Productivity in Difficult Times
Page 3: Productivity in Difficult Times

In practice, several measures of productivity are used:

• Partial measures– Revenue or sales/wages or labor cost– Value added/number of persons employed– Output/energy used– Sales/persons or wages– Output/machine hours

• Total measures focus on the total costs of producing an output ( e.g. Revenue/Total costs)

Page 4: Productivity in Difficult Times

WHY PRODUCTIVITY IS IMPORTANT ?

• Enhancing productivity at all levels of the economy (department, organization, sector, industry, nation) is vital to

– rapid economic growth

– higher standard of living

– international competitiveness and foreign exchange generation

– inflation control

– capital investment

– employment generation

Page 5: Productivity in Difficult Times

FACTORS RESPONSIBLE FOR POOR PRODUCTIVITY

• Neglecting operations strategy.• Failing to take advantage of strengths and opportunities,

and/or failing to recognize competitive threats.• Putting too much emphasis on short-term financial

performance at the expense of research and development.• Placing too much emphasis on product and service design

and not enough on process design and improvement.• Neglecting investments in capital and human resources.• Failing to establish good internal communications and

cooperation among different functional areas.• Failing to consider customer need.

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LITERATURE REVIEW

Page 8: Productivity in Difficult Times

Paper : Relationship view of productivity improvementAuthor : Misterek et al. (1992)

Productivity can be improved by five relationships

• Output increases faster than input; the increase in input is proportionately less than the increase in output (managed growth).

• More output from the same input (working smarter).• More output with a reduction in input (the ideal).• Same output with fewer inputs (greater efficiency).• Output decreases, but input decreases more; the decrease in

input is proportionately greater than the decrease in input (managed decline).

Page 9: Productivity in Difficult Times

Paper : Enhancing Employee Productivity in Difficult Times Author : Charles A. Volkert

• In response to the difficult economy, many companies are attempting to survive by reducing staff, and, as a result, are left with the task of maintaining productivity with reduced resources.

• pruning underperforming employees or employees in slow practice areas• That why now more than ever, firms and departments need

to strategically leverage the skills of their remaining staff.

Page 10: Productivity in Difficult Times

• Re-orient your staff

• Promote the value of time management

• Make the most of technology

• Make small gestures of gratitude

• Revamp project teams

• Consider bringing in project professionals

Page 11: Productivity in Difficult Times

some strategies for maximizing the efficiency of a team.

‘Re-orient’ your staff

• To help staff adjust to the reality of an altered work environment,

• re-orientation can include answers (to the extent possible) to your staff’s questions about what may happen next

(e.g., “Will there be more layoffs?” “Will the remaining secretaries each support additional associates?”).

• Let your support staff know what’s expected of them moving forward. • Assure them that you will continue to communicate emerging changes and

provide as much information as possible.• thank them for their efforts and remind them that their hard work will help the

firm endure the current downturn.

Page 12: Productivity in Difficult Times

Promote the value of time management

• With fewer staff members to take on additional work, effective time management skills become critical

• juggling multiple cases and matters, or picking up the workload of a colleague who has left.

• Impress upon all support staff the importance of staying organized and continually prioritizing activities.

• working with staff to create a master project/case list.• Then, with your guidance, the team can clarify

deadlines, establish interim goals and divide tasks.

Page 13: Productivity in Difficult Times

Make the most use of technology

• Equipping staff members with advanced technical tools can be one of the most effective means of enhancing productivity.

• mobile devices, which offer them the flexibility of working from a variety of settings including at home and on the road.

• set some ground rules about how much time and in what circumstances you expect staff to be available out of hours through the use of these devices.

Page 14: Productivity in Difficult Times

Make small gestures of gratitude

• While this isn’t the time for splurges on office-wide parties and lavish staff lunches, there are still affordable ways you can recognize and reward your team’s efforts.

• A seemingly minor gesture—like coffee and cookies delivered to the office in the midst of a marathon discovery initiative or a simple “thanks for hanging in there”—can boost flagging morale.

Page 15: Productivity in Difficult Times

Revamp project teams

• Layoffs may have left some teams short on critical skills.

• Take a look at the composition of your project teams to determine whether gaps exist.

• You may decide to combine some teams, move certain staff members to new assignments, or allocate tasks differently.

• Whichever tactics you choose, be sure to let your staff know in advance that you’ll be doing some shuffling and why.

Page 16: Productivity in Difficult Times

Consider bringing in project professionals

• If firm laid off a dozen professionals, then days later landed a major project.

• Instead of spreading the additional work around to an already over-stretched staff

• you could work with a specialized staffing firm to access assistants with expertise on a short-term, project basis.

• This will allow your full-time staff to continue to service the firm’s clients without missing deadlines.

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• Alternatively, you may decide to assign a team of full-time support staff members to the new project

• and hire temporary or project professionals to handle more routine matters

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• These techniques that will help set the right tone in the workplace.

• As far as possible, check your own stress at the door when you arrive at the office, and try to maintain a demeanor of calm professionalism.

• these strategies are steadying and reassuring, and they’ll be better able to focus on their jobs and work at top form.

Page 19: Productivity in Difficult Times

Paper : Improve productivity through lean manufacturingAuthor : Burton T. and Boeder, 2003• Based on the planned elimination of all waste, the

continuous improvement of productivity, and an ongoing focus on customer value. It covers a wide variety of operations for reducing waste, increasing productivity and cutting cost. The emphasis in lean manufacturing is utilization of lesser resources to produce the same goods.

Page 20: Productivity in Difficult Times

The major five principles of Lean are as follows:• Principle 1: Accurately specify value from customer

perspective for both products and services.• Principle 2: Identify the value stream for products and

services and remove non-value adding waste along the value stream.

• Principle 3: Make the product and services flow without interruption across the value stream.

• Principle 4: Authorize production of products and services based on the pull by the customer.

• Principle 5: Strive for perfection by constantly removing layers of waste.

Page 21: Productivity in Difficult Times

CASE EXAMPLE - TOYOTA

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Toyota’s Difficult Phase

• After World War II, Toyota was almost bankrupt.

• Post war demand was low and minimising the cost per unit through economies of scale was inappropriate. This led to the development of demand-led pull systems.

• The Japanese could not afford the expensive mass production facilities of the type used in the USA so they instead focused on reducing waste and low cost automation.

• Likewise, Toyota could not afford to maintain high inventory levels.

Page 23: Productivity in Difficult Times

Based on three philosophies:

• Elimination of waste

• Low cost automation

• Respect for people

Toyota Production System

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7 Principles of Toyota Production system

1. Reduced setup timesAll setup practices are wasteful because they add no value and they tie up labour and equipment. By organizing procedures, using carts, and training workers to do their own setups. Toyota managed to slash setup times from months to hours and sometimes even minutes.

2. Small-Lot ProductionProducing things in large batches results in huge setup costs, high capital cost of high-speed dedicated machinery, larger inventories, extended lead times, and larger defect costs. Because Toyota has found the way to make setups short and inexpensive, it became possible for them to economically produce a variety of things in small quantities

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3. Employee involvement & empowermentToyota organized their workers by forming teams and gave them the responsibility and training to do many specialized tasks. Teams are also given responsibility for housekeeping and minor equipment repair. Each team has a leader who also works as one of them on the line.

4. Quality at the sourceTo eliminate product defects, they must be discovered and corrected as soon as possible. Since workers are at the best position to discover a defect and to immediately fix it, they are assigned this responsibility. If a defect cannot be readily fixed, any worker can halt the entire line by pulling a cord.

5. Equipment maintenance Toyota operators are assigned primary responsibility for basic maintenance since they are in the best position to defect signs of malfunctions. Maintenance specialists diagnose and fix only complex problems, improve the performance of equipment, and train workers in maintenance.

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6. Pull ProductionTo reduce inventory holding costs and lead times, Toyota developed the pull production method wherein the quantity of work performed at each stage of the process is dictated solely by demand for materials from the immediate next stage. The Kamban scheme coordinates the flow of small containers of materials between stages. This is where the term Just-in-Time (JIT) originated.

7. Supplier InvolvementToyota treats its suppliers as partners, an integral elements of Toyota Production System (TPS). Suppliers are trained in ways to reduce setup times, inventories, defects, machine breakdowns etc., and take responsibility to deliver their best possible parts.

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Toyota is now the world's largest carmaker

• Toyota sold 2.43 million vehicles in the first three months of 2016.

• Last year, Toyota sold 9.7 million cars and trucks worldwide to beat GM's 9.29 million and Volkswagen at 9.1 million.

Page 28: Productivity in Difficult Times

THANK YOU