1. krishna-agrawala Teacher Graduate School Debater Educator 2. Productivity of an organization is defined as the ratio of outputs produced by the organization and the resources consumed in the process. 3. Here the output refers to the quantity of goods and services produced by the company, and inputs refers to the quantities of resources such as labor, material, physical facilities, and energy consumed for producing the same. 4. Productivity is used to assess the extent to which certain outputs can be extracted from a given input. We can measure productivity for a single input resource such as manpower used, or for multiple resources. There can be many different types of productivity measurement depending on the type of resources considered. 5. Measures of productivity describe how well the resources of an organization are being used to produce input. They are very useful in achieving and maintaining high level of performance in any organization, particularly in improving the efficiency of various operations within the organization as well as for the total organization. Productivity measures are also used for planning, monitoring, and improving performance at national levels. 6. Productivity can be improved by increasing the outputs keeping the inputs constant, or by giving the same quantity of outputs with reduced inputs, or by increasing outputs and at the same time reducing inputs. We can do this by several methods such as: ○ Improving systems and methods of operations. Among other measures this includes use of automation. ○ Improving planning and scheduling. ○ Improving control. ○ Improving motivation of people. productivity Definition Relative measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs. Computed by dividing average output per period by the total costs incurred or resources (capital, energy, material, personnel) consumed in that period, productivity is a critical determinant of cost efficiency. Total Quality Management (TQM) System: Learning objective of the article: 1. Define and explain total quality management (TQM). 2. What are the advantages and disadvantages of total quality management. 1. Definition and explanation of Total Quality Management 2. Advantages 3. Disadvantages Definition and Explanation of the concept of total quality management system : Total quality management (TQM) is an improvement program which provides tools and techniques for continuous improvement based on facts and analysis; and if properly implemented, it avoids counterproductive organizational infighting. The most popular approach to continuous improvement is known as total quality management (TQM). There are two major characteristics of total quality management (TQM) (1) a focus on serving customers and (2) systemic problem solving teams made up of front line workers. A variety of specific tools are available to aid teams in their problems solving. One of these tools is benchmarking which involves studying organizations that are among the best in the world at performing a particular task. Perhaps the most important and pervasive TQM problem solving tool is Plan-do-Check- Act (PDCA) Cycle. The plan do check act cycle is a systematic fact based approach to continuous improvement. Plan-do-Check-Act (PDCA) Cycle: The Plan-Do-Check-Act (PDCA) cycle applies the scientific method to problem solving. In the plan phase, the problem solving team analyzes data to identify possible causes for the problem and then proposes a solution. In the Do phase, an experiment is conducted. In the check phase, the results of the experiment are analyzed. And in the Act phase, if the results of the experiment are favorable, the plan is implemented. If the results of the experiment are not favorable, the team goes back to the original data and starts allover again. Perhaps the most important feature of TQM is that "it improves productivity by encouraging the use of science in decision making and discouraging counter productive defensive behavior. Thousands of organizations have been involved in total quality management (TQM) and similar programs. Advantages of Total Quality Management: 1. Improves reputation- faults and problems are spotted and sorted quicker (zero defects) 2. Higher employee morale– workers motivated by extra responsibility, team work and involvement in decisions of TQM 3. Lower costs – Decrease waste as fewer defective products and no need for separate 4. Quality Control inspectors Disadvantages of Total Quality Management: 1. Initial introduction costs- training workers and disrupting current production whilst being implemented 2. Benefits may not be seen for several years 3. Workers may be resistant to change – may feel less secure in jobs Real Business Example Dramatic Improvement: TQM is not just a big company phenomenon. Penril DataComm is a maryland designer and producer of data communications and equipment. Before embarking on TQM, defect rates were so high that the company was reworking or scrapping one third of everything it made. Applying TQM techniques resulted in an 81% decrease in defects, an 83% decrease in failures in the first three months of use, and a 73% decrease in first year warranty repairs. TQM was credited with taking the company "from the brink of financial disaster" to excellent financial health. Source: "Poor Quality Nearly Short Circuits Electronics Company," Productivity, February 1993. If you are not satisfied with our article about TQM and looking for more detailed articles then use any search engine for the term "total quality management articles" for more information about TQM system. You may also be interested in other relevant articles: 1. Just-in-Time (JIT) Manufacturing and Inventory Control System 2. Kanban 3. Six Sigma 4. Business Process Reengineering (BPR) 5. Theory of Constraints (TOC) Just in Time (JIT) Manufacturing and Inventory Control System: Learning objectives of the article: 1. Define and explain the concept of just in time manufacturing and inventory control system 2. What are advantages and disadvantages of just in time manufacturing system. Traditionally manufacturers have forecasted demand for their products into the future and then have attempted to smooth out production to meet that forecasted demand. At the same time, they have also attempted to keep everyone as busy as possible producing output so as to maximize "efficiency" and (hopefully) reduce costs. Unfortunately, this approach has a number of major drawbacks including large inventories, long production times, high defect rates, production obsolescence, inability to meet delivery schedules, and (ironically) high costs. Non of this is obvious-if it were, companies would long ago have abandoned this approach. Managers at Toyota are credited with the insight that an entirely new approach, called just in time (JIT) was needed. • Definition of Just in time manufacturing • Just-In-Time concept • Benefits / Advantages of just in time manufacturing system • Limitations / Disadvantages of Just in Time Manufacturing • List of Companies that use just in time System Definition and Explanation of Just in Time Manufacturing: Just In Time (JIT) is a production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand. When Companies use Just in Time (JIT) manufacturing and inventory control system, they purchase materials and produce units only as needed to meet actual customers demand. In just in time manufacturing system inventories are reduced to the minimum and in some cases are zero. JIT approach can be used in both manufacturing and merchandising companies. It has the most profound effects, however, on the operations of manufacturing companies which maintain three class of inventories-raw material, Work in process, and finished goods. Traditionally, manufacturing companies have maintained large amounts of all three types of inventories to act as buffers so that operations can proceed smoothly even if there are unanticipated disruptions. Raw materials inventories provide insurance in case suppliers are late with deliveries. Work in process inventories are maintained in case a work station is unable to operate due to a breakdown or other reason. Finished goods inventories are maintained to accommodate unanticipated fluctuations in demand. While these inventories provide buffers against unforeseen events, they have a cost. In addition to the money tied up in the inventories, expert argue that the presence of inventories encourages inefficient and sloppy work, results in too many defects, and dramatically increase the amount of time required to complete a product. Just-In-Time Concept: Under ideal conditions a company operating at JIT manufacturing system would purchase only enough materials each day to meet that days needs. Moreover, the company would have no goods still in process at the end of the day, and all goods completed during the day would have been shipped immediately to customers. As this sequence suggests, "just-in-time" means that raw materials are received just in time to go into production, manufacturing parts are completed just in time to be assembled into products, and products are completed just in time to be shipped to customers. Although few companies have been able to reach this ideal, many companies have been able to reduce inventories only to a fraction of their previous level. The result has been a substantial reduction in ordering and warehousing costs, and much more efficient and effective operations. In a just in time environment, the flow of goods is controlled by a pull approach. The pull approach can be explained as follows. At the final assembly stage a signal is sent to the preceding work station as to the exact amount of parts and materials that would be needed over the next few hours to assemble products to fill customer orders, and only that amount of materials and parts is provided. The same signal is sent back to each preceding workstation so a smooth flow of parts and materials is maintained with no appreciable inventory buildup at any point. Thus all workstations respond to the pull exerted by the final assembly stage, which in turn respond to customer orders.