What Are Productivity and Performance? How Are They Measured in Production?
Productivity is the relationship between the outputs of a production system and the inputs used to create them. Labour, capital, machines, material, energy and knowledge are the inputs; their effective use is what productivity expresses.
How is productivity calculated?
Efficiency is earned minutes divided by attended minutes. Earned minutes are the total standard minutes the operator has produced so far; attended minutes are the total minutes worked so far. Productivity shows the operator's contribution efficiency to the plant.
No system runs at 100% or above. There is no lossless, perfect system anywhere; the goal is to measure the loss and shrink it step by step.
What does performance measure?
Performance is the level at which a job is carried out under the plant's actual conditions. Lost time during the day is deducted from attended minutes, and earned minutes are divided by that net figure. Performance therefore expresses the operator's personal efficiency: stoppages outside the operator's control are removed from the calculation.
Because argemas measures and reports lost-time data, contribution efficiency and personal performance are both computed in the same system, from the same data.
How is productivity improved?
Improvement starts with measurement. After training, data is recorded and the project's current state is measured. Real-time efficiency and piece-count tracking forms are supported by operator-, operation-, quality- and machine-based reports. Live values shown on andon boards and TV screens serve visual management and raise operators' intrinsic motivation.
The Arge Bilişim consulting team and the work-method development unit make the gains permanent through lean-based 5S and kaizen work, managing bottlenecks with short and long follow-ups. The real purpose of performance management is a culture in which employees continuously develop their competencies.