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The Significance Of Productivity Analysis

Dec 24, 2007
Productivity is very important in any existing company or organization today. This is precisely why the concept of productivity analysis is something that all companies and organizations have to be very familiar with. In its very basic form, productivity analysis is just a comparison between the estimated and the actual when it comes to manpower expenses.

To determine this comparison, there are actually two items that the company would need. A detailed estimate and accurate time sheets. To get this detailed estimate, research is inevitably needed to avoid any semblance of subjectivity in the matter. Each and every aspect pertaining to manpower expenditures should be considered to get this detailed estimate. As for the time sheets, they should contain all aspects related to work, whether they be coded or indexed. These should then be placed against the correct work order.

A popular misconception regarding productivity analysis is that spot checking is effective. Spot checking is indeed effective to some extent. But the results of spot checking can be misleading at times. This is why trends have to be determined so that the levels of productivity can then be measured more accurately. One way of determining such trends is to develop a chart, so that the results and figures can be seen clearly.

The chart should then contain the scheduled tasks an ordinary work day would entail. These figures should then be placed against the actual manpower that is needed to finish off the daily workload. This way, the comparison would be fitting enough to show you the trends that exist in the performance of the employees and their rate of productivity.

In productivity analysis, it is actually important to notice ongoing trends early on. This is to give way to implement corrective measures, should they be needed. The usual corrective measures companies undertake include adding work schedules and increasing or decreasing the workforce for a particular work schedule.

It is also important to recognize the fact that the productivity of your workforce is not something that you can observe in the visual sense. Visual observation would just give way for subjectivity to arise, and this is something companies have to avoid for the purpose of productivity analysis here would just be defeated. There would be inevitable times when employees would appear idle at the job. Now, some employees are indeed being idle here. However, there are some who are actually working, although they seem to be not. An employee could just be waiting on an order to be signed, for instance. The employee cannot do anything but just stand around while the order is being signed, thus, appearing idle for a few minutes. This is why visual observation is not really reliable when it comes to productivity analysis.

But why the need for productivity analysis? This is primarily because once the figures are determined, there would then be an avenue for needed changes to be implemented right away. With these changes implemented, then the company's rate of productivity would then improve significantly. And this is indeed the ultimate goal any existing company has on top of their list of priorities.
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