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Article
Publication date: 1 January 1994

Rick L. Wilson

The importance of productivity measures in monitoring the performance ofmanufacturing firms is well documented though existing methods lackeffective, accurate and sensitive means…

1179

Abstract

The importance of productivity measures in monitoring the performance of manufacturing firms is well documented though existing methods lack effective, accurate and sensitive means of measuring operation efficiency.

Details

International Journal of Operations & Production Management, vol. 14 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Book part
Publication date: 4 May 2018

Bakhtiar, Defi Irwansyah and Zulmiardi

Purpose – This study aims to determine the results of productivity index, profitability and improvement of company prices and to understand the relationship between partial input…

Abstract

Purpose – This study aims to determine the results of productivity index, profitability and improvement of company prices and to understand the relationship between partial input factors and productivity, profitability, and price fixing.

Design/Methodology/Approach – In this work, the productivity at the palm oil factory PT Sayaukath Sejahtera was measured and evaluated by using The American Productivity Center (APC) model approach.

Findings/Results – The results showed that each index that has been analyzed has a 5.143% decrease in the productivity index per year with a profitability equal to 0.286% per year and an increase in the price improvement index of 5.143% per year. Thus, it is concluded that from each index that has been analyzed, there is a decrease in the productivity index and profitability per year and there is an annual increase in the price improvement index.

Research Limitations/Implications (if applicable)

Practical Implications (if applicable)

Originality/Value

Book part
Publication date: 31 May 2016

Chunyan Yu

This chapter provides a survey of alternative methodologies for measuring and comparing productivity and efficiency of airlines, and reviews representative empirical studies. The…

Abstract

This chapter provides a survey of alternative methodologies for measuring and comparing productivity and efficiency of airlines, and reviews representative empirical studies. The survey shows the apparent shift from index procedures and traditional OLS estimation of production and cost functions to stochastic frontier methods and Data Envelopment Analysis (DEA) methods over the past three decades. Most of the airline productivity and efficiency studies over the last decade adopt some variant of DEA methods. Researchers in the 1980s and 1990s were mostly interested in the effects of deregulation and liberalization on airline productivity and efficiency as well as the effects of ownership and governance structure. Since the 2000s, however, studies tend to focus on how business models and management strategies affect the performance of airlines. Environmental efficiency now becomes an important area of airline productivity and efficiency studies, focusing on CO2 emission as a negative or undesirable output. Despite the fact that quality of service is an important aspect of airline business, limited attempts have been made to incorporate quality of service in productivity and efficiency analysis.

Article
Publication date: 1 January 2006

Liang‐Hsuan Chen and Shu‐Yi Liaw

Purpose – To propose a pattern analysis method to help firms rectify weaknesses of production management (PM) and thus promote their business performance.

3068

Abstract

Purpose – To propose a pattern analysis method to help firms rectify weaknesses of production management (PM) and thus promote their business performance. Design/methodology/approach – Total factor productivity and the associated partial productivity indices are defined, and four kinds of production planning ranges, i.e. long‐range planning, medium‐range planning, short‐range planning, and execution, are defined based on 14 PM issues. A fuzzy clustering approach is applied to group the sampled firms into several patterns based on the achievement degrees of production planning in order to investigate the particular characteristics of each pattern. Findings – After analyzing the productivity characteristics of each pattern, the correlation between productivity and production management can be determined. In this study, the business performance seems to be not completely correlated with the achievements of production management, since moderate production planning can provide optimal business performance. Research limitations/implications – The patterns produced from the proposed approaches depend on the sampled data set. A solid sampling method is important to this study. Practical implications – The sampled data are collected from the top 50 large‐scale manufacturing firms in Taiwan. The results obtained from this paper may not be consistent with the situations in the other countries. Originality/value – Referring to the findings from each pattern, a firm can further investigate its position in the industry to find ways of increasing its competitiveness.

Details

International Journal of Productivity and Performance Management, vol. 55 no. 1
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 13 January 2012

Sheikh Zahoor Sarwar, Azam Ishaque, Nadeem Ehsan, Danial Saeed Pirzada and Zafar Moeen Nasir

The purpose of this research is to identify the prevalent condition of productivity in the automotive manufacturing industry of Pakistan and to indicate the possible areas for…

2419

Abstract

Purpose

The purpose of this research is to identify the prevalent condition of productivity in the automotive manufacturing industry of Pakistan and to indicate the possible areas for enhancing productivity.

Design/methodology/approach

Secondary data for the last ten years were gathered. Total productivity and all partial productivities were computed using methodology proposed by Sumanth, and total factor productivity (TFP) was computed using Cobb‐Douglas production function. Regression analysis and Pearson correlations were run to determine labor elasticity and capital elasticity.

Findings

Results indicated very low levels of labor productivity and capital productivity, resulting in huge losses and stagnant growth of these firms. Increasing returns to scales (IRTS) with high values of labor elasticity and low and even negative value of capital elasticity were computed. Low values of TFP showed minimal utilization of technology in these firms.

Research limitations/implications

One of the limitations of this research is that only two automotive manufacturing companies of Pakistan i.e. Honda Atlas and Indus Motors were targeted, which limits the generalizability of findings.

Practical implications

Findings of this research revealed that effective utilization of technology can enhance the productivity of Pakistani manufacturing firms significantly. IRTS with high values of labor elasticity and low value of capital elasticity depict the areas of productivity enhancement.

Originality/value

In Pakistan not enough effort has been put into measuring the productivity of manufacturing industry. The contribution of this paper is that it indicates the productivity blemishes in this industry and also the areas of focus for productivity enhancement.

Details

International Journal of Productivity and Performance Management, vol. 61 no. 2
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 1 January 1992

Susan D.A. Misterek, Kevin J. Dooley and John C. Anderson

Both the improvement of productivity and the effectiveness ofperformance measures have been topics of extreme interest to managersand researchers in recent years. Looks at the…

2149

Abstract

Both the improvement of productivity and the effectiveness of performance measures have been topics of extreme interest to managers and researchers in recent years. Looks at the potential advantages and disadvantages of using the traditional productivity measure, output/input, as a measure of performance at the firm, work‐unit, individual, product, or product‐line level. Considers the ability of productivity measures to adjust for price changes and to detect factor substitutions. The distortion of productivity measures by fixed expenses and the inability of productivity measures to consider quality changes are among the disadvantage cited. Also, criticisms that have been levelled at traditional cost accounting measures are found to apply to productivity measures. Proposes three criteria that can aid in determining when productivity measures are appropriate as performance measures. Makes recommendations for ways of using productivity measures effectively also.

Details

International Journal of Operations & Production Management, vol. 12 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 4 January 2021

Andreas Günter and Ernst Gopp

Productivity is a multidimensional and context-dependent concept. Therefore, many different definitions and consequently, many different approaches to productivity measurement…

Abstract

Purpose

Productivity is a multidimensional and context-dependent concept. Therefore, many different definitions and consequently, many different approaches to productivity measurement (PM) exist in the literature. As a result, the understanding of productivity and the appropriate use of PM approaches are at a low level. The literature provides some overviews, but these overviews consider only a few selected individual aspects. Therefore, the overviews do not allow a comprehensive comparison and evaluation of existing approaches. This paper aims to give an overview of existing approaches to PM and to classify them according to elaborated criteria based on the main characteristics of productivity.

Design/methodology/approach

Literature review for existing approaches to PM using the following keywords: productivity, PM, productivity measure, labour productivity and labor productivity.

Findings

A total of 38 approaches are identified and listed between 1955 and 2020. The main result is a systematic overview and classification of existing approaches to PM.

Research limitations/implications

Researchers can use the overview to determine the development over time, the current state of research in the field of PM and identify research gaps. The classification can also be used to classify new approaches.

Practical implications

Companies can use the classification as a guide to identifying appropriate approaches to measuring productivity in corporate practice.

Originality/value

This paper enables a comprehensive comparison and evaluation of existing approaches to PM. Also, the understanding of the multidimensional character of the productivity concept is enhanced.

Details

International Journal of Productivity and Performance Management, vol. 71 no. 4
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 20 March 2009

S.N. Rajesh Raj and Mihir K. Mahapatra

The purpose of this paper is to examine the performance of small manufacturing enterprises (SMEs) in India during the pre‐reforms (prior to 1991) and reforms period (1991 onwards…

1079

Abstract

Purpose

The purpose of this paper is to examine the performance of small manufacturing enterprises (SMEs) in India during the pre‐reforms (prior to 1991) and reforms period (1991 onwards) with focus on 15 major states from different levels of development.

Design/methodology/approach

In order to capture variation across different categories of states, 15 major states in India have been classified into high‐, middle‐ and low‐income states. Further, to capture productivity growth in the sector during the pre‐reforms and reforms period, both partial factor productivity and total factor productivity method (growth accounting approach) have been adopted. The analysis is based on different rounds of nationwide survey conducted by the National Sample Survey Organization (NSSO) of the Government of India during 1978‐2001.

Findings

The findings of the study reveal erosion in growth of output in the SMEs during the reforms period as compared to the pre‐reforms period with variation across different categories of states. The decline in growth of output during the reforms period can be primarily on account of fall in growth of employment and investment. The total factor productivity growth has also declined during the reforms period suggesting the need to enhance the level of technical efficiency and skills of the labour force in the sector. This is noticed in spite of major role played by the SMEs in providing employment (80 per cent of the total manufacturing sector employment) opportunities and in generating output (contributes 60 per cent of net domestic product) in the country.

Research limitations/implications

On account of non‐availability of annual data, the study relied on data collected by the NSSO of the Government of India periodically. In addition, the study did not examine the factors that explain decline in productivity growth in the sector.

Originality/value

There is a large body of literature on regional growth and productivity in the Indian manufacturing sector but most of the studies have considered only the organized manufacturing sector. This study contributes to the literature by analyzing the inter‐state variation in growth and productivity performance of SMEs in the pre‐reforms and reforms periods.

Details

Journal of Indian Business Research, vol. 1 no. 1
Type: Research Article
ISSN: 1755-4195

Keywords

Article
Publication date: 1 June 1980

Tom Husband and Abby Ghobadian

As one small part of a research project funded by the Science Research Council we have been working recently inside several British factories in an attempt to isolate the…

Abstract

As one small part of a research project funded by the Science Research Council we have been working recently inside several British factories in an attempt to isolate the mechanisms of corporate productivity. Our ultimate objective is to derive robust measures of productivity in terms of batch manufacturing characteristics (e.g. product mix, throughput time, etc). But how does one measure productivity? It sounds simple until the range of possibilities is considered. After considering the range we eventually opted for “total productivity” measurement and this short article describes how we went about it. We applied this approach, for example, to a single, large machine shop in a heavy manufacturing firm; to the comparison of performance of several subsidiary firms within a group specialising in large batch production of high precision units; and to the overall performance of a firm in small batch production of technically complex units for military use.

Details

Management Decision, vol. 18 no. 6
Type: Research Article
ISSN: 0025-1747

Abstract

Details

Handbook of Transport Modelling
Type: Book
ISBN: 978-0-08-045376-7

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