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Vocational Success Productivity Improvement
There are two types of productivity improvement. The first is technology improvement. A very good example of technology improvement is word processing. Before word processing came into existence, the way a business letter was created was for the writer to write out the letter by hand, give it to someone to type, proof read, correct and return to the writer. The writer then proof read the letter again and then sent it out. With word processing, the writer prepares the letter on the word processor. After the word processor checks the spelling, the letter is proof read by the writer who then prints out the letter and sends it out. Technology has made this task simpler and quicker. Our example of a productivity enhancement by better methods and procedures is described below. A food manufacturing plant shipped all of its finished goods orders on Friday. Because all the week’s production waited until that day to ship, the loading docks were congested and the shipment of many items was delayed until Saturday. This happened weekly. The cost of the Saturday overtime represented 11 percent of the total direct labor costs of the department. We advised the client to modify the shipping schedule so that shipments took place daily. As a result in the change of this one procedure the company was able to eliminate Saturday overtime completely. This action not only saved the company over $50,000 per year but also improved employee morale because the employees did not have work every Saturday. This example is from the author’s personal consulting experience.
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This intel was contributed by morgan
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May, 2012
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