Improve productivity is the key to improve revenue. So there should be some effective system for measuring organizational productivity. Below are 9 effective way for-How to measure productivity in the workplace?
Breakdown maintenance, also known as run-to-failure (RTF) maintenance, is a reactive maintenance strategy where equipment is operated until it breaks down. Repairs are then performed only after a failure occurs. This approach contrasts with proactive maintenance strategies like preventive and predictive maintenance, which involve scheduled servicing to prevent breakdowns.
Inspection and quality control: Inspection is important to maintain a certain quality during the manufacturing of a product. Quality control is a process by which customer ensures receive product free from defects.
Cost and revenue are the two most important terms in business economics. The target of every business is to minimize the cost and maximize the revenue so that business makes the maximum profit.
Decision making is the judgment of the process by which one can choose between a number of alternative courses of action for the purpose of achieving goals.
Managerial decision making is synonymous with the whole process of management. It decides, what should be done? how should it be done? when and by whom should be done?
A decision may also be conceived as a conclusion that a manager has reached so as to know what he should do later on. It calls for both judgemental and imagination activity to select one from many alternatives, so decision making is an intellectual activity.
Decision Making
Types of decision making
There are many types of decision making. Some of the Importance types are-
Programmed and non-programmed decision.
Major and minor decision.
Routine and strategic decision.
Organizational and personal decision.
Individual and group decision.
Policy and operational decision.
Long-term, departmental, and non-economic decision.
Let’s elaborate on each type of decision making-
Programmed and non-programmed decisions
Programmed decisions are those that adhere to habits, rules, or procedures. Each organization has its own policies to streamline decision-making.
For instance, determining the salary of a new employee is not a concern as the organization typically follows a set salary scale for all positions.
While programmed decisions may limit our autonomy to some extent, they allow the organization rather than an individual to dictate actions.
Nevertheless, the policies, rules, and procedures guiding our decisions enable us to consider alternative solutions and focus on other, more critical tasks.
Non-programmed decisions, on the other hand, address unique problems. If an issue is not covered by existing policies or is of significant importance, it requires special treatment through non-programmed decision-making.
Some of the non-programmed decisions are –
How to allocate an organization’s resources.
What to do about failing product line.
How community relations should be improved will usually require non-programmed decisions.
2. Major and minor decision
Making the decision to purchase expensive equipment, such as purchasing a CNC is considered a major decision. The purchase of cheap equipment like a few reams of typing paper is a minor decision.Making major decisions requires careful consideration and analysis of the potential impact on the business, while minor decisions can often be made quickly and without much thought. It’s important for businesses to prioritize major decisions and allocate resources accordingly to ensure long-term success.
3. Routine and strategic decisions
Routine decisions are slightly similar to programmed decision making. Routine decisions are repetitive in nature, do not need any analysis and evaluation, are in the context of day to day operations of the enterprise, and can be made by middle management level.
Example: Sending a sample to a government investigation centre.
A strategic decision is related to the policy of the organization, are taken by high levels of management, it involves a large expenditure of fund. A slight mistake in decision making is injurious to the enterprise.
Example: capital expenditure decision, decision-related to pricing, etc.
4. Organizational and Personal decision
A manager makes organizational decisions on behalf of a company’s officer. This type of decision reflects the organization’s policy.
Personal decisions are the manager’s individual choice, not made as a representative of the organization. In other words, a manager’s personal decisions are based on their own preferences, beliefs, and values, rather than following a set policy or guideline set by the company. These decisions may not always align with the best interests of the organization, as they are made from a more personal perspective.
5. Individual and group decision
Individual decisions are taken by a single individual in the context of routine decisions according to the guideline of the organization. In contrast, strategic decisions are made collectively by a group of key stakeholders after thorough analysis and discussion. These decisions have a significant impact on the organization as a whole and require careful consideration of various factors such as market trends, competition, and long-term goals. Strategic decisions often involve a higher level of risk and uncertainty compared to routine decisions, making them critical to the success of the organization.
Group decisions are taken by conducting committee meetings for any specific purpose. Such decisions are very important for the organization. Committee meetings provide a platform for members to discuss, analyze, and deliberate on various issues before reaching a consensus. These decisions are crucial as they often impact the overall direction and success of the organization. By bringing together diverse perspectives and expertise, committee meetings help ensure that decisions are well-informed and considerate of different viewpoints. Additionally, they promote transparency and accountability within the organization, as decisions are made collectively rather than unilaterally. Overall, group decisions made through committee meetings play a vital role in driving the organization forward and achieving its goals.
6. policy and operative decisions
Policy decisions are critical, so they are taken by top management, it makes a long term impact, and mostly related to basic policies. The operative decision related to day to day operations of the enterprise and taken by low-level management. Operative decisions are crucial for the smooth functioning of the organization on a daily basis. They involve routine tasks, resource allocation, and problem-solving at the operational level.
These decisions are made by front-line managers who are directly involved in overseeing the day-to-day activities of the business. While policy decisions set the overall direction and guidelines for the organization, operative decisions ensure that these policies are implemented effectively and efficiently. Both types of decisions are essential for the success of the enterprise and must be made carefully to achieve the desired outcomes.
7. Long term, departmental and non-economic decision
Long term decisions are taken for a longer time period and the risk involves is high. In such scenarios, thorough analysis and strategic planning are crucial to navigate through uncertainties and potential challenges. It is imperative to consider various factors, anticipate market trends, and assess the long-term implications of each decision. While the risks may be higher, the rewards can also be substantial if the choices are well-informed and aligned with the overarching goals of the organization.
Departmental decisions are taken by the departmental head, related to a particular department. In most cases, the departmental head is responsible for overseeing the day-to-day operations of the department, setting goals and objectives, and making strategic decisions to ensure the department functions effectively. These decisions can range from budget allocations and resource management to staffing and project prioritization. The departmental head plays a crucial role in guiding the direction of the department and ensuring that it aligns with the overall goals and objectives of the organization.
The non-economic decision is related to factors such as technical values, moral behaviour, etc. Non-economic decisions often involve weighing the potential impact on society, the environment, or personal values. These decisions can be influenced by a variety of factors, including ethical considerations, social responsibility, and personal beliefs. Making a non-economic decision requires careful consideration of the potential consequences and a willingness to prioritize values over financial gain.
It’s a pre-determined process. Production planning and control are the two strategies that are working together in every manufacturing unit.
Production planning and control is a process that plans, manages, and controls the allocation of human resources, raw materials, and machinery to achieve maximum efficiency.
Definition of Production planning and control:
Production is the transformation of raw material into finished goods. planning looks ahead anticipates possible problems and decides in advance as to how the production carried out in the best way.
Control makes sure that the programmed production is constantly maintained.
Product Planning is the procedure of identifying and articulating market requirements that define a product’s benefits or features. Product planning works as the basis for decision-making about price, distribution and promotion. Product planning is the process of creating a product idea and following the idea until the product is introduced to the market.
Definition of product Planning
Product planning is the evaluation of the range, specification, and pricing of new and existing products according to the present and future market requirements and competition.
Planning of product is to satisfy the company objectives and to specify the required research, design, and development support. Product planning mean managing the product throughout its life using various marketing strategies, including product extensions or improvements, increased distribution, price changes and promotions.
Concept of Product Planning
Process design is done according to product planning.
In the planning activity, both existing and new products must be included and it follows the activity itself should deal with the proper balance between old and new products.
Product planning usually represents the activity that links the company with its market which is directly concerned with the development of the company.
Product planning can be done by top management or by line management but successful product planning can only occur within a clear framework of goals and objectives laid down by the board of directors.
Objectives of Product planning
To meet the customer needs, It is product planning that identifies the customer needs, requirements, aspirations, likes and preferences and guides the firm’s resources and efforts towards the accomplishment
To spot-light firm’s strengths and weaknesses, so that firm can work on the weakness and improve the product.
To fortify better resource utilization, product planning helps to develop new product and modify existing ones in a way better utilization of resources can be achieved, it reduces the cost of the product.
To guarantee a firm’s survival, product planning predicts what likely to changes in products, technologies, product ideas, inputs so that the latest can be given to the consumers.
Product planning needs for current deficiencies, which are stimulated as a result of some deficiency occurring in the product today and the solution achieved through the development, production, and use of new processes.
Through the prediction of societal, political, ecological, technological and economic trends anticipated needs can be determined. For example- we suspect that economic restrain in future will likely prohibit the use of a certain system that is currently using. As a result replacement of that system exhibit, a lower overall life cycle cost is needed to accomplished the designated function.
Step by step Process of Product Planning
Below are the key steps of product planning that you should go through when planning a new product:
1. Define the product concept
Define the concept is the most important step in your planning process that pivots and defines the product you are trying to build. Write this stage and ensure your idea for the product is effective and realistic. Another part of the product concept is making sure you have unshakable knowledge of the upcoming problems based on your strong understanding of the solutions needed.
2. Market research
A small company should consider doing marketing research before planning a new product. Market researchers use quantitative and qualitative research to gain a better and more complete perspective about a market potential or possibility.
Qualitative researchers target to collect an in-depth understanding of human behaviour and the reasons that govern such behaviour. The methods of qualitative research can be departed into observation and focus groups. The focus groups allowed companies to ask their consumers about their likes and dislike about a product in a small group.
Qualitative research involves thinking and analysis that are non-numerical in nature, which includes questions of “how” and “what”. Qualitative research is suited to solve the problem areas of basic market exploratory studies, product development and diagnostic studies.
Quantitative research refers to the systematic experiential investigation of social phenomena via statistical, mathematical or numerical data or computational techniques. The objective of quantitative research is to develop and employ mathematicalmodels, theories and hypotheses concern with fact.
Quantitative research is about understanding aspects of a market or what kinds of customers making up the market. And it can be split into soft and hard parts. The soft part means phenomena like customer behaviour and the hard part is market size, brand shares, etc.
3. Plan your product testing process
If the results of the surveys prove favourable, the company may decide to launch the new product on a small scale or regional basis. During this time, the company will distribute the products in one or more cities. The company will run advertisements and sales promotions to spread awareness of the product, tracking sales results to determine the products potential success.
4. Product life cycle
Product planning must also include managing the product through several stages of its product life cycle. These stages include the introduction stage, growth stage, maturity stage and decline stage. The product life cycle can be viewed as an important source of investment choice for the company. If a company wants to make sure that it’s products are going to successful, it needs to study the product life cycle to analyze market attractiveness and supplement the conclusion before launch a new product or enters into a new market.
The first stage is Introduction which means it is time for a company or brand to launch and promote its new products. Sales are usually strong during the growth phase, while competition is low. In the introduction stage company want to attract customer’s attention as much as possible and confirm the product’s initial distribution, the company does not need to worry about the competition generally as the products are new.
In the Growth stage, the new products have been accepted in the market and their sales and profits have just begun to increase, the competition has happened so that the company will promote their quality to stay competitive. There will have second communication as the manufacturer can start to receive consumer’s feedback and then make improvements.
The third is the maturity stage where the sales and profit have grown slowly and will reach their peak. The firm will face tremendous competition in terms of creating high-quality products.
The last is the Decline stage where the product is going to end and will be discontinued. The sales of the product will reduce until it is no longer in demand as it has become saturated, customers who want to buy this product has already got that. Then the company or brand will stop making the old products and pays attention to designing and developing the new products to gain back the customer base, stay in the markets.
Elements of product planning
Product planning include-
Marketing and Market analysis.
The performance of feasibility studies.
Advanced product planning.
1.Marketing and Market analysis
The prospect of marketing depending upon the nature of the product. If the product doesn’t have technical specifications, the product is simple, marketing function may not be required direct engineering involvement.
If the product is complex the marketing effort involves a team approach, constituting the nontechnical sales with engineers in a role to support salespeople and answering customer’s questions about characteristics, features, maintenance required, etc.
After the completion of product planning, it is necessary to determine whatever the technology currently exists will satisfy the need or not.
In this case, technology refers to techniques required for achieving a practical goal. And this is basically accomplished through technology review and technological forecasting, which means, what is the market trend and what will likely available in the future, etc.
producer of the prospective system will complete a preliminary analysis of the market potential and market share.
2. Performance of feasibility studies
The performance of the feasibility study is to extend the preliminary market analysis with the intent of arriving at a preferred system configuration that the producer is willing to propose in a response to an identified need.
The feasibility study includes-
A detailed requirement analysis.
Identification of alternative configurations.
Screening and evaluation of available alternatives. And,
Selection of preferred approach.
The output of the study constitutes a proposal covering the technical characteristics of the preferred system configuration. This information, combined with advanced planning data is reviewed to determine whether the manufacturer proceeds further or not.
The feasibility study comprises another important step in the decision- making process, thus influencing further product activities, especially in the case of large scale systems.
system operational concept consists of the following information-
Identification of the ultimate mission of the system.
Determination of the size, weight, accuracy, capacity, rate of output, etc characteristics of the system.
Identification of quantity of equipment, employees, facilities etc.
Determine the time needed to complete the process or how many hours per day, operation cycle per month, etc.
Anticipate how efficiently the production system will perform, the effectiveness of the logistics support, the time between two consecutive maintenance, maintenance downtime, failure rate, etc.
Details of the environmental condition at which the system expected to operate. (eg: temperature, humidity, mountain or flat terrain, etc).
System maintenance concept –
The system maintenance concepts determine how the maintenance support will be there throughout the product life cycle, repair policy, maintenance manpower required, time and cost needed, etc.
It provides the basis to establish the requirement for total logistic support. Give an assumed design configuration of the main functional equipment, it is then necessary to consider how it should be supported. The maintenance concept is completed by logistic analysis, which leads to the identification of maintenance tasks, frequency of the tasks, skill level of the maintenance worker, facilities and data, etc.
The level of maintenance includes- organizational maintenance, intermediate maintenance and depot maintenance.
Organizational maintenance is performed at the operational site. Maintainance at this level limited to a periodic check of the equipment’s performance, cleaning of equipment, visual inspection, repair if needed, replace some old components with new ones, etc.
Intermediate maintenance is performed in mobile or semi-mobile organizations at the customer’s locations. At this level item, is removed or replaced. Intermediate maintenance workers are more skilled and better than those at the organisational maintenance, and they are responsible for performing more effective and detailed maintenance.
Depot maintenance is the highest type of maintenance and supports the accomplishment of tasks above and beyond the capabilities of the Intermediate maintenance level. Deport maintenance is a specialized system, used for maintenance of complex and bulky equipment, large spares, environmental control provision, etc.
Results of the feasibility study will be presented to the management and information should include- Details about functional features and physical characteristics of the system and a description of support and maintenance requirements.
What is Product Design?
Before starting to manufacture a new product or improve a product, it is essential to design the product first.
When a new idea has been conceived and developed to the point at which it shows itself to be both technically and commercially stable, it considers how the product should be made, Factors affecting product design, etc.
What is Plant layout- Plant layout means the arrangement of equipment, material, etc facilities and services of the plant within the selected work area to achieve the productivity as high as possible.
Production is a process of value addition, which is developed to transform a set of input elements like man, raw material, capital, energy, information into finished products and services in proper quality and quantity.
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