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Service Operations Management - Productivity

This document discusses productivity and efficiency in manufacturing and services. It defines productivity as producing more output with the same inputs, while efficiency is producing the same or more output with less inputs. In manufacturing, productivity can be measured by cycle time and throughput. Toshiba improved productivity through training, quality checks, and encouraging worker ideas. For services, productivity is difficult to define and measure as inputs and outputs are less clear. Companies must balance productivity, efficiency, and customer satisfaction.

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Aymen Jarrar
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42 views

Service Operations Management - Productivity

This document discusses productivity and efficiency in manufacturing and services. It defines productivity as producing more output with the same inputs, while efficiency is producing the same or more output with less inputs. In manufacturing, productivity can be measured by cycle time and throughput. Toshiba improved productivity through training, quality checks, and encouraging worker ideas. For services, productivity is difficult to define and measure as inputs and outputs are less clear. Companies must balance productivity, efficiency, and customer satisfaction.

Uploaded by

Aymen Jarrar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Service Operations Management – Spring 2019

Productivity
Group 6

Braidi Nicolas – Fasel Edouard – Hasni Samir – Jarrar


Aymen Salah – Mazolo-Nkina Axel – Roulin Samuel
1. Productivity vs. efficiency
 “My goal is no longer to get more done, but rather to have less to
do.”
Francine Jay
 Productivity: how to produce more output with the same inputs
(quantity focus)

 Efficiency: how to produce the same (or more) output with less
inputs (quality focus)
2
1. Productivity vs. efficiency
 Productivity + efficiency = customer satisfaction

 Challenge: can you increase productivity and efficiency?

 There is often a trade-off


 e.g. quality checks at the end of a production line
 less defects, but less speed
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2. Productivity in manufacturing
  Simple formula:
Productivity =
 Measurement:
 Cycle time: time required to produce a unit of output
 Throughput: average number of units produced over a specific period of time
 Improvement:
 Review workflow: analyse people, processes, technology
 Update workflow: identify areas where change is needed
4
3. The case of Toshiba: Ome Works
Measures to increase productivity:
 Highly skilled workers
 Continuous training
 Quality checks
 Explanation of errors
 Distribution of responsibility
 Encouragement to propose ideas
5
4. Service productivity
 Difficulty to define productivity in the service industry

 Rewarding productivity could be detrimental to customer


satisfaction

 Trade-off between productivity and customer satisfaction

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5. Conclusion
 Defining productivity requires a clear definition of inputs and
outputs  not the case for services

 Finding the right balance between productivity, efficiency and


customer satisfaction is a real challenge for all companies

7
Thank you for
your attention!
8
References
 Bowen, H. Kent, Janice H. Hammond, Sylvie Ryckebusch, and Hiroshi Uchikoga. "Toshiba: Ome Works." Harvard
Business School Case 696-059, February 1996. (Revised February 2008.)
 Bruce Chew, W 1988, “No-Nonsense Guide to Measuring Productivity”, viewed 06 Mar. 2019, <https://
hbr.org/1988/01/no-nonsense-guide-to-measuring-productivity>
 Djellal, F. Gallouj, F. “The productivity Challenge in Services: Measurement and Strategic Perspectives”. Service
Industries Journal, Taylor Francis (Routledge), 2013, 33 (3-4), pp.1-18. <halshs-01133198>
 “Efficiency vs Productivity : Metric that matters … until they don’t”, 2018, viewed 09 Mar. 2019, <http
://www.synchrono.com/efficiency-vs-productivity-manufacturing-operations-metrics/>
 Nichol, M 2015, “The 12 most important metrics to measure in manufacturing”, viewed 09 Mar. 2019, <https
://blog.matthews.com.au/the-12-most-important-metrics-to-measure-in-manufacturing/>
 Powers, S 2017, “Productivity of Services”, video recording, YouTube, viewed 09 Mar. 2019, <https://
www.youtube.com/watch?v=pZpyWrYsKEs>
 “Productivity vs. Efficiency - What Are the Differences?”, 2017, viewed 10 Mar. 2019, <
http://greatpeopleinside.com/productivity-vs-efficiency/>
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