Productivity can be defined as a ratio which represents production output to the input need to produce it. You can call it as a method to measure production efficiency. Productivity can also be defined as the total output per unit of the actual total input. Operations management needs to implement control processes to improve productivity. Operations management is the administration of the business practices for setting the standard levels of efficiency expected within an organization. It deals with the conversion of materials and labor into products and services in an efficient manner to maximize the volume of profit for an organization. There are so many things which can affect productivity in operation management.
At the time of calculating productivity with the application of the labor productivity method, the outputs will keep changing depending on the nature of the industry. Some of the standard industry factors to consider are:
• Sales: To calculate sales productivity, one should need to find several additional outputs, for example, new customers made, calls made to the client, and also the volume of sales happened in the month/quarter/year.
• Services: Undoubtedly the service industry is among the hardest industries where calculating productivity is very difficult because of numerous intangible outputs which are involved in it. You need to measure either the number of tasks completed or the total number of clients served.
• Manufacturing: If the firm is into the production of goods, their one needs to take into account output per worker on an hourly basis for making one single piece of the product. In short, you need to calculate the cost of the product per unit.
Many companies are making use of formal programs for bringing improvement in productivity through existing systems of control. Companies are always in the lookout for various ways to improvise quality, cause a reduction in downtime, and increase in labor input, energy, materials, and purchased services. In other words, we can say that there are 4 other factors affecting productivity in the workplace:
• Employee Input: If the scope is given to decide and shape the company vision employees will value their work
• Affirmation: If employees remain aware that they are continuously monitored by the supervisor to check how they are contributing to company success they will make the best possible investment to ensure project success.
• Environment: A good working environment and support improve operational productivity
• Remuneration: Besides regular monthly paycheck if extra perks or periodic bonuses are offered to employees operational productivity will be more.
Operations management is one of the major branches of management science which chiefly deals with planning, organizing as well as supervising of the process of production, manufacturing as well as other types of operational services. Operations management deals with supply chain management as well as logistics. On the other hand, we can define productivity as a quantitative relation which exists between what exactly we produce and what we used as a resource for the production. Productivity takes into account the efficiency of this production system.
There are 2 types of factors which are influencing productivity in Operations management;
This is not the end of the list of factors which affects productivity in operations management. The above ones are the significant and most important one which are must to consider in case there is a need for improving the productivity of the company.
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