Productivity Measurement System


One of the important steps in productivity improvement is establishing a productivity measurement system with the enterprise. This in itself brings some improvement in performance by making people more aware of the meaning of productivity. The following advice could be useful in setting up the measurement system:

  • Determine the elements of the enterprise that most need to be monitored.
  • Determine the types of measure to be used.
  • Select perfect concepts and units of measurement for the output and input of the company as a whole, and for the critical sub-activities.
  • Ascertain the availability of data and make necessary compromises.
  • Select a post activity, section or group within the organization, and test the measurement system to obtain periodic feedback on the results.
  • Assess the system’s value, make any modifications and conduct a new pilot activity if the modifications completely change the original system design.

A measurement system must consider cost effectiveness, the limitations of productivity measurement and whether total factor measurement is necessary; in other words, it must determine the range and terms of the measurement system tasks. It must be easy to use and serve to identify the reasons for the organizational changes.

The general consideration on productivity management helps in identifying the so-called organizational meta-structure of productivity improvement process. Every given method of productivity improvement covers:

  1. Organizational forms of productivity improvement
  2. Productivity improvement areas
  3. Productivity improvement techniques

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Adapting to Change


Competency models provide a tool for determining exactly what skills are required to meet the different needs of the present and probable needs of the future. For example, general agents of a life insurance company are responsible for managing the overall operation of the agency. With increased competition the focus shifted to strategic marketing, territory development and building leadership teams. The company was concerned that the people it was selecting to fill the agent’s role might not be able to meet the challenges of the changing business environment. By using a competency model to determine what behaviors the general agents were now required to perform, the company realized that the job was very different from what it had been five years earlier. Consequently, the company could begin to adjust in selection criteria to reflect the changing demands of the role. It could also ascertain the training needs of the current general agents by identifying their skill gaps and deciding which of those gaps ought to be addressed immediately to ensure high performance.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Principles of Quality Management


Vision-based:

  • Vision will give a sense of direction.
  • Vision will motivate human resource.
  • Vision will help the organization to stay focused.
  • Without vision an organization will fail.
  • Absence of vision will lead to confusion.

 Customer-focused:

  • Open economy has given away monopoly. It is buyer’s market which is in existence now.
  • Without customers no business can exist.
  • Internal customer orientation will improve productivity.
  • One dissatisfied customer can create havoc by unprecedented actions.
  • Retention of customer is the key issue in business.

 Prevention oriented:

  • Prevention is better than cure is a well acknowledged phrase.
  • Prevention orientation will take one nearer to ‘Zero Defects’ status.
  • Foolproof prevention techniques such as ‘Poka Yoka’ are available.
  • Corrective approach calls for costly monitoring mechanism.
  • Correction does not stop recurrence.

 Scientifically approached:

  • Scientific methods are based on fundamental or derived laws of mathematics and science and hence the foundation is strong.
  • Scientific methods are well proved over the years and hence chances of going wrong is remote.
  • Use of scientific methods gives a sense of pride and improves the self esteem of workers.
  • Unscientific methods make one ti depend on the previous experience, which may bot be appropriate.
  • Logical reasoning which may not always be appropriate is avoided in scientific methods.

 Process given more importance than end results:

  • End does not justify means.
  • Proper means will ensure quality result.
  • Zero defect is possible only if the processes are perfect.
  • Process orientation will make workers more responsible.
  • Result orientation will end up with huge los as all the defects are to be rejected.

 Data-based analysis:

  • Data-based approach will always give the best insight to the problem and solution.
  • Information-based or knowledge-based approach may mislead at all times.
  • Data collection is a strenous process; however the returns will be higher.
  • In many situations the raw data themselves will provide solutions to problems or at least provide useful clues.
  • Data collected and documented for one specific purpose, can well be used for some other purpose, thus providing a databank or multiple applications.

 Continuous improvement strategies

  • No one at any point of time can say that ‘Perfection’ has been achieved. Even six sigma companies talk about 3 ppm defects. Hence there is always scope for improvement in everything. Quality improvement is a never ending process.
  • The world has become so competitive that dynamism should reflect in every facet of business, even in product development.
  • Crativity and innovation are the order of the day in business circles.
  • Established tools such as ‘benchmarking’ are available for continuous improvement.
  • Improved products will have a cutting edge in the market.

 Cost conscious attempt:

  • ROI (Return on Investment) is the performance index for any business enterprise.
  • The visible quality costs are like the tip of the iceberg. There are plenty of hidden  costs that go unnoticed.
  • Quality is free, meaning poor quality costs can be offset by good quality profit margin.
  • Affordability is the key factor for customers and profit margin is the key factor for manufacturers.
  • Prevention which could be done with $1 is missed, the failure/defects due to that will cost the company $10. the cost ratios are so high.

 Documentation for traceability

  • Stakeholders ae assured of the quality through documentation.
  • Traceability is effective and easy with documented information.
  • Documentation will amount to standardization.
  • To err is human; documentation helps in curbing human errors.
  • Role clarity is ascertained which reduces workplace confusion.

 Reward/Recognition assured

  • Recognition is one thing that every human being long for.
  • Motivation is the key factor for sustaining quality initiatives.
  • Rewards may be helpful in motivating non-performers to join quality initiators.
  • Disinterest in the job being done is the main culprit for low productivity and poor quality.
  • Human component plays a major role as compared to system component in quality initiatives.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight